Fact based stock research
WildBrain (TSX:DHX)
CA96810C1014
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
WildBrain stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 23 (worse than 77% compared with investment alternatives), WildBrain (Movies & Entertainment, Canada) shares have lower financial characteristics compared with similar stocks. Shares of WildBrain are low in value (priced high) with a consolidated Value Rank of 11 (worse than 89% of alternatives). But they show above-average growth (Growth Rank of 51) and are safely financed (Safety Rank of 55, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 23, is a sell recommendation based on WildBrain's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company WildBrain exhibits low value (Obermatt Value Rank of 11), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 51). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 55) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Canada |
| Industry | Movies & Entertainment |
| Index | |
| Size class | Medium |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: WildBrain
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 21 |
|
13 |
|
12 |
|
11 |
|
| GROWTH | ||||||||
| GROWTH | 87 |
|
27 |
|
49 |
|
51 |
|
| SAFETY | ||||||||
| SAFETY | 42 |
|
65 |
|
60 |
|
55 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
41 |
|
47 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
9 |
|
26 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 23 (worse than 77% compared with investment alternatives), WildBrain (Movies & Entertainment, Canada) shares have lower financial characteristics compared with similar stocks. Shares of WildBrain are low in value (priced high) with a consolidated Value Rank of 11 (worse than 89% of alternatives). But they show above-average growth (Growth Rank of 51) and are safely financed (Safety Rank of 55, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 23, is a sell recommendation based on WildBrain's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company WildBrain exhibits low value (Obermatt Value Rank of 11), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 51). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 55) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 21 |
|
13 |
|
12 |
|
11 |
|
| GROWTH | ||||||||
| GROWTH | 87 |
|
27 |
|
49 |
|
51 |
|
| SAFETY | ||||||||
| SAFETY | 42 |
|
65 |
|
60 |
|
55 |
|
| COMBINED | ||||||||
| COMBINED | 47 |
|
10 |
|
22 |
|
23 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 11 (worse than 89% compared with alternatives), WildBrain shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for WildBrain. Price-to-Sales (P/S) is 76, which means that the stock price compared with what market professionals expect for future sales is lower than 76% of comparable companies, indicating a good value concerning to WildBrain's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 1, meaning that dividends are expected to be lower than for 99% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 89% of alternatives (only 11% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 83% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 11, is a sell recommendation based on WildBrain's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in WildBrain could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, WildBrain looks like an expensive investment today. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 72 |
|
70 |
|
67 |
|
76 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 28 |
|
6 |
|
8 |
|
17 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 2 |
|
18 |
|
46 |
|
11 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 21 |
|
13 |
|
12 |
|
11 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 51 (better than 51% compared with alternatives), WildBrain shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for WildBrain. Sales Growth has a rank of 71, which means that, currently, professionals expect the company to grow more than 71% of its competitors. Profit Growth with a rank of 90 is also above average. But Capital Growth has only a rank of 4, and Stock Returns with 31 are also below-average. Stock returns for WildBrain have recently been below 69% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 51, is a buy recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for WildBrain. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 46 |
|
47 |
|
73 |
|
71 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 60 |
|
6 |
|
94 |
|
90 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
27 |
|
17 |
|
4 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 98 |
|
100 |
|
17 |
|
31 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 87 |
|
27 |
|
49 |
|
51 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 55 (better than 55% compared with alternatives), the company WildBrain has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of WildBrain is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for WildBrain and the other two below average. Refinancing is at 90, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 90% of its competitors. But Leverage is high with a rank of 24, meaning the company has an above-average debt-to-equity ratio. It has more debt than 76% of its competitors. Liquidity is also on the riskier side with a rank of 42, meaning the company generates less profit to service its debt than 58% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 55 (better than 55% compared with alternatives), WildBrain has a financing structure that is safer than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for WildBrain are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with WildBrain and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 2 |
|
28 |
|
34 |
|
24 |
|
| REFINANCING | ||||||||
| REFINANCING | 95 |
|
80 |
|
88 |
|
90 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 49 |
|
43 |
|
41 |
|
42 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 42 |
|
65 |
|
60 |
|
55 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
13 |
|
41 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
88 |
|
35 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
34 |
|
48 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
41 |
|
47 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for WildBrain from November 14, 2024.
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