DTC - JAKKS Pacific Sell-Off Offers A Good Opportunity To Get In At A Discounted Price
2024-03-08 02:14:02 ET
Summary
- Q4 results have been reasonably good with adjusted EBITDA, EPS, and adjusted EPS higher than expected by the market due to the good performance of the gross margin.
- Q4's cautious forecast for the beginning of 2024 has caused the share price to plummet 35% in two sessions, something totally exaggerated.
- JAKKS valuation using multiple parameters (EV/S, EV/EBITDA, EV/Cash flow) shows the great undervaluation that currently presents the company compared with its peers.
- Using these valuation parameters, we can affirm prudently that JAKK is a $50 stock, which is a potential valuation of approximately 100% at current prices.
JAKKS Pacific ( JAKK ) just released Q4 2024 results:
- Revenue of $127.4M (-3.4% Y/Y):
- Q4 Non-GAAP EPS of -$1.04 (+27% Y/Y)
- Gross margin of 26.5%, up 480 basis points vs. Q4 2022, led by improved landed product cost and reduced inventory obsolescence expense
- Adjusted net loss attributable to common stockholders (a non-GAAP measure) of $10.5 million (or $1.04 per diluted share), compared to adjusted net loss attributable to common stockholders of $13.9 million (or $1.42 per diluted share) in Q4 2022
- Adjusted EBITDA (a non-GAAP measure) of $(10.9) million vs. $(12.1) million in Q4 2022
Good results have been obtained, with revenues practically equal to those estimated by the market of $127.4M ($128.7M estimated) and an adjusted EPS of $-1,04, a figure that has exceeded market expectations ($-1.14)....
JAKKS Pacific Sell-Off Offers A Good Opportunity To Get In At A Discounted Price