And the Award for Best Canadian Tech Company Goes To …

Here’s why Spin Master Corp. (TSX:TOY) may be the most disruptive tech company on the TSX.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Mad Money host Jim Cramer keeps referring to Domino’s Pizza, Inc. (NYSE:DPZ) as a tech company that sells pizza. As odd as that sounds, it’s not too far-fetched of a concept when you consider how well Domino’s management has leveraged technology to their advantage, virtually reinventing the carryout pizza business in the process.

When you consider the profound potential for technological disruption across all industries, including those that were once deemed to be insulated from tech advancements, it’s inevitable that another Domino-like company is out there somewhere, just waiting to emerge. Over the course of many years, they’ll stand to reinvent and disrupt their own “non-tech savvy” industries through their own “tech-spertise” (tech expertise).

One Canadian company that stands out with the ability to disrupt its industry internationally and potentially steal market share from the incumbent players. That company, I believe, is Spin Master Corp. (TSX:TOY).

It’s a seemingly simple toy company with a profoundly powerful competitive advantage that’s easy to overlook, especially if you’re an investor who isn’t keen on less-established mid-cap stocks.

While Spin Master is a promising up-and-coming player in the toy industry, I believe it’s more than just a “simple toy company.” In an attempt to channel Jim Cramer, I’m going to go ahead and call the company a tech company that just happens to sell toys.

Despite being a relatively small company relative to the bigger players in the space, most notably Hasbro, Inc., Spin Master has been able to make a huge mark on its industry through its incredibly creative and innovative concepts that were made possible through management’s affinity to invest in cutting-edge tech.

It’s not a mystery as to why Spin Master has been nominated for more TIA Toy of the Year (TOTY) Most Innovative Toy awards than any other toy company. Management has innovation in its veins and is not afraid to spend money on R&D efforts to increase the odds of yielding the next blockbuster toy out of its pipeline.

Hatchimals was a global phenomenon that took the toy industry by storm a few years ago. Sure, the toy was cute, but that wasn’t the main reason for its overwhelming success. It was all about the underlying technology. Hatchimals is a phy-gital (physical-digital) toy that makes use of intriguing robotic technologies to create a genuinely unique experiential product with the ability to fascinate both kids and parents alike.

If you can impress not only your target audience but also a wider one, you’ve got the formula for a surging stock. And while some may think of Hatchimals as a one hit wonder, I’d argue that given the company’s impeccable stewardship and their embracement of tech that there may be many more blockbuster hits in the cards for future holiday seasons.

Moreover, management is keeping an active ear open for innovative new concepts being developed by independent creators. Case in point: Moonlite.

I haven’t even touched on Spin Master’s dominant portfolio of child-friendly apps built for smartphones and tablets. We’ll leave that for a future article, but I’m sure you get the point by now. Spin Master is a tech company that makes toys, and it’s well-equipped to reinvent the toy industry in the same way that Domino’s reinvented pizza delivery.

With the stock trading at just 26 times trailing earnings, I think investors ought to think about backing up the truck today before the stock takes off.

Stay hungry. Stay Foolish.

Should you invest $1,000 in Bitcoin.ℏ right now?

Before you buy stock in Bitcoin.ℏ, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Bitcoin.ℏ wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,345.77!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*.

See the Top Stocks * Returns as of 4/21/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joey Frenette owns shares of Spin Master. The Motley Fool owns shares of Hasbro.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Tech Stocks

ways to boost income
Tech Stocks

1 Undervalued TSX Stock Down 18% to Buy and Hold

This TSX stock remains down but is due for a huge comeback for investors.

Read more »

grow money, wealth build
Tech Stocks

This TSX Stock Down 20% Could Triple Your Money by 2028

Down 20% from its 52-week high, this TSX stock is positioned to more than triple investor returns over the next…

Read more »

money goes up and down in balance
Tech Stocks

The Smartest Canadian Stock to Buy With $600 Right Now

The Canadian stock market has some big winners trading at discounted share prices, ripe for the taking, and here’s one…

Read more »

Muscles Drawn On Black board
Dividend Stocks

The Best Canadian Stocks to Buy Right Away With $4,000

Seeking strength from your investments? Then these are the three stocks to consider first.

Read more »

Investor wonders if it's safe to buy stocks now
Tech Stocks

Where Will BlackBerry Be in 4 Years?

With fresh partnerships and a tighter focus, BlackBerry is trying to lay the foundation for long-term growth.

Read more »

Start line on the highway
Tech Stocks

The Smartest Canadian Stock to Buy With $10,000 Right Now

Investors interested in tech can consider Constellation Software.

Read more »

Investor reading the newspaper
Tech Stocks

Dip Buyers Could Win Big: The Best Canadian Stocks to Buy Now

Canadian stocks have some big winners, and these three are a prime choice while shares are down.

Read more »

Data center servers IT workers
Dividend Stocks

If I Could Buy and Hold a Single Canadian Stock, This Would Be It

If you want a Canadian stock that's due for even more growth, this one is an easy "yes."

Read more »