MAT - JAKKS Pacific: Zero Debt And Potential For Shareholder Returns Makes It A Buy
2024-05-15 10:22:42 ET
Summary
- Shares of JAKKS Pacific are down ~48% YTD and appear cheap as the toymaker’s TTM revenue is >3x its market value.
- Forthcoming releases like Moana 2, Sonic 3, and ‘The Simpsons’ are expected to strengthen margins.
- Actions, like redemption of preferred shares and reducing debt to zero, have strengthened the balance sheet.
- I believe the stock will significantly outperform the market going forward.
Introduction
Toy maker JAKKS Pacific, Inc. ( JAKK ) has a trailing 12-month revenue of $694.1 million , which is noteworthy considering its small market capitalization of $195.13 million. The anticipated releases of popular products such as Moana 2, Sonic 3, and The Simpsons are expected to boost the company's margins.
The company benefits from strategic acquisitions, a solid international footprint, and a commitment to innovation. Collaborations with popular brands and movie franchises have enabled it to establish itself as a key player in the worldwide toy industry. JAKKS has an impressive brand portfolio and is known for creating engaging products across all age groups....
JAKKS Pacific: Zero Debt And Potential For Shareholder Returns Makes It A Buy