JAKKS Pacific, Inc. (JAKK) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

JAKKS Pacific, Inc. (JAKK) Consumer Business Overview

JAKKS Pacific, Inc. (JAKK) is a global multi-brand toy company focused on designing, producing, and marketing a wide range of toys and consumer products, including action figures, dolls, costumes, and electronics. The company operates through its Toys/Consumer Products and Costumes segments, distributing its products via major retailers and specialty stores.

What Is the Investment Thesis for JAKK?

JAKKS Pacific presents a mixed investment thesis. The company's diverse product portfolio and established distribution network provide a solid foundation. The current P/E ratio of 31.6 suggests a potentially overvalued market position relative to earnings, while a profit margin of 1.4% indicates operational challenges. The dividend yield of 4.31% offers an income stream for investors. Growth catalysts include expansion into emerging markets and successful product innovation. Potential risks include intense competition in the toy industry and fluctuations in consumer spending. Investors should carefully weigh these factors before considering an investment in JAKKS Pacific.

Based on FMP financials and quantitative analysis

JAKK Key Highlights

• Market Cap of $276M reflects the company's current valuation in the market.
• P/E Ratio of 31.6 indicates the price investors are willing to pay for each dollar of earnings.
• Gross Margin of 32.2% demonstrates the profitability of JAKKS Pacific's products after accounting for the cost of goods sold.
• Dividend Yield of 4.31% provides investors with a return on their investment through dividend payments.
• Beta of 1.65 suggests that JAKKS Pacific's stock is more volatile than the overall market.

Who Are JAKK's Competitors?

JAKK is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are JAKK's Key Strengths?

• Diverse product portfolio across multiple categories.
• Strong licensing agreements with popular entertainment properties.
• Established distribution network through major retailers.
• Experienced management team with a proven track record.

What Are JAKK's Weaknesses?

• Low profit margin compared to industry peers.
• High debt levels may limit financial flexibility.
• Dependence on licensed properties can be risky.
• Intense competition in the toy and costume industry.

What Could Drive JAKK Stock Higher?

• Launch of new toy lines based on upcoming movie releases.
• Expansion of e-commerce platform and digital marketing initiatives.
• Strategic partnerships with key retailers and licensors.
• Potential acquisitions of complementary businesses.

What Are the Key Risks for JAKK?

• Fluctuations in consumer spending during economic downturns.
• Intense competition from established toy manufacturers.
• Disruptions in the supply chain due to global events.
• Dependence on licensed properties and potential loss of key licenses.
• Changes in consumer preferences and trends in the toy industry.

What Are the Growth Opportunities for JAKK?

• Expansion into Emerging Markets: JAKKS Pacific has the opportunity to expand its presence in emerging markets, such as Asia and Latin America, where the demand for toys and consumer products is growing rapidly. By establishing strategic partnerships and tailoring its product offerings to local preferences, JAKKS Pacific can tap into new customer bases and increase its revenue streams. The global toy market is projected to reach $140 billion by 2028, with emerging markets contributing significantly to this growth.
• Product Innovation and Licensing: JAKKS Pacific can drive growth by investing in product innovation and securing licenses for popular entertainment properties. By developing new and exciting toys and costumes based on trending movies, TV shows, and video games, JAKKS Pacific can attract a wider audience and increase its sales. The market for licensed merchandise is estimated to be worth over $300 billion annually, providing ample opportunities for JAKKS Pacific to capitalize on popular brands.
• E-commerce and Digital Marketing: JAKKS Pacific can enhance its online presence and drive sales through e-commerce and digital marketing initiatives. By optimizing its website, leveraging social media platforms, and implementing targeted advertising campaigns, JAKKS Pacific can reach a broader customer base and increase its brand awareness. The global e-commerce market is experiencing rapid growth, with online sales projected to account for a significant portion of total retail sales in the coming years.
• Strategic Acquisitions and Partnerships: JAKKS Pacific can pursue strategic acquisitions and partnerships to expand its product portfolio, enter new markets, and gain access to new technologies. By acquiring complementary businesses or partnering with innovative companies, JAKKS Pacific can strengthen its competitive position and accelerate its growth. The mergers and acquisitions market in the toy industry is active, with companies seeking to consolidate their market share and expand their capabilities.
• Focus on Sustainable and Eco-Friendly Products: As consumers become increasingly environmentally conscious, JAKKS Pacific can differentiate itself by offering sustainable and eco-friendly toys and costumes. By using recycled materials, reducing packaging waste, and implementing environmentally responsible manufacturing processes, JAKKS Pacific can appeal to eco-conscious consumers and enhance its brand image. The market for sustainable products is growing rapidly, with consumers willing to pay a premium for environmentally friendly options.

