Spin Master (TOY) AI Stock Analysis

• Market Cap: C$2.50B
• Dividend Yield: 1.96%
• Average Volume (3M): 216.98K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.83
• Revenue Growth: 21.55%
• EPS Growth: 16.28%
• Country: CA
• Employees: 3,000
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Leisure
• EPS (TTM): -0.16
• Shares Outstanding: 33,679,092
• 10 Day Avg. Volume: 270,269
• 30 Day Avg. Volume: 216,977
• PEG Ratio: 0.44
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.23
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 1.80
• Enterprise Value/Ebitda: 2.07
• 1Y Price Target: C$30.83
• Price Target Upside: 24.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 74 Outperform
• Price Target: C$27.00 ▲(9.14%Upside)

Spin Master shows strong financial performance and strategic corporate events that position it well for future growth. However, technical indicators and earnings call uncertainties, particularly around tariffs and POS performance, introduce some risk, resulting in a balanced overall score.

Positive Factors

Earnings Performance

Spin Master reported better-than-expected earnings results with revenue and adjusted EBITDA surpassing forecasts.

Market Reach

The How to Train Your Dragon line is expected to cater to both boys and girls, potentially broadening the market reach and customer base for Spin Master.

Product Licensing

Spin Master has extended its Gabby's Dollhouse license with Dreamworks, signaling a continued partnership that could enhance product offerings and brand visibility.

Negative Factors

Guidance Withdrawal

Spin Master withdrew its 2025 guidance for Gross Product Sales, revenue, and adjusted EBITDA margin due to the impact of tariffs.

Profitability Challenges

The Digital Games segment experienced a decline in adjusted operating margin as higher marketing expenses impacted profitability.

Revenue Decline

The Entertainment segment saw a revenue decline of 14% year-over-year due to lower distribution revenue.

Spin Master Business Overview & Revenue Model

Company Description

Spin Master Corp., a children's entertainment company, creates, designs, manufactures, licenses, and markets various toys, entertainment franchises, and digital games in North America, Europe, and internationally. Its product categories include activities, games and puzzles, and plush; preschool, dolls, and interactive; wheels and action; and outdoor. The company offers its products under the PAW Patrol, Bakugan, Kinetic Sand, Air Hogs, Hatchimals, Rubik's Cube, GUND, Toca Boca, Sago Mini, Etch A Sketch, Meccano, and Orbeez brands. It also produced television, video-on-demand, subscription video-on-demand, and movies. The company was founded in 1994 and is headquartered in Toronto, Canada.

How the Company Makes Money

Spin Master generates revenue through the design, manufacture, and sale of a variety of consumer products primarily in the toy industry. The core revenue stream is derived from the sales of toys and games, which are distributed globally across several retail and online channels. Additionally, the company monetizes its entertainment segment through the production and distribution of children's television programming, leveraging popular IPs like PAW Patrol. Spin Master also earns revenue from licensing agreements, where it licenses its brands and characters to other companies for use in consumer products. The digital games segment contributes to its earnings by developing and selling mobile games, often based on its existing toy brands. Strategic partnerships and collaborations with leading entertainment and retail companies further enhance Spin Master's market presence and revenue potential.

Spin Master Financial Statement Overview

Summary

Spin Master's financial performance is strong with significant revenue growth, healthy profitability margins, and a stable financial position. The income statement shows robust revenue and profit growth, the balance sheet reflects balanced leverage and efficient equity utilization, and the cash flow statement highlights strong cash generation capabilities.

Income Statement

Spin Master demonstrated strong revenue growth from $1.57 billion in 2020 to $2.31 billion in TTM. Gross Profit Margin for TTM is 53.3%, indicating effective cost management. The Net Profit Margin improved to 4.87% in TTM, showcasing increased profitability. The EBIT and EBITDA margins are healthy at 8.9% and 14.3%, respectively, reflecting strong operational performance. Overall, the income statement reveals robust growth and profitability.

Balance Sheet

The Debt-to-Equity ratio is moderate at 0.38, indicating balanced leverage. Return on Equity (ROE) for TTM is 8.23%, showing efficient use of equity to generate profits. The Equity Ratio stands at 56.5%, suggesting a stable capital structure with more than half of the assets financed by equity. Overall, the balance sheet reflects a solid financial position with balanced leverage and strong equity utilization.

