Kartoon StudiosTOON -5.00%39 Gross Margin % is 34.82% as of Mar. 2026, which is 70% above its 10-year median of 20.49. GuruFocus rates TOON with a GF Score™ of 39/100 and a GF Value™ of $0.56 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 953 Media - Diversified companies, Kartoon Studios ranks worse than 59.81% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Kartoon Studios had a gross margin of 34.82% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Kartoon Studios Gross Margin % Related Terms
Kartoon Studios Gross Margin % Historical Data
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The historical data trend for Kartoon Studios's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TOON vs CRSF, RDI, SLMT: Gross Margin % Comparison
For the Entertainment subindustry, Kartoon Studios's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Kartoon Studios Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Kartoon Studios's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kartoon Studios's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Kartoon Studios (TOON) has a Gross Margin % of 34.82% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kartoon Studios and its competitors. This is 70% above median its historical median of 20.49. According to the industry distribution chart, Kartoon Studios ranks #570 out of 953 companies in the Media - Diversified industry, placing it in the top 59.8%.
Is Kartoon Studios' Gross Margin % too high?
Kartoon Studios' current Gross Margin % of 34.82% is 70% above median its 10-year median of 20.49. The Media - Diversified industry median Gross Margin % is 38.90. Kartoon Studios' value of 34.82% is 10.5% below this industry median. Based on the distribution chart, Kartoon Studios ranks #570 out of 953 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Kartoon Studios has a GF Score™ of 39/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kartoon Studios' Gross Margin % compare to CRSF and RDI?
According to the Media - Diversified industry distribution chart, Kartoon Studios ranks #570 out of 953 companies for Gross Margin %. This places Kartoon Studios in the lower half of its industry. The industry median Gross Margin % is 38.90. Kartoon Studios' value of 34.82% is 10.5% below this benchmark. While the company's 10-year median is 20.49 vs. the industry median of 38.90, Kartoon Studios has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.90, based on 953 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kartoon Studios's current Gross Margin % of 34.82% is 10.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Kartoon Studios and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kartoon Studios's current Gross Margin % is 34.82%, which is 70% above median its own 10-year median of 20.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kartoon Studios stock overvalued right now?
Based on GuruFocus' analysis, Kartoon Studios (TOON) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.56, compared to a current price of $0.76 — trading 35.7% above its estimated fair value. The current Gross Margin % is 34.82%, which is 70% above median its 10-year median of 20.49 and 10.5% below the Media - Diversified industry median of 38.90. Kartoon Studios' overall GF Score™ is 39/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Kartoon Studios (TOON), the current Gross Margin % is 34.82% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Kartoon Studios (TOON) Overvalued in 2026?
Based on GuruFocus' analysis, Kartoon Studios stock appears to be overvalued.
The current stock price of $0.76 is trading 35.7% above its estimated GF Value™ of $0.56.
GuruFocus considers Kartoon Studios to be Significantly Overvalued.
Key valuation signals for TOON:
Gross Margin %: 34.82% (70% above median its 10-year median of 20.49)
GF Value™: $0.56 vs. price of $0.76 (35.7% above fair value)
Industry Position: 10.5% below the Media - Diversified median (#570 of 953)
No single metric tells the full story. See the TOON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kartoon Studios Inc is a media company developing, producing, marketing, and licensing branded animated entertainment properties and consumer products for media and retail distribution. Its portfolio features programming for toddlers to tweens, including the preschool properties Rainbow Rangers for Nick Jr. and Llama Llama for Netflix, Stan Lee's Superhero Kindergarten, Shaq's Garage, toddler brand Baby Genius, STEM-based series Thomas Edison's Secret Lab, Warren Buffett's Secret Millionaires Club, and the new preschool show, Stan Lee's Superhero Kindergarten. Its channel is available on television and mobile devices through distribution platforms, including Comcast, Cox, DISH, Sling TV, Apple TV, Roku, Android TV, Tubi, Xumo, and Amazon Fire.
39GF Score
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