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Plby Group, Inc. (PLBY)
:PLBY
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PLBY Group
(NASDAQ:PLBY)
40Underperform
Positive Factors
Debt Management
PLBY Group has reached an agreement with senior lenders to repay its senior debt at a significant discount, aiming to reduce total leverage and future interest payments.
Licensing Agreement
A new 7-year licensing agreement with Sunny Cusco grants exclusive rights to develop and sell apparel and other products on the shop.playboy.com website.
Strategic Business Development
Management is focusing on license-first strategy by selling non-core businesses, raising capital, rationalizing costs, and developing new license revenue streams.
Negative Factors
Business Strategy Concerns
Concerns have been raised about PLBY’s business level performance, strategy, and balance sheet, affecting market perception and confidence.
Financial Performance
PLBY Group reported soft Q2 results with both revenue and adjusted EBITDA falling well below expectations due to the gradual recovery of the licensing business.
Revenue Decline
Reduced promotions drove a ~29% year-over-year decline in Honey Birdette's total revenue, which came in at $24.9 million for Q2, significantly below expectations.
PLBY Group (PLBY) vs. S&P 500 (SPY)
Market Cap
$113.42M
Dividend YieldN/A
Average Volume (3M)894.87K
Price to Earnings (P/E)―
Beta (1Y)1.31
Revenue Growth-44.02%
EPS Growth60.86%
CountryUS
Employees628
SectorConsumer Cyclical
Sector Strength50
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)-0.96
Shares Outstanding93,736,330
10 Day Avg. Volume786,435
30 Day Avg. Volume894,870
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.35
Price to Cash Flow (P/CF)-4.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.00Price Target Upside147.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
PLBY Group Business Overview & Revenue Model
Company DescriptionPLBY Group (PLBY) is a global lifestyle and leisure company renowned for its iconic Playboy brand. The company operates across multiple sectors including media, entertainment, and consumer products. With a focus on leveraging its brand heritage, PLBY Group offers a wide array of products and services ranging from digital content and publications to licensed fashion and lifestyle merchandise. The company aims to build a diverse portfolio that appeals to a broad consumer base worldwide.
How the Company Makes MoneyPLBY Group makes money through a diverse revenue model comprising several key streams. One of the primary sources of income is through licensing agreements, where the company licenses the Playboy brand to third-party manufacturers for a variety of consumer products such as apparel, accessories, and home goods. Additionally, PLBY Group generates significant revenue from its digital media and entertainment segments, offering subscription-based content and advertising opportunities. The company also benefits from brand collaborations and partnerships that expand its market presence and enhance its product offerings. Overall, PLBY Group's earnings are bolstered by its strong brand recognition and strategic initiatives to monetize its intellectual property across multiple channels.
PLBY Group Financial Statement Overview
Summary
PLBY Group is facing severe financial challenges across all key financial statements. The company is struggling with declining revenues, high debt levels, and negative cash flows, which collectively indicate distress. Immediate strategic actions seem necessary to address these financial weaknesses and stabilize operations.Income Statement
The company's income statement shows significant challenges. The TTM data reflects a negative net profit margin of -72.56%, indicating substantial losses. Revenue has declined sharply from $142.95 million to $105.43 million, a drop of 26.23% year-over-year. The EBIT and EBITDA margins are also negative, at -39.21% and -37.75%, respectively, showcasing ongoing operational difficulties.15
Very Negative
Balance Sheet
The balance sheet reveals a precarious financial position with negative equity of -$15.75 million as of the latest TTM period, indicating insolvency. The debt-to-equity ratio cannot be calculated due to negative equity, but the high total debt of $210.84 million suggests significant leverage risks. The total liabilities exceed total assets, leading to stability concerns.30
Negative
Cash Flow
The cash flow statement presents a troubling picture with negative operating cash flow of -$21.38 million in TTM, and a negative free cash flow growth rate. The free cash flow to net income ratio is not meaningful due to negative figures for both metrics, highlighting cash flow strains. The operating cash flow to net income ratio is below 1, further indicating inefficiencies in converting income to cash.20
Very Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 105.43M | 142.95M | 266.93M | 246.57M | 147.66M | 78.11M | Gross Profit |
| 67.64M | 88.17M | 137.29M | 131.72M | 74.48M | 44.47M | EBIT |
| -41.34M | -190.37M | -23.21M | -69.62M | 13.61M | -490.00 | EBITDA |
| -39.79M | -164.08M | -270.52M | -53.38M | 15.87M | ― | Net Income Common Stockholders |
| -76.49M | -180.42M | -277.70M | -79.72M | -5.27M | ― |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 27.74M | 28.12M | 31.64M | 69.25M | 13.43M | 27.74M | Total Assets |
| 418.65M | 334.25M | 552.46M | 935.41M | 412.13M | 100.23K | Total Debt |
| 174.49M | 222.00M | 239.83M | 274.08M | 164.93M | 100.50K | Net Debt |
| 146.75M | 193.88M | 208.19M | 204.84M | 151.50M | -27.64M | Total Liabilities |
| 333.56M | 288.57M | 397.42M | 513.12M | 329.11M | 100.72K | Stockholders Equity |
| 85.30M | 45.89M | 155.25M | 422.49M | 83.02M | -492.00 |
| Cash Flow | Free Cash Flow | ||||
| -24.69M | -46.84M | -67.66M | -54.25M | -71.00K | 863.00K | Operating Cash Flow |
| -21.38M | -43.29M | -59.61M | -36.74M | 813.00K | 5.09M | Investing Cash Flow |
| 12.06M | 12.95M | 8.75M | -273.18M | -5.47M | -16.99M | Financing Cash Flow |
| -1.63M | 26.18M | 11.56M | 370.47M | -8.49M | 6.06M |
PLBY Group Technical Analysis
Neutral
1.21
Price Trends
1.67
Negative
1.45
Negative
1.10
Positive
Market Momentum
-0.15
Positive
34.26
Neutral
18.52
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLBY, the sentiment is Neutral. The current price of 1.21 is below the 20-day moving average (MA) of 1.60, below the 50-day MA of 1.67, and above the 200-day MA of 1.10, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 34.26 is Neutral, neither overbought nor oversold. The STOCH value of 18.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PLBY.
