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....
Read the full article on Seeking Alpha
For further details see:
JAKKS Pacific: Zero Debt And Potential For Shareholder Returns Makes It A Buy