Q: Please explain how Spin Master's share price makes sense today.
5i Research Answer:
TOY has had a rough year, which has made it very cheap at 11X earnings. Tariffs have been a big drag on the company. It is expected to show decent earnings growth this year. If there is tariff relief we think the stock could move. The balance sheet is OK and the 2.3% dividend is attractive while one awaits a recovery. It is priced well, but investors are going to need some patience here still. Forward growth estimates have been trending lower, and we think that a rebound in estimates could coincide with a change in price momentum for TOY.