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1. Company Snapshot

1.a. Company Description

Hasbro, 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.

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1.b. Last Insights on HAS

Hasbro's recent performance was driven by strong Q3 earnings, with the company reporting $1.68 per share, surpassing estimates. Revenue and key metrics also showed improvement. Additionally, Range Financial Group initiated a stake in the company, and IFP Advisors Inc increased its position. The company's earnings call highlighted its growth prospects. With a positive earnings surprise, Hasbro's business fundamentals appear robust. Its Q3 results reflect a solid operational performance. Institutional investors' increased interest in the stock further supports its growth potential.

1.c. Company Highlights

2. Hasbro's Q3 Earnings: A Strong Performance

Hasbro delivered a robust Q3 with net revenue of $1.4 billion, up 8% year-over-year, and adjusted operating profit of $356 million, also up 8%. The company's Playing to Win strategy was instrumental in driving growth across key brands such as MAGIC, Marvel, and MONOPOLY. The actual EPS came in at $1.68, beating estimates of $1.66. The company's revenue growth was driven by a 55% increase in MAGIC revenue to $459 million, fueled by the success of Universes Beyond sets and core IP Edge of Eternities. Consumer Products revenue, however, declined 7% to $797 million due to retailer shifts and tough licensing comparisons.

Publication Date: Oct -26

📋 Highlights
  • Strong Q3 Performance:: Net revenue hit $1.4 billion (+8% YoY), adjusted operating profit at $356 million (+8% YoY).
  • MAGIC Segment Surge:: Revenue jumped 55% to $459 million, driven by Universes Beyond and Edge of Eternities sets.
  • Full-Year Guidance Raised:: Revenue growth now projected in high single digits, adjusted operating profit up over 20%.
  • Wizards Margin Resilience:: Expected revenue growth of 36-38% with operating margin at ~44%, supported by Final Fantasy set success.
  • Cost Savings & Cash Flow:: $150 million in gross savings through 9 months, $490 million operating cash flow, and $294 million shareholder returns.

Segment Performance

The Wizards of the Coast segment is expected to grow revenue by 36-38% with an operating margin of approximately 44%. The company's MAGIC segment has seen stable prices, with about 40% to 50% of the portfolio priced under $20, and licensing expenses expected to be around $50 million to $60 million in the second half of the year. In Consumer Products, pricing has been relatively muted, with the company targeting brands with robust content and latent demand.

Growth Prospects

Hasbro is optimistic about the durability of MAGIC's growth, driven by the Universes Beyond series, which has broken records for new player engagement, search queries, and sales. The company expects to have around 7 sets in 2026, similar to 6.5 sets this year, which should drive sales growth. The upcoming release of EXODUS, a new game, is expected to have a significant cost impact, with around $350 million in capitalized software costs on the balance sheet.

Valuation

With a P/E Ratio of -19.29 and a P/S Ratio of 2.47, the market seems to have priced in a certain level of growth for Hasbro. The company's ROE is -74.38%, but the ROIC is a healthy 24.66%. The Dividend Yield is 3.65%, indicating a relatively attractive return for income investors. Analysts estimate next year's revenue growth at 5.5%, which may be a reasonable expectation given the company's track record and growth prospects.

Tariff Pressure and Cost Savings

Hasbro faced tariff pressure of around $20 million in Q3, with a net impact expected to be around $60 million for 2025. However, the company is working to mitigate and offset the impact through pricing, product mix, and supply chain management. The company expects to achieve $1 billion in cost savings by 2027, which should help to offset margin pressure.

3. NewsRoom

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Rep. Lisa C. McClain Sells Hasbro, Inc. (NASDAQ:HAS) Stock

Nov -27

Source: defenseworld.net

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Hasbro Sees Unusually High Options Volume (NASDAQ:HAS)

Nov -19

Source: defenseworld.net

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Top Toy Brand LITTLEST PET SHOP Signs Global YouTube Sensation

Nov -10

Source: prnewswire.com

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Hasbro: On Track To Deliver A Solid FY2026 Performance

Nov -05

Source: seekingalpha.com

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Bessemer Group Inc. Has $378,000 Holdings in Hasbro, Inc. $HAS