Cash Flow

Free Cash Flow in TTM is positive at $200.2 million, showing a slight decline from $210.4 million the previous year. The Operating Cash Flow to Net Income Ratio is 2.93, indicating strong cash generation relative to net income. The Free Cash Flow to Net Income Ratio is 1.78, reflecting effective conversion of profits into cash. Overall, the cash flow statement highlights strong cash generation capabilities, though slightly declining free cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.26B	1.90B	2.02B	2.04B	1.57B
Gross Profit	1.19B	1.04B	1.10B	1.06B	727.90M
EBITDA	295.70M	336.40M	373.30M	379.90M	150.50M
Net Income	81.90M	151.40M	261.30M	198.60M	45.50M
Balance Sheet
Total Assets	2.63B	1.99B	1.79B	1.74B	1.34B
Cash, Cash Equivalents and Short-Term Investments	225.80M	705.70M	644.30M	562.70M	320.60M
Total Debt	534.40M	62.10M	71.20M	73.00M	74.40M
Total Liabilities	1.23B	570.60M	550.00M	684.30M	499.20M
Stockholders Equity	1.40B	1.42B	1.24B	1.05B	842.90M
Cash Flow
Free Cash Flow	210.40M	119.60M	149.90M	339.60M	229.70M
Operating Cash Flow	328.00M	227.00M	249.30M	419.10M	310.80M
Investing Cash Flow	-1.07B	-135.30M	-109.20M	-153.20M	-84.90M
Financing Cash Flow	270.20M	-44.10M	-20.30M	-18.30M	-16.30M

Spin Master Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TOY, the sentiment is Positive. The current price of 24.74 is above the 20-day moving average (MA) of 23.79, above the 50-day MA of 24.07, and below the 200-day MA of 27.93, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 59.49 is Neutral, neither overbought nor oversold. The STOCH value of 66.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TOY.

Spin Master Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOY	74 Outperform	C$2.50B	16.57	8.04%	1.96%	21.55%	16.28%
Sector *	56 Neutral	HK$25.30B	3.94	-2.03%	6.16%	-0.31%	-67.70%
LIMAF	―	$2.92B	15.98	4.66%	1.73%	―	―
DOOO	―	$3.54B	18.62	26.57%	1.30%	―	―
WPK	78 Outperform	C$2.80B	13.81	11.26%	0.44%	5.50%	9.93%
PET	78 Outperform	C$2.34B	26.67	99.31%	1.40%	4.61%	3.95%
RCH	67 Neutral	C$1.92B	23.04	9.00%	1.77%	5.38%	-13.14%

Spin Master Corporate Events

Spin Master to Announce Q2 2025 Financial Results

Spin Master Corp. has announced that it will release its second quarter 2025 financial results on July 31, 2025. The announcement includes a scheduled conference call for the investment community, hosted by CEO Christina Miller and CFO Jonathan Roiter. This event is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting its market positioning and investor confidence.

The most recent analyst rating on (TSE:TOY) stock is a Buy with a C$46.00 price target. To see the full list of analyst forecasts on Spin Master stock, see the TSE:TOY Stock Forecast page.

Spin Master Announces New CEO, Christina Miller, to Lead Next Growth Phase

Spin Master Corp. has announced a leadership transition with Christina Miller, a seasoned executive with over 25 years of experience in media and entertainment, being appointed as the new CEO effective July 7, 2025. This change follows a succession planning process and aims to leverage Miller’s expertise to further the company’s legacy of creativity and innovation, positioning Spin Master for continued growth and success in the children’s entertainment industry.

The most recent analyst rating on (TSE:TOY) stock is a Buy with a C$46.00 price target. To see the full list of analyst forecasts on Spin Master stock, see the TSE:TOY Stock Forecast page.

Spin Master Appoints New CFO as Mark Segal Retires

Spin Master Corp. announced the appointment of Jonathan Roiter as the new Executive Vice President and Chief Financial Officer, succeeding Mark Segal who is retiring. Roiter, who brings extensive experience in finance and operational leadership, is expected to enhance Spin Master’s focus on long-term shareholder value. His background in the consumer-packaged goods industry and previous roles in public companies are anticipated to strengthen the company’s financial foundation and drive growth.

Spin Master Corp. Welcomes Gary Vaynerchuk to Board of Directors

Spin Master Corp. announced the election of Gary Vaynerchuk to its Board of Directors during the company’s Annual Meeting of Shareholders. Vaynerchuk, a prominent figure in digital marketing and social media, is expected to bring his entrepreneurial expertise and forward-thinking approach to support Spin Master’s ongoing innovation and connection with children and families. His addition to the board is anticipated to enhance the company’s strategic direction and industry positioning.

Spin Master Corp. Reports Strong Q1 2025 Amid Tariff Uncertainties

Spin Master Corp. reported a strong start to 2025 with a 13.6% increase in revenue for Q1, driven by robust performance in its Toys and Digital Games segments. Despite the challenges posed by potential U.S. tariffs, the company managed to reduce its net debt by over $70 million and continues to focus on cost management and sourcing strategies to mitigate impacts. The company has withdrawn its 2025 outlook due to uncertainties in global tariff policies but remains committed to its strategic initiatives and shareholder returns through share repurchases and dividends.