Kartoon Studios Inc. Fundamental Analysis (AMEX: TOON)
Kartoon Studios Inc. (AMEX: TOON) shows strong financial fundamentals with a PE ratio of 8.66, profit margin of 1.48%, and ROE of 32.16%. The company generates $0.0B in annual revenue with strong year-over-year growth of 20.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 83.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze TOON's fundamental strength across five key dimensions:
Efficiency Score
ExcellentTOON demonstrates superior asset utilization.
Valuation Score
ExcellentTOON trades at attractive valuation levels.
Growth Score
ModerateTOON shows steady but slowing expansion.
Financial Health Score
ExcellentTOON maintains a strong and stable balance sheet.
Profitability Score
ModerateTOON maintains healthy but balanced margins.
Key Financial Metrics
Is TOON Expensive or Cheap?
P/E Ratio
TOON trades at 8.66 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TOON's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values Kartoon Studios Inc. at 0.81 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.63 times EBITDA. This is generally considered low.
How Well Does TOON Make Money?
Net Profit Margin
For every $100 in sales, Kartoon Studios Inc. keeps $1.48 as profit after all expenses.
Operating Margin
Core operations generate -5.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $32.16 in profit for every $100 of shareholder equity.
ROA
Kartoon Studios Inc. generates $10.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kartoon Studios Inc. generates strong operating cash flow of $23.53M, reflecting robust business health.
Free Cash Flow
Kartoon Studios Inc. generates strong free cash flow of $23.46M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.40 in free cash annually.
FCF Yield
TOON converts 69.33% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.32
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
-0.60
vs 25 benchmark
How TOON Stacks Against Its Sector Peers
| Metric | TOON Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.66 | 19.70 | Better (Cheaper) |
| ROE | 32.16% | 561.00% | Weak |
| Net Margin | 147.74% | 484.00% | Weak |
| Debt/Equity | 0.17 | 0.83 | Strong (Low Leverage) |
| Current Ratio | 2.00 | 1.91 | Neutral |
| ROA | 10.42% | -20.00% (disorted) | Strong |
TOON outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kartoon Studios Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
349.49%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
98.27%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
59.84%
Industry Style: Growth, Technology, Streaming
High Growth