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CHR Stock Analysis - Cheer Holding, Inc. AI Rating

CHR Nasdaq Services-Computer Processing & Data Preparation E9 CIK: 0001738758
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2020-03-31
AI Rating
SELL
75% Confidence

📊 CHR Key Takeaways

Revenue: $9.8M
Net Margin: 29.7%
Free Cash Flow: $-1.1M
Current Ratio: 3.26x
Debt/Equity: 0.00x
EPS: $0.06
AI Rating: SELL with 75% confidence

Investment Thesis

Cheer Holding exhibits concerning operational deterioration despite reported profitability, with negative operating cash flow of -$1.1M contradicting the $2.9M net income, suggesting earnings quality issues. The dramatic -236.8% YoY net income decline and severely outdated financial data from March 2020 (nearly 4 years old) prevent reliable fundamental assessment. Poor return metrics (ROE 4.7%, ROA 3.4%) indicate inefficient capital deployment, raising questions about the sustainability of current operations.

CHR Strengths

  • + Strong liquidity position with 3.26x current ratio and $10.0M cash
  • + High operating margin of 29.7% suggests pricing power or cost discipline
  • + Zero long-term debt and low leverage (0.00x debt-to-equity) provides financial flexibility

CHR Risks

  • ! Massive YoY earnings deterioration of -236.8% indicates serious operational challenges
  • ! Negative operating cash flow of -$1.1M contradicts reported net income, suggesting potential accounting manipulation or poor cash generation
  • ! Data is severely stale (March 31, 2020), making current analysis unreliable for investment decisions
  • ! Extremely low ROE (4.7%) and ROA (3.4%) demonstrate poor capital efficiency
  • ! No insider buying activity in last 90 days despite low valuations suggests lack of management confidence

Key Metrics to Watch

CHR Financial Metrics

Revenue
$9.8M
Net Income
$2.9M
EPS (Diluted)
$0.06
Free Cash Flow
$-1.1M
Total Assets
$85.7M
Cash Position
$10.0M

💡 AI Analyst Insight

Strong liquidity with a 3.26x current ratio provides a solid financial cushion.

CHR Profitability Ratios

Gross Margin N/A
Operating Margin 29.7%
Net Margin 29.7%
ROE 4.7%
ROA 3.4%
FCF Margin -11.5%

CHR vs Technology Sector

How Cheer Holding, Inc. compares to Technology sector averages

Net Margin
CHR 29.7%
vs
Sector Avg 18.0%
CHR Sector
ROE
CHR 4.7%
vs
Sector Avg 22.0%
CHR Sector
Current Ratio
CHR 3.3x
vs
Sector Avg 2.5x
CHR Sector
Debt/Equity
CHR 0.0x
vs
Sector Avg 0.5x
CHR Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CHR Balance Sheet & Liquidity

Current Ratio
3.26x
Quick Ratio
3.26x
Debt/Equity
0.00x
Debt/Assets
27.4%
Interest Coverage
N/A
Long-term Debt
N/A

CHR 5-Year Financial Trend

CHR 5-year financial data:
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Cheer Holding, Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline.

CHR Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-11.5%
Free cash flow / Revenue

CHR Quarterly Performance

Quarterly financial performance data for Cheer Holding, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2020 $9.8M $1.8M $0.06

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

CHR Capital Allocation

Operating Cash Flow
-$1.1M
Cash generated from operations
Dividends
None
No dividend program

CHR SEC Filings

Access official SEC EDGAR filings for Cheer Holding, Inc. (CIK: 0001738758)

📋 Recent SEC Filings

Date Form Document Action
May 19, 2023 SC 13D ea178919-13dzhong_glory.htm View →
Oct 4, 2022 SC 13D formsc13d.htm View →
Jan 4, 2022 SC 13G fp0071638_sc13g.htm View →
Jun 1, 2020 4 xslF345X03/ownership.xml View →
Jun 1, 2020 4 xslF345X03/ownership.xml View →

Frequently Asked Questions about CHR

What is the AI rating for CHR?

Cheer Holding, Inc. (CHR) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CHR's key strengths?

Strong liquidity position with 3.26x current ratio and $10.0M cash. High operating margin of 29.7% suggests pricing power or cost discipline.

What are the risks of investing in CHR?

Massive YoY earnings deterioration of -236.8% indicates serious operational challenges. Negative operating cash flow of -$1.1M contradicts reported net income, suggesting potential accounting manipulation or poor cash generation.

What is CHR's revenue and growth?

Cheer Holding, Inc. reported revenue of $9.8M.

Does CHR pay dividends?

Cheer Holding, Inc. does not currently pay dividends.

Where can I find CHR SEC filings?

Official SEC filings for Cheer Holding, Inc. (CIK: 0001738758) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CHR's EPS?

Cheer Holding, Inc. has a diluted EPS of $0.06.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2020-03-31 | Powered by Claude AI