Hasbro: Improving Economics, New Growth, And An Attractive Undervaluation

Summary

• Hasbro's profitability has improved post-eOne divestiture, with 2024 being a mostly robust year for the firm despite a slight decline in revenues.
• The company enjoys a wide economic moat due to valuable intangible assets, cost advantages, and strong network effects, ensuring competitive resilience.
• Financial metrics show robust performance with high margins and efficient cash conversion, though core consumer product sales have weakened due to inflation.
• Despite risks like economic cyclicality and potential failed expansions, Hasbro's valuation remains compelling, with shares potentially up to 40% undervalued.
• Buy rating issued.

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Investment Thesis

Hasbro, Inc. (NASDAQ:HAS) continues to improve their profitability post eOne divestiture, with 2024 being another robust year. The toymaker's wide economic moat helps insulate the company from competitive pressures, while expansion into additional segments provides additional

Analyst’s Disclosure:I/we have a beneficial long position in the shares of HAS either through stock ownership, options, or other derivatives. 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.

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