# Hasbro Inc. (HAS) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-27  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/HAS/thesis · /stocks/HAS/memo

## Financial Snapshot

---
title: "Step 04 — Financial Snapshot"
ticker: HAS
company: "Hasbro, Inc."
source: coverage-next-full
date: 2026-05-27
---

### Step 04 — Financial Snapshot: Hasbro, Inc. (HAS)

#### 1. Financial Statement Quality Assessment

**Overall Quality: B+ (Good — with notable impairment complexity)**

Key adjustments required:
1. **Goodwill Impairment (FY2025, $1,022M; FY2023, ~$1.5B+ aggregate):** Non-cash; excluded from adjusted metrics. The eOne-related impairments in FY2023 and consumer products impairment in FY2025 are real economic losses on capital allocation (paid $4B for eOne, sold for $500M) but do not reflect ongoing cash-generative capacity of the retained business.
2. **Restructuring Charges (~$100M+ in FY2022-FY2025):** One-time per period, recurring in character. Five consecutive years of restructuring charges is unusual — flag as a quality concern. Adjusted figures should add these back, but the recurring nature suggests they are partially "business as usual."
3. **Stock-Based Compensation ($80.4M in FY2025, $51-83M per year):** Real economic cost to shareholders; included in operating cash flow but excluded from adjusted EPS. Represent ~1.7% of revenue — acceptable.
4. **Amortization of Acquired Intangibles:** Significant due to eOne acquisition and retained IP; partially reversed post-divestiture.
5. **Royalty Expense:** Hasbro pays royalties to external IP owners (Disney/Marvel) for licensed brands in Consumer Products — creates cost dependency.

#### 2. Five-Year Income Statement Quality

| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | Quality Note |
|--------|--------|--------|--------|--------|--------|-------------|
| Revenue | $6,420M | $5,857M | $5,003M | $4,136M | $4,701M | eOne removal distorts trend |
| Gross Margin | 70.0% | 67.4% | 65.9% | 71.5% | 72.4% | Improving; mix shift to high-margin WOTC |
| Adj. Op. Margin | ~16% | ~11% | ~7% est. | ~21% est. | 24.2% | Strong recovery |
| Reported Op. Margin | 11.9% | 7.0% | (30.8%) | 16.7% | 0.2% | Distorted by impairments |
| FCF / Revenue | 10.7% | 4.2% | 11.8% | 18.4% | 17.7% | FCF conversion excellent post-restructuring |
| SBC / Revenue | N/A | 1.4% | 1.4% | 1.2% | 1.7% | Moderate |

**Key Insight:** Gross margin expansion from 67.4% (FY2022) to 72.4% (FY2025) driven by WOTC mix shift. WOTC has ~80%+ gross margins vs Consumer Products at ~50-55% estimated. As WOTC grows to ~46% of revenue, blended gross margin structurally expands.

#### 3. Balance Sheet Health

| Metric | FY2025 | Assessment |
|--------|--------|------------|
| Total Debt | $3,265M | Elevated; ~2.3x revenue |
| Net Debt | $2,488M ($3,265M - $777M cash) | Significant but improving |
| Net Debt / Adj. EBITDA | ~1.8x (midpoint of $1.40-1.45B guide) | Investment grade territory; manageable |
| Goodwill / Total Assets | $1,257M / $5,552M = 22.6% | Reduced from 37% post-impairments |
| Total Equity | $566M | Low; debt-heavy capital structure |
| Book Value / Share | $3.84 | Well below market; not meaningful for IP company |

**Debt Maturity Profile:** Hasbro carries long-term debt of $2,768M (FY2025 year-end); quarterly balance sheet shows seasonal draws on revolver. Maturities not fully disaggregated from available data, but the company has been consistently reducing total debt: $4,025M (FY2021) → $3,265M (FY2025), a ~$760M reduction. The Feb 2026 10-K would detail maturity schedule. No near-term maturity crisis identified. [S2][S3]

#### 4. Cash Flow Quality

| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|--------|--------|--------|--------|--------|--------|
| CFO | $818M | $373M | $726M | $847M | $893M |
| CapEx | $133M | $128M | $136M | $87M | $63M |
| FCF | $685M | $245M | $590M | $760M | $830M |
| FCF Conversion (FCF/Net Income) | 160% | 120% | N/M | 197% | N/M (neg NI) |
| Dividends | $375M | $385M | $388M | $390M | $393M |
| FCF after Dividends | $310M | $(140M) | $202M | $370M | $437M |

