Beyond Frames has unveiled that one of their ongoing projects is based on the multi-billion dollar IP Teenage Mutant Ninja Turtles (TMNT). This iconic franchise was hugely popular during the 1990s and experienced a resurgence after Paramount acquired the IP in 2009. The franchise was rebooted and achieved commercial success, generating over USD 1 billion in global retail sales in 2023 alone. Notably, this project marks the franchise’s first entry into the virtual reality (VR) space.

Beyond Frames

* Lack of major recurring revenue, which could impact business stability and predictability.
* Operates in an industry with low return on invested capital (ROIC), potentially affecting profitability.
* Difficulty in identifying sustainable competitive advantages, which may impact long-term market positioning.
* Lacks a diversified and wide revenue base, potentially exposing the company to higher risks from market fluctuations or customer loss.

* Strong ability to scale up without expensive reinvestment, indicating an asset-light and efficient business model.
* Benefits from secular tailwinds supporting growth, positioning the company to capitalize on long-term trends..

* Low profitability metrics, with gross profit margin and operating margin below target levels, indicating potential challenges in cost management.
* Inconsistent or negative earnings growth, failing to meet criteria for consistent EPS growth.

* Strong short-term liquidity with current assets 1.5 times greater than current liabilities, indicating robust working capital management.
* Healthy debt management, with Net Debt less than two times Operating Cash Flow and less than five times Free Cash Flow.
* The company appears to have a solid balance sheet structure, suggesting financial stability in the near term.

* Lack of a long, solid track record for a well-defined, consistent, and credible long-term growth strategy.
* Short tenure of top management team, with median tenure less than five years, potentially impacting stability and long-term planning.
* Increase in total number of shares without corresponding EPS growth, indicating potential dilution of shareholder value.
* Limited transparency in discussing mistakes or failures, which may hinder trust-building with shareholders and learning from past experiences.
* Unclear commitment to sustainability reporting and lack of sustainability-related performance incentives, potentially overlooking important ESG considerations.

* Strong founder mentality with a clear long-term vision and deep industry knowledge, driven by passion for products rather than wealth accumulation.
* CEO demonstrates commitment to innovation and has a track record of success, having secured profitable publishing deals and shown explosive growth.
* Management provides regular, transparent updates focused on long-term business value, maintaining consistent storytelling and key metrics over time.
* Significant insider ownership, including founders and CEO, aligning management interests with shareholders and demonstrating confidence in the company's future.
* Board composition shows gender diversity and directors' experience aligns well with the business strategy, potentially enhancing decision-making and governance.