WildBrain (WILD) AI Stock Analysis

• Market Cap: $424.76M
• Dividend Yield: N/A
• Average Volume (3M): 35.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: 8.40%
• EPS Growth: -137.80%
• Country: CA
• Employees: 548
• Sector: Communication Services
• Sector Strength: 87
• Industry: Entertainment
• EPS (TTM): -0.07
• Shares Outstanding: 212,380,750
• 10 Day Avg. Volume: 21,415
• 30 Day Avg. Volume: 35,092
• PEG Ratio: N/A
• Price to Book (P/B): -5.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.52
• 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: $2.76
• Price Target Upside: 33.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 56 Neutral
• Price Target: C$2.00 ▼(-3.38%Downside)

WildBrain's score is primarily influenced by its financial instability due to net losses and negative equity, posing significant risks. Positive factors include technical momentum and strong earnings call performance, but valuation concerns weigh heavily. Strategic growth in content and licensing offers potential, but financial health remains a critical concern.

Positive Factors

Analyst Confidence

Analyst recommends a buy rating for WildBrain Ltd., indicating confidence in the company's future performance.

Content Creation

Content Creation returned to growth, alleviating fears about declining demand in WildBrain's content.

Global Licensing Growth

Global licensing revenue increased 44% to $71mm, highlighting the focus on core IP including Strawberry Shortcake and Teletubbies.

Negative Factors

Fundamental Challenges

WildBrain faces fundamental challenges as streamers and cable channel operators focus on cash flow over volume growth.

Margin Weakness

Margins decreased ~250bps to 12.4% against BMOe of 17.2% reflecting weaker gross margins and slightly higher proportional NCI.

Negotiation Challenges

The company was unable to negotiate a new carriage agreement with BCE, who has a ~30% share of Canada's BDU market.

WildBrain Business Overview & Revenue Model

Company Description

WildBrain (WILD) is a leading Canadian media, entertainment, and content company that specializes in the development, production, distribution, and licensing of children's and family content. The company operates across multiple sectors, including television, digital networks, and consumer products, and is known for its extensive library of beloved shows and characters. WildBrain is also a prominent player in the digital space, with a strong presence on platforms like YouTube where it manages a large network of kids' content channels.

How the Company Makes Money

WildBrain generates revenue through a diverse array of streams. The company's primary revenue sources include content production and distribution, where it sells and licenses its extensive library of children's programming to broadcasters and streaming platforms globally. Additionally, WildBrain earns money from its digital network WildBrain Spark, which monetizes content through advertising on platforms like YouTube. The company also benefits from consumer products and licensing deals, leveraging its popular characters and IPs to create toys, merchandise, and other branded products. Strategic partnerships and co-productions with other content creators and distributors further enhance WildBrain's revenue generation capabilities.

WildBrain Financial Statement Overview

Summary

WildBrain's financial performance is characterized by inconsistent revenue growth, negative net profit margins, and a negative equity position, indicating high financial risk. While cash flow from operations has improved, the sustainability of these cash flows is questionable due to recurring net losses and heavy debt reliance.

Income Statement

WildBrain has experienced inconsistent revenue growth with a notable decline in the latest TTM. Gross profit margins remain relatively stable, but the net profit margin is negative, reflecting ongoing net losses. The negative EBITDA margin in the latest TTM indicates operational challenges in generating earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The company is operating with negative stockholders' equity in the latest TTM, indicating a high leverage position with a debt-to-equity ratio that cannot be calculated due to negative equity. This poses a significant financial risk. The equity ratio is also negative, highlighting the company's reliance on debt financing.

Cash Flow

Cash flow from operations has improved in the latest TTM, resulting in a positive free cash flow. The operating cash flow to net income ratio is strong, suggesting good cash conversion despite net losses. However, the sustainability of cash flows given the recurring net losses remains a concern.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	461.82M	532.87M	507.22M	452.53M	425.63M
Gross Profit	221.11M	241.53M	221.56M	194.89M	187.84M
EBITDA	-11.47M	78.08M	107.04M	94.50M	-127.94M
Net Income	-105.97M	-45.55M	5.64M	-7.08M	-235.97M
Balance Sheet
Total Assets	1.05B	1.21B	1.22B	1.13B	1.15B
Cash, Cash Equivalents and Short-Term Investments	49.72M	80.35M	59.90M	78.43M	67.89M
Total Debt	607.59M	619.92M	633.70M	591.63M	629.52M
Total Liabilities	806.71M	888.66M	903.77M	824.99M	804.82M
Stockholders Equity	-10.74M	76.04M	79.43M	68.59M	81.35M
Cash Flow
Free Cash Flow	70.98M	85.78M	22.56M	99.43M	123.29M
Operating Cash Flow	73.60M	94.19M	33.10M	105.68M	130.75M
Investing Cash Flow	-6.14M	-8.40M	-10.84M	-15.16M	-7.46M
Financing Cash Flow	-98.13M	-73.27M	-46.13M	-79.24M	-80.18M

WildBrain Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.07
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WILD, the sentiment is Negative. The current price of 2.07 is above the 20-day moving average (MA) of 2.07, above the 50-day MA of 2.04, and above the 200-day MA of 1.64, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.17 is Neutral, neither overbought nor oversold. The STOCH value of 45.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WILD.

WildBrain Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAY.A	74 Outperform	C$717.13M	19.49	14.14%	2.88%	12.00%	―
TBRD	73 Outperform	C$73.99M	12.07	9.94%	―	25.69%	―
CGX	58 Neutral	$714.94M	―	94.91%	―	-3.18%	-139.12%
WILD	56 Neutral	$424.76M	―	-3581.90%	―	8.40%	-137.80%
Sector *	55 Neutral	HK$66.95B	-2.16	-3.62%	5.80%	-4.24%	-17.51%
BRMI	52 Neutral	C$52.36M	―	-49.83%	―	-58.70%	-711.28%

WildBrain Corporate Events

WildBrain Reports Strong Q3 2025 Results with Strategic Focus on Key Franchises

WildBrain Ltd. reported a strong third quarter for 2025, with significant growth in global licensing, driven by its premium franchises and strategic partnerships like the one with Starbucks for Peanuts. The company is simplifying its operations by selling its television broadcast business and focusing on high-growth areas, which has resulted in improved financial metrics, including a 42% increase in revenue from continuing operations and a positive free cash flow. The company maintains a positive outlook for fiscal year 2025, expecting revenue and adjusted EBITDA growth, although the sale of its television business may impact these projections.

The most recent analyst rating on (TSE:WILD) stock is a Hold with a C$1.75 price target. To see the full list of analyst forecasts on WildBrain stock, see the TSE:WILD Stock Forecast page.