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Hasbro (HAS)
NASDAQ:HAS
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Hasbro
(NASDAQ:HAS)
Rating:70Outperform
Price Target:―
Positive Factors
Earnings
HAS reported 1Q25 adjusted EPS of $1.04, well ahead of the Street’s $0.68 and our $0.73.
Product Innovation
The Final Fantasy Magic set is anticipated to be the best-selling set of all time on its release day.
Strategic Plans
The newly announced 'Playing to Win' strategy makes sense as the best next step for the company's turnaround.
Negative Factors
Consumer Products
Major retailers are shifting away from a direct import supply chain model, causing a projected 20% decline in consumer products for 2Q25.
Tariffs
Tariff uncertainty remains high but HAS is working to protect key price points.
Toy Industry Outlook
The toy industry is expected to be flattish over the next three years, which may impact growth prospects.
Hasbro (HAS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.30B
Dividend Yield3.16%
Average Volume (3M)2.24M
Price to Earnings (P/E)21.9
Beta (1Y)0.97
Revenue Growth-10.31%
EPS GrowthN/A
CountryUS
Employees4,985
SectorConsumer Cyclical
Sector Strength76
IndustryLeisure
Share Statistics
EPS (TTM)1.04
Shares Outstanding140,129,380
10 Day Avg. Volume2,331,644
30 Day Avg. Volume2,238,874
Financial Highlights & Ratios
PEG Ratio1.92
Price to Book (P/B)7.18
Price to Sales (P/S)0.00
P/FCF Ratio13.42
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue0.66
Enterprise Value/Gross Profit4.01
Enterprise Value/Ebitda11.22
Forecast
1Y Price Target
$74.33Price Target Upside12.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Hasbro Business Overview & Revenue Model
Company DescriptionHasbro, Inc. is a global play and entertainment company committed to creating the world's best play and storytelling experiences. Based in Pawtucket, Rhode Island, Hasbro operates across various sectors, including toys and games, entertainment, and consumer products. The company is known for its diverse portfolio of iconic brands such as Nerf, My Little Pony, Transformers, Play-Doh, Monopoly, and Magic: The Gathering. Hasbro also engages audiences through its entertainment subsidiary, eOne, which produces and distributes film and television content.
How the Company Makes MoneyHasbro generates revenue through a multi-faceted approach encompassing several key revenue streams. The primary source of income is its toy and game sales, leveraging its strong portfolio of well-known brands. Hasbro also earns from licensing its intellectual properties to other companies for use in merchandise and digital games. The entertainment segment, primarily through eOne, contributes to revenue through the production and distribution of television and film content, as well as music and family brands. Additionally, the company forms significant partnerships and collaborations with other entertainment and technology entities to expand its reach and revenue potential. Factors such as consumer trends, seasonal demand, and strategic acquisitions also play a vital role in the company's earnings.
Hasbro Financial Statement Overview
Summary
Hasbro's financial performance is on a recovery path with improving margins and cash flow metrics. The income statement reflects moderate growth and profitability, while the balance sheet shows progress in managing leverage. Cash flow remains robust, supporting operational activities. However, the company faces challenges with revenue consistency and high debt levels, which require careful management to sustain growth.Income Statement
Hasbro's TTM (Trailing-Twelve-Months) revenue showed moderate growth with a 3.13% increase. Gross profit margin remains healthy at 66.31%, but the net profit margin is relatively low at 9.99%. The EBIT and EBITDA margins are at 18.04% and 21.91%, respectively, indicating stable operational efficiency. The company experienced a significant revenue drop from 2021 to 2023, but recent trends show recovery.58
Neutral
Balance Sheet
The debt-to-equity ratio stands at 2.78, indicating higher leverage, though it has been slightly reduced from previous levels. The equity ratio is 19.70%, showing a moderate level of equity financing. Return on equity is solid at 35.58%, reflecting efficient use of equity to generate profits. Overall, the balance sheet shows improvement but still carries a risk of high leverage.62
Positive
Cash Flow
Hasbro's cash flow from operations remains strong, with an operating cash flow to net income ratio of 1.90, suggesting healthy cash generation. Free cash flow to net income is 1.51, indicating that the company effectively converts its earnings into free cash flow. However, the free cash flow growth has been inconsistent, showing a decrease from previous years.65
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.27B | 4.14B | 5.00B | 5.86B | 6.42B | 5.47B | Gross Profit |
| 2.83B | 2.67B | 2.87B | 3.45B | 3.87B | 3.18B | EBIT |
| 769.50M | 690.00M | -1.54B | 407.70M | 763.30M | 741.76M | EBITDA |
| 934.40M | 880.50M | -863.20M | 1.22B | 1.67B | 1.17B | Net Income Common Stockholders |
| 426.00M | 385.60M | -1.49B | 203.50M | 428.70M | 222.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 621.10M | 695.00M | 544.80M | 513.10M | 1.02B | 1.45B | Total Assets |
| 6.08B | 6.34B | 6.54B | 9.30B | 10.04B | 10.82B | Total Debt |
| 3.33B | 3.41B | 3.62B | 3.97B | 4.03B | 5.10B | Net Debt |
| 2.71B | 2.72B | 3.07B | 3.45B | 3.01B | 3.65B | Total Liabilities |
| 4.88B | 5.16B | 5.45B | 6.43B | 6.95B | 7.86B | Stockholders Equity |
| 1.20B | 1.16B | 1.06B | 2.86B | 3.06B | 2.94B |
| Cash Flow | Free Cash Flow | ||||
| 642.20M | 760.20M | 516.30M | 198.70M | 685.20M | 850.59M | Operating Cash Flow |
| 807.70M | 847.40M | 725.60M | 372.90M | 817.90M | 976.34M | Investing Cash Flow |
| -208.00M | -203.70M | 117.60M | -313.00M | 242.00M | -4.50B | Financing Cash Flow |
| -551.00M | -497.50M | -818.10M | -553.30M | -1.46B | 405.95M |
Hasbro Technical Analysis
Positive
65.83
Price Trends
59.28
Positive
59.18
Positive
61.83
Positive
Market Momentum
2.42
Negative
63.23
Neutral
46.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HAS, the sentiment is Positive. The current price of 65.83 is above the 20-day moving average (MA) of 63.42, above the 50-day MA of 59.28, and above the 200-day MA of 61.83, indicating a bullish trend. The MACD of 2.42 indicates Negative momentum. The RSI at 63.23 is Neutral, neither overbought nor oversold. The STOCH value of 46.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HAS.
