One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Kartoon Studios Inc.
TOON · ASE · Communication Services · Entertainment
Current price
$0.49
52-week range
$0.48 - $1.29
Market cap
$30.62M
Balance sheet
Healthy
-17.92x Concerning
Net cash $21.69M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Returns 20.9% on equity, ahead of 60% of its peers.
- Reward Trades at 6.2x P/E vs peer median 49.0x (87.4% cheaper).
- Risk Net debt grew 771.5% over 3 years.
- Risk Operating margin compressed from -55.8% to -58.6% over 3 years.
What this company does
Kartoon Studios Inc.
Kartoon Studios Inc. creates and distributes animated shows for kids like "Cocomelon" and "SuperKitties," earning money by licensing these shows and offering advertising services. Their business model relies on selling the rights to their cartoons to TV channels and streaming services, which is important because it shows how consistently they can bring in money.
How the company got here
Kartoon Studios, formerly known as Genius Brands International, was founded in 2006. It underwent a significant merger in 2013 with A Squared Entertainment, which led to a shift in leadership and focus. The company rebranded to Kartoon Studios in June 2023, signaling a renewed emphasis on its core business of creating and managing animated content for children. This evolution reflects a strategic move to consolidate its identity and operations under a name that directly communicates its primary market. The company's history is marked by acquisitions and name changes, all aimed at building a strong presence in the children's entertainment sector.
What it actually does
Kartoon Studios is a company that makes and manages animated shows and related products for kids and families. Think of them as a studio that dreams up cartoons, brings them to life through animation, and then makes sure those cartoons can be watched by families everywhere. They create original content and also work with other brands to produce their animated shows. Beyond just making the shows, they also handle the business side of things, like licensing the characters for toys or other merchandise and distributing the content across various platforms.
Content Production and Distribution
This is the main engine of Kartoon Studios, where animated shows are actually made and then sent out into the world. They produce original shows, like 'SuperKitties' and 'Unicorn Academy,' as well as work on popular third-party brands such as 'Cocomelon' and 'Barbie Dreamhouse Adventures.' Once the content is created, they distribute it through various channels, including streaming services, television networks, and their own apps like Kartoon Channel!. This segment is crucial because it's where the company's core product – the cartoons themselves – are generated and monetized through licensing and broadcast rights.
Toon Media Networks
Toon Media Networks is how Kartoon Studios gets its content directly to viewers. This segment operates a collection of channels and platforms, including the popular Kartoon Channel!, Ameba, and Channel Frederator. These platforms reach children and families through various means, such as streaming apps (like on the Apple App Store, where Kartoon Channel! is highly rated), traditional cable TV, and other digital video services. Essentially, this is the company's distribution arm that ensures their animated shows are accessible to a wide audience, generating revenue through advertising and subscriptions.
Mainframe Studios
Mainframe Studios is a significant part of Kartoon Studios, operating as a high-quality CGI (Computer-Generated Imagery) animation studio based in Canada. They are responsible for producing visually impressive animated series and films for both Kartoon Studios' own brands and for major global partners like Netflix and Mattel. This studio is where the technical artistry of animation happens, creating the visual content that forms the backbone of the company's offerings, including popular shows like 'Superkitties' and 'Octonauts.'
Stan Lee Universe
This segment is a special venture that manages and develops the intellectual property (IP) library of the legendary comic book creator Stan Lee. In partnership with POW! Entertainment, Kartoon Studios works to bring Stan Lee's characters and stories, including those that haven't been seen before, to life. This involves creating new content and managing his legacy, offering a unique opportunity to leverage a globally recognized name and a vast universe of characters for new animated projects and merchandise.
What management is betting on now
Kartoon Studios is focusing on creating and distributing high-quality animated content for children and families, leveraging its owned intellectual property (IP) and partnerships. They are investing in their own brands, like 'Stan Lee's Superhero Kindergarten,' and expanding their reach through platforms like Kartoon Channel!, which is a top-rated kids' streaming app. Management is also exploring new technologies, such as AI, to produce animated features more cost-effectively. The strategy involves a multi-unit synergy, combining content creation, streaming, licensing, and advertising to build a fully integrated business model for sustained growth.
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
$1.49M
FY2024 Q4
$-2.41M
FY2025 Q1
$-1.84M
FY2025 Q2
$-4.53M
FY2025 Q3
$-5.53M
FY2025 Q4
$346.00K
FY2026 Q1
$-2.89M
FY2026 Q2
$34.25M
Revenue
$5.82M
Net income
$26.98M
Diluted EPS
0.38
Operating cash flow
$34.29M
Free cash flow
$34.25M
Fetching…
Sources
Revenue
$7.24M
Net income
$-6.37M
Diluted EPS
-0.10
Operating cash flow
$-2.86M
Free cash flow
$-2.89M
Fetching…
Sources
Revenue
$9.69M
Net income
$-5.27M
Diluted EPS
-0.08
Operating cash flow
$381.00K
Free cash flow
$346.00K
Fetching…
Sources
Revenue
$9.88M
Net income
$-6.57M
Diluted EPS
-0.14
Operating cash flow
$-5.50M
Free cash flow
$-5.53M
Fetching…
Sources
Revenue
$10.28M
Net income
$-6.16M
Diluted EPS
-0.13
Operating cash flow
$-4.47M
Free cash flow
$-4.53M
Fetching…
Sources
Revenue
$9.50M
Net income
$-6.53M
Diluted EPS
-0.14
Operating cash flow
$-1.82M
Free cash flow
$-1.84M
Fetching…
Sources
Revenue
$9.42M
Net income
$-5.76M
Diluted EPS
-0.14
Operating cash flow
$-2.36M
Free cash flow
$-2.41M
Fetching…
Sources
Revenue
$8.71M
Net income
$-2.06M
Diluted EPS
-0.05
Operating cash flow
$1.53M
Free cash flow
$1.49M
Fetching…
Sources
Is it cheap or expensive?
Fair value — vs current price $0.49
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $21.7M - more cash than debt. Interest coverage -17.9x.
Net debt
$-21.69M
Interest coverage
-17.92x
Kartoon Studios Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
TOON
BASELINE
Kartoon Studios Inc.
Total debt $18.82M Interest coverage -17.92x This is the baseline the peer rows are being compared against.
Total debt $43.36M Interest coverage 0.03x This peer still has a real interest-payment cushion, while TOON does not.
Total debt $26.07M Interest coverage -31.09x Neither company has much profit cushion over interest right now.
Total debt $253.97M Interest coverage -2.37x Neither company has much profit cushion over interest right now.
Total debt $125.51M Interest coverage 82.93x This peer still has a real interest-payment cushion, while TOON does not.
What you should know
The case for and against TOON
2 Rewards
2 Risks
Rewards
-
Returns 20.9% on equity, ahead of 60% of its peers.
-
Trades at 6.2x P/E vs peer median 49.0x (87.4% cheaper).
Risks
-
Net debt grew 771.5% over 3 years.
-
Operating margin compressed from -55.8% to -58.6% 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)
6.15x
Forward P/E
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P/B
0.58x
P/S
0.94x
EV/EBITDA
-1.08x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
31.5%
Operating margin
-58.6%
Net margin
26.9%
ROE
20.9%
ROA
-9.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.35x
Current ratio
2.00x
Quick ratio
1.94x
Total debt
$18.82M
Total cash
$40.51M
Growth
How the business has been compounding
Revenue TTM
$32.63M
Revenue 5Y CAGR
49.5%
EPS TTM
0.08
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$26.32M
Free CF TTM
$-11.56M
FCF margin
-35.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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