Hasbro
HAS
$94.23
+0.05%
Hasbro, Inc. is a global play and entertainment company that designs, manufactures, and markets a diverse portfolio of toys, games, and consumer products, including iconic brands such as Transformers, Peppa Pig, and Magic: The Gathering, while also producing related television programming and motion pictures. As a market leader in the toy and game industry, Hasbro differentiates itself through its strong brand portfolio, digital gaming initiatives (e.g., Dungeons & Dragons Beyond), and strategic acquisitions like eOne, which expanded its entertainment footprint. Currently, the investor narrative centers on the company's digital transformation and growth in Wizards of the Coast and digital gaming, which has driven recent revenue acceleration, but is tempered by leadership changes and operational challenges, such as a cyber incident and the departure of a key executive, creating both optimism and uncertainty about future growth.…
HAS
Hasbro
$94.23
Related headlines
Investment Opinion: Should I buy HAS Today?
Rating: Buy. Hasbro's strong revenue growth, high margins, and analyst consensus support a bullish view, with an average target of $109.29 implying 16.84% upside. The thesis is that digital gaming and Wizards of the Coast will drive sustained growth, justifying the premium valuation.
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HAS 12-Month Price Forecast
The AI assessment leans bullish given the strong growth trajectory and attractive valuation metrics. However, confidence is medium due to high leverage and leadership uncertainty. The stance would be upgraded to high confidence if revenue growth accelerates and margins expand, while a downgrade would occur if growth slows or debt levels increase.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Hasbro's 12-month outlook, with a consensus price target around $109.64 and implied upside of +16.4% versus the current price.
Average Target
$109.64
0 analysts
Implied Upside
+16.4%
vs. current price
Analyst Count
—
covering this stock
Price Range
$90 - $120
Analyst target range
Hasbro is covered by 14 analysts, with a consensus recommendation of 'Strong Buy' (mean rating of 1.47 on a 1-5 scale, where 1 is Strong Buy). The average target price is $109.29, implying an upside of 16.84% from the current price of $93.54. The distribution includes 10 Buy ratings, 3 Hold ratings, and 1 Sell rating, indicating a bullish sentiment. Recent institutional actions have been predominantly positive, with firms like BNP Paribas, Roth Capital, and Citigroup reiterating Buy or Outperform ratings, while Morgan Stanley maintains an Overweight stance, and Wells Fargo and DA Davidson hold more cautious Equal Weight/Neutral positions. The target price range spans from $85.00 (low) to $120.00 (high), with the high target suggesting a 28.29% upside, likely assuming continued growth in digital gaming and successful execution of D&D initiatives, while the low target implies a 9.13% downside, possibly pricing in risks such as leadership instability or a slowdown in consumer spending. The wide spread of $35 between low and high targets indicates moderate uncertainty, but the overall consensus leans strongly bullish, reflecting confidence in Hasbro's strategic direction.
Bulls vs Bears: HAS Investment Factors
Hasbro presents a mixed picture: strong revenue acceleration, high margins, and robust cash flow support a bullish case, while high leverage, negative trailing EPS, and leadership instability temper enthusiasm. Currently, the bull case has stronger evidence given the 12.75% revenue growth and analyst consensus, but the key tension is whether the digital gaming momentum can offset operational and financial risks. The most critical factor is the execution of Wizards of the Coast's growth strategy; if it falters, the stock could face significant downside despite its current valuation discount.
Bullish
- Revenue accelerating 12.75% YoY: Q1 2026 revenue of $1,000.2M grew 12.75% YoY, up from $887.1M in Q1 2025, driven by Wizards of the Coast and digital gaming. This marks a clear acceleration from prior quarters, indicating strong demand for digital and tabletop products.
- High gross margin of 68.23%: Gross margin in Q1 2026 was 68.23%, up from 68.97% in Q4 2025, reflecting a strong brand portfolio and digital mix. This is well above the industry average, supporting pricing power and profitability.
- Strong free cash flow of $1.02B TTM: Trailing twelve-month free cash flow is $1.02B, providing ample coverage for interest expenses and dividends. This cash generation supports debt reduction and shareholder returns, reducing financial risk.
- Analyst consensus: Strong Buy: 14 analysts rate HAS a Strong Buy (mean 1.47), with an average target of $109.29, implying 16.84% upside. Recent upgrades from BNP Paribas, Roth Capital, and Citigroup reinforce bullish sentiment.
Bearish
- High leverage with D/E of 6.32: Debt-to-equity ratio of 6.32 indicates significant leverage, which could strain cash flows if interest rates rise or earnings disappoint. This limits financial flexibility and increases bankruptcy risk in a downturn.
- Negative trailing EPS of -$0.03: Trailing twelve-month EPS is -$0.03 due to a one-time impairment in Q2 2025, distorting valuation metrics. This makes the stock appear expensive on a trailing basis and highlights earnings volatility.
- Underperforming S&P 500 over 1 year: HAS returned 17.79% over the past year, but the S&P 500 gained 20.48%, resulting in -2.69% relative underperformance. This suggests the market is not fully rewarding the company's recovery.
- Key executive departure at WotC: The departure of Wizards of the Coast President John Hight raises uncertainty about future growth in digital gaming, a key driver. This could slow momentum in the company's most profitable segment.
HAS Technical Analysis
Hasbro's stock is in a recovery phase after a significant drawdown, with the current price of $93.54 reflecting a 17.79% gain over the past year, though it remains 12.56% below its 52-week high of $106.98 and 34.59% above its 52-week low of $69.50. The stock is trading at 71.5% of its 52-week range, indicating it has recovered substantially from the lows but still has room to reach prior highs, suggesting a mix of momentum and lingering caution. The 1-year relative strength versus the S&P 500 is -2.69%, underperforming the market, which gained 20.48% over the same period, highlighting that the recovery is lagging broader indices.
