TSX:TOY

Stock Analysis Report

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Executive Summary

Spin Master Corp., a children’s entertainment company, creates, designs, manufactures, and markets various toys, games, products, and entertainment properties in North America, Europe, and internationally.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Spin Master's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TOY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.2%

TOY

2.0%

CA Leisure

2.1%

CA Market


1 Year Return

-31.1%

TOY

-1.4%

CA Leisure

-9.6%

CA Market

Return vs Industry: TOY underperformed the Canadian Leisure industry which returned -1.4% over the past year.

Return vs Market: TOY underperformed the Canadian Market which returned -9.6% over the past year.


Shareholder returns

TOYIndustryMarket
7 Day-1.2%2.0%2.1%
30 Day20.2%14.4%3.2%
90 Day40.3%54.7%12.4%
1 Year-31.1%-31.1%0.5%-1.4%-6.4%-9.6%
3 Year-31.9%-31.9%-4.6%-9.7%7.0%-3.3%
5 Yearn/a1.2%-8.0%26.6%7.2%

Price Volatility Vs. Market

How volatile is Spin Master's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Spin Master undervalued compared to its fair value and its price relative to the market?

32.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TOY (CA$25.51) is trading above our estimate of fair value (CA$25.18)

Significantly Below Fair Value: TOY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TOY is poor value based on its PE Ratio (33x) compared to the XN Leisure industry average (22.6x).

PE vs Market: TOY is poor value based on its PE Ratio (33x) compared to the Canadian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: TOY is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: TOY is good value based on its PB Ratio (2.7x) compared to the XN Leisure industry average (3.9x).


Next Steps

Future Growth

How is Spin Master forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

46.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TOY's forecast earnings growth (46.7% per year) is above the savings rate (1.7%).

Earnings vs Market: TOY's earnings (46.7% per year) are forecast to grow faster than the Canadian market (23.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TOY's revenue (2.7% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: TOY's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TOY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Spin Master performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TOY has a large one-off loss of $22.1M impacting its March 31 2020 financial results.

Growing Profit Margin: TOY's current net profit margins (3.7%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: TOY's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: TOY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TOY had negative earnings growth (-53.2%) over the past year, making it difficult to compare to the Leisure industry average (-11%).


Return on Equity

High ROE: TOY's Return on Equity (8.3%) is considered low.


Next Steps

Financial Health

How is Spin Master's financial position?


Financial Position Analysis

Short Term Liabilities: TOY's short term assets ($861.7M) exceed its short term liabilities ($603.0M).

Long Term Liabilities: TOY's short term assets ($861.7M) exceed its long term liabilities ($90.4M).


Debt to Equity History and Analysis

Debt Level: TOY's debt to equity ratio (49.4%) is considered high.

Reducing Debt: TOY had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: TOY's debt is well covered by operating cash flow (27.4%).

Interest Coverage: TOY's interest payments on its debt are well covered by EBIT (17.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Spin Master current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TOY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TOY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TOY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TOY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TOY's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Anton Rabie (49yo)

no data

Tenure

US$1,123,555

Compensation

Mr. Anton Rabie is a Co-Founder and Co-Chief Executive Officer at Spin Master Corp. and also serves as it's Chairman since 2020. He served as Chairman at Spin Master Corp. since 2015. Mr. Rabie co-founded  ...


CEO Compensation Analysis

Compensation vs Market: Anton's total compensation ($USD1.12M) is below average for companies of similar size in the Canadian market ($USD2.06M).

Compensation vs Earnings: Anton's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Anton Rabie
Co-Founderno dataUS$1.12m29.91% $774.8m
Ronnen Harary
Co-Founder5.5yrsUS$1.12m0.029% $756.4k
Mark Segal
CFO & Executive VP5.33yrsUS$721.04k0.20% $5.1m
Ben Varadi
Chief Creative Officer5.5yrsUS$1.48m2.49% $64.5m
Paul Blom
Interim Executive Vice President of Global Operations & Technology0.42yrno datano data
Sophia Bisoukis
Vice President of Investor Relationsno datano datano data
Christopher Harrs
Executive VP16.5yrsno data0.073% $1.9m
Tara Tucker
Vice President of Global Marketing Communicationsno datano datano data
Tammy Smitham
Vice President of Communications & CSRno datano datano data
Christopher Beardall
Executive Vice President of Global Sales11.5yrsno data0.20% $5.3m
Laura Henderson
Executive Vice President of Marketing & Ecommerce1.17yrsno datano data
Tara Deakin
Executive VP & Chief People Officer0.50yrno datano data

3.3yrs

Average Tenure

56yo

Average Age

Experienced Management: TOY's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anton Rabie
Co-Founderno dataUS$1.12m29.91% $774.8m
Ronnen Harary
Co-Founder5.5yrsUS$1.12m0.029% $756.4k
Ben Varadi
Chief Creative Officer5.5yrsUS$1.48m2.49% $64.5m
Todd Tappin
Independent Director5.5yrsUS$165.00k0.0018% $45.6k
Kevin Glass
Director0.083yrno datano data
Charles Winograd
Lead Independent Director2.17yrsUS$195.00k0.0054% $140.4k
Reginald Fils-Aime
Independent Director0.17yrno datano data
Christina Miller
Independent Director0.17yrno datano data
Dina Howell
Independent Director5yrsUS$165.00kno data
Jeffrey Cohen
Director5.5yrsUS$75.00k0.0027% $70.2k

3.6yrs

Average Tenure

57.5yo

Average Age

Experienced Board: TOY's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TOY insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Spin Master Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Spin Master Corp.
  • Ticker: TOY
  • Exchange: TSX
  • Founded: 1994
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: CA$2.590b
  • Shares outstanding: 102.31m
  • Website: https://www.spinmaster.com

Number of Employees


Location

  • Spin Master Corp.
  • 225 King Street West
  • Suite 200
  • Toronto
  • Ontario
  • M5V 3M2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TOYTSX (The Toronto Stock Exchange)YesSubordinate Voting SharesCACADJul 2015
SP9DB (Deutsche Boerse AG)YesSubordinate Voting SharesDEEURJul 2015
SNMS.FOTCPK (Pink Sheets LLC)YesSubordinate Voting SharesUSUSDJul 2015

Biography

Spin Master Corp., a children’s entertainment company, creates, designs, manufactures, and markets various toys, games, products, and entertainment properties in North America, Europe, and internationally. Its product categories include activities, games & puzzles, and plush; remote control and interactive characters; boys action and construction; pre-school and girls; and outdoor. The company offers its products under various brands, including Zoomer, Bakugan, Erector by Meccano, Hatchimals, Air Hogs, and PAW Patrol. As of March 20, 2020, it produced 11 television series, with various seasons comprising approximately 800 episodes. The company primarily distributes its products in the U.S. through mass and discount retailers. It also serves mass and discount retailers, specialty toy and game retailers, hobby shops, department stores, drug stores, online e-retailers, and distributors in international markets. The company was founded in 1994 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 23:51
End of Day Share Price2020/07/15 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.