Spin Master (TOY) AI Stock Analysis

• Market Cap: C$1.99B
• Dividend Yield: 2.44%
• Average Volume (3M): 106.52K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 1.02
• Revenue Growth: 21.26%
• EPS Growth: 99.49%
• Country: CA
• Employees: 3,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): -0.10
• Shares Outstanding: 32,700,000
• 10 Day Avg. Volume: 148,845
• 30 Day Avg. Volume: 106,515
• PEG Ratio: -0.66
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 1.07
• P/FCF Ratio: 11.56
• 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: C$27.29
• Price Target Upside: 38.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 62 Neutral
• Price Target: C$24.50 ▲(24.75% Upside)

Spin Master's overall stock score is primarily influenced by its stable financial position and moderate valuation. However, challenges in revenue growth and profitability, along with a bearish technical outlook, weigh on the score. The neutral sentiment from the earnings call reflects a balanced view of the company's strengths and challenges.

Positive Factors

Digital Games Growth

The significant growth in digital games revenue indicates strong demand and effective monetization strategies, enhancing long-term revenue diversification and resilience against cyclical toy sales.

License Business Expansion

Expansion in the licensing business through strategic partnerships strengthens brand presence and creates additional revenue streams, supporting long-term growth and market positioning.

Cost Synergies

Realizing cost synergies enhances operational efficiency and profitability, enabling Spin Master to reinvest in growth initiatives and improve competitive positioning over the long term.

Negative Factors

Revenue Decline

The decline in revenue highlights challenges in adapting to changing market conditions, potentially impacting long-term sales growth and necessitating strategic adjustments.

Adjusted EBITDA Decline

A significant decline in adjusted EBITDA reflects pressures on profitability, which could hinder the company's ability to fund future growth initiatives and maintain competitive advantage.

Entertainment Revenue Decrease

The decrease in entertainment revenue suggests challenges in content monetization, which could affect the company's ability to leverage its entertainment segment for brand synergy and growth.

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 multiple channels, primarily driven by its toy segment, which includes the development, manufacturing, and sale of toys and games across various categories. A significant portion of its income is derived from the sale of physical products through retailers worldwide. Additionally, Spin Master capitalizes on its entertainment segment by developing and distributing animated content related to its toy brands, which creates synergies and boosts toy sales. The digital games segment also contributes to revenue through mobile and online gaming platforms, leveraging popular IPs to engage users. Strategic partnerships and licensing agreements further enhance revenue, allowing Spin Master to expand its brand presence and monetize its intellectual properties across multiple platforms.

Spin Master Financial Statement Overview

Summary

Spin Master demonstrates a stable financial position with efficient cost management and moderate leverage. However, challenges in revenue growth and profitability are evident, with declining net profit margins and negative free cash flow growth.

Income Statement

Spin Master shows a mixed performance in its income statement. The company has a solid gross profit margin of 54.02% TTM, indicating efficient cost management. However, the net profit margin has declined to 3.93% TTM, reflecting challenges in maintaining profitability. Revenue growth is negative at -0.49% TTM, suggesting a potential slowdown in sales. The EBIT and EBITDA margins are relatively stable, but the declining revenue growth and net profit margin are areas of concern.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.40 TTM, indicating moderate leverage. The return on equity is 6.54% TTM, which is lower than previous years, suggesting reduced efficiency in generating returns for shareholders. The equity ratio is healthy, showing a strong capital structure. Overall, the balance sheet is stable, but the declining ROE is a point to monitor.

Cash Flow

Cash flow analysis reveals challenges in free cash flow growth, which is negative at -5.30% TTM. The operating cash flow to net income ratio is 0.39 TTM, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.58 TTM, showing a decent conversion of earnings to cash. While cash flow generation is adequate, the negative growth in free cash flow is concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.29B	2.26B	1.90B	2.02B	2.04B	1.57B
Gross Profit	1.24B	1.19B	1.04B	1.10B	1.06B	727.90M
EBITDA	315.60M	279.50M	302.90M	334.70M	325.60M	107.90M
Net Income	90.20M	81.90M	151.40M	261.30M	198.60M	45.50M
Balance Sheet
Total Assets	2.52B	2.63B	1.99B	1.81B	1.74B	1.34B
Cash, Cash Equivalents and Short-Term Investments	128.00M	233.50M	705.70M	644.30M	562.70M	320.60M
Total Debt	531.50M	534.40M	62.10M	71.20M	73.00M	74.40M
Total Liabilities	1.18B	1.23B	570.60M	553.30M	684.30M	499.20M
Stockholders Equity	1.33B	1.40B	1.42B	1.25B	1.05B	842.90M
Cash Flow
Free Cash Flow	283.28M	279.88M	202.23M	212.48M	385.02M	304.50M
Operating Cash Flow	321.25M	312.25M	230.68M	241.98M	410.98M	326.56M
Investing Cash Flow	-148.05M	-1.02B	-137.80M	-106.05M	-151.22M	-89.21M
Financing Cash Flow	-207.10M	257.23M	-44.51M	-19.70M	-16.32M	-17.13M

Spin Master Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 19.64 is below the 20-day moving average (MA) of 21.74, below the 50-day MA of 22.67, and below the 200-day MA of 25.58, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 16.56 is Positive, neither overbought nor oversold. The STOCH value of 1.71 is Positive, 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
LNR	74 Outperform	C$4.49B	21.39	3.62%	1.44%	-2.60%	-64.22%
PET	72 Outperform	C$2.45B	26.54	166.31%	1.31%	5.18%	17.66%
WPK	71 Outperform	C$2.51B	13.12	11.97%	7.77%	4.69%	4.54%
RCH	66 Neutral	C$1.89B	22.75	8.85%	1.78%	5.38%	-13.14%
TOY	62 Neutral	C$1.99B	16.84	6.75%	2.44%	21.26%	99.49%
DOO	54 Neutral	C$6.17B	-163.92	-7.74%	1.01%	-13.78%	-115.58%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Spin Master Corporate Events

Spin Master Reports Q2 2025 Financial Results Amid Revenue Challenges

Spin Master reported a 2.7% decrease in Q2 2025 revenue, primarily due to a decline in Toy Revenue, though this was partially offset by strong growth in the Digital Games segment. Despite the challenging macroeconomic environment, Spin Master maintained market share in its Toy segment and continued to grow its Digital Games, driven by its Toca Boca World and Piknik platforms. The company achieved cost synergies from the Melissa & Doug acquisition and made progress on its tariff mitigation plan, positioning itself to navigate economic uncertainties.

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 Adjusts Timing for Q2 2025 Earnings Call

Spin Master Corp. has announced a time change for its second quarter 2025 earnings call, which will now take place on July 31, 2025, at 9:30 a.m. ET. The company will release its financial results earlier that day, with key executives hosting the call for the investment community. This adjustment in schedule may impact stakeholders who rely on timely financial disclosures for decision-making.

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 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.