Nov -03

Source: defenseworld.net

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D.A. Davidson & CO. Makes New Investment in Hasbro, Inc. $HAS

Oct -31

Source: defenseworld.net

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Toy Stocks To Consider – October 28th

Oct -30

Source: defenseworld.net

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DekaBank Deutsche Girozentrale Raises Position in Hasbro, Inc. $HAS

Oct -26

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.55%)

6. Segments

Consumer Products

Expected Growth: 1%

Hasbro's Consumer Products segment growth is driven by increasing demand for toys and games, particularly in the e-commerce channel, as well as the company's strategic partnerships with popular franchises like Marvel and Star Wars. Additionally, Hasbro's focus on innovation, including the development of new play experiences and digital integrations, is also contributing to growth.

Wizards of the Coast and Digital Gaming

Expected Growth: 2%

Wizards of the Coast and Digital Gaming's 2% growth is driven by increasing popularity of tabletop gaming, expansion of digital platforms, and strategic partnerships. Growing demand for immersive entertainment, rising popularity of esports, and continuous innovation in gaming experiences also contribute to the segment's growth.

Entertainment

Expected Growth: 3%

Hasbro's Entertainment segment growth is driven by increasing demand for licensed content, expansion of digital streaming platforms, and strategic partnerships with major studios. The company's robust portfolio of iconic brands, such as Transformers and My Little Pony, also contributes to growth through merchandising and licensing agreements.

7. Detailed Products

Toys and Games

Hasbro's toys and games segment includes a wide range of products such as action figures, dolls, puzzles, and board games.

Preschool Toys

Hasbro's preschool toys segment includes products designed for young children, such as playsets, figurines, and educational toys.

Arts and Crafts

Hasbro's arts and crafts segment includes products such as paints, markers, and craft kits.

Outdoor and Sports

Hasbro's outdoor and sports segment includes products such as Nerf blasters, bicycles, and outdoor games.

Digital Gaming

Hasbro's digital gaming segment includes digital versions of popular board games and original digital games.

Licensed Products

Hasbro's licensed products segment includes products featuring popular franchises such as Marvel, Star Wars, and My Little Pony.

8. Hasbro, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Hasbro's products are moderately susceptible to substitution, as consumers have various alternatives for entertainment and leisure activities.

Bargaining Power Of Customers

Hasbro's customers, particularly retailers, have significant bargaining power due to their large purchasing volumes and ability to negotiate prices.

Bargaining Power Of Suppliers

Hasbro's suppliers have limited bargaining power, as the company is a large and established player in the industry, allowing it to negotiate favorable terms.

Threat Of New Entrants

The threat of new entrants is low due to the significant barriers to entry, including high capital requirements, established brand recognition, and complex manufacturing processes.

Intensity Of Rivalry

The toy and board game industry is highly competitive, with several established players, including Mattel, LEGO, and Spin Master, leading to intense rivalry and competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 76.70%
Debt Cost 5.92%
Equity Weight 23.30%
Equity Cost 7.23%
WACC 6.22%
Leverage 329.25%

11. Quality Control: Hasbro, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Hasbro

A-Score: 5.6/10

Value: 5.7

Growth: 3.0

Quality: 4.1

Yield: 8.0

Momentum: 6.0

Volatility: 7.0

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United Parks & Resorts

A-Score: 5.3/10

Value: 7.6

Growth: 6.9

Quality: 6.3

Yield: 0.0

Momentum: 6.0

Volatility: 5.3

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Planet Fitness

A-Score: 5.1/10

Value: 3.3

Growth: 6.7

Quality: 5.8

Yield: 0.0

Momentum: 7.5

Volatility: 7.7

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Stock-Card
YETI

A-Score: 4.6/10

Value: 5.1

Growth: 8.1

Quality: 7.6

Yield: 0.0

Momentum: 2.5

Volatility: 4.0

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Mattel

A-Score: 4.4/10

Value: 6.0

Growth: 5.1

Quality: 6.3

Yield: 0.0

Momentum: 3.5

Volatility: 5.3

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Six Flags

A-Score: 3.6/10

Value: 7.5

Growth: 2.2

Quality: 3.4

Yield: 1.0

Momentum: 5.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

81.18$

Current Price

81.18$

Potential

-0.00%

Expected Cash-Flows