Review of Spin Master Corp.

AUG 06, 2024 - Spin Master (TOY) was founded in Canada in 1994 by childhood friends who had recently graduated from Western University. TOY has grown significantly since its inception from a small, single product toy company, to today, as a leading global children’s entertainment company through its three creative centres: Toys; Entertainment; and Digital Games. TOY presents an interesting value opportunity for investors looking for exposure to the consumer discretionary sector. Given the evident pressures this industry can face by relying on consumer spending, the macroeconomic environment is very relevant, and a recession would hurt TOY. We maintain our rating of a B+ but will be closely watching how the second half of the year plays out as we contemplate a downgrade.