🕷️ Crawler Inspector

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1. Shard Calculation

Query:

Response:

Calculated Shard: 57 (from laksa053)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa057.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://seekingalpha.com/article/4577987-hasbro-does-2022-decline-make-stock-a-buy\')), getAhrefsUnparsedNoserviceFromURL(\'https://seekingalpha.com/article/4577987-hasbro-does-2022-decline-make-stock-a-buy\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/seekingalpha.com\/article\/4577987-hasbro-does-2022-decline-make-stock-a-buy","crawl_time":1769627551,"first_indexed_time":1676358748,"http_code":200,"src_unparsed":"com,seekingalpha!\/article\/4577987-hasbro-does-2022-decline-make-stock-a-buy s443","src_root_hash":"11478393694123815657","history_drop_reason":null,"meta_title":"Hasbro Stock: Does The 2022 Decline Make It A Buy? (NASDAQ:HAS) | Seeking Alpha","meta_descriptions":["Hasbro is a toy and board game manufacturer, that has a strong position among market leaders in the global market. See why I'd hold off buying HAS stock."],"attrs_boilerpipe_text":"Jack Taylor\/Getty Images News\nThesis\nIn a challenging macroeconomic environment, in 2022, the consumer discretionary sector recorded large declines, with even large and mega-caps marking significant losses. Hasbro (\nHAS\n) represents a mature, well-known among consumers company in the toy and\ngames industry that has seen a large stock price decline over the past year.\nIn this analysis, I explore whether the recent large stock price decline presents an attractive investment opportunity or an indication that Hasbro's future might present serious challenges for the company.\nIn the midst of inflationary pressures and deteriorating consumer sentiment, Hasbro has seen a steep stock price decline. For the trailing 12 months, the stock has retreated almost -40%. Hasbro is, currently, trading at $57.38 ($7.92B market cap), near its 52-week lows of $54.65 and pays a 4.88% dividend yield.\nData by\nYCharts\nThe Business\nHasbro is a global toy and board game manufacturer, that develops, designs and sells a wide range of toys, including board-games, action figures and collectibles for children and families. The company is well-known to consumers through a diverse range of brands like Monopoly, Play-Doh, Nerf and others.\nHasbro's business model and revenue streams are primarily business-to-consumer focused, as the company generates the majority of its revenue through retail sales in large chain stores, specialty stores and e-commerce. A smaller portion of its sales can be attributed to licensing agreements for the use of its brands' intellectual property as well.\nThe Toy Industry\nIt is no secret that kids' entertainment revolves more and more around electronic devices and video games. However, the toy industry still exhibits some decent, yet slowing, growth prospects for the foreseeable future. Toys and board games are unlike to be phased out by video games, as they remain very popular with younger kids and families looking for inclusive entertainment and interaction. Hasbro is among the top four names in the industry, that also include Lego, Bandai Namco and Mattel.\nThe toys' and games industry has grown from $183B in 2014 to $275B at the end of 2021. Through 2027, the industry is expected to grow at a 6.5% CAGR to reach $383B. On a per-person basis, revenues of $38.76 were generated in 2023. Around 25% of sales are generated online, compared to 19% in 2017. In 2025, 30% of sales in the industry are expected to originate online.\nStatista\nFinancial Performance\nHasbro's growth strategy revolves around both organic expansion and acquisitions of smaller, up-and-coming toy brands. Over the past decade, revenue growth has been rather underwhelming, with sales increasing by a CAGR of 4.12% for the trailing 10-year period and 3.38% for the trailing 5-year. While it is clear that the company is struggling to substantially grow its sales, underperforming growth in the toy industry, it is important to note that both Hasbro and the toy industry in general, are mature and exhibit very mild growth characteristics. Gross and Net profits also follow a similar trajectory.\nHasbro exhibits strong cash flow productivity, generating over 800M of Cash from Operations in 2021. Free Cash Flow surpasses net income, offering a sign of efficiency and financial health for the company. Free Cash Flow production has also been consistent over the past decade.\nOn the other hand, Hasbro displays relatively strong profitability margins. The company's gross margin, of 48.9%, has decreased somewhat from previous years, yet it still remains significantly higher than sector and market averages. The same is true for an EBITDA margin of 16.4%, while the net margin of 6.5% should, ideally, expand.\nTikr.com\nEven though for 2022, analysts expect EPS to contract by around -14%, for 2023 and 2024 moderate growth around 10% is forecasted. When it comes to revenue, Hasbro is expected to generate $5.92B in 2022 with single-digit growth thereafter.\nHasbro maintains a $3.7B long-term debt balance (almost 50% of market cap) that indicates relatively high leverage. Besides raising long-term risk, increased debt levels negatively affect bottom-line profitability as interest payments increase. A current ratio of 1,38 indicates strong liquidity for the company. Hasbro has also built up a $550M cash balance.\nDividend Assessment\nHasbro pays a pretty generous 4.88% dividend yield. The company has also managed to slowly grow its dividend at a 10-year 4.87% CAGR and a 5-year 4.19% CAGR. These growth rates are, however, significantly lower than average rates across the consumer discretionary sector. Many analysts also express some concerns that the current dividend yield might prove unsustainable in the future due to relatively high payout and low coverage ratios (D- dividend safety score from Seeking Alpha). In my view, most indicator values, while somewhat worse than sector averages, are not yet a cause for alarm.\nValuation Attractiveness\nAs the stock has seen a large decline in 2022, valuation multiples have contracted across the board. Currently, Hasbro trades at reasonable 19.2x P\/E GAAP and 1.2x P\/S multiples. Both ratios also stand close to their 5-year lows. On a non-GAAP basis, Hasbro's FWD P\/E stands significantly lower, at 12.8x. If we also consider a 11x EV\/EBITDA multiple and a low P\/FCF ratio as well, it could be argued that the company offers a somewhat attractive valuation case.\nData by\nYCharts\nPutting it All Together\nAfter all things are considered, Hasbro offers mixed financial signals as it relates to its attractiveness as an investment. On the negative side, slow growth and relatively high amounts of debt hurt the company's mid and long-term performance prospects. On the other hand, the company displays good profitability and strong cash flow production, while also trading at a reasonable valuation. Hasbro's dividend yield is also attractive, though concerns over its sustainability exist. Based on the above, I would currently hold off on buying the stock until a more attractive entry point is established in terms of stock price, in order to attain more secure returns.\n710 Followers\nAnalyst’s Disclosure:\nI\/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours.\nI wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.