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Hasbro (HAS)
NASDAQ:HAS

Hasbro (HAS) AI Stock Analysis

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HA

Hasbro

(NASDAQ:HAS)

Rating:72Outperform
Price Target:
$74.00
▲(7.82%Upside)
Hasbro's stock is supported by a strong technical outlook and reasonable valuation. Financial performance shows recovery, but high debt and revenue consistency remain challenges. Recent earnings call and corporate events provide a positive sentiment, although some external uncertainties persist.
Positive Factors
Digital Game Strategy
The launch of Hasbro’s first self-published video game, Exodus, marks an important milestone in the company's digital game strategy.
Tariff Impact
The reduced China tariff rate lowers the gross cost headwind, offering more flexibility on pricing.
Wizards of the Coast Performance
Strong Wizards segment revenue led to a significant 1Q beat.
Negative Factors
Supply Chain Challenges
Major retailers are shifting away from a direct import supply chain model, causing a projected 20% decline in consumer products for 2Q25.
Tariff Concerns
HAS is being prudent in its planning assumptions for consumer products, expecting higher tariff rates as a tax on the toy consumer.

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

Hasbro Business Overview & Revenue Model

Company DescriptionHasbro, 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 MoneyHasbro generates revenue through a diversified model comprising product sales, entertainment, and licensing arrangements. The primary source of income is the sale of toys and games, including action figures, board games, and other related products. Hasbro capitalizes on its strong brand portfolio and consumer loyalty, driving sales through both retail and direct-to-consumer channels. Additionally, the acquisition of eOne has strengthened Hasbro's entertainment segment, providing revenue from film and TV production, distribution, and digital content. Licensing is another critical revenue stream, with Hasbro leveraging its intellectual properties by licensing out its brands to other manufacturers and content creators, adding a steady flow of royalty income. Partnerships, such as with Disney for Star Wars and Marvel merchandise, further enhance Hasbro's market reach and profitability.

Hasbro Earnings Call Summary

Earnings Call Date:Apr 24, 2025
(Q1-2025)
|
% Change Since: 31.60%|
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.

Hasbro Financial Statement Overview

Summary
Hasbro's financial performance is on a recovery path with improving margins and cash flow metrics. Income statement reflects moderate growth and profitability, while balance sheet shows progress in managing leverage. Cash flow remains robust, supporting operational activities, but company faces challenges with revenue consistency and high debt levels.
Income Statement
58
Neutral
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.
Balance Sheet
62
Positive
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.
Cash Flow
65
Positive
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
4.27B4.14B5.00B5.86B6.42B5.47B
Gross Profit
2.83B2.67B2.87B3.45B3.87B3.18B
EBIT
769.50M690.00M-1.54B407.70M763.30M501.80M
EBITDA
934.40M880.50M-863.20M1.22B1.67B1.18B
Net Income Common Stockholders
426.00M385.60M-1.49B203.50M428.70M222.50M
Balance SheetCash, Cash Equivalents and Short-Term Investments
621.10M695.00M544.80M513.10M1.02B1.45B
Total Assets
6.08B6.34B6.54B9.30B10.04B10.82B
Total Debt
3.33B3.41B3.62B3.97B4.03B5.10B
Net Debt
2.71B2.72B3.07B3.45B3.01B3.65B
Total Liabilities
4.88B5.16B5.45B6.43B6.95B7.86B
Stockholders Equity
1.20B1.16B1.06B2.86B3.06B2.94B
Cash FlowFree Cash Flow
642.20M760.20M516.30M198.70M685.20M850.59M
Operating Cash Flow
807.70M847.40M725.60M372.90M817.90M976.34M
Investing Cash Flow
-208.00M-203.70M117.60M-313.00M242.00M-4.50B
Financing Cash Flow
-551.00M-497.50M-818.10M-553.30M-1.46B405.95M

Hasbro Technical Analysis

Technical Analysis Sentiment
Positive
Last Price68.63
Price Trends
50DMA
62.40
Positive
100DMA
61.25
Positive
200DMA
62.16
Positive
Market Momentum
MACD
1.46
Positive
RSI
59.18
Neutral
STOCH
58.42
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 68.63 is above the 20-day moving average (MA) of 67.21, above the 50-day MA of 62.40, and above the 200-day MA of 62.16, indicating a bullish trend. The MACD of 1.46 indicates Positive momentum. The RSI at 59.18 is Neutral, neither overbought nor oversold. The STOCH value of 58.42 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
MAMAT
77
Outperform
$6.15B12.2825.50%-0.73%88.76%
MM
73
Outperform
$3.00B5.5912.92%6.60%-3.77%4607.98%
HAHAS
72
Outperform
$9.62B22.6439.16%4.08%-10.31%
MTMTN
72
Outperform
$5.82B20.0430.55%5.67%2.38%6.01%
61
Neutral
C$5.13B10.5918.84%4.14%5.08%6.52%
GMGME
54
Neutral
$10.49B50.876.62%-25.30%479.26%
49
Neutral
$1.98B-120.18%-12.34%-574.65%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HAS
Hasbro
68.63
9.46
15.99%
GME
GameStop
23.46
-0.19
-0.80%
M
Macy's
11.05
-7.02
-38.85%
MAT
Mattel
19.06
1.84
10.69%
CPRI
Capri Holdings
16.82
-14.69
-46.62%
MTN
Vail Resorts
156.61
-16.05
-9.30%

Hasbro Corporate Events

Executive/Board ChangesShareholder Meetings
Hasbro Shareholders Approve Board and Executive Compensation
Positive
May 27, 2025

On May 21, 2025, Hasbro conducted its annual meeting of shareholders where 91.03% of eligible shares were represented. During the meeting, shareholders elected ten directors to the board, approved executive compensation, and ratified KPMG LLP as the independent accounting firm for 2025, reflecting strong shareholder support for the company’s governance and financial oversight.

The most recent analyst rating on (HAS) stock is a Buy with a $82.00 price target. To see the full list of analyst forecasts on Hasbro stock, see the HAS Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.