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WildBrain (TSE:WILD)
TSX:WILD
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WildBrain
(TSX:WILD)
56Neutral
Positive Factors
Guidance and Growth
Strong guidance from continuing operations with expected revenue growth of 15-20% and Adjusted EBITDA growth of 12.5-17.5%.
Licensing Revenue
Global licensing revenue growth accelerated by 5% q/q to 32%, with both Strawberry Shortcake and Teletubbies helping the non-Peanuts portion of revenue much more firmly into the material category.
Negative Factors
Cash Flow Management
Free cash flow conversion remains underwhelming, indicating potential cash flow management issues.
Content Creation Revenue
Content Creation and Audience Engagement revenue was a fairly wide miss, down 20% y/y despite an easier comparison due once again to timing.
WildBrain (WILD) vs. S&P 500 (SPY)
Market Cap
$433.12M
Dividend YieldN/A
Average Volume (3M)21.70K
Price to Earnings (P/E)―
Beta (1Y)0.09
Revenue Growth8.40%
EPS Growth-137.80%
CountryCA
Employees548
SectorCommunication Services
Sector Strength87
IndustryEntertainment
Share Statistics
EPS (TTM)-0.07
Shares Outstanding212,314,010
10 Day Avg. Volume34,700
30 Day Avg. Volume21,697
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)-5.45
Price to Sales (P/S)0.00
P/FCF Ratio2.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.50Price Target Upside25.01% Upside
Rating ConsensusHold
Number of Analyst Covering1
WildBrain Business Overview & Revenue Model
Company DescriptionWildBrain (WILD) is a leading Canadian media, entertainment, and content company that specializes in the development, production, distribution, and licensing of children's and family content. The company operates across multiple sectors, including television, digital networks, and consumer products, and is known for its extensive library of beloved shows and characters. WildBrain is also a prominent player in the digital space, with a strong presence on platforms like YouTube where it manages a large network of kids' content channels.
How the Company Makes MoneyWildBrain generates revenue through a diverse array of streams. The company's primary revenue sources include content production and distribution, where it sells and licenses its extensive library of children's programming to broadcasters and streaming platforms globally. Additionally, WildBrain earns money from its digital network WildBrain Spark, which monetizes content through advertising on platforms like YouTube. The company also benefits from consumer products and licensing deals, leveraging its popular characters and IPs to create toys, merchandise, and other branded products. Strategic partnerships and co-productions with other content creators and distributors further enhance WildBrain's revenue generation capabilities.
WildBrain Financial Statement Overview
Summary
WildBrain faces significant financial challenges, marked by declining revenues, negative profitability, and high leverage. While the cash flow position shows some resilience with positive free cash flow, the balance sheet's negative equity and income statement's operational inefficiencies pose considerable risks. Strategic improvements are necessary to stabilize and enhance financial performance.Income Statement
The income statement reflects significant challenges in profitability, with negative net income in recent periods and a declining gross profit margin in the TTM. Revenue growth has been inconsistent, with a notable drop in the latest period compared to the previous year. The EBIT and EBITDA margins have suffered, indicating operational inefficiencies.42
Neutral
Balance Sheet
The balance sheet shows high leverage with a negative stockholders' equity, indicating financial instability. The debt-to-equity ratio cannot be calculated due to negative equity, which is a major concern. Total assets have decreased over time, and the equity ratio is negative, highlighting the company's financial distress.28
Negative
Cash Flow
