Hasbro
HAS
$92.53
-0.51%
Hasbro, Inc. is a global play and entertainment company that designs, manufactures, and markets a diverse portfolio of toys, games, and consumer products, while also producing television programming, motion pictures, and digital gaming experiences. The company operates through three primary segments: Consumer Products, Wizards of the Coast and Digital Gaming, and Entertainment, leveraging iconic brands such as Transformers, Peppa Pig, Magic: The Gathering, and Dungeons & Dragons. As a market leader in the toy and game industry, Hasbro distinguishes itself through its robust brand ecosystem and strategic pivot toward digital gaming and licensing, which has become a key growth driver. The current investor narrative centers on the company's successful transformation toward high-margin digital and tabletop gaming, evidenced by strong recent results, but is tempered by leadership changes in its Wizards of the Coast division and ongoing macroeconomic uncertainties in the broader consumer cyclical sector.…
HAS
Hasbro
$92.53
Related headlines
Investment Opinion: Should I buy HAS Today?
Based on the synthesis, HAS is rated a Buy. The company's strong revenue growth, high-margin digital pivot, and attractive forward valuation (PE 14.18x, PEG 0.20) provide a compelling investment case. Analyst consensus is Strong Buy with an average target of $109.64, implying 18.5% upside. The thesis is that Hasbro's transformation toward digital gaming will continue to drive double-digit revenue growth and margin expansion, justifying a higher multiple.
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HAS 12-Month Price Forecast
The AI assessment is bullish with medium confidence. Hasbro's strong revenue acceleration, high-margin digital mix, and attractive valuation support a positive outlook. However, the high debt load and leadership instability in the key WotC division introduce significant uncertainty. If the company can maintain its growth trajectory and resolve leadership issues, the stock is likely to re-rate higher. Conversely, any misstep could lead to a sharp de-rating. The stance would be upgraded to high confidence if Q2 2026 results show continued acceleration and a new WotC leader is announced. It would be downgraded to neutral if revenue growth falls below 10% or if the company issues weak guidance.
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 +18.5% versus the current price.
Average Target
$109.64
0 analysts
Implied Upside
+18.5%
vs. current price
Analyst Count
—
covering this stock
Price Range
$90 - $120
Analyst target range
The target price range spans from a low of $90.00 to a high of $120.00, with the average at $109.64. The wide spread of $30 (33% of the average) indicates significant uncertainty about Hasbro's future performance, likely due to the ongoing leadership transition in its key Wizards of the Coast division and the cyclicality of the toy industry. The high target of $120 assumes continued strong growth in digital gaming, successful monetization of Dungeons & Dragons and Magic: The Gathering, and potential multiple expansion as the market recognizes the company's transformation. The low target of $90 suggests concerns about margin compression, competitive pressures, or a potential recession impacting consumer spending on discretionary items. The recent departure of WotC President John Hight, as reported in August 2026, adds to the uncertainty, but the overall bullish consensus and the stock's strong fundamentals suggest that analysts see more upside than downside risk.
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Bulls vs Bears: HAS Investment Factors
Hasbro presents a compelling bull case driven by accelerating revenue growth, a high-margin digital pivot, and an attractive forward valuation. The company's transformation toward Wizards of the Coast and digital gaming is yielding tangible results, with Q1 2026 revenue up 12.75% and operating margins at 27%. However, the bear case highlights significant risks: extreme leverage (D/E 6.32x), leadership instability in the key WotC division, and earnings volatility from one-time charges. The most critical tension is whether the company can sustain its digital gaming momentum despite the leadership void and high debt load. If new leadership maintains growth and margins, the stock could re-rate higher; if execution falters, the leverage could amplify downside. Currently, the bull evidence is stronger, supported by analyst consensus and valuation metrics, but the risk profile warrants caution.
Bullish
- Strong Revenue Growth Acceleration: Q1 2026 revenue grew 12.75% YoY to $1.00B, following a 31.2% surge in Q4 2025. This accelerating momentum, driven by the Wizards of the Coast and Digital Gaming segment (58.2% of revenue), demonstrates successful strategic pivot.
- High-Margin Digital Gaming Mix: Gross margin expanded to 68.2% in Q1 2026, up from 70.5% in Q1 2025, reflecting the shift toward high-margin digital and tabletop gaming. Operating margin of 27.0% in Q1 2026 is robust, indicating strong operational leverage.
- Attractive Forward Valuation: Forward PE of 14.18x is compelling given expected EPS growth, with a PEG ratio of 0.20 signaling undervaluation relative to growth. The stock trades at a discount to its historical average and consumer cyclical peers.