\nSeeking Alpha's Disclosure:\nPast performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.","attrs_markdown":"[Skip to content](https:\/\/seekingalpha.com\/article\/4577987-hasbro-does-2022-decline-make-stock-a-buy#content)\n\n[Home page Seeking Alpha - Power to Investors](https:\/\/seekingalpha.com\/#source=source%3Asite_navigation)\n\n- Create Free Account\n- [About Premium](https:\/\/seekingalpha.com\/subscriptions\/premium#source=why_premium%3Aexpanded%3Anavbar_left)\n- [Explore Alpha Picks](https:\/\/subscriptions.seekingalpha.com\/lp_alpha-picks_sub\/#source=explore_alpha_picks%3Aexpanded%3Anavbar_left)\n- [NEW Virtual Analyst Report](https:\/\/seekingalpha.com\/subscriptions\/premium-virtual-analyst-report#source=virtual_analyst_report%3Aexpanded%3Anavbar_left)\n- [FREE Newsletters](https:\/\/seekingalpha.com\/free-investing-newsletters#source=free_newsletters%3Aexpanded%3Anavbar_left)\n\n[Home](https:\/\/seekingalpha.com\/#source=home%3Aexpanded%3Anavbar_left)\n\n- [Stock Analysis](https:\/\/seekingalpha.com\/latest-articles#source=analysis%3Anavbar_left)\n  \n  - 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[Home](https:\/\/seekingalpha.com\/#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs)\n2. [Stock Ideas](https:\/\/seekingalpha.com\/stock-ideas#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs)\n3. [Quick Picks & Lists](https:\/\/seekingalpha.com\/stock-ideas\/quick-picks#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs)\n4. [Consumer](https:\/\/seekingalpha.com\/stock-ideas\/consumer-goods#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs)\n# Hasbro: Does The 2022 Decline Make The Stock A Buy?\nFeb. 14, 2023 1:29 AM ET[Hasbro, Inc. (HAS) Stock](https:\/\/seekingalpha.com\/symbol\/HAS#source=section%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Aarticle%7Csymbol%3AHAS)\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/053\/326\/014\/big_pic.png?io=w36)\n\n[Alex Galanis](https:\/\/seekingalpha.com\/author\/alex-galanis#source=url_first_level%3Aarticle%7Csection%3Aauthor_brief%3Aalex-galanis%7Csection_asset%3Aauthor_brief%7Cauthor_name)\n\n710 Followers\n\nFollow\n\n- 5\n  \n  Share\n- Save\n- [Comments (3)](https:\/\/seekingalpha.com\/article\/4577987-hasbro-does-2022-decline-make-stock-a-buy#scroll_comments)\n\n## Summary\n- Hasbro is a toy and board game manufacturer, that has a strong position among market leaders in the global market.\n- The company has exhibited slow revenue and earnings growth over the past decade.\n- After the 2022 -40% stock price decline, valuation multiples are back within a reasonable range.\n\n![The Toy Retailers Association Reveals 2018 DreamToys For Christmas](https:\/\/static.seekingalpha.com\/cdn\/s3\/uploads\/getty_images\/1061366948\/image_1061366948.jpg?io=getty-c-w750)\n\nJack Taylor\/Getty Images News\n## Thesis\nIn a challenging macroeconomic environment, in 2022, the consumer discretionary sector recorded large declines, with even large and mega-caps marking significant losses. Hasbro ([HAS](https:\/\/seekingalpha.com\/symbol\/HAS#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) represents a mature, well-known among consumers company in the toy and games industry that has seen a large stock price decline over the past year.\n\nIn this analysis, I explore whether the recent large stock price decline presents an attractive investment opportunity or an indication that Hasbro's future might present serious challenges for the company.\n\nIn the midst of inflationary pressures and deteriorating consumer sentiment, Hasbro has seen a steep stock price decline. For the trailing 12 months, the stock has retreated almost -40%. Hasbro is, currently, trading at \\$57.38 (\\$7.92B market cap), near its 52-week lows of \\$54.65 and pays a 4.88% dividend yield.\n\n![Chart](https:\/\/static.seekingalpha.com\/uploads\/2023\/2\/13\/saupload_cadfc72be23eb92a4f0cca0bcf5fdfbb.png?io=w640)\n\nData by [YCharts](https:\/\/ycharts.com\/)\n## The Business\nHasbro is a global toy and board game manufacturer, that develops, designs and sells a wide range of toys, including board-games, action figures and collectibles for children and families. The company is well-known to consumers through a diverse range of brands like Monopoly, Play-Doh, Nerf and others.\n\nHasbro's business model and revenue streams are primarily business-to-consumer focused, as the company generates the majority of its revenue through retail sales in large chain stores, specialty stores and e-commerce. A smaller portion of its sales can be attributed to licensing agreements for the use of its brands' intellectual property as well.\n\n## The Toy Industry\nIt is no secret that kids' entertainment revolves more and more around electronic devices and video games. However, the toy industry still exhibits some decent, yet slowing, growth prospects for the foreseeable future. Toys and board games are unlike to be phased out by video games, as they remain very popular with younger kids and families looking for inclusive entertainment and interaction. Hasbro is among the top four names in the industry, that also include Lego, Bandai Namco and Mattel.\n\nThe toys' and games industry has grown from \\$183B in 2014 to \\$275B at the end of 2021. Through 2027, the industry is expected to grow at a 6.5% CAGR to reach \\$383B. On a per-person basis, revenues of \\$38.76 were generated in 2023. Around 25% of sales are generated online, compared to 19% in 2017. In 2025, 30% of sales in the industry are expected to originate online.\n\n[![Toy Industry](https:\/\/static.seekingalpha.com\/uploads\/2023\/2\/12\/53326014-167623303875559_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2023\/2\/12\/53326014-167623303875559_origin.png)\n\nStatista\n## Financial Performance\nHasbro's growth strategy revolves around both organic expansion and acquisitions of smaller, up-and-coming toy brands. Over the past decade, revenue growth has been rather underwhelming, with sales increasing by a CAGR of 4.12% for the trailing 10-year period and 3.38% for the trailing 5-year. While it is clear that the company is struggling to substantially grow its sales, underperforming growth in the toy industry, it is important to note that both Hasbro and the toy industry in general, are mature and exhibit very mild growth characteristics. Gross and Net profits also follow a similar trajectory.\n\nHasbro exhibits strong cash flow productivity, generating over 800M of Cash from Operations in 2021. Free Cash Flow surpasses net income, offering a sign of efficiency and financial health for the company. Free Cash Flow production has also been consistent over the past decade.\n\nOn the other hand, Hasbro displays relatively strong profitability margins. The company's gross margin, of 48.9%, has decreased somewhat from previous years, yet it still remains significantly higher than sector and market averages. The same is true for an EBITDA margin of 16.4%, while the net margin of 6.5% should, ideally, expand.\n\n[![Financials](https:\/\/static.seekingalpha.com\/uploads\/2023\/2\/12\/53326014-16762403986216035_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2023\/2\/12\/53326014-16762403986216035_origin.png)\n\nTikr.com\n\nEven though for 2022, analysts expect EPS to contract by around -14%, for 2023 and 2024 moderate growth around 10% is forecasted. When it comes to revenue, Hasbro is expected to generate \\$5.92B in 2022 with single-digit growth thereafter.\n\nHasbro maintains a \\$3.7B long-term debt balance (almost 50% of market cap) that indicates relatively high leverage. Besides raising long-term risk, increased debt levels negatively affect bottom-line profitability as interest payments increase. A current ratio of 1,38 indicates strong liquidity for the company. Hasbro has also built up a \\$550M cash balance.