One-glance verdict
Undervalued
$94.08 our estimate vs market $14.07
85% below our estimate, below the bear case
Fundamentals snapshot
Spin Master Corp.
SNMSF · PNK · Consumer Cyclical · Leisure
Current price
$14.07
52-week range
$12.65 - $16.61
Market cap
$1.41B
Balance sheet
Watch
4.94x Stretched
Net debt $312.30M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Free cash flow was positive in 4/10 years.
- Reward Dividend yield is 2.4% with 3-year payout history.
- Risk Return on equity was -6.3% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 14.7% to 11.3% over 3 years.
What this company does
Spin Master Corp.
Spin Master is a children's entertainment company known for popular toy brands like PAW Patrol, Hatchimals, and Rubik's Cube. While most of its sales come from these physical toys, the company also creates TV shows and mobile games based on its characters, building an ecosystem (a network of related products where a hit in one area, like a show, drives sales in another, like toys). This strategy allows one successful product to boost the sales of many others across the company.
How the company got here
Spin Master started in 1994 in Toronto, Canada, when three friends used $10,000 of their own money to launch their first product, the Earth Buddy. This was a simple novelty item: a nylon stocking head filled with sawdust and grass seeds that grew to look like hair. That first product was a surprise hit, setting the stage for the company to grow from a small startup into a major global player in the children's entertainment industry. A key turning point was the launch of the Bakugan toy and accompanying TV show in 2007, which led to the creation of an entertainment division to develop content and toys together. Over the years, Spin Master has grown by creating its own hit toys and by acquiring (buying) other successful brands and companies.
What it actually does
Spin Master is a company that creates and sells a wide variety of fun experiences for children. Most people know them for their popular toys and games like PAW Patrol, Bakugan, Hatchimals, and the classic Rubik's Cube. Beyond physical toys, the company also produces children's television shows and movies through its own entertainment studio. Additionally, they create digital games and educational apps for kids to play on phones and tablets. The company sells its products to large retailers like Walmart and Target, and also makes money from licensing (letting other companies use their popular characters on different products).
Toys
This is the company's largest and most traditional business, making up the biggest portion of its sales. This segment designs, creates, and sells a wide range of physical toys and games that you would find in a toy store. It includes everything from toys for very young children, like the Melissa & Doug brand, to action figures, dolls, puzzles, and outdoor toys. This is the part of the business that makes well-known brands such as PAW Patrol, Kinetic Sand, and GUND stuffed animals.
Entertainment
This division creates TV shows, movies, and other content based on the company's characters and stories. Its most famous creation is the hugely successful preschool show, PAW Patrol. The main goal of this segment is to build popular franchises (a series of related media, like a show and its movies) that can drive the sales of toys and other consumer products. This part of the company makes money by licensing its shows to broadcasters and streaming services, and from the box office sales of its movies.
Digital Games
This is a growing part of Spin Master's business that focuses on creating games for mobile devices. This segment is built around well-known brands like Toca Boca and Sago Mini, which are popular educational apps for children. These games are designed to be creative and open-ended, allowing kids to explore and learn through play. The company earns money here through app downloads, in-app purchases, and subscriptions that offer access to more content.
What management is betting on now
The company's leadership is focused on a few key areas to drive future growth. A major priority is to continue creating innovative toys and expanding their most popular, long-lasting brands, which they call 'evergreen' properties, like PAW Patrol. They are also making strategic acquisitions, which means buying other companies like the recent purchase of Melissa & Doug, to add established brands to their portfolio. Finally, management is investing in growing its digital games and entertainment content, aiming to create hits that connect with children across toys, shows, and apps.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $94.08 vs current price $14.07
Our most-likely fair value is $94.08 a share — about 568.6% above today's price of $14.07, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $312.3M. Interest coverage 4.9x.
Net debt
$312.30M
Interest coverage
4.94x
Spin Master Corp.'s profit covers its interest bill about 4.9 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
SNMSF
BASELINE
Spin Master Corp.
Total debt $361.30M Interest coverage 4.94x This is the baseline the peer rows are being compared against.
Total debt $3.88B Interest coverage 6.47x +31% vs SNMSF Carries about 1.3x more debt cushion than SNMSF.
Total debt $2.75B Interest coverage 4.60x -7% vs SNMSF Has roughly the same debt cushion as SNMSF.
Total debt $46.62M Interest coverage 30.19x +511% vs SNMSF Carries about 6.1x more debt cushion than SNMSF.
Total debt $261.36M Interest coverage -2.37x -100% vs SNMSF This peer has almost no interest-payment cushion compared with SNMSF.
Total debt $125.51M Interest coverage 82.93x +1,580% vs SNMSF Carries about 16.8x more debt cushion than SNMSF.
What you should know
The case for and against SNMSF
2 Rewards
2 Risks
Rewards
-
Free cash flow was positive in 4/10 years.
-
Dividend yield is 2.4% with 3-year payout history.
Risks
-
Return on equity was -6.3% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 14.7% to 11.3% over 3 years.
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)
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Forward P/E
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P/B
1.19x
P/S
0.66x
EV/EBITDA
6.05x
PEG ratio
0.46x
Profitability
How much profit each dollar creates
Gross margin
55.8%
Operating margin
11.3%
Net margin
-3.8%
ROE
-6.3%
ROA
6.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.30x
Current ratio
1.09x
Quick ratio
0.73x
Total debt
$361.30M
Total cash
$49.00M
Growth
How the business has been compounding
Revenue TTM
$2.12B
Revenue 5Y CAGR
1.5%
EPS TTM
-0.78
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$307.80M
Free CF TTM
$123.60M
FCF margin
5.8%
Dividend
Shareholder payout
Yield
2.4%
Payout ratio
63.2%
Last ex-div date
2026-09-25