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Wildbrain Ltd (TSE:WILD)
:WILD
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WildBrain
(OTC:WILD)
58Neutral
Positive Factors
Guidance
Strong guidance from continuing operations with expected revenue growth of 15-20% and Adjusted EBITDA growth of 12.5-17.5%.
Revenue Growth
Global Licensing segment revenue increased 27% year-over-year, driven by strong performance in Peanuts and growth in owned brands like Strawberry Shortcake and Teletubbies.
Negative Factors
Cash Flow
Free cash flow conversion remains underwhelming, indicating potential cash flow management issues.
Revenue Miss
Content Creation and Audience Engagement revenue was a fairly wide miss, down 20% y/y despite an easier comparison due once again to timing.
WildBrain (WILD) vs. S&P 500 (SPY)
Market Cap
C$365.18M
Dividend YieldN/A
Average Volume (3M)38.83K
Price to Earnings (P/E)―
Beta (1Y)0.03
Revenue Growth-6.17%
EPS Growth-377.69%
CountryCA
Employees548
SectorCommunication Services
Sector Strength79
IndustryEntertainment
Share Statistics
EPS (TTM)-0.87
Shares Outstanding212,314,010
10 Day Avg. Volume20,212
30 Day Avg. Volume38,832
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.86
Price to Cash Flow (P/CF)1.20
P/FCF Ratio1.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$2.42Price Target Upside40.83% Upside
Rating ConsensusHold
Number of Analyst Covering4
WildBrain Business Overview & Revenue Model
Company DescriptionWildBrain Ltd. is a Canadian media, entertainment, and content company specializing in the creation, distribution, and monetization of children's and family entertainment. With a vast library of over 13,000 half-hours of content, WildBrain is known for popular brands such as Peanuts, Teletubbies, and Inspector Gadget. The company operates through various segments, including content production and distribution, licensing and merchandising, and a dedicated network of YouTube channels through WildBrain Spark.
How the Company Makes MoneyWildBrain generates revenue through multiple streams including content production, distribution, and licensing. The company produces original content and distributes it across various platforms, earning money through broadcasting rights and digital streaming deals. Licensing and merchandising form another significant revenue source, as WildBrain licenses its popular IPs for consumer products, securing royalties and licensing fees. WildBrain Spark, the company's network of children's channels on YouTube, monetizes through advertising revenues generated on its extensive online content library. Partnerships with streaming services, broadcasters, and consumer product companies further bolster WildBrain's earnings.
WildBrain Financial Statement Overview
Summary
WildBrain faces significant financial challenges, marked by declining revenues, negative profitability, and high leverage. While the cash flow position shows some resilience with positive free cash flow, the balance sheet's negative equity and income statement's operational inefficiencies pose considerable risks. Strategic improvements are necessary to stabilize and enhance financial performance.Income Statement
The income statement reflects significant challenges in profitability, with negative net income in recent periods and a declining gross profit margin in the TTM. Revenue growth has been inconsistent, with a notable drop in the latest period compared to the previous year. The EBIT and EBITDA margins have suffered, indicating operational inefficiencies.42
Neutral
Balance Sheet
The balance sheet shows high leverage with a negative stockholders' equity, indicating financial instability. The debt-to-equity ratio cannot be calculated due to negative equity, which is a major concern. Total assets have decreased over time, and the equity ratio is negative, highlighting the company's financial distress.28
Negative
Cash Flow
Cash flow analysis reveals a positive trend in free cash flow growth, which is a positive indicator. The operating cash flow to net income ratio is strong, demonstrating the company's ability to generate cash despite net losses. However, the free cash flow to net income ratio is impacted by negative net income.56
Neutral
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 466.82M | 461.82M | 532.87M | 507.22M | 452.53M | 425.63M | Gross Profit |
| 213.47M | 221.11M | 241.53M | 221.56M | 194.89M | 187.84M | EBIT |
| -68.08M | 81.25M | 64.17M | 64.35M | 55.14M | 51.20M | EBITDA |
| -77.66M | -11.47M | 78.08M | 107.04M | 94.50M | -127.94M | Net Income Common Stockholders |
| -180.98M | -105.97M | -45.55M | 5.64M | -7.08M | -235.97M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 81.82M | 49.72M | 80.35M | 59.90M | 78.43M | 67.89M | Total Assets |
| 1.01B | 1.05B | 1.21B | 1.22B | 1.13B | 1.15B | Total Debt |
| 599.45M | 607.59M | 619.92M | 633.70M | 591.63M | 629.52M | Net Debt |
| 517.63M | 557.88M | 539.57M | 573.80M | 513.20M | 561.63M | Total Liabilities |
| 807.68M | 806.71M | 888.66M | 903.77M | 824.99M | 804.82M | Stockholders Equity |
| -73.89M | -10.74M | 76.04M | 79.43M | 68.59M | 81.35M |
| Cash Flow | Free Cash Flow | ||||
| 135.51M | 70.98M | 85.78M | 22.56M | 99.43M | 88.67M | Operating Cash Flow |
| 138.22M | 73.60M | 94.19M | 33.10M | 105.68M | 96.14M | Investing Cash Flow |
| 2.80M | -6.14M | -8.40M | -10.84M | -15.16M | -7.46M | Financing Cash Flow |
| -123.41M | -98.13M | -73.27M | -46.13M | -79.24M | -45.56M |
WildBrain Technical Analysis
Positive
1.72
Price Trends
1.83
Negative
1.62
Positive
1.44
Positive
Market Momentum
-0.04
Positive
43.56
Neutral
76.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WILD, the sentiment is Positive. The current price of 1.72 is below the 20-day moving average (MA) of 1.78, below the 50-day MA of 1.83, and above the 200-day MA of 1.44, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 43.56 is Neutral, neither overbought nor oversold. The STOCH value of 76.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WILD.
