JAKKJAKKS Pacific, Inc.
Is the business good?
The checks split: earnings fully cash-backed (4.9×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
A balanced mix of margins, efficiency, and leverage. ROE 4% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is JAKK?
JAKKS Pacific, Inc. earns 6.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.7 points below what the capital costs: growth destroys value
- Operating margin
- 2.6%
Operating margin · Leisure median 9.2% · 12 months to Q2 2026
- Cash conversion
- 4.93×
Cash conversion · 1.31× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +6.5%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 2.5% |
| FY2021 | 6.2% |
| FY2022 | 7.7% |
| FY2023 | 8.3% |
| FY2024 | 5.7% |
| FY2025 | 2.5% |
Details›
- Gross margin12 months to Q2 2026
- 32%
- Operating margin12 months to Q2 2026
- 2.6%
- Net margin12 months to Q2 2026
- 2.8%
- Free cash flow margin
- 6.0%
- R&D as % of revenue
- 1.8%
- Revenue, trailing twelve months
- $584M
- Free cash flow, trailing twelve months
- $35M
- Net income, trailing twelve months
- $16M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.