Is it a good company at a reasonable price? This is a small cap and therefore rather risky. Personally, I would not buy a stock with a negative book value, which this stock has. The company has not made any profit 2016. This is also a negative. One positive is that analysts think that it could become profitable within the year. The stock is testing as cheap, but I do not think that is unreasonable, but it is also no reason to buy.
I do not own this stock of Wild Brain Ltd (TSX-WILD, OTC-WLDBF). In the CanTech Letter of May 2014 Byron Capital says investors should accumulate DHX Media aggressively. I also saw a report on this stock from Global Maxfin Capital who rates this stock a strong buy in January 2014.
When I was updating my spreadsheet, I noticed that they have had no positive earnings since 2016. Analyst expect some positive earnings this year, but the EPS for the last 12 months to the first quarter of 2026 (dated September 2025) is still negative. This company has an annual financial year ending June 30 each year. So, I am reviewing the financial year ending June 30, 2025. This company also has a negative book value. This is never good.
If you had invested in this company in December 2014, for $1,000.13 you would have bought 103 shares at $9.71 per share. In December 2024, after 10 years you would have received $22.25 in dividends. The stock would be worth $168.92. Your total return would have been $191.17. This would be a total loss of 16.02% per year with 16.29% from capital loss and 0.28% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $9.71 | $1,000.13 | 103 | 10 | $22.25 | $168.92 | $191.17 |
The company cancelled the dividend in 2019 so there is no dividend yield nor Dividend Payout Ratios (DPR).
Debt Ratios need improving. The Long Term Debt/Market Cap Ratio for 2024 is high at 0.96 and currently much too high at 1.68. The Liquidity Ratio for 2024 is low at 1.25 and fine at 1.49 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.69 and currently at 1.65. The Debt Ratio for 2024 is too low at 1.21 and 1.19 currently. I prefer this to be 1.50 and higher. The Leverage and Debt/Equity Ratios are negative because this company has a negative book value.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.96 | 1.68 |
| Intang/GW | 0.93 | 1.39 |
| Liquidity | 1.25 | 1.49 |
| Liq. + CF | 1.69 | 1.65 |
| Debt Ratio | 1.21 | 1.19 |
| Leverage | -10.57 | -8.17 |
| D/E Ratio | -8.71 | -6.89 |
The Total Return per year is shown below for years of 5 to 19 to the end of 2024. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 0.00% | 0.88% | 0.88% | 0.00% |
| 2014 | 10 | 0.00% | -16.02% | -16.29% | 0.28% |
| 2009 | 15 | 7.32% | 4.99% | 2.33% | |
| 2005 | 19 | -0.71% | -1.63% | 0.92% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are negative and so unusable. I have the same problem with the 10 year and historical median P/E Ratios.
Because of so many negative EPS, I cannot probably calculate a Graham Price.
I get a 10-year median Price/Book Value per Share Ratio of 2.79. However, the current Book Value is negative and so the P/B Ratios are currently negative. I can do not testing here.
I get a 10-year median Price/Cash Flow per Share Ratio of 3.98. The current P/CF Ratio is 6.14 based on Cash Flow per Share estimate for 2026 of $0.22, Cash Flow of $46.7M and a stock price of 1.35. The current ratio is 54% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
However, the above Cash Flow per Share estimate suggests that the Cash Flow will drop 69% from that of June 2025. The Cash Flow for the last 12 months is $140.8M. This is a drop of 7.7%. This will also give a ratio of 2.04. This ratio is 49% below the 10 year median ratio. This stock price testing also suggests that the stock price is relatively expensive.
I cannot do any dividend yield testing because the dividends have been cancelled or suspended.
The 10-year median Price/Sales (Revenue) Ratio is 0.92. The current P/S Ratio is 0.50 based on Revenue estimate for 2026 of $570.7M, Revenue per Share of $2.69 and a stock price of $1.35. This ratio is 45% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
Results of stock price testing is that the stock price is that the stock price could be cheap. This is because one of the good tests is the P/S Ratio test and it says that the stock price is cheap. The problem with stock price testing for this stock is that there were only two valid tests and the other was the P/CF Ratio test. That test says that the stock price is relatively expensive. I did go with the P/S Ratio test.
When I look at analysts’ recommendations, I find Strong Buy (1), and Hold (4). The consensus would be a Buy. The 12 month stock price consensus is $2.34, with a high of $3.00 and low of $1.60. The consensus 12 month stock price of $2.34 implies a total return of $73.33%, all from capital gains based on a current stock price of $1.35.
There are no entries for this stock on Stock Chase. Aditya Raghunath on Motley Fool in 2024 says the stock is a top choice as it could stage a turnaround. Amy Legate-Wolfe on Motley Fool thought in January 2024 that this stock could bounce back. . The company put out a Press Release about their first quarter of 2026 dated September 2025. The company put out a Press Release about their fourth quarter of 2025 dated June 2025.
Simply Wall Street via Yahoo Finance reviews this stock and says that the most important thing is that analysts now think it can become profitable next year. Simply Wall Street has one warning of Earnings have declined by 13.2% per year over past 5 years.
WildBrain Ltd is a Canadian media company specializing in children's entertainment, known for producing, distributing, and licensing popular content. It has three reportable segments: 1) Content and Licensing; 2) Global Licensing, and 3) Canadian Television Broadcasting. The company generates the majority of its revenue from the management of copyrights, licensing, and brands for third parties. Its web site is here Wild Brain Ltd.
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