- Analyst Consensus Strong Buy: With 14 analysts, the consensus is 'Strong Buy' (mean rating 1.47). Average target price of $109.64 implies 18.5% upside from the current $92.53, with a high target of $120 suggesting 29.7% potential.
Bearish
- Leadership Turmoil in Key Division: The departure of WotC President John Hight in August 2026 creates uncertainty in the company's most critical growth engine. This leadership vacuum could disrupt the execution of digital gaming initiatives and D&D monetization.
- High Leverage and Debt Burden: Debt-to-equity ratio of 6.32x is extremely elevated, reflecting significant leverage. Interest expense of $41.8M in Q1 2026 consumes a substantial portion of operating income, increasing vulnerability to rate hikes.
- Earnings Volatility from One-Time Charges: Trailing PE is negative (-36.01x) due to a massive $855.8M loss in Q2 2025, which included a $1.04B impairment. Such non-recurring charges can recur, undermining earnings predictability and investor confidence.
- Relative Underperformance vs. Market: Despite a 15.09% 1-year gain, HAS lagged the S&P 500's 18.65% return, with negative relative strength of -3.56%. Over 6 months, underperformance widened to -16.62%, indicating persistent investor skepticism.
HAS Technical Analysis
Hasbro's stock has demonstrated a robust recovery over the past year, with a 1-year price change of +15.09%, significantly outperforming the S&P 500's +18.65% but still lagging in relative strength terms (relative strength of -3.56% vs. SPY). The current price of $92.53 sits at approximately 86.5% of its 52-week range (between $69.50 low and $106.98 high), indicating the stock is trading closer to its highs but not at overbought extremes. This positioning suggests a constructive uptrend, though the stock has pulled back from its peak, reflecting some profit-taking after a strong run. The 52-week low of $69.50 was set in July 2026, and the subsequent rally of over 33% from that low underscores the market's renewed confidence in Hasbro's growth trajectory.
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
+15.1%
Cumulative gain past year
| Period | HAS Return | S&P 500 |
|---|---|---|
| 1m | +1.5% | -0.4% |
| 3m | +9.9% | +4.2% |
| 6m | -2.1% | +13.7% |
| 1y | +15.1% | +19.0% |
| ytd | +11.5% | +12.9% |
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HAS Fundamental Analysis
Hasbro's revenue trajectory has been robust, with the most recent quarter (Q1 2026, ended March 29, 2026) reporting revenue of $1.00 billion, a 12.75% year-over-year increase from $887.1 million in Q1 2025. This growth was driven by the Wizards of the Coast and Digital Gaming segment, which contributed $582 million, representing 58.2% of total revenue, while Consumer Products added $397.9 million and Entertainment only $20.3 million. The multi-quarter trend shows accelerating growth, with Q4 2025 revenue of $1.45 billion (up 31.2% from Q4 2024's $1.10 billion) and Q3 2025 revenue of $1.39 billion (up 8.3% from Q3 2024's $1.28 billion), indicating a strong recovery from the pandemic-era slowdown. The company's strategic focus on digital gaming and licensing is clearly paying off, as these high-margin segments are driving overall growth and offsetting softer traditional toy sales.
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 net income in the trailing twelve months (TTM net income of $199.5 million in Q1 2026), the PE ratio is the most appropriate valuation metric. The trailing PE is -36.01x due to a one-time loss in Q2 2025, but the forward PE of 14.18x is more meaningful, reflecting the market's expectation of normalized earnings. The gap between the negative trailing PE and the positive forward PE indicates that the market is looking past the non-recurring charges and focusing on the company's strong underlying profitability. The PEG ratio of 0.20 (based on forward earnings growth) suggests that the stock is undervalued relative to its expected growth, making it an attractive value proposition for growth 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 substantial debt burden with a debt-to-equity ratio of 6.32x, which is exceptionally high and increases vulnerability to rising interest rates. Interest expense of $41.8M in Q1 2026 represents about 15% of operating income, reducing net earnings and free cash flow. The company's earnings are volatile, as evidenced by a $855.8M net loss in Q2 2025 due to a $1.04B impairment, which distorted trailing PE to -36x. While TTM free cash flow of $1.02B provides some cushion, the high leverage leaves little room for error if revenue growth stalls or margins compress. Additionally, the payout ratio of -121.7% indicates dividends are not fully covered by earnings, posing a risk of dividend cuts in adverse scenarios.