Beta
0.47
0.47x market volatility
Max Drawdown
-28.4%
Largest decline past year
52-Week Range
$70-$107
Price range past year
Annual Return
+15.5%
Cumulative gain past year
| Period | HAS Return | S&P 500 |
|---|---|---|
| 1m | -1.0% | +5.5% |
| 3m | +9.4% | +1.7% |
| 6m | -5.4% | +12.2% |
| 1y | +15.5% | +18.6% |
| ytd | +13.6% | +12.8% |
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HAS Fundamental Analysis
Hasbro's revenue trajectory is accelerating, with the most recent quarter (Q1 2026) reporting revenue of $1,000.2 million, a 12.75% year-over-year increase, up from the prior year's Q1 revenue of $887.1 million. This growth is driven by the Wizards of the Coast and Digital Gaming segment, which contributed $582 million, while Consumer Products added $397.9 million, and Entertainment was minimal at $20.3 million. The multi-quarter trend shows sequential improvement, with Q4 2025 revenue of $1,445.9 million and Q3 2025 revenue of $1,387.5 million, indicating a robust growth trajectory. The company's profitability is solid, with a gross margin of 68.23% in Q1 2026, up from 68.97% in Q4 2025, and an operating margin of 27.02%, reflecting strong operational efficiency. Net income for Q1 2026 was $199.5 million, with a net margin of 19.95%, a significant improvement from the loss in Q2 2025 (net income of -$855.8 million) due to a one-time impairment, but the trailing twelve-month EPS is -$0.03, indicating the impact of that loss. Hasbro's balance sheet is highly leveraged, with a debt-to-equity ratio of 6.32 and a current ratio of 1.38, but it generates strong cash flow, with free cash flow of $315.5 million in Q1 2026 and $1.02 billion on a trailing twelve-month basis, providing ample coverage for interest expenses and dividends.
Quarterly Revenue
$1.0B
2026-03
Revenue YoY Growth
+12.8%
YoY Comparison
Gross Margin
68.2%
Latest Quarter
Free Cash Flow
$1.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is HAS Overvalued?
Given that Hasbro's trailing twelve-month net income is negative (EPS of -$0.03), I selected the price-to-sales (PS) ratio as the primary valuation metric, which is 2.47x based on current price and trailing revenue. The forward PE ratio is 14.33x, implying the market expects a significant earnings recovery, as the negative trailing EPS distorts the PE ratio. The PS ratio of 2.47x is below the company's historical average, which has ranged from 5.0x to 12.6x over the past few years, indicating the stock is trading at a discount to its own historical valuation. Compared to the industry average PS ratio of approximately 1.5x (based on consumer cyclical peers), Hasbro's 2.47x represents a 65% premium, which may be justified by its higher gross margins (70.26%) and strong brand portfolio, but it also reflects the market's optimism about its digital gaming growth. The EV-to-sales ratio of 3.16x further confirms a premium valuation, while the PEG ratio of 0.20 suggests that the stock is undervalued relative to its expected earnings growth, but this is based on forward estimates that may be optimistic.
PE
-36.0x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 11x~33x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
61.2x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are elevated due to a debt-to-equity ratio of 6.32, indicating heavy leverage that could strain cash flows if interest rates rise or earnings disappoint. However, the company generates strong free cash flow of $1.02B TTM, which covers interest expenses and dividends, but the negative trailing EPS of -$0.03 highlights earnings volatility from one-time impairments. The current ratio of 1.38 provides some liquidity buffer, but the high leverage remains a key concern for financial stability.
FAQ
The key risks are: 1) Financial risk from high leverage (D/E 6.32), which could strain cash flows if interest rates rise. 2) Competitive risk from digital gaming rivals and changing consumer preferences. 3) Macro risk from economic downturns, as consumer discretionary spending is cyclical. 4) Company-specific risk from leadership instability, as seen in the departure of the WotC president. The most severe risk is a combination of these factors leading to a -25% downside to the 52-week low.
The 12-month forecast is bullish, with a base case target of $100-110 (50% probability), bull case of $110-120 (30%), and bear case of $80-90 (20%). The average analyst target is $109.29, implying 16.84% upside. The most likely scenario is steady growth driven by digital gaming, with the stock reaching the base case target. Key assumptions include sustained revenue growth above 10% and stable margins.
HAS is fairly valued to slightly undervalued based on forward metrics. The PS ratio of 2.47x is above the industry average of 1.5x, but this premium is justified by higher gross margins (70.26%) and strong brand equity. The forward PE of 14.33x is below the market average, and the PEG of 0.20 indicates the stock is undervalued relative to its expected growth. The market is pricing in a recovery in earnings, which seems reasonable given the recent revenue acceleration.
HAS is a good buy for investors with a moderate risk tolerance, given its strong growth and analyst upside of 16.84%. The stock trades at a forward PE of 14.33x, which is reasonable for its growth rate, and the PEG of 0.20 suggests undervaluation. However, the high debt-to-equity ratio of 6.32 and leadership instability are key risks. For long-term investors, the digital gaming growth story provides a compelling opportunity, but short-term traders should be cautious of volatility.
HAS is suitable for long-term investment, given its growth potential in digital gaming and strong cash flow generation. The stock has a beta of 0.468, indicating lower volatility than the market, which suits long-term holders. The dividend yield of 3.38% provides income while waiting for capital appreciation. A minimum holding period of 3-5 years is recommended to capture the full growth trajectory, as short-term fluctuations may be driven by news and macro factors.