Kartoon Studios (TOON) AI Stock Analysis

• Market Cap: $26.28M
• Dividend Yield: N/A
• Average Volume (3M): 138.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: -26.34%
• EPS Growth: 76.18%
• Country: US
• Employees: 344
• Sector: Communication Services
• Sector Strength: 73
• Industry: Entertainment
• EPS (TTM): -0.55
• Shares Outstanding: 47,784,966
• 10 Day Avg. Volume: 117,700
• 30 Day Avg. Volume: 138,539
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.79
• Price to Cash Flow (P/CF): 4.00
• P/FCF Ratio: 4.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Kartoon Studios faces significant financial difficulties, with declining revenue and persistent negative cash flows. These challenges are the primary drivers of a low overall score. Technical analysis indicates weak market sentiment, and valuation metrics highlight investor concerns, contributing to a bearish outlook. Strategic financial improvements are essential for any potential recovery.

Kartoon Studios Business Overview & Revenue Model

Company Description

Kartoon Studios (TOON) is a dynamic entertainment company focused on creating and distributing animated content for children and families. Operating across multiple sectors including television, digital platforms, and consumer products, it aims to engage audiences with compelling storytelling and high-quality animation. The company's core offerings include original animated series, feature films, and a variety of multimedia projects tailored to deliver entertainment experiences across different media channels.

How the Company Makes Money

Kartoon Studios generates revenue through multiple streams, primarily from licensing and distributing its animated content to networks and streaming platforms globally. Additionally, the company capitalizes on its intellectual property by developing merchandise and consumer products, which include toys, apparel, and other branded goods. Revenue is also derived from partnerships and collaborations with other entertainment entities and brands, enhancing the company's market reach and visibility. Furthermore, Kartoon Studios may monetize its content through advertising and sponsorship deals, leveraging its audience base to attract brand partnerships.

Kartoon Studios Financial Statement Overview

Summary

Kartoon Studios is facing significant financial challenges, particularly in achieving profitability. While revenue and profit margins have shown volatility, recent improvements in cash flow are encouraging. The balance sheet is reasonably stable, but the decline in assets and equity needs addressing to ensure long-term viability. Continuous focus on improving operational efficiency and cash management will be crucial for future growth and stability.

Income Statement

The company has experienced fluctuating revenues, with a decline from $62.3M in 2022 to $31.8M in TTM (Trailing-Twelve-Months). Gross profit margins have been inconsistent, and the net income has remained negative, indicating ongoing profitability challenges. There was a significant reduction in EBIT and EBITDA losses from 2022 to TTM, suggesting some improvement in operational efficiency, yet profit margins remain negative.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, improving from 0.83 in 2022 to 0.45 in TTM. The equity ratio is relatively stable, indicating a fair proportion of equity financing. However, the continuous decline in total assets and stockholders' equity could pose a risk to financial stability if the trend persists.

Cash Flow

The company has improved its free cash flow from negative in 2022 to positive in TTM, which is a positive sign for liquidity management. The operating cash flow to net income ratio is unfavorable due to persistent net losses, though cash management is improving. Free cash flow growth indicates better control over expenditures.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
31.78M	44.09M	62.30M	7.87M	2.48M	5.91M
	Gross Profit
8.08M	3.69M	15.03M	-15.04M	-21.26K	998.33K
	EBIT
-19.52M	-72.37M	-22.93M	-55.02M	-17.88M	-6.69M
	EBITDA
-31.42M	-68.90M	-31.07M	-105.88M	-399.13M	-8.10M
	Net Income Common Stockholders
-36.61M	-77.10M	-45.59M	-126.29M	-401.67M	-11.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.68M	16.05M	91.14M	122.58M	100.46M	305.12K
	Total Assets
24.60M	111.44M	246.94M	174.08M	134.20M	29.41M
	Total Debt
4.01M	28.71M	92.37M	9.63M	3.66M	9.63M
	Net Debt
1.33M	24.62M	84.94M	-434.00K	-96.79M	9.33M
	Total Liabilities
11.76M	58.17M	134.07M	29.43M	15.00M	20.33M
	Stockholders Equity
12.84M	51.57M	111.08M	142.73M	119.20M	9.09M
Cash Flow		Free Cash Flow
2.85M	-16.16M	-26.54M	-25.05M	-7.95M	-6.28M
	Operating Cash Flow
2.93M	-16.09M	-25.92M	-23.74M	-7.84M	-6.25M
	Investing Cash Flow
12.34M	73.86M	-30.94M	-127.46M	-1.40M	-26.98K
	Financing Cash Flow
-14.40M	-60.80M	54.44M	60.82M	109.40M	3.50M

Kartoon Studios Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOON, the sentiment is Negative. The current price of 0.55 is below the 20-day moving average (MA) of 0.60, below the 50-day MA of 0.60, and below the 200-day MA of 0.72, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 41.68 is Neutral, neither overbought nor oversold. The STOCH value of 39.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TOON.

Kartoon Studios Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	$12.88B	6.77	-2.53%	3.86%	2.36%	-36.74%
CNVS	58 Neutral	$47.78M	―	-29.22%	―	39.86%	3.86%
AGAE	49 Neutral	$40.79M	―	-13.48%	―	36.15%	-144.64%
DLPN	44 Neutral	$11.45M	―	-79.76%	―	19.85%	41.89%
RDI	38 Underperform	$37.96M	―	-245.80%	―	-5.48%	-14.32%
TOON	35 Underperform	$26.28M	―	-47.93%	―	-26.34%	76.18%