Kartoon Studios Inc. Common Stock (TOON)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable earning power and a price that leaves room for error. Kartoon Studios is a children's animation content and brand company, but the record is not that of a durable compounder. In fiscal year 2025, the year ended 2025-12-31, revenue was $39.4M and net income was -$24.5M, or -$0.49 per diluted share. In fiscal year 2024, the year ended 2024-12-31, revenue was $32.6M and net income was -$20.7M. In fiscal year 2023, the year ended 2023-12-31, revenue was $44.1M and net income was -$77.1M. The given Lynch screen says no category fits because the company lost money in each of the last four years. That matters more than a single bright quarter. Still, in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was only $5.8M but net income was $27.0M and diluted EPS was $0.38. A Graham investor must ask whether that profit is recurring; the filed figures alone do not prove it. FairStock's calculations at the 2026-10-13 close of $0.56 show a P/E of 6.99, P/B of 0.67, Graham Number of $1.23, and FCF yield of 75.3%, which look statistically cheap. But ROCE is -9.15%, the Altman Z-Score is -10.15, and revenue growth is -43.37%. The Piotroski F-Score is 6/9. I would need evidence of sustainable cash generation, not one unusual quarter, before calling this a sound value.

In plain English: Kartoon Studios makes and distributes animated children's shows and related media. The company has mostly lost money over the past few years, though one recent quarter showed a large profit and its cash flow looks strong relative to its small stock market value. At $0.56, the shares look cheap on several simple measures, but sales have been shrinking and the profit record is unstable, so the business looks weak until it proves it can earn money consistently.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer