Funko (FNKO) AI Stock Analysis

• Market Cap: $215.90M
• Dividend Yield: N/A
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: -3.30%
• EPS Growth: 85.53%
• Country: US
• Employees: 1,267
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Leisure
• EPS (TTM): -0.33
• Shares Outstanding: 54,287,354
• 10 Day Avg. Volume: 1,936,733
• 30 Day Avg. Volume: 1,312,461
• PEG Ratio: -0.64
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.95
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.50
• Price Target Upside: 39.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 45 Neutral
• Price Target: $5.00 ▲( 27.23% Upside)

Funko's overall stock score reflects significant challenges in financial performance, notably negative earnings and high leverage, which are the most critical factors. Technical indicators corroborate a bearish trend, while valuation concerns persist with negative P/E ratio. Although the company's earnings call and strategic plans suggest potential growth opportunities, substantial risks remain due to tariff impacts and liquidity issues.

Positive Factors

Leadership Strategy

Analyst remains confident in the potential for strengthening growth trends due to new CEO Cynthia William's strategies.

Product Demand

Content-led product demand is promising, with FNKO poised to benefit from product launches tied to major Hollywood properties.

Negative Factors

Retail Caution

Retailers remain cautious into the holidays.

Funko Business Overview & Revenue Model

Company Description

Funko, Inc., a pop culture consumer products company, designs, sources, and distributes licensed pop culture products in the United States, Europe, and internationally. The company provides vinyl, blind-packed miniature, and action figures; fashion accessories, including bags, backpacks, and wallets; apparel, such as t-shirts and hats; board games, plush products, and accessories, such as keychains, pens, and pins; homewares, comprising drinkware, and other home accessories, non-fungible tokens, and others. It offers its products under the Funko, Pop!, Loungefly, Mystery Minis, Paka Paka, Vinyl Gold, Funko Soda, Funko Games, Funko action figures, Funko Plush, Funko Gold, and Popsies brand names; and licenses its properties under the classic evergreen, movie release, current TV, and current video game categories. The company sells its products to specialty retailers, mass-market retailers, e-commerce sites, and distributors; and at specialty licensing and comic book shows, conventions, and exhibitions, as well as through its e-commerce business. Funko, Inc. was incorporated in 2017 and is headquartered in Everett, Washington.

How the Company Makes Money

Funko generates revenue primarily through the sale of its licensed pop culture collectibles and consumer products. The company's key revenue streams include wholesale distribution to retail partners such as big-box stores, specialty retailers, and online platforms, as well as direct-to-consumer sales through its own e-commerce site and physical retail locations. Funko's strong licensing partnerships with major entertainment franchises and brands are significant contributors to its earnings, allowing the company to produce a diverse range of products that resonate with a broad audience. Additionally, Funko capitalizes on limited edition releases and exclusive variants, which often create a sense of urgency and collectible value among consumers, further driving sales.

Funko Financial Statement Overview

Summary

Funko faces profitability and leverage challenges, evidenced by declining revenues and negative net income, paired with a high debt-to-equity ratio. While there are improvements in cash flow generation, the company must address revenue and profitability issues to ensure long-term financial stability.

Income Statement

The income statement shows challenges with profitability as indicated by negative net income and declining revenue over the TTM period. Gross profit margin improved to 54.57% from 31.17% the previous year, but net profit margins remain negative at -1.40%. The company has seen a significant revenue decline of 4.22% in the TTM, indicating potential issues in maintaining market share or demand.

Balance Sheet

The balance sheet stability is concerning with a high debt-to-equity ratio of 1.12, indicating potential leverage risks. Stockholders' equity is steady, but the equity ratio has decreased to 32.95%, reflecting reduced asset backing by equity. Return on equity remains negative at -6.32%, highlighting profitability challenges.

Cash Flow

The cash flow shows improvement with a positive free cash flow growth rate, turning from negative to positive $42.95M in the TTM. Operating cash flow to net income ratio is strong at -4.33, suggesting healthy cash generation relative to net income. However, free cash flow to net income ratio remains problematic due to negative net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.05B	1.10B	1.32B	1.03B	652.54M
	Gross Profit
1.05B	341.69M	434.02M	380.99M	249.15M
	EBIT
12.99M	-103.83M	-12.71M	95.47M	23.54M
	EBITDA
72.65M	55.79M	34.96M	136.66M	67.91M
	Net Income Common Stockholders
-14.72M	-154.08M	-5.24M	67.85M	9.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
34.66M	36.45M	19.20M	83.56M	52.26M
	Total Assets
707.25M	804.64M	1.09B	967.50M	763.59M
	Total Debt
260.31M	362.35M	347.08M	238.63M	262.12M
	Net Debt
225.65M	325.90M	327.88M	155.07M	209.87M
	Total Liabilities
470.90M	566.61M	701.46M	570.95M	441.14M
	Stockholders Equity
233.02M	231.94M	368.22M	321.64M	242.27M
Cash Flow		Free Cash Flow
90.73M	-4.20M	-99.28M	59.60M	88.76M
	Operating Cash Flow
123.52M	30.93M	-40.13M	87.36M	107.24M
	Investing Cash Flow
-25.23M	-39.80M	-78.06M	-27.38M	-18.48M
	Financing Cash Flow
-99.24M	25.60M	54.64M	-28.63M	-61.84M

Funko Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FNKO, the sentiment is Negative. The current price of 3.93 is below the 20-day moving average (MA) of 4.19, below the 50-day MA of 5.17, and below the 200-day MA of 10.13, indicating a bearish trend. The MACD of -0.32 indicates Negative momentum. The RSI at 41.16 is Neutral, neither overbought nor oversold. The STOCH value of 21.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FNKO.

Funko Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAT	80 Outperform	$6.40B	12.45	25.50%	―	-0.73%	88.76%
JAKK	73 Outperform	$224.71M	4.94	21.81%	1.24%	2.89%	41.09%
HAS	70 Outperform	$9.58B	22.55	39.16%	3.17%	-10.31%	―
ESCA	67 Neutral	$206.53M	15.21	8.29%	4.09%	-5.40%	9.57%
Sector *	62 Neutral	$6.88B	11.26	2.78%	3.93%	2.65%	-22.00%
JOUT	59 Neutral	$277.06M	―	-9.70%	5.05%	-7.28%	-924.86%
FNKO	45 Neutral	$215.90M	―	-9.24%	―	-3.30%	85.53%

Funko Corporate Events

Funko Outlines Strategic Growth Plans at Investor Meetings

Funko recently participated in investor meetings, presenting their strategic plans for future growth and expansion into new product categories and e-commerce. The company aims to capitalize on its strong market position and deeply engaged consumer base, which includes a diverse demographic and a growing loyalty program. Funko’s robust portfolio of licensed properties and diversified distribution channels position it well for continued success in the expanding global collectibles market.