NasdaqGS:JAKK

Stock Analysis Report

Executive Summary

JAKKS Pacific, Inc. develops, produces, and markets consumer products worldwide.

Rewards

Trading at 92.2% below its fair value

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($30M)



Snowflake Analysis

Adequate balance sheet and fair value.


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Share Price & News

How has JAKKS Pacific's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

3.5%

JAKK

6.5%

US Leisure

1.7%

US Market


1 Year Return

-47.2%

JAKK

14.8%

US Leisure

23.6%

US Market

Return vs Industry: JAKK underperformed the US Leisure industry which returned 16.9% over the past year.

Return vs Market: JAKK underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

JAKKIndustryMarket
7 Day3.5%6.5%1.7%
30 Day2.4%4.2%3.5%
90 Day10.9%7.9%11.7%
1 Year-47.2%-47.2%16.8%14.8%26.2%23.6%
3 Year-81.5%-81.5%2.7%-2.5%53.2%43.3%
5 Year-83.2%-83.2%18.5%6.0%75.5%56.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is JAKKS Pacific undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JAKK ($1) is trading below our estimate of fair value ($12.8)

Significantly Below Fair Value: JAKK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: JAKK is unprofitable, so we can't compare its PE Ratio to the Leisure industry average.

PE vs Market: JAKK is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate JAKK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: JAKK is good value based on its PB Ratio (1.4x) compared to the US Leisure industry average (2.6x).


Next Steps

Future Growth

How is JAKKS Pacific forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

97.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JAKK is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: JAKK is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: JAKK is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: JAKK's revenue (4.4% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: JAKK's revenue (4.4% 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 JAKK's Return on Equity is forecast to be high in 3 years time


Next Steps

  • Explore growth companies in the Consumer Durables industry.

Past Performance

How has JAKKS Pacific performed over the past 5 years?

-59.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JAKK is currently unprofitable.

Growing Profit Margin: JAKK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: JAKK is unprofitable, and losses have increased over the past 5 years at a rate of -59.6% per year.

Accelerating Growth: Unable to compare JAKK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: JAKK is unprofitable, making it difficult to compare its past year earnings growth to the Leisure industry (7.4%).


Return on Equity

High ROE: JAKK has a negative Return on Equity (-173.46%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is JAKKS Pacific's financial position?


Financial Position Analysis

Short Term Liabilities: JAKK's short term assets ($360.5M) exceed its short term liabilities ($250.8M).

Long Term Liabilities: JAKK's short term assets ($360.5M) exceed its long term liabilities ($206.6M).


Debt to Equity History and Analysis

Debt Level: JAKK's debt to equity ratio (799.8%) is considered high.

Reducing Debt: JAKK's debt to equity ratio has increased from 175.3% to 799.8% over the past 5 years.


Balance Sheet

Inventory Level: JAKK has a high level of physical assets or inventory.

Debt Coverage by Assets: JAKK's debt is covered by short term assets (assets are 2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable JAKK has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: JAKK is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -17.5% per year.


Next Steps

Dividend

What is JAKKS Pacific's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: JAKK is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of JAKKS Pacific's salary, the management and board of directors tenure and is there insider trading?

7.7yrs

Average management tenure


CEO

Stephen Berman (55yo)

9.8yrs

Tenure

US$3,464,027

Compensation

Mr. Stephen G. Berman has been the Chief Executive Officer, President and Secretary at JAKKS Pacific, Inc. since April 1, 2010, January 1, 1999 and January 1995, respectively. Mr. Berman co-founded the JAK ...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD3.46M) is above average for companies of similar size in the US market ($USD519.76K).

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


Management Age and Tenure

7.7yrs

Average Tenure

54.5yo

Average Age

Experienced Management: JAKK's management team is seasoned and experienced (7.7 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

52yo

Average Age

Experienced Board: JAKK's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: JAKK insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$237,22606 Jan 20
Patrick Soon-Shiong
EntityIndividual
Shares239,622
Max PriceUS$0.99
SellUS$2,238,44306 Jan 20
California Capital Partners, LLC
EntityCompany
Shares2,261,054
Max PriceUS$0.99

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.7%.


