Review of Spin Master Corp.

SEP 11, 2025 - The company did a large acquisition of Melissa & Doug in FY2024, which boosted the debt levels to a moderate level. Despite some cost synergies having been realized, the benefit of the acquisition has not materialized to accelerate topline growth so far. TOY still possesses decent assets with strong brands and solid cash flow, but investors have started to lose faith in the company’s ability to allocate capital, as evidenced by the historical low in terms of valuation multiple. In addition, tariffs also increased the near-term uncertainty for businesses. Due to a variety of negative factors, we are downgrading our rating by one notch to ‘B’.