Spin Master (TOY) AI Stock Analysis

• Market Cap: C$2.49B
• Dividend Yield: 2%
• Average Volume (3M): 166.96K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.80
• Revenue Growth: 20.89%
• EPS Growth: -43.13%
• Country: CA
• Employees: 3,000
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Leisure
• EPS (TTM): 1.11
• Shares Outstanding: 33,679,092
• 10 Day Avg. Volume: 210,351
• 30 Day Avg. Volume: 166,959
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.28
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$35.17
• Price Target Upside: 44.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Spin Master's robust revenue growth and strategic acquisitions are key strengths, contributing to a strong financial position. However, declining profit margins and rising liabilities are notable risks. The technical analysis suggests potential short-term volatility, while the company's fair valuation and positive earnings call sentiment provide a balanced outlook.

Positive Factors

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.

Partnerships

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

Valuation

TOY trades at a significant discount to its 5-year average EV/EBITDA and its toy peers, presenting an attractive entry point.

Negative Factors

Foreign Exchange

FX could be a favorable variable as the USD appreciates relative to CAD, making Spin Master a good fit for investors looking for indirect exposure to the USD.

Product Prioritization

Paw Patrol is a top priority and its ongoing popularity is expected to increase with new seasons and special releases on popular platforms like Netflix and YouTube.

Revenue Projections

Melissa and Doug gross revenue may exceed the company’s guidance as the Ms. Rachel launch continues to gain momentum.

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 demonstrates strong revenue growth and efficient operational management, as seen in its income statement. The balance sheet reflects a stable equity base and manageable leverage, although rising liabilities could be a concern. Cash flow statements highlight robust cash generation, but increased capital expenditure must yield positive returns to sustain growth.

Income Statement

Spin Master shows a consistent revenue growth from $1.57B in 2020 to $2.26B in 2024, indicating a positive growth trajectory. The gross profit margins have remained strong, with a gross profit of $1.19B in 2024, reflecting efficient cost management. However, the net profit margin has declined, with net income dropping from $261M in 2022 to $81.9M in 2024, which is a concern for profitability.

Balance Sheet

The company maintains a healthy equity position with stockholders' equity increasing to $1.40B in 2024. Despite an increase in total debt to $534M, the debt-to-equity ratio remains manageable. The equity ratio of 53.2% indicates solid asset financing through equity. However, the rise in total liabilities may pose a risk if not controlled.

Cash Flow

Operating cash flow increased to $328M in 2024, signifying strong cash generation capabilities. Free cash flow also improved to $210M, aiding financial flexibility. However, the high capital expenditure and investing cash outflow suggest significant reinvestment or expansion, which requires careful management to ensure returns.

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
	EBIT
165.50M	188.90M	343.30M	276.00M	47.50M
	EBITDA
295.70M	336.40M	373.30M	379.90M	150.50M
	Net Income Common Stockholders
81.90M	151.40M	261.30M	198.60M	45.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
225.80M	705.70M	644.30M	562.70M	320.60M
	Total Assets
2.63B	1.99B	1.79B	1.74B	1.34B
	Total Debt
534.40M	62.10M	71.20M	73.00M	74.40M
	Net Debt
308.60M	-643.60M	-573.10M	-489.70M	-246.20M
	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: Negative
• Last Price: 24.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TOY, the sentiment is Negative. The current price of 24.38 is above the 20-day moving average (MA) of 22.93, below the 50-day MA of 25.09, and below the 200-day MA of 29.86, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 54.79 is Neutral, neither overbought nor oversold. The STOCH value of 93.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TOY.

Spin Master Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATD	78 Outperform	C$69.11B	19.41	18.66%	1.02%	11.62%	-8.08%
TOY	65 Neutral	C$2.49B	22.40	5.82%	2.00%	20.89%	-43.13%
Sector *	60 Neutral	$6.58B	11.55	3.14%	4.05%	2.58%	-21.37%

Spin Master Corporate Events

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.

Spark’s Take on TSE:TOY Stock

According to Spark, TipRanks’ AI Analyst, TSE:TOY is a Neutral.

Spin Master’s overall score reflects its robust revenue growth and strategic acquisition benefits, offset by bearish technical indicators and declining net profit margins. The company’s fair valuation and strong cash flow are positive, but attention to rising liabilities and effective capital expenditure management remain critical for sustainable growth prospects.

To see Spark’s full report on TSE:TOY stock, click here.

Spin Master to Announce Q1 2025 Financial Results

Spin Master Corp. announced it will release its first quarter 2025 financial results on April 30, 2025, with a subsequent conference call hosted by its executives on May 1, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting its market positioning and investor relations.

Spin Master Reports Strong 2024 Financial Results with Revenue Surpassing $2.2 Billion

Spin Master Corp. reported a significant increase in revenue for 2024, reaching over $2.2 billion, an 18.8% rise from the previous year. The company’s strategic integration of Melissa & Doug contributed to this growth, with notable revenue and adjusted EBITDA increases. Spin Master also achieved substantial net cost synergies and maintained a strong cash flow, supporting its capital allocation strategy. Looking ahead, the company anticipates continued growth in toy sales and revenue, driven by innovation and a robust entertainment content pipeline.