\n\n## Dividend Assessment\nHasbro pays a pretty generous 4.88% dividend yield. The company has also managed to slowly grow its dividend at a 10-year 4.87% CAGR and a 5-year 4.19% CAGR. These growth rates are, however, significantly lower than average rates across the consumer discretionary sector. Many analysts also express some concerns that the current dividend yield might prove unsustainable in the future due to relatively high payout and low coverage ratios (D- dividend safety score from Seeking Alpha). In my view, most indicator values, while somewhat worse than sector averages, are not yet a cause for alarm.\n\n## Valuation Attractiveness\nAs the stock has seen a large decline in 2022, valuation multiples have contracted across the board. Currently, Hasbro trades at reasonable 19.2x P\/E GAAP and 1.2x P\/S multiples. Both ratios also stand close to their 5-year lows. On a non-GAAP basis, Hasbro's FWD P\/E stands significantly lower, at 12.8x. If we also consider a 11x EV\/EBITDA multiple and a low P\/FCF ratio as well, it could be argued that the company offers a somewhat attractive valuation case.\n\n![Chart](https:\/\/static.seekingalpha.com\/uploads\/2023\/2\/13\/saupload_611f1c180ee620dddaca8381ee4d263f.png?io=w640)\n\nData by [YCharts](https:\/\/ycharts.com\/)\n## Putting it All Together\nAfter all things are considered, Hasbro offers mixed financial signals as it relates to its attractiveness as an investment. On the negative side, slow growth and relatively high amounts of debt hurt the company's mid and long-term performance prospects. On the other hand, the company displays good profitability and strong cash flow production, while also trading at a reasonable valuation. Hasbro's dividend yield is also attractive, though concerns over its sustainability exist. Based on the above, I would currently hold off on buying the stock until a more attractive entry point is established in terms of stock price, in order to attain more secure returns.\n\nThis article was written by\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/053\/326\/014\/big_pic.png?io=w36)\n\n[Alex Galanis](https:\/\/seekingalpha.com\/author\/alex-galanis#source=url_first_level%3Aarticle%7Csection%3Aauthor_root%3Aalex-galanis%7Csection_asset%3Aauthor_root%7Cauthor_name)\n\n710 Followers\n\nFollow\n\nFinancial Analyst, interested in U.S equities, examining Growth, Dividend Growth and Value Investment opportunities, as well as ETFs. Accounting and Finance Graduate. CFA level ΙI candidate.\n\nShow more\n\nShow more\n\n**Analyst’s Disclosure:** I\/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.\n\n**Seeking Alpha's Disclosure:** Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.\n\n- Like\n- Share\n- Print\n- [Comments (3)](https:\/\/seekingalpha.com\/article\/4577987-hasbro-does-2022-decline-make-stock-a-buy#scroll_comments)\n\n### Recommended For You\n![](https:\/\/seekingalpha.com\/images\/users_profile\/045\/714\/056\/big_pic.png?io=w36&t=2f4bd29bd6)\n\n### [Bloom Energy: Solving The AI Data Center Power Bottleneck](https:\/\/seekingalpha.com\/article\/4862022-bloom-energy-solving-the-ai-data-center-power-bottleneck#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A1)\nBeth Kindig\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/014\/867\/032\/big_pic.png?io=w36&t=a2fdd1687b)\n\n### [Micron Stock: Why I'm Still Buying More And You Should, Too](https:\/\/seekingalpha.com\/article\/4863069-micron-stock-why-im-still-buying-more-and-you-should-too#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A2)\nKumquat Research\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/000\/902\/464\/big_pic.png?io=w36&t=4fc7c8b6d0)\n\n### [Micron: I Was Bullish At \\$89, But At \\$400, It's Time To Sell Before A Potential Bust Cycle](https:\/\/seekingalpha.com\/article\/4863184-micron-i-was-bullish-at-89-but-at-400-its-time-to-sell-before-a-potential-bust-cycle#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A3)\nHawkinvest\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/000\/498\/952\/big_pic.png?io=w36&t=4fcdd5160d)\n\n### ['Reversion To The Mean' Will Eventually Slam The Market](https:\/\/seekingalpha.com\/article\/4863086-reversion-to-the-mean-will-eventually-slam-the-market#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A4)\nBret Jensen\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/050\/662\/133\/big_pic.png?io=w36&t=e4cd7ecd5c)\n\n### [\\$200 Silver? 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You can remove the link by deleting the \\$ in the comment.\n\nPublish\n\nd\n\n[dmau3](https:\/\/seekingalpha.com\/user\/808106)\n\n16 Feb. 2023, 6:50 AM\n\nPremium\n\n[Investing Group](https:\/\/seekingalpha.com\/checkout\/mp_1319#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AInvesting%20Group)\n\n[Comments (3.79K)](https:\/\/seekingalpha.com\/user\/808106)\n\n\\|\n\n\\+ Follow\n\nThe dividend cut is the next bad thing here for the stock. (Crappy company.)\n\nReply\n\nLike\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/055\/881\/957\/small_pic.png?t=b3d0f9b3b5)\n\n[Sea Lucas](https:\/\/seekingalpha.com\/user\/55881957)\n\n14 Feb. 2023, 10:57 AM\n\nPremium\n\n[Investing Group](https:\/\/seekingalpha.com\/checkout\/mp_1268#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AInvesting%20Group)\n\n[Comments (455)](https:\/\/seekingalpha.com\/user\/55881957)\n\n\\|\n\n\\+ Follow\n\nOne of the best deals on the market right now imo. Neither MTG or D\\&D is gonna die any time soon. Both have been pronounced dead many times over the past several decades. Gamers have short memories (source: I am one).\n\nReply\n\nLike\n\n(4)\n\nN\n\n[NP20151153](https:\/\/seekingalpha.com\/user\/48639928)\n\n14 Feb. 2023, 6:53 AM\n\nPremium\n\n[Investing Group](https:\/\/seekingalpha.com\/checkout\/mp_316#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AInvesting%20Group)\n\n[Comments (320)](https:\/\/seekingalpha.com\/user\/48639928)\n\n\\|\n\n\\+ Follow\n\nIf you are in HAS you are long.\n\nReply\n\nLike\n\nDisagree with this article? [Submit your own](https:\/\/about.seekingalpha.com\/become-an-analyst).\n\nTo report a factual error in this article,\n\nclick here\n\n.\n\nYour feedback matters to us\\!\n\n### About HAS Stock\n| Symbol | Last Price | % Chg |\n|---|---|---|\n\n- 1D\n- 5D\n- 1M\n- 6M\n- 1Y\n- 5Y\n- 10Y\n\n###### Chart\nCombination chart with 2 data series.\n\nView as data table, Chart\n\nThe chart has 1 X axis displaying Time. Data ranges from 2021-01-28 00:00:00 to 2026-01-28 00:00:00.\n\nThe chart has 1 Y axis displaying values. Data ranges from 42.88 to 103.92.\n\nCreated with Highcharts 12.5.0\n\n2026\n\n2025\n\n2024\n\n2023\n\n2022\n\n0\n\n50\n\n100\n\n150\n\nEnd of interactive chart.\n\nMarket Cap\n\nPE\n\nYield\n\nRev Growth (YoY)\n\nShort Interest\n\nPrev. Close\n\n[has Summary](https:\/\/seekingalpha.com\/symbol\/HAS\/virtual_analyst_report)\n\nCompare to Peers\n\n### More on HAS\n![](https:\/\/seekingalpha.com\/images\/users_profile\/052\/204\/265\/big_pic.png?io=w36)\n\n### [Hasbro: MTG Monetization Has Worked Well, For Now](https:\/\/seekingalpha.com\/article\/4856541-hasbro-mtg-monetization-has-worked-well-for-now#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A1%7Cpos%3Aundefined)\n[Caffital Research](https:\/\/seekingalpha.com\/author\/caffital-research#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A1%7Cpos%3Aundefined)\n### [Box office boost: The 2026 blockbuster movies that may lift toy stocks](https:\/\/seekingalpha.com\/news\/4535665-box-office-boost-the-2026-blockbuster-movies-that-may-boost-toy-stocks#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A2%7Cpos%3Aundefined)\n### [Early Black Friday and Cyber Monday spending trends to watch](https:\/\/seekingalpha.com\/news\/4526511-early-black-friday-and-cyber-monday-spending-trends-to-watch#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A3%7Cpos%3Aundefined)\n![](https:\/\/seekingalpha.com\/images\/users_profile\/059\/932\/035\/big_pic.png?io=w36)\n\n### [Hasbro: On Track To Deliver A Solid FY2026 Performance](https:\/\/seekingalpha.com\/article\/4838108-hasbro-on-track-to-deliver-a-solid-fy2026-performance#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A4%7Cpos%3Aundefined)\n[Redfox Capital Ideas](https:\/\/seekingalpha.com\/author\/redfox-capital-ideas#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A4%7Cpos%3Aundefined)\n\n### Related Stocks\n| Symbol | Last Price | % Chg |\n|---|---|---|\n| [HAS](https:\/\/seekingalpha.com\/symbol\/HAS#source=first_level_url%3Anews%7Csection%3Aright_rail%7Csection_asset%3Aabout%7Cline%3A1%7Csymbol%3Ahas) HAS | \\- | \\- |\n\n- 1D\n- 5D\n- 1M\n- 6M\n- 1Y\n- 5Y\n- 10Y\n\n###### Chart\nChart with 148 data points.