**FCF quality is very high** — FCF has exceeded reported net income every year (excluding impairment years). The FY2022 FCF dip was due to working capital build. CapEx declining dramatically (from $136M in FY2023 to $63M in FY2025) reflects the asset-light transformation. The dividend ($393M/year) is ~47% of FCF, leaving $437M for debt reduction and capital return. [S1][S3]

#### 5. Key Financial Ratios (FY2025)

| Ratio | Value | Benchmark |
|-------|-------|-----------|
| Gross Margin | 72.4% | High (WOTC-driven) |
| Adj. Operating Margin | 24.2% | Strong for diversified toy/IP |
| FCF Margin | 17.7% | Excellent |
| Net Debt/Adj. EBITDA | ~1.8x | Moderate leverage |
| Interest Coverage (adj.) | ~6.5x est. | Adequate |
| Return on Assets | N/M (neg NI) | — |
| Return on Equity | N/M (neg NI) | — |
| EV/Adj. EBITDA | ~10x | In line with toy/IP peers |

#### 6. Adversarial Research Sweep

*Note: Transcript analysis not performed (coverage-next-full path). Short reports and adverse findings sourced from press, SEC disclosures, and market data.*

##### Known Risk Factors & Adversarial Findings

**A. Goodwill Impairment Track Record (NEGATIVE)**
- FY2023: ~$1.5B+ total goodwill impairments (eOne acquisition write-downs, Consumer Products)
- FY2025: $1,021.9M Consumer Products goodwill impairment (tariff-related)
- Two major impairments in 3 years signals persistent overallocation of capital in Consumer Products and the eOne disaster. The $3.5B+ in aggregate impairments since 2022 have destroyed book equity (equity: $566M vs. $3.1B in FY2021).
- **Verdict:** Real capital allocation failure on eOne; ongoing impairment risk if Consumer Products deteriorates further.

**B. Debt Load & Dividend Sustainability Risk (MODERATE)**
- $3.3B in total debt at 46% gross margin implies significant interest burden
- Dividend of $393M/year consumes ~47% of FCF; sustainable at current FCF but leaves limited buffer
- If Consumer Products deteriorates + tariffs bite + WOTC growth moderates, FCF could decline to $600-650M range, making dividend maintenance AND debt reduction simultaneously difficult
- No debt covenant violations identified; investment grade credit rating maintained

**C. CEO Insider Selling (YELLOW FLAG)**
- CEO Chris Cocks sold 377,992 shares (~$38.6M) in the 6 months to April 2026 with zero purchases
- While likely 10b5-1 plan-driven, the magnitude during a "transformation complete" narrative is notable
- No other specific short reports or SEC investigations identified

**D. Consumer Products Structural Decline (ONGOING RISK)**
- Consumer Products revenue: $4,800M (FY2021) → $2,438M (FY2025), a 49% decline over 4 years
- Even accounting for eOne removal (~$800-1000M), organic Consumer Products revenue has declined significantly
- Tariff headwinds (China manufacturing) add ~15-25% cost pressure on existing Consumer Products margins (4.6% adj. op margin)
- If Consumer Products adj. operating margin falls to 0-1%, WOTC would need to compensate

**E. Magic: The Gathering Concentration Risk (KEY RISK)**
- MTG represents est. ~$1.4B of the $2.2B WOTC segment (est. ~30% of total company revenue)
- Universes Beyond dependency: If external IP crossover sets underperform (as some core players have criticized), revenue growth could pause
- No specific adverse reports on MTG product quality or player base erosion found; community forums show engagement growth

**F. No Securities Litigation or SEC Investigation Identified**
- No active class actions or regulatory investigations found in SEC filings or press search
- eOne write-down attracted some attention but not into securities fraud territory

#### 7. Source Index

| ID | Source |
|----|--------|
| S1 | StockAnalysis.com — HAS Cash Flow Statement |
| S2 | Quarterly Balance Sheet data — StockAnalysis.com |
| S3 | HAS FY2025 Earnings Release |
| S4 | XBRL Data — SEC EDGAR CIK 0000046080 |
| S5 | Hasbro DEF 14A FY2025 (proxy — insider transactions) |

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/HAS/fundamental

## Navigation

- Overview: /stocks/HAS
- Financials (this page): /stocks/HAS/financials
- Thesis: /stocks/HAS/thesis
- Investment Memo: /stocks/HAS/memo
- Coverage universe: /stocks