Hasbro (HAS) AI Stock Analysis

• Market Cap: $11.99B
• Dividend Yield: 3.44%
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: 0.87%
• EPS Growth: 14.02%
• Country: US
• Employees: 4,985
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 1.68
• Shares Outstanding: 140,337,020
• 10 Day Avg. Volume: 1,639,593
• 30 Day Avg. Volume: 1,505,750
• PEG Ratio: -0.16
• Price to Book (P/B): 6.71
• Price to Sales (P/S): 1.88
• P/FCF Ratio: 10.22
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 3.10
• Enterprise Value/Gross Profit: 4.55
• Enterprise Value/Ebitda: -185.21
• 1Y Price Target: $95.71
• Price Target Upside: 12.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 5.29
• Revenue Forecast (FY): $4.76B

• Rating: 56 Neutral
• Price Target: $89.00 ▲(4.19% Upside)

Hasbro's overall stock score is driven by strong earnings call results and moderate technical analysis, offset by weak financial performance and valuation concerns. The company's growth in the Wizards of the Coast segment is a significant positive, but high debt levels and negative profitability margins are major risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Wizards of the Coast Performance

The strong performance of Wizards of the Coast, especially MAGIC: The Gathering, showcases a robust segment driving profitability and growth.

Strategic Partnerships

Partnerships with major media companies like Netflix expand brand reach and create new revenue streams, supporting long-term growth.

Negative Factors

High Debt Levels

High debt levels can strain financial resources and limit strategic flexibility, posing risks to long-term financial health.

Negative Profit Margins

Negative profit margins indicate operational challenges and inefficiencies, potentially impacting future profitability and investment capacity.

Consumer Products Revenue Decline

Declining revenue in the Consumer Products segment suggests market challenges and potential risks to overall revenue diversification.

Hasbro Business Overview & Revenue Model

Company Description

Hasbro, Inc., together with its subsidiaries, operates as a play and entertainment company. Its Consumer Products segment engages in the sourcing, marketing, and sale of toy and game products. This segment also promotes its brands through the out-licensing of trademarks, characters, and other brand and intellectual property rights to third parties through the sale of branded consumer products, such as toys and apparels. Its toys and games include action figures, arts and crafts and creative play products, fashion and other dolls, play sets, preschool toys, plush products, sports action blasters and accessories, vehicles and toy-related specialty products, games, and other consumer products; and licensed products, such as apparels, publishing products, home goods and electronics, and toy products. The company's Wizards of the Coast and Digital Gaming segment engages in the promotion of its brands through the development of trading card, role-playing, and digital game experiences based on Hasbro and Wizards of the Coast games. Its Entertainment segment engages in the development, acquisition, production, distribution, and sale of world-class entertainment content, including film, scripted and unscripted television, family programming, digital content, and live entertainment. The company sells its products to retailers, distributors, wholesalers, discount stores, drug stores, mail order houses, catalog stores, department stores, and other traditional retailers, as well as ecommerce retailers; and directly to customer through Hasbro PULSE e-commerce website. Hasbro, Inc. was founded in 1923 and is headquartered in Pawtucket, Rhode Island.

How the Company Makes Money

Hasbro generates revenue through multiple key streams, primarily from the sales of toys and games, which include both traditional physical products and digital offerings. The company's revenue model is built on a combination of direct sales to retailers, e-commerce, and licensing agreements. Retail partnerships with major chains such as Walmart, Target, and Amazon play a crucial role in distributing Hasbro's products. Additionally, Hasbro earns significant income through licensing its intellectual properties for use in films, television, and video games, collaborating with major studios to create content that further enhances brand visibility and appeal. Seasonal trends, particularly around holidays, also significantly impact revenue, as consumers tend to increase spending on gifts. Furthermore, Hasbro's investment in digital gaming and interactive experiences has opened new avenues for monetization, contributing to its overall financial performance.

Hasbro Financial Statement Overview

Summary

Hasbro's financial statements reflect significant challenges. Despite some revenue growth and strong cash flow generation, profitability and leverage metrics are concerning. High debt levels and negative profitability margins pose risks, requiring strategic actions to stabilize and improve financial health.

Income Statement

Hasbro's income statement shows a mixed performance. The TTM data indicates a slight revenue growth of 3.37%, but profitability metrics are concerning. The gross profit margin is healthy at 68.32%, yet the net profit margin is negative at -12.81%, indicating losses. EBIT and EBITDA margins are also negative, reflecting operational challenges. Historical data shows fluctuating revenue growth and profitability, with a significant decline in 2023.

Balance Sheet

The balance sheet reveals financial instability. The debt-to-equity ratio is extremely high at 7.65 in the TTM period, indicating heavy reliance on debt financing. Return on equity is negative, reflecting losses and poor equity returns. The equity ratio is low, suggesting limited equity buffer against liabilities. Historical data shows a worsening debt position over time.

Cash Flow

Cash flow analysis shows some positive aspects. The TTM free cash flow growth is strong at 24.58%, and the free cash flow to net income ratio is high at 86.54%, indicating efficient cash generation relative to net income. However, the operating cash flow to net income ratio is moderate, suggesting room for improvement in operational cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.36B	4.14B	5.00B	5.86B	6.42B	5.47B
Gross Profit	2.97B	2.67B	2.87B	3.45B	3.87B	3.18B
EBITDA	-72.90M	880.50M	-863.20M	1.22B	1.67B	1.18B
Net Income	-558.30M	385.60M	-1.49B	203.50M	428.70M	222.50M
Balance Sheet
Total Assets	5.52B	6.34B	6.54B	9.30B	10.04B	10.82B
Cash, Cash Equivalents and Short-Term Investments	620.90M	694.70M	544.80M	498.60M	983.40M	1.38B
Total Debt	3.35B	3.41B	3.50B	4.01B	4.07B	5.10B
Total Liabilities	5.09B	5.16B	5.45B	6.43B	6.95B	7.86B
Stockholders Equity	406.40M	1.16B	1.06B	2.83B	3.03B	2.90B
Cash Flow
Free Cash Flow	648.90M	760.20M	516.30M	198.70M	685.20M	850.59M
Operating Cash Flow	749.80M	847.40M	725.60M	372.90M	817.90M	976.34M
Investing Cash Flow	239.90M	-203.70M	117.60M	-313.00M	242.00M	-4.50B
Financing Cash Flow	-1.06B	-497.50M	-818.10M	-553.30M	-1.46B	405.95M

Hasbro Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 85.42 is above the 20-day moving average (MA) of 83.90, above the 50-day MA of 81.10, and above the 200-day MA of 72.73, indicating a bullish trend. The MACD of 1.69 indicates Negative momentum. The RSI at 56.77 is Neutral, neither overbought nor oversold. The STOCH value of 61.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HAS.

Hasbro Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAT	75 Outperform	$6.58B	15.85	18.90%	―	-2.36%	-16.06%
GOLF	70 Outperform	$5.36B	24.98	25.91%	1.15%	4.20%	24.12%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JOUT	60 Neutral	$457.28M	-13.19	-7.78%	3.22%	-0.07%	-31.45%
HAS	56 Neutral	$11.99B	-21.32	-65.93%	3.44%	0.87%	14.02%
JAKK	56 Neutral	$217.39M	39.22	2.40%	5.97%	-16.49%	-81.62%
FNKO	50 Neutral	$197.75M	-2.81	-32.77%	―	-11.32%	-165.08%