One-glance verdict
Undervalued
$51.71 our estimate vs market $32.18
Wall Street consensus: $48.50 (-6.2% lower than our fair-value estimate)
38% below our estimate, below the bear case
Fundamentals snapshot
JAKKS Pacific, Inc.
JAKK · NMS · Consumer Cyclical · Leisure
Current price
$32.18
52-week range
$14.87 - $32.42
Market cap
$368.27M
Balance sheet
Healthy
30.19x Strong cushion
Net cash $887.00K. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Returns 9.8% on equity, ahead of 20% of its peers.
- Reward Free cash flow was positive in 6/10 years.
- Reward Dividend yield is 3.1% with 16-year payout history.
- Risk Stock trades 124.0% above its 5-year average P/E.
What this company does
JAKKS Pacific, Inc.
JAKKS Pacific designs and sells a wide range of toys, costumes, and children's furniture, with most of its money coming from selling these products to big retail stores. This matters because how well they sell these items directly impacts their profits and ability to grow.
How the company got here
JAKKS Pacific was founded in 1995 by Jack Friedman and Stephen Berman, who had prior experience in the toy industry. The company quickly established itself by securing a major toy license for the World Wrestling Federation (WWF). Over the years, JAKKS Pacific has grown through strategic acquisitions of other toy companies and by forming partnerships with major entertainment brands like Disney, Nintendo, and Warner Bros. This approach has allowed them to expand their product offerings and reach a global market, positioning them as a significant player in the toy and leisure products sector.
What it actually does
JAKKS Pacific designs, manufactures, and markets a wide variety of toys and consumer products for children and adults worldwide. They create products based on popular entertainment franchises, as well as their own proprietary brands. Their offerings include action figures, dolls, vehicles, costumes, and outdoor play items. The company sells these products to major retailers, including large chain stores and online platforms, and also operates some direct-to-consumer sales.
Toys/Consumer Products
This is the largest part of JAKKS Pacific's business, making up the majority of its revenue. It includes a broad range of toys such as action figures and playsets featuring licensed characters from popular movies and video games, dolls and accessories, toy vehicles, and infant and preschool toys. This segment also encompasses outdoor and seasonal products like ride-on toys, water toys, and seasonal decorations. They also produce kids' indoor and outdoor furniture and activity sets.
Costumes
This segment, primarily operating under the Disguise brand, focuses on designing, marketing, and selling costumes and related accessories for various occasions. While Halloween is a major focus, this business also caters to everyday dress-up play, cosplay, and themed events throughout the year. This part of the business allows JAKKS Pacific to leverage popular entertainment licenses for a different type of product, extending the life and appeal of these brands beyond traditional toys.
What management is betting on now
JAKKS Pacific's strategy focuses on expanding its product lines and 'counter-seasonalizing' them to spread earnings more evenly across the year, rather than relying heavily on holiday seasons. They are also working to add new retail outlets and leverage their expertise in product development and merchandising for products that have long-term appeal. Additionally, the company is strategically expanding its international presence, particularly in Europe and Latin America, by building direct operational footprints and improving distribution to enhance profitability.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$9.77M
FY2024 Q4
$50.23M
FY2025 Q1
$-3.77M
FY2025 Q2
$-16.63M
FY2025 Q3
$-12.20M
FY2025 Q4
$31.53M
FY2026 Q1
$16.21M
FY2026 Q2
$-161.00K
Revenue
$139.24M
Net income
$5.86M
Diluted EPS
0.49
Operating cash flow
$4.35M
Free cash flow
$-161.00K
Fetching…
Sources
Revenue
$106.68M
Net income
$-4.28M
Diluted EPS
-0.37
Operating cash flow
$21.80M
Free cash flow
$16.21M
Fetching…
Sources
Revenue
$113.25M
Net income
$-5.32M
Diluted EPS
-0.46
Operating cash flow
$33.24M
Free cash flow
$31.53M
Fetching…
Sources
Revenue
$211.21M
Net income
$19.89M
Diluted EPS
1.74
Operating cash flow
$-8.82M
Free cash flow
$-12.20M
Fetching…
Sources
Revenue
$119.09M
Net income
$-2.32M
Diluted EPS
-0.21
Operating cash flow
$-14.23M
Free cash flow
$-16.63M
Fetching…
Sources
Revenue
$113.25M
Net income
$-2.38M
Diluted EPS
-0.21
Operating cash flow
$-1.70M
Free cash flow
$-3.77M
Fetching…
Sources
Revenue
$130.74M
Net income
$-9.11M
Diluted EPS
-0.70
Operating cash flow
$54.13M
Free cash flow
$50.23M
Fetching…
Sources
Revenue
$321.61M
Net income
$52.27M
Diluted EPS
4.64
Operating cash flow
$12.48M
Free cash flow
$9.77M
Fetching…
Sources
Is it cheap or expensive?
Fair value $51.71 vs current price $32.18
Wall Street consensus is the average analyst price target: $48.50 (-6.2% lower than our fair-value estimate).
Our most-likely fair value is $51.71 a share — about 60.7% above today's price of $32.18, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $887,000 - more cash than debt. Interest coverage 30.2x.
Net debt
$-887.00K
Interest coverage
30.19x
JAKKS Pacific, Inc.'s profit covers its interest bill about 30.2 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
JAKK
BASELINE
JAKKS Pacific, Inc.
Total debt $43.11M Interest coverage 30.19x This is the baseline the peer rows are being compared against.
Total debt $261.36M Interest coverage -2.37x -100% vs JAKK This peer has almost no interest-payment cushion compared with JAKK.
Total debt $125.51M Interest coverage 82.93x +175% vs JAKK Carries about 2.7x more debt cushion than JAKK.
Total debt $2.75B Interest coverage 4.60x -85% vs JAKK Carries about 6.6x less debt cushion than JAKK.
Total debt $3.51B Interest coverage 6.47x -79% vs JAKK Carries about 4.7x less debt cushion than JAKK.
Total debt $622.55M Interest coverage -1.67x -100% vs JAKK This peer has almost no interest-payment cushion compared with JAKK.
What you should know
The case for and against JAKK
3 Rewards
1 Risk
Rewards
-
Returns 9.8% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 6/10 years.
-
Dividend yield is 3.1% with 16-year payout history.
Risks
-
Stock trades 124.0% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
22.82x
Forward P/E
8.52x
P/B
1.33x
P/S
0.59x
EV/EBITDA
10.86x
PEG ratio
1.59x
Profitability
How much profit each dollar creates
Gross margin
33.7%
Operating margin
14.7%
Net margin
4.2%
ROE
9.8%
ROA
2.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.16x
Current ratio
1.67x
Quick ratio
1.31x
Total debt
$43.11M
Total cash
$44.00M
Growth
How the business has been compounding
Revenue TTM
$570.38M
Revenue 5Y CAGR
-2.1%
EPS TTM
1.41
EPS 5Y CAGR
-54.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$50.57M
Free CF TTM
$-1.07M
FCF margin
-0.2%
Dividend
Shareholder payout
Yield
3.1%
Payout ratio
70.9%
Last ex-div date
2026-11-27