Hasbro Stock Falls Wednesday, Underperforming Market Despite Positive Outlook.
February 11, 2023
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Hasbro ($NASDAQ:HAS) Inc. is an American multinational toys and board games company based in Providence, Rhode Island. It is one of the largest toy makers in the world with a portfolio of brands that includes some of the most recognizable names such as Monopoly, My Little Pony, G.I. Joe, and Transformers. The company’s stock, NASDAQ: HAS, dropped on Wednesday, lagging behind the market despite a positive outlook from analysts. The drop in the stock price came despite the fact that analysts were generally bullish on the company’s outlook.
Analysts attributed the drop to a disappointing earnings report released by Hasbro earlier this week. The company cited lower demand for toys in the US due to the pandemic and supply chain disruptions as the main factors for their poor quarterly performance. Overall, investors remain cautiously optimistic that the company will eventually recover from its current slump, allowing them to recoup their losses in the near future.
Stock Price
On Wednesday, Hasbro Inc. (HAS) stock fell sharply, underperforming the market despite a positive outlook. The company opened at $59.2 and closed at $56.8, which was a 4.3% drop from its previous closing price of $59.4. This marked the lowest closing price in eight weeks. The underperformance of Hasbro’s stock can be attributed to a weak performance in the toy and game industry.
In addition, the stock had recently been downgraded by analysts from Buy to Neutral. Although the stock performed poorly on Wednesday, analysts remain optimistic about Hasbro’s long-term prospects and have suggested that investors should consider buying the stock on weakness. The company is expected to benefit from new movie releases, as well as an increased focus on digital media, which could drive growth in the coming years. Overall, the poor performance of Hasbro’s stock on Wednesday is unlikely to be indicative of future performance. Despite the recent downturn, analysts remain bullish in their outlook for the company and suggest that investors should consider buying on weakness in order to take advantage of potentially favorable long-term prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hasbro. More…
| Total Revenues | Net Income | Net Margin |
| 6.19k | 414.6 | 7.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hasbro. More…
| Operations | Investing | Financing |
| 394.5 | -301.3 | -679.3 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hasbro. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.63k | 6.63k | 21.55 |
Key Ratios Snapshot
Some of the financial key ratios for Hasbro are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.8% | 15.9% | 11.0% |
| FCF Margin | ROE | ROA |
| 3.7% | 14.3% | 4.4% |
Analysis
GoodWhale has conducted an analysis of HASBRO‘s wellbeing, and based on their Risk Rating, it is a high risk investment. GoodWhale has identified two risk warnings in the non-financial aspects of their balance sheet. When it comes to financial wellbeing, HASBRO is considered a high-risk investment, with GoodWhale’s Risk Rating system taking into account factors such as corporate governance, balance sheet and financial ratios. Beyond financial aspects, GoodWhale has discerned two further risk warnings in HASBRO’s operations that are not reflected in their financial statements. These warnings may indicate a lower level of performance or sustainability. To access more detailed information and advice, investors are advised to register on GoodWhale.com. HASBRO’s Risk Rating from GoodWhale provides investors with valuable insights into the company’s overall financial, operational and environmental health. While the rating does not provide an exhaustive review of the company’s safety, it does provide an indication of potential risks and how well the company is managing them. This can help investors assess the level of risk associated with HASBRO and make more informed decisions. More…
Peers
Hasbro Inc is a publicly traded company that designs, manufactures, and markets games and toys. The company operates in three segments: US and Canada, International, and Entertainment and Licensing. Hasbro has a portfolio of brands that includes NERF, MONOPOLY, MAGIC: THE GATHERING, MY LITTLE PONY, TRANSFORMERS, PLAY-DOH, and SESAME STREET. The company’s competitors include Spin Master Corp, Huayi Tencent Entertainment Co Ltd, and BANDAI NAMCO Holdings Inc.
– Spin Master Corp ($TSX:TOY)
Spin Master Corp is a global leader in children’s toys, entertainment and lifestyle products. The company has a market cap of 4.57B as of 2022 and a Return on Equity of 21.64%. Spin Master Corp’s products include some of the world’s most popular toy brands, such as Paw Patrol, Hatchimals and Zoomer. The company’s products are available in over 100 countries and its mission is to inspire the next generation of play.
– Huayi Tencent Entertainment Co Ltd ($SEHK:00419)
Huayi Tencent Entertainment Co Ltd is a Chinese entertainment company with a market cap of 2.05 billion as of 2022. The company has a return on equity of -28.77%. The company is involved in the production, distribution, and exhibition of films and television programs in China. The company also operates an online game platform and a social networking website.
– BANDAI NAMCO Holdings Inc ($TSE:7832)
BANDAI NAMCO Holdings Inc is a Japanese holding company that operates in the entertainment industry. It has a market cap of 2.16T as of 2022 and a return on equity of 16.4%. The company was founded in 1955 and is headquartered in Tokyo, Japan. BANDAI NAMCO Holdings is engaged in the development, production, and marketing of toys, games, and other entertainment products. The company’s products are sold in over 40 countries worldwide.
Summary
Investing in Hasbro Inc. stock has been an unpredictable endeavor recently, with the stock price falling Wednesday despite a positive outlook. Analysts have been cautious on the stock given the volatility of the market, but also recognize its potential. The company has a strong brand portfolio, an experienced management team, and a commitment to innovation which could lead to successful new product launches and partnerships.
Investors should also consider the potential of Hasbro’s digital capabilities and the possible expansion of its e-commerce business. Despite the recent downturn, Hasbro remains a viable investment opportunity for long-term investors, and it should not be overlooked.
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