Hasbro (HAS) AI Stock Analysis

Compare

1,805 Followers

HAS Dividends

Top Page

Hasbro

(NASDAQ:HAS)

58Neutral

Hasbro's overall stock score of 58 reflects significant challenges in revenue growth and technical performance. Despite promising profitability improvements and cost savings, the stock's downward momentum and declining revenues weigh heavily. Positive factors include a solid dividend yield and reasonable valuation, alongside optimism for future growth in digital and licensing ventures.

Positive Factors

Financial 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.

Product Innovation

Introduction of new products like the Barbie Play-Doh collaboration seen as a 'break-through' for the company.

Strategic Plan

The newly announced 'Playing to Win' strategy makes sense as the best next step for the company's turnaround.

Negative Factors

Consumer Products Segment

A decline is expected in consumer products due to challenges in the Nerf segment and a light content slate for Star Wars.

Industry Outlook

The toy industry is expected to be flattish over the next three years, which may impact growth prospects.

Wizards of the Coast Margins

Hasbro is facing a headwind to Wizards of the Coast margins due to incremental royalties associated with Universes Beyond sets.

Hasbro (HAS) vs. S&P 500 (SPY)

Market Cap

$7.28B

Dividend Yield4.03%

Average Volume (3M)2.12M

Price to Earnings (P/E)18.9

Beta (1Y)0.83

Revenue Growth-17.28%

EPS GrowthN/A

CountryUS

Employees4,985

SectorConsumer Cyclical

Sector Strength58

IndustryLeisure

Share Statistics

EPS (TTM)0.46

Shares Outstanding139,893,190

10 Day Avg. Volume2,573,039

30 Day Avg. Volume2,120,319

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)2.04

Price to Cash Flow (P/CF)8.10

P/FCF Ratio8.10

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$71.17

Price Target Upside35.07% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering7

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 faces challenges in revenue growth and profitability, as evidenced by declining revenue and fluctuating net profit margin. However, improvements in cash flow and a stable debt-to-equity ratio offer some optimism for financial stability.

Income Statement

Neutral

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.

Balance Sheet

Neutral

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Negative

Last Price52.69

Price Trends

50DMA

59.64

Negative

100DMA

59.27

Negative

200DMA

61.95

Negative

Market Momentum

MACD

-2.31

Positive

RSI

41.12

Neutral

STOCH

47.92

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HAS, the sentiment is Negative. The current price of 52.69 is below the 20-day moving average (MA) of 55.38, below the 50-day MA of 59.64, and below the 200-day MA of 61.95, indicating a bearish trend. The MACD of -2.31 indicates Positive momentum. The RSI at 41.12 is Neutral, neither overbought nor oversold. The STOCH value of 47.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
MAT	70 Outperform	$4.71B	9.15	24.55%	―	-1.13%	163.15%
MTN	67 Neutral	$5.32B	20.91	38.12%	6.65%	3.57%	13.75%
M	66 Neutral	$3.02B	5.24	13.40%	6.50%	-3.60%	442.87%
Sector *	60 Neutral	$6.55B	11.40	3.24%	4.25%	2.38%	-21.28%
HAS	58 Neutral	$7.28B	18.93	34.75%	4.03%	-17.28%	―
GME	54 Neutral	$11.97B	100.79	4.19%	―	-27.50%	1150.23%
CPRI	49 Neutral	$1.64B	―	-67.22%	―	-12.34%	-574.65%

* Consumer Cyclical Sector Average

Performance Comparison

HAS

Hasbro

52.69

-9.55

-15.34%

GME

GameStop

27.12

16.19

148.12%

Macy's

10.80

-7.10

-39.66%

MAT

Mattel

15.25

-3.93

-20.49%

CPRI

Capri Holdings

14.40

-21.00

-59.32%

MTN

Vail Resorts

138.77

-52.70

-27.52%

Hasbro Earnings Call Summary

Earnings Call Date: Feb 20, 2025 | % Change Since: -12.88% | Next Earnings Date: Apr 24, 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.