WildBrain Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $8.14B | 10.92 | 38.85% | 3.72% | 3.76% | 14.27% | |
75 Outperform | $19.22B | 10.73 | 16.66% | 5.73% | 6.71% | 96.70% | |
66 Neutral | C$531.70M | 6.09 | 10.38% | 5.91% | 0.06% | 115.11% | |
64 Neutral | C$574.08M | ― | -6.14% | 3.55% | 9.94% | -147.16% | |
59 Neutral | $13.83B | 7.37 | -0.59% | 3.89% | 2.56% | -39.63% | |
58 Neutral | C$365.18M | ― | -3581.90% | ― | -6.17% | -377.69% |
* Communication Services Sector Average
Performance Comparison
TSE:WILD
WildBrain
1.67
0.49
41.53%
TSE:QBR.B
Quebecor
36.13
8.75
31.94%
TSE:RCI.B
Rogers Communication
35.84
-14.82
-29.25%
TSE:RAY.A
Stingray Digit SV
8.75
1.62
22.72%
TSE:CGO
Cogeco Inc. SV
60.85
10.83
21.65%
WildBrain Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: -2.27% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call was generally positive, with strong growth in global licensing, successful brand performance, and substantial free cash flow, despite challenges in content creation and non-cash impairments.Highlights
Strong Global Licensing Performance
Global licensing revenue reached $80 million, up 32% year-over-year, marking a record licensing quarter for Peanuts with strong growth in North America, APAC, and Latin America.
Peanuts Franchise Success
Peanuts recorded its highest-ever quarter in licensing revenues, driven by broad-based growth across multiple geographies and categories, including new partnerships like the Snoopy MoonSwatch from Omega and Swatch.
Strawberry Shortcake and Teletubbies Growth
Licensing revenue for Strawberry Shortcake increased by over 200% year-over-year, and Teletubbies grew by over 100%, with Strawberry Shortcake achieving its highest licensing revenue quarter since acquisition.
Strong Free Cash Flow
Free cash flow in the quarter was $49 million, significantly up from $5 million in the same quarter of the previous year, highlighting the quality of asset performance.
Expansion in Audience Engagement
Minutes viewed of WildBrain content across global FAST platforms doubled to approximately 15 billion in calendar 2024, with double-digit growth in views and watch time on WildBrain channels.
Lowlights
Content Creation Revenue Decline
Content creation and audience engagement revenue decreased by 20% year-over-year, impacted by the timing of content distribution deals and live-action production.
Net Loss from Continuing Operations
The company reported a net loss from continuing operations of $69 million, compared to a net income of $7 million in the prior year, driven by non-cash unrealized foreign exchange losses and impairments.
Impairment of Intangibles
Non-cash impairment related to a reduction in net book value of lesser-known titles amounted to a write-down in investment in film and television and acquired intangibles.
Company Guidance
During WildBrain's Second Quarter Fiscal 2025 Earnings Call, the company reported strong growth in several key areas, notably global licensing, which increased revenue by 32% to reach $80 million. The company also saw a significant increase in free cash flow, which rose to $49 million. WildBrain's core franchises, including Peanuts, Strawberry Shortcake, and Teletubbies, contributed significantly to this growth. Peanuts achieved its highest-ever quarter in licensing revenues, while Strawberry Shortcake's licensing revenue increased by over 200% year-over-year, and Teletubbies' by over 100%. The company's content creation and audience engagement revenue stood at $45 million, although this reflected a 20% decline due to the timing of content distribution deals. The company reaffirmed its fiscal 2025 guidance, projecting revenue growth of 10-15% including discontinued operations, and adjusted EBITDA growth of 5-10%. The ongoing sale of a two-thirds stake in WildBrain Television is expected to provide further strategic flexibility, with regulatory approval processes currently underway.WildBrain Corporate Events
M&A TransactionsBusiness Operations and Strategy
WildBrain Updates on TV Channel Sale Amid Bell Distribution Changes
Neutral
Apr 14, 2025
WildBrain Ltd. announced an update on the sale of its TV channels, including Family Channel and WildBrainTV, to IoM Media Ventures. Following a decision by the CRTC and an inability to negotiate a new carriage agreement with Bell Canada, Bell plans to remove these channels from its distribution service. This development has led WildBrain and IoM to renegotiate aspects of their sale agreement. Despite these challenges, WildBrain remains committed to its strategic objective of streamlining operations to focus on key franchises, which will allow the company to simplify its voting structure and enhance strategic flexibility.
Spark’s Take on TSE:WILD Stock
According to Spark, TipRanks’ AI Analyst, TSE:WILD is a Neutral.
WildBrain’s stock score of 58 reflects a company facing significant financial challenges but showing potential in certain areas. The primary concerns are the negative profitability and high leverage indicated by the financial performance score. Positive momentum in technical indicators and promising licensing revenue growth highlighted in the earnings call offer some optimism. However, the valuation remains unattractive due to negative earnings and the absence of dividends, which tempers the overall outlook.
To see Spark’s full report on TSE:WILD stock, click here.
Business Operations and StrategyFinancial Disclosures
WildBrain Reports Q2 2025 Results with Strategic Shift and Revenue Growth
Positive
Feb 11, 2025
WildBrain Ltd. announced its Q2 2025 results, highlighting significant growth in global licensing revenues driven by key franchises, alongside a strategic move to sell a two-thirds stake in its television broadcast business. Despite a net loss this quarter, WildBrain achieved a substantial increase in revenue, adjusted EBITDA, and free cash flow, indicating positive financial prospects and sustained growth potential as it continues to streamline operations and focus on core business priorities.
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.