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Hasbro (HAS)
:HAS
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Hasbro
(NASDAQ:HAS)66Neutral
Positive Factors
Revenue Performance
HAS posted strongly above consensus results led by a sales beat in Consumer Products and Wizards, gross margin upside, and operating income 15% ahead of Consensus Metrix.
Strategic Plans
Management has laid out a strategic plan called 'Playing to Win' with clear objectives to expand reach in opportunity areas and harness digital and direct channels.
Negative Factors
Consumer Products Challenges
A decline is expected in consumer products due to challenges in the Nerf segment and a light content slate for Star Wars.
Hasbro (HAS) vs. S&P 500 (SPY)
Market Cap
$8.98B
Dividend Yield3.26%
Average Volume (3M)1.71M
Price to Earnings (P/E)23.4
Beta (1Y)1.00
Revenue Growth-17.28%
EPS GrowthN/A
CountryUS
Employees5,502
SectorConsumer Cyclical
Sector Strength53
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)2.75
Shares Outstanding139,531,310
10 Day Avg. Volume1,899,588
30 Day Avg. Volume1,714,554
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.17
Price to Cash Flow (P/CF)8.60
P/FCF Ratio8.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$77.14Price Target Upside19.88% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
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 has been mixed. While the company has faced revenue decline, recent improvements in cash flow and a manageable debt position offer optimism. The income statement shows challenges in revenue growth, but the balance sheet and cash flow statements indicate improved financial management and liquidity.Income Statement
Hasbro's income statement reveals a declining trend in total revenue over the past few years, with a significant drop from $6.42 billion in 2021 to $4.14 billion in 2024. Gross profit margin has been relatively stable, but the net profit margin has fluctuated, facing challenges in 2023 due to a negative EBIT. The company returned to profitability in 2024, but overall revenue growth remains a concern.55
Neutral
Balance Sheet
The balance sheet indicates a strong equity position with a manageable debt-to-equity ratio, improving from 3.47 in 2020 to 2.85 in 2024. However, total assets have decreased, and stockholders' equity has declined, reflecting potential financial stability issues. The equity ratio has been relatively stable, suggesting moderate leverage.60
Neutral
Cash Flow
Cash flow analysis shows improvement in free cash flow, with strong growth in recent years. The operating cash flow to net income ratio is favorable, indicating efficient cash generation relative to earnings. Despite past volatility, the company has improved its cash management, enhancing liquidity and financial flexibility.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.14B | 5.00B | 5.86B | 6.42B | 5.47B | Gross Profit |
| 2.67B | 2.87B | 3.45B | 3.87B | 3.18B | EBIT |
| 690.00M | -1.54B | 407.70M | 763.30M | 741.76M | EBITDA |
| 880.50M | -863.20M | 1.22B | 1.67B | 1.17B | Net Income Common Stockholders |
| 385.60M | -1.49B | 203.50M | 428.70M | 222.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 695.00M | 544.80M | 513.10M | 1.02B | 1.45B | Total Assets |
| 6.34B | 6.54B | 9.30B | 10.04B | 10.82B | Total Debt |
| 3.41B | 3.62B | 3.97B | 4.03B | 5.10B | Net Debt |
| 2.72B | 3.07B | 3.45B | 3.01B | 3.65B | Total Liabilities |
| 5.16B | 5.45B | 6.43B | 6.95B | 7.86B | Stockholders Equity |
| 1.19B | 1.06B | 2.86B | 3.06B | 2.94B |
| Cash Flow | Free Cash Flow | |||
| 760.20M | 516.30M | 198.70M | 685.20M | 850.59M | Operating Cash Flow |
| 847.40M | 725.60M | 372.90M | 817.90M | 976.34M | Investing Cash Flow |
| -203.70M | 117.60M | -313.00M | 242.00M | -4.50B | Financing Cash Flow |
| -497.50M | -818.10M | -553.30M | -1.46B | 405.95M |
Hasbro Technical Analysis
Positive
64.35
Price Trends
59.24
Positive
61.65
Positive
61.96
Positive