\n\nView as data table, Chart\n\nThe chart has 1 X axis displaying Time. Data ranges from 2026-01-23 09:30:00 to 2026-01-28 14:00:00.\n\nThe chart has 1 Y axis displaying values. 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[Energy](https:\/\/seekingalpha.com\/market-news\/energy#source=footer)\n- [Financials](https:\/\/seekingalpha.com\/market-news\/financials#source=footer)\n- [Healthcare](https:\/\/seekingalpha.com\/market-news\/healthcare#source=footer)\n- [Tech](https:\/\/seekingalpha.com\/market-news\/technology#source=footer)\n***\n\n## Earnings\n- [Earnings Calendar](https:\/\/seekingalpha.com\/earnings\/earnings-calendar#source=footer)\n- [Earnings News](https:\/\/seekingalpha.com\/market-news\/earnings#source=footer)\n- [Earnings Analysis](https:\/\/seekingalpha.com\/earnings\/earnings-analysis#source=footer)\n- [Earnings Calls Transcripts](https:\/\/seekingalpha.com\/earnings\/earnings-call-transcripts#source=footer)\n***\n***\nContact us\n\n[Subscription Support: subscriptions@seekingalpha.com](mailto:subscriptions@seekingalpha.com)\n\n- [Contact Us](https:\/\/help.seekingalpha.com#source=footer)\n- [About Us](https:\/\/about.seekingalpha.com#source=footer)\n- [Group 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Please [report it on our feedback forum.](https:\/\/help.seekingalpha.com\/kb-tickets\/new)\n\nIf you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.\n\n![](https:\/\/seekingalpha.com\/_sa_track\/samw\/noscript?noscript[disabled]=true)\n\n![](https:\/\/www.facebook.com\/tr?id=228550053985270&ev=PageView&noscript=1)","attrs_readable_markdown":"![The Toy Retailers Association Reveals 2018 DreamToys For Christmas](https:\/\/static.seekingalpha.com\/cdn\/s3\/uploads\/getty_images\/1061366948\/image_1061366948.jpg?io=getty-c-w750)\n\nJack Taylor\/Getty Images News\n## Thesis\nIn a challenging macroeconomic environment, in 2022, the consumer discretionary sector recorded large declines, with even large and mega-caps marking significant losses. Hasbro ([HAS](https:\/\/seekingalpha.com\/symbol\/HAS#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) represents a mature, well-known among consumers company in the toy and games industry that has seen a large stock price decline over the past year.\n\nIn this analysis, I explore whether the recent large stock price decline presents an attractive investment opportunity or an indication that Hasbro's future might present serious challenges for the company.\n\nIn the midst of inflationary pressures and deteriorating consumer sentiment, Hasbro has seen a steep stock price decline. For the trailing 12 months, the stock has retreated almost -40%. Hasbro is, currently, trading at \\$57.38 (\\$7.92B market cap), near its 52-week lows of \\$54.65 and pays a 4.88% dividend yield.\n\n![Chart](https:\/\/static.seekingalpha.com\/uploads\/2023\/2\/13\/saupload_cadfc72be23eb92a4f0cca0bcf5fdfbb.png?io=w640)\n\nData by [YCharts](https:\/\/ycharts.com\/)\n## The Business\nHasbro is a global toy and board game manufacturer, that develops, designs and sells a wide range of toys, including board-games, action figures and collectibles for children and families. The company is well-known to consumers through a diverse range of brands like Monopoly, Play-Doh, Nerf and others.\n\nHasbro's business model and revenue streams are primarily business-to-consumer focused, as the company generates the majority of its revenue through retail sales in large chain stores, specialty stores and e-commerce. A smaller portion of its sales can be attributed to licensing agreements for the use of its brands' intellectual property as well.\n\n## The Toy Industry\nIt is no secret that kids' entertainment revolves more and more around electronic devices and video games. However, the toy industry still exhibits some decent, yet slowing, growth prospects for the foreseeable future. Toys and board games are unlike to be phased out by video games, as they remain very popular with younger kids and families looking for inclusive entertainment and interaction. Hasbro is among the top four names in the industry, that also include Lego, Bandai Namco and Mattel.\n\nThe toys' and games industry has grown from \\$183B in 2014 to \\$275B at the end of 2021. Through 2027, the industry is expected to grow at a 6.5% CAGR to reach \\$383B. On a per-person basis, revenues of \\$38.76 were generated in 2023. Around 25% of sales are generated online, compared to 19% in 2017. In 2025, 30% of sales in the industry are expected to originate online.\n\n[![Toy Industry](https:\/\/static.seekingalpha.com\/uploads\/2023\/2\/12\/53326014-167623303875559_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2023\/2\/12\/53326014-167623303875559_origin.png)\n\nStatista\n## Financial Performance\nHasbro's growth strategy revolves around both organic expansion and acquisitions of smaller, up-and-coming toy brands. Over the past decade, revenue growth has been rather underwhelming, with sales increasing by a CAGR of 4.12% for the trailing 10-year period and 3.38% for the trailing 5-year. While it is clear that the company is struggling to substantially grow its sales, underperforming growth in the toy industry, it is important to note that both Hasbro and the toy industry in general, are mature and exhibit very mild growth characteristics. Gross and Net profits also follow a similar trajectory.\n\nHasbro exhibits strong cash flow productivity, generating over 800M of Cash from Operations in 2021. Free Cash Flow surpasses net income, offering a sign of efficiency and financial health for the company. Free Cash Flow production has also been consistent over the past decade.\n\nOn the other hand, Hasbro displays relatively strong profitability margins. The company's gross margin, of 48.9%, has decreased somewhat from previous years, yet it still remains significantly higher than sector and market averages. The same is true for an EBITDA margin of 16.4%, while the net margin of 6.5% should, ideally, expand.\n\n[![Financials](https:\/\/static.seekingalpha.com\/uploads\/2023\/2\/12\/53326014-16762403986216035_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2023\/2\/12\/53326014-16762403986216035_origin.png)\n\nTikr.com\n\nEven though for 2022, analysts expect EPS to contract by around -14%, for 2023 and 2024 moderate growth around 10% is forecasted. When it comes to revenue, Hasbro is expected to generate \\$5.92B in 2022 with single-digit growth thereafter.\n\nHasbro maintains a \\$3.7B long-term debt balance (almost 50% of market cap) that indicates relatively high leverage. Besides raising long-term risk, increased debt levels negatively affect bottom-line profitability as interest payments increase. A current ratio of 1,38 indicates strong liquidity for the company. Hasbro has also built up a \\$550M cash balance.