PLBY Group Risk Analysis
PLBY Group disclosed 74 risk factors in its most recent earnings report. PLBY Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PLBY Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $8.92B | 23.41 | 34.75% | 3.33% | -17.28% | ― | |
62 Neutral | $7.85B | 15.85 | -865.98% | 0.60% | 3.41% | -10.41% | |
59 Neutral | $12.41B | 10.34 | 1.32% | 3.61% | 1.65% | -18.04% | |
48 Neutral | $443.97M | ― | -14.59% | 6.28% | -9.09% | -356.14% | |
40 Underperform | $113.42M | ― | -477.69% | ― | -44.02% | 60.86% | |
39 Underperform | $43.74M | ― | 31.02% | ― | -11.65% | -174.54% |
* Consumer Cyclical Sector Average
Performance Comparison
PLBY
PLBY Group
1.29
0.48
59.26%
ACCO
ACCO Brands
4.75
-0.36
-7.05%
HAS
Hasbro
61.86
11.10
21.87%
WW
WW International
0.52
-1.83
-77.87%
MTCH
Match Group
30.74
-2.36
-7.13%
PLBY Group Earnings Call Summary
Earnings Call Date: Nov 12, 2024 | % Change Since: 12.04% | Next Earnings Date: Mar 13, 2025
Earnings Call Sentiment Positive
The earnings call presented positive developments in strategic investments, debt restructuring, and partnerships, with a strong focus on transitioning to an asset-light model. However, challenges remain with losses in the digital subscription segment and uncertainties regarding unsolicited acquisition bids.Highlights
Strategic Investment Boost
Closed a strategic investment from Byborg for over $22 million, resulting in approximately $30 million of cash on the balance sheet.
Debt Restructuring Success
Restructured debt with a $66 million discount on senior debt and issued a $28 million convertible preferred, leading to a net reduction of $38 million in leverage.
Byborg Partnership and Minimum Guarantees
Signed a non-binding LOI for a $300 million total minimum guarantee over 15 years, with $20 million annual payments from Byborg for licensing digital properties.
Asset-Light Model Transition
Progress in transitioning to an asset-light model, including discontinuing Honey Birdette operations and focusing on licensing deals.
Lowlights
Digital Subscription Segment Loss
The digital subscription segment generated $5.4 million in revenue but lost about $2 million in the past quarter.
Unsolicited Bid Rejection
The Board unanimously rejected an unsolicited bid from Cooper Hefner, indicating potential uncertainties in strategic direction.
Company Guidance
During the PLBY Group's Q3 2024 earnings call, significant financial updates were shared, highlighting efforts to strengthen the company's balance sheet and liquidity. The company secured a strategic investment from Byborg totaling over $22 million, resulting in approximately $30 million of cash on hand. A notable $66 million discount on senior debt was achieved through restructuring, and a new $28 million convertible preferred was issued, leading to a net reduction of $38 million in leverage. The convertible preferred can be exercised at PLBY's option within a stock price range of $1.50 to $4.50. Additionally, a non-binding letter of intent was signed with Byborg for a $300 million minimum guarantee over 15 years, equating to $20 million in annual payments, contingent on certain performance metrics. These strategic moves are intended to transition PLBY to an asset-light model, aiming for meaningful profitability, while the discontinuation of operations like Honey Birdette further aligns with this strategy.PLBY Group Corporate Events
Business Operations and Strategy
PLBY Group Advances Deleveraging with Stock Conversion
Neutral
Jan 31, 2025
On January 29, 2025, PLBY Group, Inc. completed the conversion of 7,000 shares of its Series B Convertible Preferred Stock into 3,784,688 shares of common stock as part of its balance sheet streamlining efforts. This conversion, which did not result in any financial proceeds for the company, was executed at a price of $1.85 per share, a 23% premium over the previous securities purchase agreement price. The move reduced the outstanding Series B shares to 21,000.00001 and increased the common stock to 93,736,325 shares, reflecting the company’s ongoing deleveraging strategy.
Executive/Board Changes
PLBY Group Announces Key Executive Retention Agreements
Neutral
Dec 26, 2024
PLBY Group, Inc. announced retention agreements with its key executive officers to recognize their contributions and motivate their continued employment. These agreements involve granting restricted stock units (RSUs) for shares of the company’s common stock, with provisions for potential conversion to cash payments, contingent on future approvals and retention conditions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.