Cheer Holding (CHR) AI Stock Analysis

• Market Cap: $17.31M
• Dividend Yield: N/A
• Average Volume (3M): 42.25K
• Price to Earnings (P/E): 0.6
• Beta (1Y): 0.39
• Revenue Growth: -3.37%
• EPS Growth: -23.21%
• Country: US
• Employees: 122
• Sector: Communication Services
• Sector Strength: 82
• Industry: Advertising Agencies
• EPS (TTM): 2.55
• Shares Outstanding: 11,635,568
• 10 Day Avg. Volume: 68,363
• 30 Day Avg. Volume: 42,254
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -9.21
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -1.48
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.75
• Price Target Upside: 153.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Cheer Holding's strong financial position and profitability metrics are key strengths, but recent revenue declines and negative free cash flow pose challenges. The stock's technical indicators suggest bearish sentiment, while its low P/E ratio indicates potential undervaluation. Addressing revenue and cash flow issues will be crucial for improving investor confidence.

Cheer Holding Business Overview & Revenue Model

Company Description

Cheer Holding, Inc., through its subsidiaries, provides advertisement and content production services in the People's Republic of China. The company also engages in mobile and online advertising, and media and entertainment businesses. In addition, it operates CHEERS app, an e-commerce platform that allows users to access online store, live streaming, series TV shows, and online games, as well as online short videos, variety shows, and dramas. It is also developing CheerCar App, an interactive entertainment app; CheerReal, a digital collection NFT app; and CheerChat App, an overseas social audio app. The company was formerly known as Glory Star New Media Group Holdings Limited and changed its name to Cheer Holding, Inc. in November 2023. The company was founded in 2016 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Cheer Holding primarily generates revenue through its diversified operations in technology, real estate, and consumer goods. In the technology sector, the company earns money by developing and licensing software solutions and providing IT services. The real estate division contributes to revenue through property development, leasing, and sales of commercial and residential properties. The consumer goods sector generates income by manufacturing and marketing a wide range of products, from household items to personal care products. Strategic partnerships with leading companies in each sector and a focus on innovation and customer satisfaction also play a crucial role in boosting the company's earnings.

Cheer Holding Financial Statement Overview

Summary

Cheer Holding has a solid financial foundation with strong profitability and a conservative capital structure. Despite a decline in revenue, the company's strong balance sheet and efficient operations are commendable. However, negative free cash flow due to high capital expenditures needs attention.

Income Statement

Cheer Holding exhibits strong gross profit margins consistently above 70%. However, revenue has slightly declined over the past year by approximately 3.4%. Despite this, net profit margins remain healthy, and EBIT and EBITDA margins are solid, indicating efficient operational management. The company needs to address the recent revenue decline to maintain its profitability trajectory.

Balance Sheet

The company maintains a robust financial position with a low debt-to-equity ratio, reflecting conservative leverage. The equity ratio is high at around 88%, showcasing financial stability. Return on equity is strong, driven by consistent profitability. This strong balance sheet provides a buffer against economic fluctuations.

Cash Flow

Operating cash flow is positive, yet the free cash flow is negative due to significant capital expenditures. The operating cash flow to net income ratio indicates effective cash generation relative to earnings. However, the negative free cash flow signals potential challenges in funding operations without external financing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
147.20M	152.33M	157.08M	153.01M	123.76M
	Gross Profit
107.81M	112.78M	116.50M	118.07M	85.28M
	EBIT
25.59M	29.29M	26.73M	36.29M	30.67M
	EBITDA
29.41M	33.06M	30.06M	38.80M	54.27M
	Net Income Common Stockholders
25.97M	30.48M	26.89M	35.29M	48.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
197.66M	194.53M	70.48M	77.30M	19.46M
	Total Assets
346.59M	327.63M	205.96M	195.17M	143.40M
	Total Debt
11.32M	5.95M	5.10M	6.42M	10.93M
	Net Debt
-186.34M	-188.27M	-65.38M	-70.89M	-6.80M
	Total Liabilities
41.52M	47.63M	33.46M	35.71M	38.95M
	Stockholders Equity
304.99M	279.93M	172.43M	158.91M	103.98M
Cash Flow		Free Cash Flow
-1.99M	42.17M	-250.00K	43.66M	5.96M
	Operating Cash Flow
22.88M	42.17M	7.74M	46.45M	8.74M
	Investing Cash Flow
-24.86M	-3.00K	-7.99M	-1.05M	-4.42M
	Financing Cash Flow
10.55M	82.02M	508.00K	13.29M	5.38M

Cheer Holding Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.48
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHR, the sentiment is Neutral. The current price of 1.48 is above the 20-day moving average (MA) of 1.21, above the 50-day MA of 1.42, and below the 200-day MA of 2.33, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 59.18 is Neutral, neither overbought nor oversold. The STOCH value of 94.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CHR.

Cheer Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHR	64 Neutral	$17.31M	0.58	8.88%	―	-3.37%	-23.21%
SWAG	62 Neutral	$19.73M	―	-12.29%	―	8.76%	-969.71%
Sector *	60 Neutral	$13.50B	7.33	-2.74%	3.80%	2.09%	-39.49%
GIGM	54 Neutral	$16.25M	―	-5.49%	―	-30.80%	33.18%
DLPN	46 Neutral	$12.06M	―	-79.76%	―	19.85%	41.89%
DRCT	44 Neutral	$7.12M	―	-320.07%	―	-69.54%	-19665.56%
ANGH	33 Underperform	$38.78M	―	-270.84%	―	13.03%	19.07%