Market Momentum
1.36
Positive
57.31
Neutral
27.32
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 64.35 is above the 20-day moving average (MA) of 62.96, above the 50-day MA of 59.24, and above the 200-day MA of 61.96, indicating a bullish trend. The MACD of 1.36 indicates Positive momentum. The RSI at 57.31 is Neutral, neither overbought nor oversold. The STOCH value of 27.32 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 0 New Risks
Hasbro Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $6.93B | 13.18 | 24.55% | ― | -1.13% | 163.15% | |
66 Neutral | $8.98B | 23.41 | 34.75% | 3.26% | -17.28% | ― | |
60 Neutral | $286.35M | 8.50 | 15.57% | ― | -3.96% | -67.32% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
40 Underperform | $485.48M | ― | -6.33% | ― | -7.96% | 87.74% | |
40 Underperform | $125.61M | ― | -477.69% | ― | -44.02% | 60.86% |
* Consumer Cyclical Sector Average
Performance Comparison
HAS
Hasbro
64.35
14.03
27.88%
JAKK
Jakks Pacific
25.69
2.33
9.97%
MAT
Mattel
21.00
0.88
4.37%
FNKO
Funko
8.96
2.75
44.28%
PLBY
PLBY Group
1.34
0.52
63.41%
Hasbro Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: 6.40% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive achievements, such as record profit margins, strong licensing growth, and successful product innovations, alongside challenges in revenue decline and specific product segment struggles. The company is optimistic about future growth and cost savings, despite facing some headwinds in certain product lines.Highlights
Record Operating Profit Margin
Hasbro delivered the best operating profit margin in company history, eclipsing 20%.
Wizards of the Coast and Digital Games Growth
The segment was up 4% year-over-year, with an operating margin north of 40%. Notably, Monopoly Go! contributed $38 million of revenue.
Strong Licensing Business
Consumer products licensing saw significant growth, with POS lifts of over 50% for some out-licensed brands. Licensing business grew by 60% over the last three years.
Cost Savings Achievements
Delivered $227 million of net cost savings, with an increase in the cost savings target to $1 billion in total annual gross savings by 2027.
Positive Cash Flow and Debt Reduction
Operating cash flow for the full year was $847 million, an improvement of $122 million. Reduced debt by $83 million in Q4.
Successful New Product Launches
Beyblade and Transformers saw demand growth, and Monopoly Go! achieved a significant player engagement boost.
Lowlights
Revenue Decline in 2024
Total Hasbro revenue was down 7% excluding the eOne divestiture, including eOne, revenue declined 17%.
Wizards Revenue Decline in Q4
Wizards revenue declined 7% in Q4, primarily due to having one fewer set release in the quarter.
Consumer Products Segment Challenges
Consumer Products revenue was down 12%, with challenges in NERF and Star Wars brands contributing significantly to the decline.
Flat to Negative 2025 Consumer Products Outlook
Consumer Products revenue is expected to be flat to down 4% for 2025.
Company Guidance
During Hasbro's Fourth Quarter and Full Year 2024 Earnings Conference Call, CEO Chris Cocks and CFO Gina Goetter highlighted several key metrics and strategic initiatives. Hasbro achieved a record operating profit margin exceeding 20% and delivered $227 million in net cost savings, with plans to achieve $1 billion in total annual gross savings by 2027. The Wizards of the Coast and Digital Games segment grew 4% year-over-year, boasting an operating margin over 40%, driven by strong performances from MAGIC: THE GATHERING and Monopoly Go! For 2025, Hasbro forecasts modest revenue growth with continued margin expansion, projecting mid-single-digit revenue growth through 2027. The company aims to enhance profitability across its portfolio by leveraging digital and partner-driven licensing, expanding into new categories, and focusing on operational excellence.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.