What Opportunities Does JAKK Have?

• Expansion into emerging markets with high growth potential.
• Increased focus on e-commerce and digital marketing.
• Development of sustainable and eco-friendly products.
• Strategic acquisitions and partnerships to expand product portfolio.

What Threats Does JAKK Face?

• Fluctuations in consumer spending and economic conditions.
• Changing consumer preferences and trends in the toy industry.
• Intense competition from established and emerging players.
• Disruptions in the supply chain and manufacturing processes.

What Are JAKK's Competitive Advantages?

• Brand Recognition: Established brand recognition in the toy and costume industry.
• Licensing Agreements: Strong relationships with licensors of popular entertainment properties.
• Distribution Network: Extensive distribution network through major retailers and wholesalers.
• Product Diversification: Diversified product portfolio across multiple categories and age groups.

What Does JAKK Do?

JAKKS Pacific, Inc., founded in 1995 and headquartered in Santa Monica, California, has established itself as a prominent player in the global toy and consumer products industry. The company operates through two primary segments: Toys/Consumer Products and Costumes. The Toys/Consumer Products segment encompasses a diverse range of products, including action figures and accessories featuring licensed characters, toy vehicles, dolls, infant and pre-school products, private label items, and ride-on toys. The Costumes segment focuses on Halloween and everyday costumes for various age groups, along with related accessories. JAKKS Pacific distributes its products through a combination of in-house sales staff and independent representatives, targeting major retail chains, department stores, office supply stores, drug and grocery stores, club stores, value-oriented dollar stores, toy specialty stores, and wholesalers. The company's success is rooted in its ability to develop and market innovative and appealing products that resonate with consumers of all ages, leveraging both licensed properties and proprietary brands.

What Products and Services Does JAKK Offer?

• Designs and develops a wide range of toys and consumer products.
• Produces action figures, dolls, and accessories based on licensed characters.
• Manufactures costumes for Halloween and everyday wear.
• Offers outdoor activity toys and junior sports equipment.
• Creates indoor and outdoor kids' furniture and room décor.
• Distributes products through major retail chains, department stores, and specialty stores.
• Markets products through in-house sales staff and independent sales representatives.

How Does JAKK Make Money?

• Develops and licenses toy and costume designs.
• Manufactures products through its own facilities and contract manufacturers.
• Distributes products through a network of retailers and wholesalers.
• Generates revenue through the sale of toys, costumes, and related products.

What Industry Does JAKK Operate In?

JAKKS Pacific operates within the competitive global toy and costume industry, which is characterized by evolving consumer preferences and seasonal demand. The industry is influenced by trends in entertainment, technology, and licensing. JAKKS Pacific competes with major players like Mattel and Hasbro, as well as smaller, niche brands. The company's success depends on its ability to innovate, secure licenses for popular characters, and effectively market its products through various retail channels. The global toy market is expected to grow moderately, driven by emerging markets and the increasing popularity of licensed merchandise.

Who Are JAKK's Key Customers?

• Children and families who purchase toys and costumes for entertainment and play.
• Retailers and wholesalers who sell JAKKS Pacific's products to consumers.
• Collectors who purchase action figures and other collectible items.
• Parents looking for safe and engaging toys for their children.

F-Score 5/9Financial Health

JAKKS Pacific, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.73 places it in the grey zone, a middle ground that warrants monitoring.

ROE 3%Key Financial Metrics

Return on equity for JAKKS Pacific, Inc. stands at 3.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.0%, showing how much profit it generates from its asset base. JAKK trades at a trailing price-to-earnings ratio of 31.61, below the Consumer Cyclical sector average of ~36x. Its free cash flow yield is 7.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.96 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.0%, the inverse of the P/E and a quick read on earnings relative to price.

JAKKS Pacific, Inc. (JAKK) Valuation Context

Valued at $276M, JAKK is classified as a micro-cap stock. Relative to its peer group, JAKK's quantitative score of 37/100 is below the peer average of 61/100.

FY2026 estForward Outlook

Wall Street analysts project JAKKS Pacific, Inc. revenue of about $597.0M for fiscal 2026, with EPS near $2.21.

JAKK Financials

JAKK Latest News

JAKK Analyst Consensus

JAKK MoonshotScore

JAKKS Pacific, Inc. Consumer Cyclical Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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