Christmas and Boxing Day have now passed us by, but it is not too late for investors to gift themselves cheap stocks. Today, I want to zero-in on an appropriately undervalued stock that is worth consideration before the New Year. Should you buy today? Let’s jump in.
Spin Master (TSX:TOY) is a Toronto-based children’s entertainment company that creates, designs, manufactures, licenses, and markets various toys, entertainment franchises, an digital games in North America, Europe, and around the world. Shares of this TSX stock have plunged 31% in 2022 as of close on December 29. However, the stock has jumped 3.6% over the past week.
The company released its third quarter fiscal 2022 results on November 2. Total revenue fell 12% year-over-year to $624 million. Indeed, each segment suffered a decline in revenue compared to the previous year. Adjusted operating income was reported at $151 million – down from $175 million in Q3 2021. Meanwhile, cash provided by operating activities rose to $207 million compared to $85.8 million in the prior year.
For the full year, Spin Master achieved revenue growth of 9.3% to $1.55 billion. Moreover, adjusted operating income climbed to $326 million compared to $246 million in the first nine months of fiscal 2021. Adjusted EBITDA jumped to $377 million over $335 million in the previous year.
Shares of Spin Master stock possesses a very favourable price-to-earnings ratio of 8.4. It offers a quarterly dividend of $0.06 per share, representing a modest 0.7% yield. I’m looking to snatch up this dirt-cheap growth stock that is set to take off after passing through this challenging economic period.
