Stock fact sheet · data as of
Kartoon Studios Inc. (TOON): fair value, margin of safety and Wheel Score
Communication Services · Entertainment · United States · Value
Is TOON undervalued?
TOON has a margin of safety of 86%: the stock closed at 0.5455 on 16 Oct 2026 against a GLS average fair value of 4.02. 6 of the 7 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 7 models disagree widely: GLS Growth gives 0.4359 while 10 Cap gives 7.88. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files TOON under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for TOON
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 1.63 | +199% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 6.62 | +1114% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 2.75 | +405% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 0.4359 | -20% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 7.88 | +1345% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 7.13 | +1208% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 1.65 | +203% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -0.1223 | -122% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - TOON passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 1.6 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC -55.9%, ROE -93.6%, ROA -34.6% - with debt at 0.67 times equity and a free-cash-flow yield of 77.1%.
Kartoon Studios Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Production Services 64%, Content Distribution 35%, Licensing And Royalties 1% (quarter Q2 FY2026).
Institutional ownership scores 3/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | -55.9% |
|---|---|---|---|
| GLS Moat | 1.6 / 10 | ROE | -93.6% |
| Debt / equity | 0.67 | ROA | -34.6% |
| Free-cash-flow yield | 77.1% | Payout ratio | 0% |
| Institutions | 3 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 42: Weak
TOON scores 42 out of 100 on the Wheel Score, in the Weak band (under 50). Value 25/25, Health 11/20, Moat 2/15, Premium 0/20, Stability 3/20. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
No implied volatility is recorded for TOON - the nightly snapshot found no near-the-money contracts 20-60 days out - so the Premium part of the Wheel Score is zero. Chain open interest is 15,987 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 97k shares a day on a market cap of $34M, with a beta of 2.06 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 3 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 86% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 2 / 15 | moat 1.6/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 3 / 20 | 97k shares/day, $34M cap, beta 2.06 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 12 Nov 2026 (before the open), 27 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Entertainment
The 12 companies below are the closest to Kartoon Studios Inc. by market cap within the Entertainment industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| GAIA Gaia, Inc. | 1.35 | 2.68 | +50% | 45Weak | $34M |
| CPOP Pop Culture Group Co., Ltd | 3.39 | - | - | 23No options | $39M |
| ANGH Anghami Inc. | 3.27 | - | - | 28No options | $30M |
| CHND China Media Inc. | 1.00 | - | - | 26No options | $40M |
| CNVS Cineverse Corp. | 1.68 | - | - | 26Weak | $40M |
| TGE Generation Essentials Group | 0.8499 | 5.38 | +84% | 33No options | $41M |
| RDIB Reading International, Inc. | 12.13 | 14.95 | +19% | 39No options | $51M |
| LFS LEIFRAS Co., Ltd. American Depositary Shares | 2.19 | 66.54 | +97% | 39No options | $57M |
| RDI Reading International, Inc. | 1.76 | 18.49 | +90% | 45Weak | $62M |
| AASP Agassi Sports Entertainment Corp. | 5.10 | - | - | 23No options | $67M |
| AMFL American Films, Inc. | 0.1142 | - | - | 21No options | $7M |
| NIPG NIP Group Inc. | 7.40 | - | - | 24No options | $7M |
⚖ Compare TOON with 7 of them All Communication Services stocks →
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Start free See the Sunday ScanQuestions about TOON
Is TOON undervalued right now?
By the GLS models, yes: at 0.5455 the stock is 86% below the average fair value of 4.02 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of TOON and what does it mean?
TOON scores 42 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for TOON?
4.02 per share as of 16 Oct 2026 - the simple average of the 7 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Kartoon Studios Inc. report earnings next?
The next earnings report is due on 12 Nov 2026 (before the open), 27 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does TOON have listed options, and how liquid are they?
Yes. The nightly snapshot found 74 listed contracts with 15,987 open interest across all expiries. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.