\n\n## Dividend Assessment\nHasbro pays a pretty generous 4.88% dividend yield. The company has also managed to slowly grow its dividend at a 10-year 4.87% CAGR and a 5-year 4.19% CAGR. These growth rates are, however, significantly lower than average rates across the consumer discretionary sector. Many analysts also express some concerns that the current dividend yield might prove unsustainable in the future due to relatively high payout and low coverage ratios (D- dividend safety score from Seeking Alpha). In my view, most indicator values, while somewhat worse than sector averages, are not yet a cause for alarm.\n\n## Valuation Attractiveness\nAs the stock has seen a large decline in 2022, valuation multiples have contracted across the board. Currently, Hasbro trades at reasonable 19.2x P\/E GAAP and 1.2x P\/S multiples. Both ratios also stand close to their 5-year lows. On a non-GAAP basis, Hasbro's FWD P\/E stands significantly lower, at 12.8x. If we also consider a 11x EV\/EBITDA multiple and a low P\/FCF ratio as well, it could be argued that the company offers a somewhat attractive valuation case.\n\n![Chart](https:\/\/static.seekingalpha.com\/uploads\/2023\/2\/13\/saupload_611f1c180ee620dddaca8381ee4d263f.png?io=w640)\n\nData by [YCharts](https:\/\/ycharts.com\/)\n## Putting it All Together\nAfter all things are considered, Hasbro offers mixed financial signals as it relates to its attractiveness as an investment. On the negative side, slow growth and relatively high amounts of debt hurt the company's mid and long-term performance prospects. On the other hand, the company displays good profitability and strong cash flow production, while also trading at a reasonable valuation. Hasbro's dividend yield is also attractive, though concerns over its sustainability exist. Based on the above, I would currently hold off on buying the stock until a more attractive entry point is established in terms of stock price, in order to attain more secure returns.\n\n710 Followers\n\n**Analyst’s Disclosure:** I\/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.\n\n**Seeking Alpha's Disclosure:** Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.","meta_canonical":null}

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URL	https://seekingalpha.com/article/4577987-hasbro-does-2022-decline-make-stock-a-buy
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Meta Title	Hasbro Stock: Does The 2022 Decline Make It A Buy? (NASDAQ:HAS) \| Seeking Alpha
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Boilerpipe Text	Jack Taylor/Getty Images News Thesis In a challenging macroeconomic environment, in 2022, the consumer discretionary sector recorded large declines, with even large and mega-caps marking significant losses. Hasbro ( HAS ) represents a mature, well-known among consumers company in the toy and games industry that has seen a large stock price decline over the past year. In this analysis, I explore whether the recent large stock price decline presents an attractive investment opportunity or an indication that Hasbro's future might present serious challenges for the company. In the midst of inflationary pressures and deteriorating consumer sentiment, Hasbro has seen a steep stock price decline. For the trailing 12 months, the stock has retreated almost -40%. Hasbro is, currently, trading at $57.38 ($7.92B market cap), near its 52-week lows of $54.65 and pays a 4.88% dividend yield. Data by YCharts The Business Hasbro is a global toy and board game manufacturer, that develops, designs and sells a wide range of toys, including board-games, action figures and collectibles for children and families. The company is well-known to consumers through a diverse range of brands like Monopoly, Play-Doh, Nerf and others. Hasbro's business model and revenue streams are primarily business-to-consumer focused, as the company generates the majority of its revenue through retail sales in large chain stores, specialty stores and e-commerce. A smaller portion of its sales can be attributed to licensing agreements for the use of its brands' intellectual property as well. The Toy Industry It is no secret that kids' entertainment revolves more and more around electronic devices and video games. However, the toy industry still exhibits some decent, yet slowing, growth prospects for the foreseeable future. Toys and board games are unlike to be phased out by video games, as they remain very popular with younger kids and families looking for inclusive entertainment and interaction. Hasbro is among the top four names in the industry, that also include Lego, Bandai Namco and Mattel. The toys' and games industry has grown from $183B in 2014 to $275B at the end of 2021. Through 2027, the industry is expected to grow at a 6.5% CAGR to reach $383B. On a per-person basis, revenues of $38.76 were generated in 2023. Around 25% of sales are generated online, compared to 19% in 2017. In 2025, 30% of sales in the industry are expected to originate online. Statista Financial Performance Hasbro's growth strategy revolves around both organic expansion and acquisitions of smaller, up-and-coming toy brands. Over the past decade, revenue growth has been rather underwhelming, with sales increasing by a CAGR of 4.12% for the trailing 10-year period and 3.38% for the trailing 5-year. While it is clear that the company is struggling to substantially grow its sales, underperforming growth in the toy industry, it is important to note that both Hasbro and the toy industry in general, are mature and exhibit very mild growth characteristics. Gross and Net profits also follow a similar trajectory. Hasbro exhibits strong cash flow productivity, generating over 800M of Cash from Operations in 2021. Free Cash Flow surpasses net income, offering a sign of efficiency and financial health for the company. Free Cash Flow production has also been consistent over the past decade. On the other hand, Hasbro displays relatively strong profitability margins. The company's gross margin, of 48.9%, has decreased somewhat from previous years, yet it still remains significantly higher than sector and market averages. The same is true for an EBITDA margin of 16.4%, while the net margin of 6.5% should, ideally, expand. Tikr.com Even though for 2022, analysts expect EPS to contract by around -14%, for 2023 and 2024 moderate growth around 10% is forecasted. When it comes to revenue, Hasbro is expected to generate $5.92B in 2022 with single-digit growth thereafter. Hasbro maintains a $3.7B long-term debt balance (almost 50% of market cap) that indicates relatively high leverage. Besides raising long-term risk, increased debt levels negatively affect bottom-line profitability as interest payments increase. A current ratio of 1,38 indicates strong liquidity for the company. Hasbro has also built up a $550M cash balance. Dividend Assessment Hasbro pays a pretty generous 4.88% dividend yield. The company has also managed to slowly grow its dividend at a 10-year 4.87% CAGR and a 5-year 4.19% CAGR. These growth rates are, however, significantly lower than average rates across the consumer discretionary sector. Many analysts also express some concerns that the current dividend yield might prove unsustainable in the future due to relatively high payout and low coverage ratios (D- dividend safety score from Seeking Alpha). In my view, most indicator values, while somewhat worse than sector averages, are not yet a cause for alarm. Valuation Attractiveness As the stock has seen a large decline in 2022, valuation multiples have contracted across the board. Currently, Hasbro trades at reasonable 19.2x P/E GAAP and 1.2x P/S multiples. Both ratios also stand close to their 5-year lows. On a non-GAAP basis, Hasbro's FWD P/E stands significantly lower, at 12.8x. If we also consider a 11x EV/EBITDA multiple and a low P/FCF ratio as well, it could be argued that the company offers a somewhat attractive valuation case. Data by YCharts Putting it All Together After all things are considered, Hasbro offers mixed financial signals as it relates to its attractiveness as an investment. On the negative side, slow growth and relatively high amounts of debt hurt the company's mid and long-term performance prospects. On the other hand, the company displays good profitability and strong cash flow production, while also trading at a reasonable valuation. Hasbro's dividend yield is also attractive, though concerns over its sustainability exist. Based on the above, I would currently hold off on buying the stock until a more attractive entry point is established in terms of stock price, in order to attain more secure returns. 