Cash flow analysis reveals a positive trend in free cash flow growth, which is a positive indicator. The operating cash flow to net income ratio is strong, demonstrating the company's ability to generate cash despite net losses. However, the free cash flow to net income ratio is impacted by negative net income.56
Neutral
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 466.82M | 461.82M | 532.87M | 507.22M | 452.53M | 425.63M | Gross Profit |
| 213.47M | 221.11M | 241.53M | 221.56M | 194.89M | 187.84M | EBIT |
| -68.08M | 81.25M | 64.17M | 64.35M | 55.14M | 51.20M | EBITDA |
| -77.66M | -11.47M | 78.08M | 107.04M | 94.50M | -127.94M | Net Income Common Stockholders |
| -180.98M | -105.97M | -45.55M | 5.64M | -7.08M | -235.97M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 81.82M | 49.72M | 80.35M | 59.90M | 78.43M | 67.89M | Total Assets |
| 1.01B | 1.05B | 1.21B | 1.22B | 1.13B | 1.15B | Total Debt |
| 599.45M | 607.59M | 619.92M | 633.70M | 591.63M | 629.52M | Net Debt |
| 517.63M | 557.88M | 539.57M | 573.80M | 513.20M | 561.63M | Total Liabilities |
| 807.68M | 806.71M | 888.66M | 903.77M | 824.99M | 804.82M | Stockholders Equity |
| -73.89M | -10.74M | 76.04M | 79.43M | 68.59M | 81.35M |
| Cash Flow | Free Cash Flow | ||||
| 135.51M | 70.98M | 85.78M | 22.56M | 99.43M | 88.67M | Operating Cash Flow |
| 138.22M | 73.60M | 94.19M | 33.10M | 105.68M | 96.14M | Investing Cash Flow |
| 2.80M | -6.14M | -8.40M | -10.84M | -15.16M | -7.46M | Financing Cash Flow |
| -123.41M | -98.13M | -73.27M | -46.13M | -79.24M | -45.56M |
WildBrain Technical Analysis
Positive
2.00
Price Trends
1.79
Positive
1.74
Positive
1.49
Positive
Market Momentum
0.06
Negative
67.31
Neutral
90.87
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WILD, the sentiment is Positive. The current price of 2 is above the 20-day moving average (MA) of 1.76, above the 50-day MA of 1.79, and above the 200-day MA of 1.49, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 67.31 is Neutral, neither overbought nor oversold. The STOCH value of 90.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WILD.
WildBrain Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | C$52.24M | 9.02 | 9.94% | ― | 25.69% | ― | |
64 Neutral | C$597.19M | ― | -6.14% | 3.46% | 9.94% | -147.16% | |
60 Neutral | $14.02B | 6.62 | -2.88% | 3.71% | 2.35% | -37.08% | |
56 Neutral | $433.12M | ― | -3581.90% | ― | 8.40% | -137.80% | |
54 Neutral | $641.88M | ― | 94.91% | ― | -3.18% | -139.12% | |
48 Neutral | C$44.90M | ― | -34.78% | ― | -57.56% | -122.33% |
* Communication Services Sector Average
Performance Comparison
TSE:WILD
WildBrain
2.00
0.93
86.92%
TSE:CGX
Cineplex
10.27
1.67
19.42%
TSE:RAY.A
Stingray Digit SV
8.73
1.57
21.93%
TSE:TBRD
Thunderbird Entertainment Group Inc
1.27
-0.54
-29.83%
TSE:BRMI
Boat Rocker Media
0.84
-0.01
-1.18%
WildBrain Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q3-2025)
| % Change Since: -1.96%|
Next Earnings Date:Sep 16, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in licensing revenue and content engagement, underpinned by successful brand activations and solid cash flow. However, there were concerns about economic uncertainties and slight declines in certain revenue streams due to timing issues.Q3-2025 Updates
Positive Updates
Significant Licensing Revenue Growth
Licensing revenue increased by 44% year-over-year, driven by key franchises like Peanuts, Strawberry Shortcake, and Teletubbies.
Strawberry Shortcake's Impressive Performance
Strawberry Shortcake's revenue surged over 200%, surpassing US$150 million in retail sales over the last 12 months.
Strong Content Creation and Audience Engagement
Content Creation and Audience Engagement revenue grew by 40% year-over-year, with production commencing on a new teen live-action series for Netflix and continued growth in FAST viewership.
Global Peanuts and Starbucks Collaboration
A successful global licensing activation with Starbucks led to Peanuts-themed merchandise selling out in the first week in most markets.
Yo Gabba Gabba! Impact at Coachella
Live performances at Coachella generated over 35 million impressions, indicating strong brand engagement.
