Is Genius Brands International ( GNUS) Stock A Good Buy Below $2?

Genius Brands International Inc(NASDAQ: GNUS) stock touched its all-time high a year ago when it climbed $11.73. At present, it is trading at $1.80, down 85%. This penny stock is still appearing a little unattractive and expensive when seen from the investor’s vision. At present, its stock is trading at $541 million of market capitalization.

Valuation of the company seems to be an important thing here. In Q1-2021, GNUS earned $1.1 million of revenue, which implies annualized revenue of around $4.4 million. GNUS, at present, trades at 122.9 times the fiscal revenue of 2021. Despite the correction from its all-time high, the valuation seems a little stretched. At present, there isn’t any clarity on revenue guidance from Genius Brands. Despite aggressive growth plans in place, the potential for equity dilution and cash burn still keeps its stock under the weather.

This media company deals in marketing, licensing, and producing business for kid-focused content. The Kartoon channel it offers is available in more than 100 million households through a range of distribution platforms.