Last Updated: 14 Sep 2024
Executive Summary
Hasbro Inc. (HAS) is a leading global toy and entertainment company with a market capitalization of $9.58 billion. Despite recent challenges in the toy industry, Hasbro's strong brands and diversified portfolio position it for long-term growth. The company's financial performance has been mixed in recent quarters, with declining revenue and earnings. However, analysts remain optimistic about Hasbro's prospects, with a consensus analyst target price of $72.84.
Company Overview
Hasbro was founded in 1923 and is headquartered in Pawtucket, Rhode Island. The company designs, manufactures, and markets a wide range of toys, games, and entertainment products, including popular brands such as Transformers, G.I. Joe, and Monopoly. Hasbro also owns the entertainment company Entertainment One, which produces popular children's shows such as Peppa Pig.
Fundamental Analysis
Revenue: Hasbro's revenue has declined in recent quarters, with a -0.177% growth rate year-over-year. This decline is primarily due to lower sales in the company's toys and games segment.
Earnings: Hasbro's earnings have also declined significantly in recent quarters, with a -0.492% growth rate year-over-year. This decline is primarily due to higher costs and lower sales.
Profitability: Hasbro's profitability has been impacted by the decline in revenue and earnings. The company's profit margin is -0.228%, and its operating margin is 0.231%.
Balance Sheet: Hasbro has a strong balance sheet with $1.6 billion in cash and equivalents and $2.8 billion in total debt. The company's debt-to-equity ratio is 0.54, which is considered moderate.
Technical Analysis
Trend: Hasbro's stock price has been in a downtrend since reaching a 52-week high of $69.23 in August 2022. The stock is currently trading at $68.73, below its 50-day and 200-day moving averages.
Support and Resistance: The stock price has found support at the $65 level and resistance at the $70 level. A break above the $70 level would indicate a potential reversal of the downtrend.
Momentum: The stock's momentum is currently negative, as indicated by the declining moving averages and the negative MACD indicator.
Short Term Outlook
In the short term, Hasbro's stock price is likely to remain volatile. The company's recent financial performance has been disappointing, and the toy industry is facing headwinds from inflation and supply chain disruptions. However, the company's strong brands and diversified portfolio could provide some support to the stock price.
Long Term Outlook
In the long term, Hasbro's prospects are more positive. The company has a strong portfolio of brands and a track record of innovation. The company is also well-positioned to benefit from the growing global toy market.
Analyst Recommendations
Analysts are generally optimistic about Hasbro's long-term prospects. The consensus analyst target price is $72.84, which represents a potential upside of 6% from the current price. Six analysts have a "Strong Buy" rating on the stock, six have a "Buy" rating, three have a "Hold" rating, and none have a "Sell" or "Strong Sell" rating.