Hasbro Risk Analysis
Hasbro disclosed 33 risk factors in its most recent earnings report. Hasbro reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Third party licensees and partners of our brands or intellectual property may fail to honor their obligations to us or their actions may put us at risk. Q4, 2024
2.
Failure to achieve of our anticipated cost-savings may impact our ability to operate efficiently and profitably. Q4, 2024
3.
Our business may be harmed by the imposition or threat of tariffs, including reciprocal or retaliatory tariffs, in markets in which we operate which could increase our product costs and other costs of doing business, impact consumer spending, or lower our revenues and earnings. Q4, 2024
Hasbro Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $6.28B | 12.52 | 25.50% | ― | -0.73% | 88.76% | |
73 Outperform | $5.52B | 21.66 | 38.12% | 5.98% | 3.57% | 13.75% | |
70 Outperform | $9.30B | 21.90 | 39.16% | 3.16% | -10.31% | ― | |
70 Neutral | $3.22B | 5.60 | 13.40% | 5.90% | -3.60% | 442.87% | |
62 Neutral | $13.80B | 116.19 | 4.19% | ― | -27.50% | 1150.23% | |
62 Neutral | $6.84B | 11.22 | 2.83% | 3.93% | 2.65% | -21.93% | |
49 Neutral | $2.03B | ― | -67.22% | ― | -12.34% | -574.65% |
* Consumer Cyclical Sector Average
Performance Comparison
HAS
Hasbro
65.83
7.73
13.30%
GME
GameStop
33.03
14.03
73.84%
M
Macy's
11.57
-7.72
-40.02%
MAT
Mattel
19.01
1.43
8.13%
CPRI
Capri Holdings
16.80
-17.83
-51.49%
MTN
Vail Resorts
147.71
-34.84
-19.09%
Hasbro Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 26.23%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in the Magic business and significant revenue and profit growth. Strategic partnerships and cost savings initiatives were also positive aspects. However, declines in consumer products and entertainment segments, along with tariff challenges, introduced uncertainty. Overall, the sentiment is balanced with strong growth tempered by external challenges.Q1-2025 Updates
Positive Updates
Revenue and Profit Growth
Revenue rose 17% led by Magic business, and adjusted operating profit jumped 50% due to favorable mix and cost discipline.
Magic Business Performance
Wizards segment revenue grew 46% to $462 million with strong demand and engagement, leading to a 49.8% operating margin.
Cost Savings and Debt Reduction
$274 million adjusted EBITDA, up 59%, with $22 million in cost savings and $50 million in long-term debt reduction.
Strategic Partnerships
Extended multi-decade licensing agreement with Disney for Marvel and Star Wars, enhancing category rights in key areas.
Licensing and Digital Gaming Success
Licensed digital gaming portfolio grew 56% in Q1, driven by Monopoly Go and a new collaboration with Star Wars.
Negative Updates
Consumer Products Revenue Decline
Consumer products revenue declined 4% to $398 million, with an adjusted operating loss of $31 million.
Tariff Challenges and Uncertainty
Global trade environment challenges with expected $100-$300 million gross impact from tariffs in 2025.
Entertainment Segment Decline
Entertainment segment revenue declined 5% to $27 million due to deal timing, with flat operating profit.
Uncertain Retailer Order Patterns
Retailer orders are dynamic due to trade uncertainties, impacting Q2 and potentially affecting holiday season preparations.
Company Guidance
During Hasbro, Inc.'s First Quarter 2025 Earnings Conference Call, the company maintained its guidance despite facing potential headwinds such as tariffs and market volatility. Hasbro reported a 17% revenue increase, driven by a 46% surge in its Wizards segment, particularly Magic: The Gathering, and strong licensing performance. Adjusted operating profit rose by 50% reflecting a favorable mix and cost discipline. The company is accelerating its $1 billion cost savings plan, with a target of $175 to $225 million in gross savings for the year, to mitigate tariff impacts. Guidance for 2025 remains unchanged, with expectations of continued growth in its high-margin games and licensing businesses, while consumer products revenue is anticipated to be volatile due to tariff uncertainties. Hasbro plans to reduce its sourcing from China below 40% by 2026 and aims to maintain key price points to capture market share.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.