Solid Free Cash Flow
The company reported a positive free cash flow of $13 million for the quarter and $67 million year-to-date.
Negative Updates
Slight Decline in FAST Revenue
FAST revenue was slightly down in the quarter due to timing impacts, despite underlying growth being strong.
Impact of Mixed Revenue on Margins
Gross margin percentage was lower due to a mix shift in revenues and higher participation costs in the quarter.
Economic Uncertainty and Tariffs
Potential impacts of U.S. tariffs and economic conditions were noted as uncertainties that could affect future performance.
Company Guidance
During WildBrain's Third Quarter Fiscal 2025 Earnings Call, the company reported significant growth across various metrics. Notably, the global licensing business saw a 44% year-over-year increase, driven by key franchises like Peanuts, Strawberry Shortcake, and Teletubbies. Strawberry Shortcake's revenue soared by over 200%, with retail sales exceeding US$150 million in the past year. The company also experienced a 50% increase in minutes viewed on FAST platforms year-to-date and positive free cash flow of $13 million in the quarter. Revenue from continuing operations reached $128 million, a 42% year-over-year rise. Despite the positive performance, adjusted EBITDA from continuing operations is now expected to grow by 5% to 10%, down from the previous 12.5% to 17.5% forecast, due to timing impacts of higher-margin distribution deals. Overall, WildBrain's strategic focus on its core brands and licensing business continues to yield strong results, setting the stage for sustainable growth and cash generation.WildBrain Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
WildBrain Reports Strong Q3 2025 Results with Strategic Focus on Key Franchises
Positive
May 14, 2025
WildBrain Ltd. reported a strong third quarter for 2025, with significant growth in global licensing, driven by its premium franchises and strategic partnerships like the one with Starbucks for Peanuts. The company is simplifying its operations by selling its television broadcast business and focusing on high-growth areas, which has resulted in improved financial metrics, including a 42% increase in revenue from continuing operations and a positive free cash flow. The company maintains a positive outlook for fiscal year 2025, expecting revenue and adjusted EBITDA growth, although the sale of its television business may impact these projections.
The most recent analyst rating on (TSE:WILD) stock is a Hold with a C$1.75 price target. To see the full list of analyst forecasts on WildBrain stock, see the TSE:WILD Stock Forecast page.
Spark’s Take on TSE:WILD Stock
According to Spark, TipRanks’ AI Analyst, TSE:WILD is a Neutral.
WildBrain’s overall stock score reflects a challenging financial position with declining revenues and negative profitability. While the technical indicators and valuation metrics are mixed, the earnings call provides some hope with strong licensing growth and cash flow improvements. The company’s strategic efforts to enhance financial stability and focus on core business priorities may offer potential for future growth.
To see Spark’s full report on TSE:WILD stock, click here.
M&A TransactionsBusiness Operations and Strategy
WildBrain Updates on TV Channel Sale Amid Bell Distribution Changes
Neutral
Apr 14, 2025
WildBrain Ltd. announced an update on the sale of its TV channels, including Family Channel and WildBrainTV, to IoM Media Ventures. Following a decision by the CRTC and an inability to negotiate a new carriage agreement with Bell Canada, Bell plans to remove these channels from its distribution service. This development has led WildBrain and IoM to renegotiate aspects of their sale agreement. Despite these challenges, WildBrain remains committed to its strategic objective of streamlining operations to focus on key franchises, which will allow the company to simplify its voting structure and enhance strategic flexibility.
Spark’s Take on TSE:WILD Stock
According to Spark, TipRanks’ AI Analyst, TSE:WILD is a Neutral.
WildBrain’s stock score of 58 reflects a company facing significant financial challenges but showing potential in certain areas. The primary concerns are the negative profitability and high leverage indicated by the financial performance score. Positive momentum in technical indicators and promising licensing revenue growth highlighted in the earnings call offer some optimism. However, the valuation remains unattractive due to negative earnings and the absence of dividends, which tempers the overall outlook.
To see Spark’s full report on TSE:WILD stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.