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1. Company Snapshot

1.a. Company Description

JAKKS Pacific, Inc.develops, produces, markets, sells, and distributes toys, consumables, and electronics and related products worldwide.It operates in two segments, Toys/Consumer Products and Costumes.


The company offers action figures and accessories, such as licensed characters; toy vehicles and accessories; dolls and accessories, including small, large, fashion, and baby dolls based on licenses, as well as infant and pre-school products; private label products; and foot-to-floor ride-on products, inflatable environments, tents, and wagons.The company also provides role play, dress-up, pretend play, and novelty products for boys and girls based on brands and entertainment properties, as well as on its own proprietary brands; and indoor and outdoor kids' furniture, activity trays and tables, room décor, kiddie pools, and seasonal and outdoor products.In addition, it offers Halloween and everyday costumes for various ages based on licensed and proprietary non-licensed brands, and related Halloween accessories; outdoor activity toys; and junior sports toys, including hyper-charged balls, sport sets, and toy hoops.


The company sells its products through in-house sales staff and independent sales representatives to toy and mass-market retail chain stores, department stores, office supply stores, drug and grocery store chains, club stores, value-oriented dollar stores, toy specialty stores, and wholesalers.JAKKS Pacific, Inc.was incorporated in 1995 and is headquartered in Santa Monica, California.

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1.b. Last Insights on JAKK

JAKKS Pacific's recent performance has been influenced by a mixed set of factors. The company's Q3 2025 earnings call revealed a focus on higher-margin products and cost-cutting, which is improving profitability. However, the company missed Q3 earnings and revenue estimates, with quarterly earnings of $1.8 per share, down from $4.79 per share a year ago. A strong net cash position and valuable IP portfolio provide a foundation for potential growth. Recent product launches, including Super Mario and The Wizard of Oz lines, may drive future sales. (Source: Zacks Consensus Estimate)

1.c. Company Highlights

2. JAKKS Pacific's Resilient Performance Amidst Challenges

JAKKS Pacific reported a mixed financial performance for the fourth quarter and full year 2025, with Toys/Consumer Products net sales roughly flat at $118 million, down 0.2% from the prior year. The company's gross margin improved to 32.4%, its highest full-year level in over 15 years, driven by better costing from factories and improved inventory management. The company reported an adjusted EBITDA loss of $3.8 million, a significant improvement from the $10.2 million loss in the same quarter last year. EPS came in at -$0.18, beating estimates of -$1.01.

Publication Date: Feb -22

📋 Highlights
  • Regional Sales Growth:: Rest of World business rose 9.9% to $41M in Q4, driven by a 14% Europe increase to $81.4M.
  • Full-Year Revenue Decline:: Toys/Consumer Products sales fell 19% YoY, impacted by tariffs and higher consumer prices.
  • Dividend & Financial Health:: Returned $1/share dividend, maintained debt-free balance sheet, and ended 2025 with $54M in cash.
  • Gross Margin Improvement:: Achieved 32.4% full-year gross margin (15-year high) and reduced Q4 EBITDA loss to $3.8M vs. $10.2M prior year.

Segment Performance

The Rest of World business was a bright spot, with a 9.9% increase to $41 million, led by a 14% growth in Europe. The company's Costume business was down 10% for the full year, but maintained its market leadership position for the season. The successful holiday season, driven by disciplined execution and strategic product innovation, positions the company to accelerate investment in innovation and expand partnerships.

Growth Prospects

JAKKS Pacific is well-positioned for growth in 2026, driven by new product launches, including the Super Mario Galaxy movie tie-in, and a solid momentum behind Disney Darlings. The company expects to deliver low to mid-single-digit top-line growth, with a focus on expanding margins. Analysts estimate revenue growth at 9.4% next year, indicating a positive outlook.

Valuation

With a P/E Ratio of 25.46 and a P/S Ratio of 0.44, the stock appears to be reasonably valued. The Dividend Yield of 4.45% is attractive, indicating a commitment to returning value to shareholders. The company's strong balance sheet, with a Net Debt / EBITDA ratio of 0.05, provides flexibility to invest in growth initiatives and expand existing relationships.

Operational Efficiency

The company's focus on an FOB-first basis and adapting to the needs of retailers and customers in various regions is expected to drive operational efficiency. With warehouses in five parts of EMEA, Latin America, and Southeast Asia, JAKKS Pacific is well-positioned to support its growth plans. As Stephen Berman noted, "The pressures of the past year have pushed us to find new areas for incremental improvement, and that will be a lot of our focus this year."

3. NewsRoom

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JAKKS Pacific (NASDAQ:JAKK) Shares Pass Above Two Hundred Day Moving Average – What’s Next?

