Its a toy, its a collectible, its something that everyone likes. Have you heard of Funko Pop!?

It is a toy that is sold at retail stores from a range of $15 SGD to $30 SGD. Of course, there are rare ones and those that are not so rare. There is a toy for almost every other brand. You name it, they have it.

I tried to find out its street value from carousell and this is the result:
People can buy and sell it at a higher price. Does this remind you of...IPO? This is no wonder the company prides itself as "Index fund of pop culture". They create this toys and sell them off.

They creates toys, pay the license fees to the various brand owners, and sell them off to customers via various channels.

And did you know, Funko Inc (FNKO) has tumbled mumbled to $14 range? It was trading at $18 just a month ago in Oct 2019, and $27 high in Sep 2019.

Of course, it is a tumble mumble pick for a reason.

The reason for the huge fall is because of the guidance that the CEO give. He told the market that 2020 growth will be weaker, and will pick up in 2021 due to more pop events like new House of Mouse shows and movies.

Let's take a look at the financials:
GAAP PE ratio: 18.65
Non-GAAP PE ratio: 11.83

Quick ratio: 1.15
Current ratio: 1.72
Debt-to-equity: 106% (Industry = 164%)

Quarterly EPS growth y-o-y: 320%
EPS (TTM) growth y-o-y: 168%

In short, growth has been great, in fact, too good to be true. However, it has only been trading for the past 2 years. Growth is good 2018 to 2019, but can it sustain for the next few years?

Let's dig out more info from its most recent investor presentation:

Funko's 3 main stakeholders

Funko takes only 2-3 months to release a new toy into the market

Funko is able to capitalize upon any new pop trends

Funko targets almost every demographics

Funko has great number of followers, it does mean that the company does not have to rely too much on advertising expenses

Lastly, as the share price drops, the resale value of Funko pop toys rises. Even on carousell, some toys are going for $400 SGD. This is almost the value of a Seiko watch.

Buy the dip? Depends on your portfolio. If you are looking for some growth, this can be a good company to own.

It does has its risks - Competition from other toy makers, Fake versions of its toys being sold, or lack of new pop trends going around.

Because Funko Pop is so popular, I was unable to resist and has taken a position for Llama Stocks portfolio at $14.18.

As of time of writing, I have sold off Revolve Group shares at $16.15. Average cost of shares were around $15.50.

Current speculative holdings:
1. Weibo @ $43.20
2. Pampa Energia SA @ $13.25
3. Funko Inc @ $14.18

Happy school holidays~

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