710 Followers Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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[Home](https://seekingalpha.com/#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs) 2. [Stock Ideas](https://seekingalpha.com/stock-ideas#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs) 3. [Quick Picks & Lists](https://seekingalpha.com/stock-ideas/quick-picks#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs) 4. [Consumer](https://seekingalpha.com/stock-ideas/consumer-goods#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs) # Hasbro: Does The 2022 Decline Make The Stock A Buy? Feb. 14, 2023 1:29 AM ET[Hasbro, Inc. (HAS) Stock](https://seekingalpha.com/symbol/HAS#source=section%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Aarticle%7Csymbol%3AHAS) ![](https://seekingalpha.com/images/users_profile/053/326/014/big_pic.png?io=w36) [Alex Galanis](https://seekingalpha.com/author/alex-galanis#source=url_first_level%3Aarticle%7Csection%3Aauthor_brief%3Aalex-galanis%7Csection_asset%3Aauthor_brief%7Cauthor_name) 710 Followers Follow - 5 Share - Save - [Comments (3)](https://seekingalpha.com/article/4577987-hasbro-does-2022-decline-make-stock-a-buy#scroll_comments) ## Summary - Hasbro is a toy and board game manufacturer, that has a strong position among market leaders in the global market. - The company has exhibited slow revenue and earnings growth over the past decade. - After the 2022 -40% stock price decline, valuation multiples are back within a reasonable range. ![The Toy Retailers Association Reveals 2018 DreamToys For Christmas](https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1061366948/image_1061366948.jpg?io=getty-c-w750) Jack Taylor/Getty Images News ## Thesis In a challenging macroeconomic environment, in 2022, the consumer discretionary sector recorded large declines, with even large and mega-caps marking significant losses. Hasbro ([HAS](https://seekingalpha.com/symbol/HAS#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) represents a mature, well-known among consumers company in the toy and games industry that has seen a large stock price decline over the past year. In this analysis, I explore whether the recent large stock price decline presents an attractive investment opportunity or an indication that Hasbro's future might present serious challenges for the company. In the midst of inflationary pressures and deteriorating consumer sentiment, Hasbro has seen a steep stock price decline. For the trailing 12 months, the stock has retreated almost -40%. Hasbro is, currently, trading at \$57.38 (\$7.92B market cap), near its 52-week lows of \$54.65 and pays a 4.88% dividend yield. ![Chart](https://static.seekingalpha.com/uploads/2023/2/13/saupload_cadfc72be23eb92a4f0cca0bcf5fdfbb.png?io=w640) Data by [YCharts](https://ycharts.com/) ## The Business Hasbro is a global toy and board game manufacturer, that develops, designs and sells a wide range of toys, including board-games, action figures and collectibles for children and families. The company is well-known to consumers through a diverse range of brands like Monopoly, Play-Doh, Nerf and others. Hasbro's business model and revenue streams are primarily business-to-consumer focused, as the company generates the majority of its revenue through retail sales in large chain stores, specialty stores and e-commerce. A smaller portion of its sales can be attributed to licensing agreements for the use of its brands' intellectual property as well. ## The Toy Industry It is no secret that kids' entertainment revolves more and more around electronic devices and video games. However, the toy industry still exhibits some decent, yet slowing, growth prospects for the foreseeable future. Toys and board games are unlike to be phased out by video games, as they remain very popular with younger kids and families looking for inclusive entertainment and interaction. Hasbro is among the top four names in the industry, that also include Lego, Bandai Namco and Mattel. The toys' and games industry has grown from \$183B in 2014 to \$275B at the end of 2021. Through 2027, the industry is expected to grow at a 6.5% CAGR to reach \$383B. On a per-person basis, revenues of \$38.76 were generated in 2023. Around 25% of sales are generated online, compared to 19% in 2017. In 2025, 30% of sales in the industry are expected to originate online. [![Toy Industry](https://static.seekingalpha.com/uploads/2023/2/12/53326014-167623303875559_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2023/2/12/53326014-167623303875559_origin.png) Statista ## Financial Performance Hasbro's growth strategy revolves around both organic expansion and acquisitions of smaller, up-and-coming toy brands. Over the past decade, revenue growth has been rather underwhelming, with sales increasing by a CAGR of 4.12% for the trailing 10-year period and 3.38% for the trailing 5-year. While it is clear that the company is struggling to substantially grow its sales, underperforming growth in the toy industry, it is important to note that both Hasbro and the toy industry in general, are mature and exhibit very mild growth characteristics. Gross and Net profits also follow a similar trajectory. Hasbro exhibits strong cash flow productivity, generating over 800M of Cash from Operations in 2021. Free Cash Flow surpasses net income, offering a sign of efficiency and financial health for the company. Free Cash Flow production has also been consistent over the past decade. On the other hand, Hasbro displays relatively strong profitability margins. The company's gross margin, of 48.9%, has decreased somewhat from previous years, yet it still remains significantly higher than sector and market averages. The same is true for an EBITDA margin of 16.4%, while the net margin of 6.5% should, ideally, expand. [![Financials](https://static.seekingalpha.com/uploads/2023/2/12/53326014-16762403986216035_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2023/2/12/53326014-16762403986216035_origin.png) Tikr.com Even though for 2022, analysts expect EPS to contract by around -14%, for 2023 and 2024 moderate growth around 10% is forecasted. When it comes to revenue, Hasbro is expected to generate \$5.92B in 2022 with single-digit growth thereafter. Hasbro maintains a \$3.7B long-term debt balance (almost 50% of market cap) that indicates relatively high leverage. Besides raising long-term risk, increased debt levels negatively affect bottom-line profitability as interest payments increase. A current ratio of 1,38 indicates strong liquidity for the company. Hasbro has also built up a \$550M cash balance. ## Dividend Assessment Hasbro pays a pretty generous 4.88% dividend yield. The company has also managed to slowly grow its dividend at a 10-year 4.87% CAGR and a 5-year 4.19% CAGR. These growth rates are, however, significantly