Kartoon Studios (TOON) AI Stock Analysis

• Market Cap: $30.88M
• Dividend Yield: N/A
• Average Volume (3M): 156.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: -26.34%
• EPS Growth: 76.18%
• Country: US
• Employees: 344
• Sector: Communication Services
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): -0.14
• Shares Outstanding: 47,784,966
• 10 Day Avg. Volume: 211,898
• 30 Day Avg. Volume: 156,835
• PEG Ratio: -0.03
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.11
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 4.61
• Enterprise Value/Ebitda: -0.31
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Kartoon Studios is facing severe financial difficulties, with declining revenues and consistent losses impacting its financial health. While technical indicators are mixed, the stock's negative P/E ratio and absence of dividends make it unattractive from a valuation standpoint. Strategic interventions are crucial to improving financial stability and performance.

Kartoon Studios Business Overview & Revenue Model

Company Description

Kartoon Studios Inc., a content and brand management company, creates, produces, licenses, and broadcasts educational and multimedia animated content for children worldwide. The company offers Ukulele U, a live-action IP preschool music series; Team Zenko Go!, a preschool computer animated children's streaming television series; Rainbow Rangers, an animated series about the adventures of seven magical girls; Guava Juice, a 2D animated IP series; Shaq's Garage, a children's animated series about the secret adventures; Cocomelon that provides 3D animation videos of traditional nursery rhymes and children's songs; Eggventurers, a preschool animated series; Barbie Productions that provides animated Barbie series; Octonauts, a children's television series based on the children's books; Roblox Rumble, an elimination-style competitive reality series; Spin Master Productions; Madagascar; and Bee & PuppyCat. It also operates a cartoon channel over various platforms. In addition, the company acts as a licensing agent for Llama Llama, Bee & PuppyCat, and Castlevania. It serves various customers and partners, including broadcasters, consumer products licensees, and online platforms. The company was formerly known as Genius Brands International, Inc. and changed its name to Kartoon Studios Inc. in June 2023. Kartoon Studios Inc. was incorporated in 2006 and is headquartered in Beverly Hills, California.

How the Company Makes Money

Kartoon Studios generates revenue through multiple streams, primarily from licensing and distributing its animated content to networks and streaming platforms globally. Additionally, the company capitalizes on its intellectual property by developing merchandise and consumer products, which include toys, apparel, and other branded goods. Revenue is also derived from partnerships and collaborations with other entertainment entities and brands, enhancing the company's market reach and visibility. Furthermore, Kartoon Studios may monetize its content through advertising and sponsorship deals, leveraging its audience base to attract brand partnerships.

Kartoon Studios Financial Statement Overview

Summary

Kartoon Studios faces substantial financial challenges, with declining revenues, persistent losses, and negative cash flows. The debt-to-equity ratio shows some improvement, but the company's inability to generate profits or positive cash flow from operations poses significant risks. Strategic improvements are necessary for financial recovery and stability.

Income Statement

The income statement indicates a significant decline in revenue from $62.3M in 2022 to $32.6M in 2024, showing a negative revenue growth trend. Profit margins are severely negative, with a net profit margin of -63.6% in 2024. The company has not achieved positive EBIT or EBITDA margins over the past years, reflecting ongoing challenges in managing costs and achieving profitability.

Balance Sheet

The balance sheet shows a decrease in total assets and stockholders' equity over the years, indicating financial instability. The debt-to-equity ratio improved from 0.56 in 2023 to 0.19 in 2024, suggesting better leverage management. However, the equity ratio of 40.9% in 2024 indicates moderate financial health, but ongoing losses present a risk to equity stability.

Cash Flow

The cash flow statement highlights negative free cash flow consistently, with a slight improvement in operating cash flow from -$16.1M in 2023 to -$3.5M in 2024. The free cash flow to net income ratio remains negative, underscoring poor cash generation relative to net losses. The company needs to improve cash flow management to support its operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
32.59M	44.09M	62.30M	7.87M	2.48M
	Gross Profit
9.46M	3.69M	15.03M	-15.04M	-21.26K
	EBIT
-17.00M	-72.37M	-22.93M	-55.02M	-17.88M
	EBITDA
-15.74M	-68.90M	-31.07M	-105.88M	-399.13M
	Net Income Common Stockholders
-20.74M	-77.10M	-45.59M	-126.29M	-401.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.91M	16.05M	91.14M	122.58M	100.46M
	Total Assets
85.47M	111.44M	246.94M	174.08M	134.20M
	Total Debt
16.78M	28.71M	92.37M	9.63M	3.66M
	Net Debt
8.90M	24.62M	84.94M	-434.00K	-96.79M
	Total Liabilities
49.01M	58.17M	134.07M	29.43M	15.00M
	Stockholders Equity
34.97M	51.57M	111.08M	142.73M	119.20M
Cash Flow		Free Cash Flow
-3.61M	-16.16M	-26.54M	-25.05M	-7.95M
	Operating Cash Flow
-3.49M	-16.09M	-25.92M	-23.74M	-7.84M
	Investing Cash Flow
10.01M	73.86M	-30.94M	-127.46M	-1.40M
	Financing Cash Flow
-3.13M	-60.80M	54.44M	60.82M	109.40M

Kartoon Studios Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOON, the sentiment is Positive. The current price of 0.64 is above the 20-day moving average (MA) of 0.59, above the 50-day MA of 0.60, and below the 200-day MA of 0.69, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.52 is Neutral, neither overbought nor oversold. The STOCH value of 67.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TOON.

Kartoon Studios Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$13.88B	7.03	-2.76%	3.71%	2.20%	-43.04%
CNVS	56 Neutral	$46.98M	―	-29.22%	―	39.86%	3.86%
AGAE	49 Neutral	$70.13M	―	-13.48%	―	36.15%	-144.64%
DLPN	45 Neutral	$11.17M	―	-98.74%	―	0.31%	27.47%
RDI	44 Neutral	$45.53M	―	-245.80%	―	-5.48%	-14.32%
TOON	41 Neutral	$30.88M	―	-47.93%	―	-26.34%	76.18%