Hasbro
HAS
$91.69
+0.58%
Hasbro, Inc. is a global play and entertainment company that designs, manufactures, and markets a diverse portfolio of toys, games, and consumer products, operating primarily in the leisure industry. The company is a market leader in branded play, leveraging iconic franchises such as Transformers, Peppa Pig, Magic: The Gathering, and Dungeons & Dragons to engage consumers across physical and digital platforms. Currently, the investor narrative centers on Hasbro's strategic pivot toward high-margin digital gaming and licensing, as evidenced by the strong performance of its Wizards of the Coast segment, while the company navigates post-pandemic demand normalization and a recent cyber incident that temporarily disrupted operations. The stock has shown resilience, with a 25% gain over the past year, driven by robust earnings and a reaffirmed full-year guidance, though concerns about consumer cyclicality and debt levels persist.…
HAS
Hasbro
$91.69
Related headlines
Investment Opinion: Should I buy HAS Today?
Based on the analysis, Hasbro is rated a Buy. The company's strong Q1 revenue growth of 12.75% YoY, high-margin digital gaming mix, and forward PE of 14.41x with a PEG of 0.20 indicate undervaluation. Analyst consensus is Strong Buy with an average target of $109.07, implying 16.1% upside. The robust free cash flow of $1.02 billion supports the thesis. Key risks include high leverage (D/E 6.32x) and consumer cyclicality. This Buy would be downgraded to Hold if revenue growth decelerates below 10% or if the forward PE expands above 20x. Overall, the stock is undervalued relative to its growth prospects and peers.
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HAS 12-Month Price Forecast
The AI assessment is bullish, driven by Hasbro's accelerating revenue growth, high-margin digital pivot, and attractive valuation. The forward PE of 14.41x and PEG of 0.20 suggest the market is not fully pricing in the earnings recovery. However, confidence is medium due to high leverage and cyclicality. An upgrade to high confidence would occur if revenue growth sustains above 15% and debt-to-equity falls below 5x. A downgrade would be triggered by a significant miss in digital gaming revenue or a broad consumer slowdown.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Hasbro's 12-month outlook, with a consensus price target around $109.29 and implied upside of +19.2% versus the current price.
Average Target
$109.29
0 analysts
Implied Upside
+19.2%
vs. current price
Analyst Count
—
covering this stock
Price Range
$85 - $120
Analyst target range
The target price range spans from a low of $85.00 to a high of $120.00, representing a spread of $35.00, which indicates a moderate level of uncertainty. The high target of $120.00 implies a 27.7% upside from the current price, likely assuming continued strength in digital gaming and successful execution of the company's growth strategy, potentially leading to multiple expansion. The low target of $85.00 suggests a downside of 9.5%, which could materialize if the consumer cyclical sector faces a downturn or if the company's debt levels become a concern. The relatively wide range reflects the varying opinions on the sustainability of Hasbro's growth, but the overall bullish consensus and recent upgrades suggest that the risk-reward profile is favorable. Institutional ratings have been consistently positive, with no downgrades in the past three months, reinforcing the constructive outlook.
Bulls vs Bears: HAS Investment Factors
Hasbro presents a compelling bull case driven by accelerating revenue growth, a strategic pivot to high-margin digital gaming, and a deeply undervalued forward PE. The bear case centers on high leverage, earnings volatility, and cyclicality. Currently, the bull case has stronger evidence, as the company's digital transformation is delivering tangible results and analyst sentiment is overwhelmingly positive. The most critical tension is whether the digital gaming momentum can sustain and offset potential weakness in traditional toys, which would determine if the current valuation is justified.
Bullish
- Strong Q1 revenue growth: Q1 2026 revenue surged 12.75% YoY to $1,000.2M, accelerating from 2.3% growth in Q4 2025, driven by the Wizards of the Coast segment. This momentum indicates successful execution of the digital gaming strategy.
- High-margin digital gaming mix: Wizards of the Coast and Digital Gaming contributed $582M (58.2% of revenue) in Q1 2026, with gross margins at 68.2%. This shift toward digital reduces manufacturing costs and enhances recurring revenue potential.
- Undervalued on forward earnings: Forward PE of 14.41x is well below the market average, and the PEG ratio of 0.20 suggests the stock is undervalued relative to its expected growth. This implies significant upside if earnings materialize as forecast.
- Strong analyst consensus: With a 'Strong Buy' rating and an average target price of $109.07, analysts see 16.1% upside from the current $93.94. No downgrades in the past three months reinforce the constructive outlook.
Bearish
- High debt-to-equity ratio: Debt-to-equity is 6.32x, indicating significant leverage. While manageable given cash flows, this increases financial risk, especially if interest rates remain elevated or earnings disappoint.
- Negative trailing earnings: Trailing PE is -36.01x due to a one-time loss in Q2 2025, but the negative TTM net margin of -6.86% highlights earnings volatility. The reliance on a recovery to justify valuation is a risk.
- Consumer cyclicality exposure: As a consumer cyclical, Hasbro is sensitive to economic downturns. A recession could dampen discretionary spending on toys and games, pressuring revenue and margins.
