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WildBrain (TSE:WILD)
TSX:WILD
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WildBrain
(TSX:WILD)
Rating:56Neutral
Price Target:
C$2.00
▼(-3.38% Downside)
Positive Factors
Analyst Recommendation
Analyst recommends a buy rating for WildBrain Ltd., indicating confidence in the company's future performance.
Global Licensing Growth
Global licensing revenue increased 44% to $71mm, highlighting the focus on core IP including Strawberry Shortcake and Teletubbies.
Negative Factors
Carriage Agreement Issue
The company was unable to negotiate a new carriage agreement with BCE, who has a ~30% share of Canada's BDU market.
Margin Decrease
Margins decreased ~250bps to 12.4% against BMOe of 17.2% reflecting weaker gross margins and slightly higher proportional NCI.
WildBrain (WILD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$431.13M
Dividend YieldN/A
Average Volume (3M)25.27K
Price to Earnings (P/E)―
Beta (1Y)0.09
Revenue Growth8.40%
EPS Growth-137.80%
CountryCA
Employees548
SectorCommunication Services
Sector Strength96
IndustryEntertainment
Share Statistics
EPS (TTM)-0.07
Shares Outstanding212,380,750
10 Day Avg. Volume24,356
30 Day Avg. Volume25,269
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.67
Enterprise Value/Revenue2.32
Enterprise Value/Gross Profit5.16
Enterprise Value/Ebitda-14.88
Forecast
1Y Price Target
$2.50Price Target Upside20.99% Upside
Rating ConsensusHold
Number of Analyst Covering1
WildBrain Business Overview & Revenue Model
Company DescriptionWildBrain Ltd. is a global media, entertainment, and licensing company known for its extensive portfolio of children's content. The company operates across various sectors, including content production, distribution, and brand licensing. WildBrain owns and manages a vast library of animated and live-action television series, including popular franchises such as Peanuts, Teletubbies, Inspector Gadget, and Strawberry Shortcake. Additionally, WildBrain operates the WildBrain Spark network, one of the largest premium platforms for kids' content on YouTube.
How the Company Makes MoneyWildBrain generates revenue through multiple streams. The primary source of income is content production and distribution, where the company creates and sells television programs and digital content to broadcasters, streaming platforms, and digital networks globally. Another significant revenue stream is brand licensing and merchandising, where WildBrain licenses its intellectual properties (IPs) to various partners for use in toys, apparel, publishing, and other consumer products. Furthermore, WildBrain earns money through advertising on its WildBrain Spark network, which monetizes content views on YouTube. The company also forms strategic partnerships and collaborations with other media companies and platforms to enhance content reach and monetization opportunities.
WildBrain Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Sep 16, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, particularly in licensing, and positive momentum in content creation. The successful global partnership with Peanuts and Starbucks and improved cash flow are notable achievements. However, challenges remain with the timing of distribution deals and potential macro-economic impacts. Overall, the sentiment is positive due to the strong performance and strategic focus on core brands.Q3-2025 Updates
Positive Updates
Strong Licensing Revenue Growth
Licensing revenue grew by 44% year-over-year, driven by strong performances from Peanuts, Strawberry Shortcake, and Teletubbies. Strawberry Shortcake revenue increased by over 200%, and the brand surpassed US$150 million in retail sales over the last 12 months.
Successful Global Campaign with Peanuts and Starbucks
Peanuts partnered with Starbucks for a global IP activation, resulting in merchandise selling out in the first week in most markets, demonstrating strong brand appeal.
Increased Contribution from Owned Brands
Owned brands as a percentage of continuing operations revenue increased from just over 50% to over 70%, indicating a successful focus on core brands.
Positive Cash Flow and Improved Leverage
Free cash flow was positive $13 million, up from negative $3 million in the same quarter last year. Year-to-date free cash flow was positive $67 million, and leverage decreased to 4.4x from 5.3x.
Return to Growth in Content Creation and Audience Engagement
Content Creation and Audience Engagement revenue increased by 40% year-over-year, with new productions for Netflix and Apple TV+ underway.
Negative Updates
Challenges with Timing of Distribution Deals
EBITDA growth guidance was adjusted down due to the timing impact of distribution deals, which are higher margin.
Impact of Macro-Economic Conditions
Potential impacts from U.S. tariffs on the business were noted, although the direct effects are mitigated by the company's diversified operations.
Company Guidance
In the third quarter of fiscal 2025, WildBrain reported strong financial results, driven by significant growth in its global licensing business and core franchises, notably Peanuts, Strawberry Shortcake, and Teletubbies. Licensing revenue surged by 44% year-over-year, while revenue from continuing operations increased by 42% to $128 million. Key owned brands' contribution to revenue rose from just over 50% to over 70%, enhancing profitability. Strawberry Shortcake's revenue alone grew over 200%, surpassing US$150 million in retail sales over the past 12 months. The company also noted a return to growth in Content Creation and Audience Engagement, with new projects for Netflix and Apple TV+. Meanwhile, WildBrain's FAST platforms saw a 50% year-to-date increase in viewership. Guidance for fiscal 2025 includes expected revenue growth of 10% to 15% and adjusted EBITDA growth of 5% to 10%. Despite macroeconomic uncertainties, WildBrain remains optimistic, emphasizing its strategic focus on high-potential IP and diversified revenue streams.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.45
Neutral
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.30
Negative
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.55
Neutral
| 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
Positive
2.07
Price Trends
1.99
Positive
1.95
Positive
1.78
Positive
Market Momentum
0.03
Negative
60.70
Neutral
89.28
Negative
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 2.07 is above the 20-day moving average (MA) of 1.91, above the 50-day MA of 1.99, and above the 200-day MA of 1.78, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 60.70 is Neutral, neither overbought nor oversold. The STOCH value of 89.28 is Negative, 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | C$63.21M | 10.65 | 9.94% | ― | 25.69% | ― | |
69 Neutral | C$700.70M | 15.34 | 17.21% | 2.97% | 10.68% | ― | |
60 Neutral | $46.29B | 4.07 | -13.11% | 4.12% | 1.85% | -42.71% | |
56 Neutral | $431.13M | ― | -3581.90% | ― | 8.40% | -137.80% | |
| ― | $547.91M | ― | ― | ― | ― | ||
| ― | $15.04M | ― | -186.64% | ― | ― | ― | |
45 Neutral | C$161.77M | ― | -38.53% | ― | -59.51% | -545.36% |
* Communication Services Sector Average
Performance Comparison
TSE:WILD
WildBrain
2.07
0.73
54.48%
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8.74
0.92
11.76%
TSE:TBRD
Thunderbird Entertainment Group Inc
1.50
-0.60
-28.57%
TSE:RAY.A
Stingray Digit SV
10.09
2.82
38.79%
QYOUF
QYOU Media
0.02
>-0.01
-33.33%
TSE:BAMI
Boat Rocker Media
7.20
-2.30
-24.21%
WildBrain Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
WildBrain Reports Strong Q3 2025 Results with Strategic Focus on Key Franchises
Positive
May 14, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.