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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2222
Positioning
Market Dominance
Services
Entertainment
$35M
Andrew Heyward
Kartoon Studios Inc., a content and brand management company, creates, produces, licenses, and broadcasts educational and multimedia animated content for children worldwide. The company was formerly known as Genius Brands International, Inc. and changed its name to Kartoon Studios Inc. in June 2023. Kartoon Studios Inc. was incorporated in 2006 and is headquartered in Beverly Hills, California.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = TOON ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$YALA Yalla Group Ltd | 75 | 89 | 99 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GRVY GRAVITY Co., Ltd. | 75 | 82 | 96 | 71 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ISSC INNOVATIVE SOLUTIONS & SUPPORT INC | 73 | 81 | 88 | 94 | 25.0x | 14.1x | 17.1% | 10.3% | 35.5% | 14.6% | 10.1% | 105.2% | 0.0% | 41.0x | $244M | VS | |
$AER AerCap Holdings N.V. | 72 | 60 | 87 | 84 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$HCSG HEALTHCARE SERVICES GROUP INC | 72 | 74 | 88 | 88 | 7.1x | 6.1x | 28.9% | 20.8% | 20.8% | 9.9% | 9.3% | 8.5% | 0.0% | 1.0x | $1.2B | VS | |
$LQDT LIQUIDITY SERVICES INC | 72 | 90 | 88 | 68 | 24.9x | 14.3x | 14.1% | 8.3% | 45.7% | 8.5% | 6.2% | 28.1% | 0.0% | 0.0x | $736M | VS | |
$TRTNpA Triton International Ltd | 71 | 70 | 89 | 70 | - | 1.7x | 0.0% | - | 97.4% | 58.0% | 37.4% | - | 8.8% | 264.0x | $2.5B | VS | |
$EDU New Oriental Education & Technology Group Inc. | 71 | 83 | 52 | 77 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NTES NetEase, Inc. | 71 | 88 | 93 | 68 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UTI UNIVERSAL TECHNICAL INSTITUTE INC | 70 | 86 | 86 | 72 | 43.2x | 16.0x | 15.3% | 5.8% | 100.0% | 6.9% | 5.2% | 15.1% | 0.0% | 24.0x | $1.8B | VS | |
$TOON Kartoon Studios, Inc. | 49 | 44 | 34 | 68 | - | - | -89.5% | -32.2% | 100.0% | -30.6% | -55.2% | 17.8% | 0.0% | 178.0x | $35M | ||
| SECTOR BENCH | - | - | - | - | - | 23.7x | 11.7x | 5.7% | 2.4% | 64.6% | 4.5% | 2.8% | 8.6% | 0.0% | 0.3x | - | REF |
Kartoon Studios, Inc. (TOON) receives a "Reduce" rating with a composite score of 48.7/100. It ranks #2222 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Outperforming peers — winners tend to keep winning over 3-12 months
Expensive relative to fundamentals — limited margin of safety
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for TOON.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 44 | 44 | 0NEUTRAL |
| MOMENTUM | 68 | 77 | -9DRAG |
| VALUATION | 34 | 28 | +6ALPHA |
| INVESTMENT | 27 | 21 | +6ALPHA |
| STABILITY | 63 | 67 | -4NEUTRAL |
| SHORT INT | 36 | 27 | +9ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC -58.1% vs WACC 8.9% (spread -67.0%)
GM 100% vs sector 65%, OM -31% vs sector 5%
Capital turnover 2.51x
Rev growth 18%, 10yr history
Interest coverage -18.4x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Kartoon Studios, Inc. (TOON) as a Reduce with a composite score of 48.7/100 at a current price of $0.59. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
Kartoon Studios, Inc. holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 48.7/100 places it at rank #2222 in our full universe.
The near-term outlook is constructive, with revenue growing at 18% and momentum in the 68th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
No Moat
High
Poor
Fair Value
Gross margins of 100% signal strong pricing power.
Positive momentum indicates institutional accumulation.
Stable competitive position in a defensive sector.
Leverage of 178% D/E amplifies downside risk.
Vulnerability to macroeconomic shocks and interest rate volatility.
Kartoon Studios, Inc. represents a reduce based on multi-factor quantitative performance.
Kartoon Studios, Inc. receives a Reduce rating from our analysis, with a composite score of 48.7/100 and 2 out of 5 stars, ranking #2222 out of 7,333 stocks. TOON's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
TOON's quality score of 44/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -89.5% (sector avg: 5.7%), gross margins of 100.0% (sector avg: 64.6%), net margins of -55.2% (sector avg: 2.8%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 34/100, TOON appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/B ratio of 1.53x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
Kartoon Studios, Inc.'s investment score of 27/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 17.8% vs. a sector average of 8.6% and a return on assets of -32.2% (sector: 2.4%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
TOON demonstrates moderate momentum with a score of 68/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 17.8% year-over-year, while a beta of 0.97 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
With a stability score of 63/100, TOON exhibits average financial resilience. Key stability metrics include a beta of 0.97 and a debt-to-equity ratio of 178.00x (sector avg: 0.3x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
Kartoon Studios, Inc.'s short interest score of 36/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include elevated leverage (D/E: 178.00x), micro-cap liquidity risk. At $35M (micro-cap), TOON carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
Kartoon Studios, Inc. is a micro-cap company in the Services sector, ranked #0 of 50 in its sector (100th percentile) and #2222 of 7,333 overall (70th percentile). Key comparisons include ROE of -89.5% trailing the 5.7% sector median and operating margins of -30.6% below the 4.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Services peers.
While TOON currently exhibits a REDUCE profile, superior opportunities exist within the SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Services Alpha →Quant Factor Profile
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Improvement in Investment (27) would have the largest impact on the composite score.
ROE 1659% BELOW SECTOR MEDIAN
Gross Margin 55% ABOVE SECTOR MEDIAN (FAVORABLE)
Op. Margin 779% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
Livingston Taylor, the voice of Pooh, surrounded byfans, after yesterday’s performance A DEFINING CREATIVE MOMENT SHOWCASING THE HEART, MUSIC, AND WARMTH OF THE ICONIC FRANCHISE BASED ON A.A. MILNE’S CLASSIC CHARACTERS “I CAN’T WAIT FOR MORE WINNIE!”; FAMILIES AND CHILDREN EMBRACE THE WARMTH AND WONDER OF WINNIE AND FRIENDS AT FIRST SNEAK PEEK BEVERLY HILLS, Calif., Dec. 17, 2025 (GLOBE NEWSWIRE) -- Kartoon Studios (NYSE American: TOON), today announced the packed house debut of its exclusive sn
Unveils Official Sneak Peek Video for “Hundred Acre Wood’s: Winnie and Friends,” Following Overwhelming Audience Response at Chinese Theatre in Hollywood Livingston Taylor, the voice of Pooh, and Producers Linda Woolverton and Andy Heyward BEVERLY HILLS, Calif., Dec. 19, 2025 (GLOBE NEWSWIRE) -- Kartoon Studios (NYSE American: TOON), today announced the release of the official sneak peek video following an extraordinary audience response at a special live event held Tuesday at Hollywood’s iconic