- Cyber incident disruption: A recent cyber incident temporarily disrupted operations, as noted in Q1 2026. While resolved, such events can lead to reputational damage, operational delays, and unexpected costs.
HAS Technical Analysis
Hasbro's stock has demonstrated a strong long-term uptrend, with a 1-year price change of +24.99%, significantly outperforming the S&P 500's +18.19% over the same period. The current price of $93.94 sits at approximately 87.8% of its 52-week range (low of $69.50, high of $106.98), indicating the stock is trading near the upper end of its range, which typically reflects positive momentum and investor confidence. However, the stock is still about 12.2% below its 52-week high, suggesting there is room for further upside if resistance is broken. The 6-month price change of +5.18% and YTD change of +13.22% confirm the broader upward trajectory, though the stock has experienced volatility within this trend.
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
+19.0%
Cumulative gain past year
| Period | HAS Return | S&P 500 |
|---|---|---|
| 1m | +19.5% | +2.8% |
| 3m | -6.2% | +4.2% |
| 6m | -2.3% | +11.3% |
| 1y | +19.0% | +21.5% |
| ytd | +10.5% | +12.7% |
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HAS Fundamental Analysis
Hasbro's revenue trajectory shows a robust recovery, with the most recent quarter (Q1 2026) reporting revenue of $1,000.2 million, a 12.75% year-over-year increase. This growth is particularly notable given the prior year's Q1 revenue of $887.1 million, and it marks a significant acceleration from the 2.3% growth seen in Q4 2025. The growth is driven by the Wizards of the Coast and Digital Gaming segment, which contributed $582 million in revenue, representing 58.2% of total revenue, while Consumer Products added $397.9 million. The company's strategic focus on high-margin digital gaming is paying off, as this segment's growth is outpacing traditional toy sales, which have been more volatile. This shift is critical for sustaining long-term growth, as digital gaming offers higher recurring revenue potential and lower manufacturing costs.
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 Hasbro's positive trailing EPS of $1.41 (Q1 2026) and a trailing twelve-month net income of $199.5 million, the PE ratio is the most appropriate valuation metric. The trailing PE stands at -36.01x, which is distorted by a one-time loss in Q2 2025, but the forward PE of 14.41x provides a clearer picture, reflecting the market's expectation of normalized earnings. The gap between trailing and forward PE is substantial, indicating that the market anticipates a significant earnings recovery, which is supported by the company's recent performance and analyst estimates. The PEG ratio of 0.20 suggests that the stock is undervalued relative to its expected growth, making it an attractive value proposition for growth-oriented investors.
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
Financially, Hasbro carries a high debt-to-equity ratio of 6.32x, which amplifies vulnerability to rising interest rates and economic downturns. The company's trailing net margin is negative at -6.86%, reflecting the impact of a one-time loss in Q2 2025, but the forward PE of 14.41x implies a significant earnings recovery is expected. Free cash flow of $1.02 billion provides a cushion, but any deviation from the projected earnings path could strain debt servicing and dividend sustainability. Revenue concentration in the Wizards of the Coast segment (58.2% of Q1 revenue) also poses a risk if digital gaming growth falters or faces regulatory scrutiny.
FAQ
The key risks are: 1) High financial leverage (D/E 6.32x), which could strain if earnings disappoint. 2) Consumer cyclicality, as a recession could reduce toy and game spending. 3) Execution risk in the digital gaming pivot, with reliance on Wizards of the Coast for 58% of revenue. 4) Regulatory risks around digital monetization. The most severe risk is a prolonged consumer downturn, which could push the stock toward the 52-week low of $69.50, a 26% downside.
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 $109.07, implying 16.1% upside. The most likely scenario is the base case, assuming revenue growth of 10-12% and stable margins. A bull case would require digital gaming growth above 20%, while a bear case would be triggered by a recession or competitive disruption.
Hasbro is undervalued on a forward basis, with a forward PE of 14.41x and a PEG of 0.20, indicating the stock is cheap relative to its growth prospects. However, the trailing PE is negative due to a one-time loss, and the EV/EBITDA of 61.18x is high, suggesting the market is pricing in significant future growth. Compared to peers, the forward PE is below the sector average, implying the market is not fully crediting the digital transformation. Overall, the valuation is reasonable, with more upside than downside.
Yes, Hasbro is a good buy for investors with a medium-to-long-term horizon. The stock trades at a forward PE of 14.41x, which is attractive given the expected earnings growth, and analysts see 16.1% upside to the average target of $109.07. The main risk is the high debt-to-equity ratio of 6.32x, but strong free cash flow of $1.02 billion mitigates this. For risk-averse investors, waiting for a pullback to the $85 support level could offer a better entry point.
Hasbro is suitable for long-term investment, given its transformation into a digital gaming company with high-margin potential. The stock has a beta of 0.48, indicating lower volatility than the market, and a dividend yield of 3.38% provides income. Short-term trading is possible, but the cyclical nature and leverage make it riskier. A minimum holding period of 3-5 years is recommended to fully capture the digital growth story and allow the debt to be reduced.