Management Team

  • Carmine Russo (59yo)

    President of International Division

    • Stephen Berman (55yo)

      Co-Founder

      • Tenure: 9.8yrs
      • Compensation: US$3.46m
    • Jack McGrath (54yo)

      Executive VP & COO

      • Tenure: 8.4yrs
      • Compensation: US$1.28m
    • Jon Trent

      Senior Vice President of Sales

      • Darryl Wizenberg

        President of Disney Division

        • Tenure: 7yrs
      • Tolly Wizenberg

        Executive Vice President

        • Rick Watkins

          Senior Vice President of Product Development

          • Rachel Griffin

            Vice President of Communication

            • John Kimble (50yo)

              Executive VP & CFO

              • Tenure: 0.2yrs
            • Elsa Morgan

              Sr. Vice President of Human Resources


              Board Members

              • Stephen Berman (55yo)

                Co-Founder

                • Tenure: 9.8yrs
                • Compensation: US$3.46m
              • Rex Poulsen (68yo)

                Independent Director

                • Tenure: 7.1yrs
                • Compensation: US$227.71k
              • Xiaoqiang Zhao (52yo)

                Independent Director

                • Tenure: 2.8yrs
                • Compensation: US$197.71k
              • Andrew Axelrod (37yo)

                Director

                • Tenure: 0.4yrs
              • Alexander Shoghi (38yo)

                Independent Director

                • Tenure: 4.1yrs
                • Compensation: US$187.71k
              • Matthew Winkler

                Director

                • Tenure: 0.4yrs
              • Joshua Cascade

                Independent Director

                • Tenure: 0.4yrs

              Company Information

              JAKKS Pacific, Inc.'s company bio, employee growth, exchange listings and data sources


              Key Information

              • Name: JAKKS Pacific, Inc.
              • Ticker: JAKK
              • Exchange: NasdaqGS
              • Founded: 1995
              • Industry: Leisure Products
              • Sector: Consumer Durables
              • Market Cap: US$30.639m
              • Shares outstanding: 29.62m
              • Website: https://www.jakks.com

              Number of Employees


              Location

              • JAKKS Pacific, Inc.
              • 2951 28th Street
              • Santa Monica
              • California
              • 90405
              • United States

              Listings

              TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
              JAKKNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 1996

              Biography

              JAKKS Pacific, Inc. develops, produces, and markets consumer products worldwide. The company operates through three segments: U.S. and Canada, International, and Halloween. It offers action figures and accessories, such as licensed characters; toy vehicles and accessories; dolls and accessories, including small, large, fashion, and baby dolls based on licenses, as well as infant and pre-school products; private label products; and foot-to-floor ride-on products, inflatable environments, tents, and wagons. The company also provides role and pretend play, dress-up, and novelty products for boys and girls based on various brands and entertainment properties, as well as on its own proprietary brands; and indoor and outdoor kids’ furniture, activity trays and tables, room décor, kiddie pools, and seasonal and outdoor products comprising pool floats and various other pool toys. In addition, it offers Halloween and everyday costumes for various ages based on licensed and proprietary non-licensed brands, and related Halloween accessories; outdoor activity toys; and junior sports toys, including hyper-charged balls, sport sets, and toy hoops. The company sells its products through in-house sales staff and independent sales representatives to toy and mass-market retail chain stores, department stores, office supply stores, drug and grocery store chains, club stores, toy specialty stores, and wholesalers. JAKKS Pacific, Inc. was founded in 1995 and is headquartered in Santa Monica, California. 


              Company Analysis and Financial Data Status

              All financial data provided by Standard & Poor's Capital IQ.
              DataLast Updated (UTC time)
              Company Analysis2020/01/19 23:38
              End of Day Share Price2020/01/17 00:00
              Earnings2019/09/30
              Annual Earnings2018/12/31


              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.