Mar -27

Source: defenseworld.net

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Dirt Cheap Stocks to Buy With $1,000 Right Now

Mar -16

Source: fool.com

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Got $1,000? 3 Stocks to Buy in March While They're on Sale.

Mar -16

Source: fool.com

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JAKKS Pacific and KODANSHA Ltd. Announce New Partnership to Release an Array of Toys and Collectibles Across Multiple Anime Properties, Including Attack on Titan and Gachiakuta

Mar -04

Source: globenewswire.com

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JAKKS Pacific (NASDAQ:JAKK) Share Price Crosses Above Two Hundred Day Moving Average – Here’s What Happened

Feb -28

Source: defenseworld.net

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JAKKS Pacific and Crunchyroll Forge New Partnership to Distribute a Robust Lineup of Toys, Costumes, and Collectibles Across Multiple Top Anime Properties

Feb -25

Source: globenewswire.com

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JAKKS Pacific and COVER Corporation Announce Landmark Partnership to Launch Official hololive Merchandise Line

Feb -24

Source: globenewswire.com

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Why JAKKS Pacific Stock Popped by Almost 24% on Friday

Feb -20

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.32%)

6. Segments

Toys/Consumer Products

Expected Growth: 5.5%

Growing demand for licensed toys, increasing popularity of nostalgic brands, and expansion into emerging markets drive growth for JAKKS Pacific, Inc. The company's diverse portfolio of popular licenses, such as Disney and Nintendo, positions it for continued success.

Costumes

Expected Growth: 4.5%

Growing demand for experiential entertainment, increasing popularity of cosplay and themed events, and expanding licensed character portfolios drive the costume market growth.

7. Detailed Products

Action Figures and Accessories

JAKKS Pacific designs and manufactures a wide range of action figures and accessories, including characters from popular franchises like WWE, Nintendo, and more.

Dolls and Accessories

JAKKS Pacific offers a variety of dolls and accessories, including fashion dolls, playsets, and furniture, inspired by popular franchises like Disney Princess and more.

Pretend Play and Dress-up

JAKKS Pacific's pretend play and dress-up products include costumes, playsets, and accessories inspired by popular franchises like Disney, Marvel, and more.

Ride-Ons and Scooters

JAKKS Pacific designs and manufactures a range of ride-on toys and scooters, including licensed products from popular franchises like Disney and Pixar.

Art and Craft Supplies

JAKKS Pacific offers a variety of art and craft supplies, including paints, markers, and activity sets, inspired by popular franchises like Disney and more.

Seasonal and Outdoor Toys

JAKKS Pacific designs and manufactures a range of seasonal and outdoor toys, including water guns, bubbles, and more.

8. JAKKS Pacific, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

JAKKS Pacific, Inc. faces moderate threat from substitutes due to the availability of alternative toys and entertainment options for children.

Bargaining Power Of Customers

JAKKS Pacific, Inc. has a high bargaining power of customers due to the presence of large retailers like Walmart and Target, which can exert pressure on prices and terms.

Bargaining Power Of Suppliers

JAKKS Pacific, Inc. has a low bargaining power of suppliers due to its diversified supplier base and lack of dependence on a single supplier.

Threat Of New Entrants

JAKKS Pacific, Inc. faces a moderate threat from new entrants due to the presence of barriers to entry, such as high capital requirements and established distribution networks.

Intensity Of Rivalry

JAKKS Pacific, Inc. operates in a highly competitive industry with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 10.96%
Debt Cost 3.95%
Equity Weight 89.04%
Equity Cost 15.96%
WACC 14.65%
Leverage 12.31%

11. Quality Control: JAKKS Pacific, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Johnson Outdoors

A-Score: 5.8/10

Value: 8.9

Growth: 3.2

Quality: 3.5

Yield: 5.0

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

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JAKKS Pacific

A-Score: 4.5/10

Value: 6.3

Growth: 4.4

Quality: 4.6

Yield: 6.0

Momentum: 1.5

Volatility: 4.0

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Vista Outdoor

A-Score: 3.7/10

Value: 3.2

Growth: 4.9

Quality: 5.3

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

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American Outdoor Brands

A-Score: 3.6/10

Value: 8.1

Growth: 4.2

Quality: 4.6

Yield: 0.0

Momentum: 1.0

Volatility: 3.7

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Xponential Fitness

A-Score: 3.5/10

Value: 8.5

Growth: 5.7

Quality: 5.2

Yield: 0.0

Momentum: 0.5

Volatility: 1.3

1-Year Total Return ->

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Inspirato

A-Score: 3.4/10

Value: 9.5

Growth: 2.6

Quality: 4.7

Yield: 0.0

Momentum: 2.5

Volatility: 1.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

20.17$

Current Price

20.17$

Potential

-0.00%

Expected Cash-Flows