lower than average rates across the consumer discretionary sector. Many analysts also express some concerns that the current dividend yield might prove unsustainable in the future due to relatively high payout and low coverage ratios (D- dividend safety score from Seeking Alpha). In my view, most indicator values, while somewhat worse than sector averages, are not yet a cause for alarm. ## Valuation Attractiveness As the stock has seen a large decline in 2022, valuation multiples have contracted across the board. Currently, Hasbro trades at reasonable 19.2x P/E GAAP and 1.2x P/S multiples. Both ratios also stand close to their 5-year lows. On a non-GAAP basis, Hasbro's FWD P/E stands significantly lower, at 12.8x. If we also consider a 11x EV/EBITDA multiple and a low P/FCF ratio as well, it could be argued that the company offers a somewhat attractive valuation case. ![Chart](https://static.seekingalpha.com/uploads/2023/2/13/saupload_611f1c180ee620dddaca8381ee4d263f.png?io=w640) Data by [YCharts](https://ycharts.com/) ## Putting it All Together After all things are considered, Hasbro offers mixed financial signals as it relates to its attractiveness as an investment. On the negative side, slow growth and relatively high amounts of debt hurt the company's mid and long-term performance prospects. On the other hand, the company displays good profitability and strong cash flow production, while also trading at a reasonable valuation. Hasbro's dividend yield is also attractive, though concerns over its sustainability exist. Based on the above, I would currently hold off on buying the stock until a more attractive entry point is established in terms of stock price, in order to attain more secure returns. This article was written by ![](https://seekingalpha.com/images/users_profile/053/326/014/big_pic.png?io=w36) [Alex Galanis](https://seekingalpha.com/author/alex-galanis#source=url_first_level%3Aarticle%7Csection%3Aauthor_root%3Aalex-galanis%7Csection_asset%3Aauthor_root%7Cauthor_name) 710 Followers Follow Financial Analyst, interested in U.S equities, examining Growth, Dividend Growth and Value Investment opportunities, as well as ETFs. Accounting and Finance Graduate. CFA level ΙI candidate. Show more Show more Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. - Like - Share - Print - [Comments (3)](https://seekingalpha.com/article/4577987-hasbro-does-2022-decline-make-stock-a-buy#scroll_comments) ### Recommended For You ![](https://seekingalpha.com/images/users_profile/045/714/056/big_pic.png?io=w36&t=2f4bd29bd6) ### [Bloom Energy: Solving The AI Data Center Power Bottleneck](https://seekingalpha.com/article/4862022-bloom-energy-solving-the-ai-data-center-power-bottleneck#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A1) Beth Kindig ![](https://seekingalpha.com/images/users_profile/014/867/032/big_pic.png?io=w36&t=a2fdd1687b) ### [Micron Stock: Why I'm Still Buying More And You Should, Too](https://seekingalpha.com/article/4863069-micron-stock-why-im-still-buying-more-and-you-should-too#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A2) Kumquat Research ![](https://seekingalpha.com/images/users_profile/000/902/464/big_pic.png?io=w36&t=4fc7c8b6d0) ### [Micron: I Was Bullish At \$89, But At \$400, It's Time To Sell Before A Potential Bust Cycle](https://seekingalpha.com/article/4863184-micron-i-was-bullish-at-89-but-at-400-its-time-to-sell-before-a-potential-bust-cycle#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A3) Hawkinvest ![](https://seekingalpha.com/images/users_profile/000/498/952/big_pic.png?io=w36&t=4fcdd5160d) ### ['Reversion To The Mean' Will Eventually Slam The Market](https://seekingalpha.com/article/4863086-reversion-to-the-mean-will-eventually-slam-the-market#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A4) Bret Jensen ![](https://seekingalpha.com/images/users_profile/050/662/133/big_pic.png?io=w36&t=e4cd7ecd5c) ### [\$200 Silver? 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You can remove the link by deleting the \$ in the comment. Publish d [dmau3](https://seekingalpha.com/user/808106) 16 Feb. 2023, 6:50 AM Premium [Investing Group](https://seekingalpha.com/checkout/mp_1319#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AInvesting%20Group) [Comments (3.79K)](https://seekingalpha.com/user/808106) \\| \+ Follow The dividend cut is the next bad thing here for the stock. (Crappy company.) Reply Like ![](https://seekingalpha.com/images/users_profile/055/881/957/small_pic.png?t=b3d0f9b3b5) [Sea Lucas](https://seekingalpha.com/user/55881957) 14 Feb. 2023, 10:57 AM Premium [Investing Group](https://seekingalpha.com/checkout/mp_1268#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AInvesting%20Group) [Comments (455)](https://seekingalpha.com/user/55881957) \\| \+ Follow One of the best deals on the market right now imo. Neither MTG or D\&D is gonna die any time soon. Both have been pronounced dead many times over the past several decades. Gamers have short memories (source: I am one). Reply Like (4) N [NP20151153](https://seekingalpha.com/user/48639928) 14 Feb. 2023, 6:53 AM Premium [Investing Group](https://seekingalpha.com/checkout/mp_316#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AInvesting%20Group) [Comments (320)](https://seekingalpha.com/user/48639928) \\| \+ Follow If you are in HAS you are long. Reply Like Disagree with this article? [Submit your own](https://about.seekingalpha.com/become-an-analyst). To report a factual error in this article, click here . Your feedback matters to us\! ### About HAS Stock \| Symbol \| Last Price \| % Chg \| \|---\|---\|---\| - 1D - 5D - 1M - 6M - 1Y - 5Y - 10Y ###### Chart Combination chart with 2 data series. View as data table, Chart The chart has 1 X axis displaying Time. Data ranges from 2021-01-28 00:00:00 to 2026-01-28 00:00:00. The chart has 1 Y axis displaying values. Data ranges from 42.88 to 103.92. Created with Highcharts 12.5.0 2026 2025 2024 2023 2022 0 50 100 150 End of interactive chart. Market Cap PE Yield Rev Growth (YoY) Short Interest Prev. Close [has Summary](https://seekingalpha.com/symbol/HAS/virtual_analyst_report) Compare to Peers ### More on HAS ![](https://seekingalpha.com/images/users_profile/052/204/265/big_pic.png?io=w36) ### [Hasbro: MTG Monetization Has Worked Well, For Now](https://seekingalpha.com/article/4856541-hasbro-mtg-monetization-has-worked-well-for-now#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A1%7Cpos%3Aundefined) [Caffital Research](https://seekingalpha.com/author/caffital-research#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A1%7Cpos%3Aundefined) ### [Box office boost: The 2026 blockbuster movies that may lift toy stocks](https://seekingalpha.com/news/4535665-box-office-boost-the-2026-blockbuster-movies-that-may-boost-toy-stocks#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A2%7Cpos%3Aundefined) ### [Early Black Friday and Cyber Monday spending trends to watch](https://seekingalpha.com/news/4526511-early-black-friday-and-cyber-monday-spending-trends-to-watch#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A3%7Cpos%3Aundefined) ![](https://seekingalpha.com/images/users_profile/059/932/035/big_pic.png?io=w36) ### [Hasbro: On Track To Deliver A Solid FY2026 Performance](https://seekingalpha.com/article/4838108-hasbro-on-track-to-deliver-a-solid-fy2026-performance#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A4%7Cpos%3Aundefined) [Redfox Capital Ideas](https://seekingalpha.com/author/redfox-capital-ideas#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A4%7Cpos%3Aundefined) ### Related Stocks \| Symbol \| Last Price \| % Chg \| \|---\|---\|---\| \| [HAS](https://seekingalpha.com/symbol/HAS#source=first_level_url%3Anews%7Csection%3Aright_rail%7Csection_asset%3Aabout%7Cline%3A1%7Csymbol%3Ahas) HAS \| \- \| \- \| - 1D - 5D - 1M - 6M - 1Y - 5Y - 10Y ###### Chart Chart with 148 data points. View as data table, Chart The chart has 1 X axis displaying Time. Data ranges from 2026-01-23 09:30:00 to 2026-01-28 14:00:00. The chart has 1 Y axis displaying values. Data ranges from 88.25 to 89.9099. Created with Highcharts 12.5.0 Jan 23 Jan 26 Jan 27 Jan 28 88 89 90 End of interactive chart. 