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Hasbro Inc HAS

Morningstar Rating
$50.25 −0.04 (0.08%)
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Company Report

Hasbro: Improving Focus and Mix Render Shares Attractive and Support Profit Expansion

Narrow-moat Hasbro’s shares have struggled to gain footing in 2024, trading flat through the end of February and underperforming the Morningstar Global Markets index’s return of 5%. We view shares as significantly undervalued relative to our $84 fair value estimate and contend the weak performance is reflective of a business in transition that has faced idiosyncratic risks in 2023, such as slower entertainment growth from the writers' strike and the overhang from the pending sale of the majority of the EOne production business (completed December 2023). With Hasbro now largely liberated from the low-margin EOne entertainment segment, we expect solid lift from an improved revenue mix, with the high-margin Wizards of the Coast and digital segment set to represent around 35% of sales in 2024 (from 29% in 2023).

Price vs Fair Value

HAS is trading at a 40% discount.
Price
$50.25
Fair Value
$65.00
Uncertainty
Medium
1-Star Price
$492.30
5-Star Price
$59.70
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Opportunities exist from entertainment, bolstered by the Discovery Family network, owned production capabilities, and film tie-ins, supporting product demand.

Bears

The market for traditional toys could continue to shrink as a percentage of the total as technology plays a more dominant role in product selection and children shift to more digital toys at a younger age.

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News

Trading Information

Previous Close Price
$50.29
Day Range
$49.2150.84
52-Week Range
$42.6673.58
Bid/Ask
$49.84 / $50.51
Market Cap
$6.97 Bil
Volume/Avg
1.3 Mil / 1.9 Mil

Key Statistics

Price/Earnings (Normalized)
19.94
Price/Sales
1.40
Dividend Yield (Trailing)
5.57%
Dividend Yield (Forward)
5.57%
Total Yield
5.57%

Company Profile

Hasbro is a branded play company providing children and families around the world with entertainment offerings based on a world-class brand portfolio. From toys and games to television programming, motion pictures, and a licensing program, Hasbro reaches customers by leveraging its well-known brands such as Transformers, Nerf, and Magic: The Gathering. Ownership stakes in Discovery Family, which offers programming around Hasbro brands, and production capabilities has helped bolster Hasbro's multichannel presence. The firm acquired EOne in 2019, bolting on popular family properties like Peppa Pig and PJ Masks, and since has pruned noncore lines from the tie-up. Furthermore, the addition of Dungeons & Dragons Beyond in 2022, offered the firm access to 10 million digital tabletop players.
Sector
Consumer Cyclical
Industry
Leisure
Stock Style Box
Small Core
Total Number of Employees
6,490

Competitors

Valuation

Metric
HAS
MAT
DIS
Price/Earnings (Normalized)
19.9417.4327.99
Price/Book Value
6.573.212.04
Price/Sales
1.401.282.31
Price/Cash Flow
13.328.0116.29
Price/Earnings
HAS
MAT
DIS

Financial Strength

Metric
HAS
MAT
DIS
Quick Ratio
0.771.550.69
Current Ratio
1.132.330.84
Interest Coverage
−8.303.753.37
Quick Ratio
HAS
MAT
DIS

Profitability

Metric
HAS
MAT
DIS
Return on Assets (Normalized)
4.18%2.23%4.22%
Return on Equity (Normalized)
15.48%6.85%8.71%
Return on Invested Capital (Normalized)
8.04%4.71%5.86%
Return on Assets
HAS
MAT
DIS
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