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Readable Markdown	![The Toy Retailers Association Reveals 2018 DreamToys For Christmas](https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1061366948/image_1061366948.jpg?io=getty-c-w750) Jack Taylor/Getty Images News ## Thesis In a challenging macroeconomic environment, in 2022, the consumer discretionary sector recorded large declines, with even large and mega-caps marking significant losses. Hasbro ([HAS](https://seekingalpha.com/symbol/HAS#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) represents a mature, well-known among consumers company in the toy and games industry that has seen a large stock price decline over the past year. In this analysis, I explore whether the recent large stock price decline presents an attractive investment opportunity or an indication that Hasbro's future might present serious challenges for the company. In the midst of inflationary pressures and deteriorating consumer sentiment, Hasbro has seen a steep stock price decline. For the trailing 12 months, the stock has retreated almost -40%. Hasbro is, currently, trading at \$57.38 (\$7.92B market cap), near its 52-week lows of \$54.65 and pays a 4.88% dividend yield. ![Chart](https://static.seekingalpha.com/uploads/2023/2/13/saupload_cadfc72be23eb92a4f0cca0bcf5fdfbb.png?io=w640) Data by [YCharts](https://ycharts.com/) ## The Business Hasbro is a global toy and board game manufacturer, that develops, designs and sells a wide range of toys, including board-games, action figures and collectibles for children and families. The company is well-known to consumers through a diverse range of brands like Monopoly, Play-Doh, Nerf and others. Hasbro's business model and revenue streams are primarily business-to-consumer focused, as the company generates the majority of its revenue through retail sales in large chain stores, specialty stores and e-commerce. A smaller portion of its sales can be attributed to licensing agreements for the use of its brands' intellectual property as well. ## The Toy Industry It is no secret that kids' entertainment revolves more and more around electronic devices and video games. However, the toy industry still exhibits some decent, yet slowing, growth prospects for the foreseeable future. Toys and board games are unlike to be phased out by video games, as they remain very popular with younger kids and families looking for inclusive entertainment and interaction. Hasbro is among the top four names in the industry, that also include Lego, Bandai Namco and Mattel. The toys' and games industry has grown from \$183B in 2014 to \$275B at the end of 2021. Through 2027, the industry is expected to grow at a 6.5% CAGR to reach \$383B. On a per-person basis, revenues of \$38.76 were generated in 2023. Around 25% of sales are generated online, compared to 19% in 2017. In 2025, 30% of sales in the industry are expected to originate online. [![Toy Industry](https://static.seekingalpha.com/uploads/2023/2/12/53326014-167623303875559_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2023/2/12/53326014-167623303875559_origin.png) Statista ## Financial Performance Hasbro's growth strategy revolves around both organic expansion and acquisitions of smaller, up-and-coming toy brands. Over the past decade, revenue growth has been rather underwhelming, with sales increasing by a CAGR of 4.12% for the trailing 10-year period and 3.38% for the trailing 5-year. While it is clear that the company is struggling to substantially grow its sales, underperforming growth in the toy industry, it is important to note that both Hasbro and the toy industry in general, are mature and exhibit very mild growth characteristics. Gross and Net profits also follow a similar trajectory. Hasbro exhibits strong cash flow productivity, generating over 800M of Cash from Operations in 2021. Free Cash Flow surpasses net income, offering a sign of efficiency and financial health for the company. Free Cash Flow production has also been consistent over the past decade. On the other hand, Hasbro displays relatively strong profitability margins. The company's gross margin, of 48.9%, has decreased somewhat from previous years, yet it still remains significantly higher than sector and market averages. The same is true for an EBITDA margin of 16.4%, while the net margin of 6.5% should, ideally, expand. [![Financials](https://static.seekingalpha.com/uploads/2023/2/12/53326014-16762403986216035_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2023/2/12/53326014-16762403986216035_origin.png) Tikr.com Even though for 2022, analysts expect EPS to contract by around -14%, for 2023 and 2024 moderate growth around 10% is forecasted. When it comes to revenue, Hasbro is expected to generate \$5.92B in 2022 with single-digit growth thereafter. Hasbro maintains a \$3.7B long-term debt balance (almost 50% of market cap) that indicates relatively high leverage. Besides raising long-term risk, increased debt levels negatively affect bottom-line profitability as interest payments increase. A current ratio of 1,38 indicates strong liquidity for the company. Hasbro has also built up a \$550M cash balance. ## Dividend Assessment Hasbro pays a pretty generous 4.88% dividend yield. The company has also managed to slowly grow its dividend at a 10-year 4.87% CAGR and a 5-year 4.19% CAGR. These growth rates are, however, significantly lower than average rates across the consumer discretionary sector. Many analysts also express some concerns that the current dividend yield might prove unsustainable in the future due to relatively high payout and low coverage ratios (D- dividend safety score from Seeking Alpha). In my view, most indicator values, while somewhat worse than sector averages, are not yet a cause for alarm. ## Valuation Attractiveness As the stock has seen a large decline in 2022, valuation multiples have contracted across the board. Currently, Hasbro trades at reasonable 19.2x P/E GAAP and 1.2x P/S multiples. Both ratios also stand close to their 5-year lows. On a non-GAAP basis, Hasbro's FWD P/E stands significantly lower, at 12.8x. If we also consider a 11x EV/EBITDA multiple and a low P/FCF ratio as well, it could be argued that the company offers a somewhat attractive valuation case. ![Chart](https://static.seekingalpha.com/uploads/2023/2/13/saupload_611f1c180ee620dddaca8381ee4d263f.png?io=w640) Data by [YCharts](https://ycharts.com/) ## Putting it All Together After all things are considered, Hasbro offers mixed financial signals as it relates to its attractiveness as an investment. On the negative side, slow growth and relatively high amounts of debt hurt the company's mid and long-term performance prospects. On the other hand, the company displays good profitability and strong cash flow production, while also trading at a reasonable valuation. Hasbro's dividend yield is also attractive, though concerns over its sustainability exist. Based on the above, I would currently hold off on buying the stock until a more attractive entry point is established in terms of stock price, in order to attain more secure returns. 710 Followers Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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