Is Hasbro, Inc. (HAS) the Best High Dividend Stock Under $100?

Hasbro, Inc. (HAS), a leading toy and game company, has been a staple in the entertainment industry for decades. With a market capitalization of $9.63 billion and annual sales of $4.54 billion, Hasbro offers a diverse range of products, including toys, games, television programming, motion pictures, and a licensing program. The company's well-known brands, such as Transformers, Nerf, and Magic: The Gathering, have helped it maintain a strong presence in the market. However, recent financial indicators suggest that Hasbro may not be the best high dividend stock under $100.



Hasbro's financial strength indicators present some concerning insights about the company's balance sheet health. The interest coverage ratio of 2.77 positions it worse than 63.34% of 611 companies in the Travel & Leisure industry. This ratio highlights potential challenges the company might face when handling its interest expenses on outstanding debt. The company's Altman Z-Score is just 1.78, which is below the distress zone of 1.81, suggesting that the company may face financial distress over the next few years. Additionally, the company's low cash-to-debt ratio at 0.28 indicates a struggle in handling existing debt levels. The company's debt-to-equity ratio is 3.47, which is worse than 90.03% of 702 companies in the Travel & Leisure industry. A high debt-to-equity ratio suggests over-reliance on borrowing and vulnerability to market fluctuations.

A lack of significant growth is another area where Hasbro seems to falter, as evidenced by the company's low Growth rank. The company's revenue has declined by -3.2% per year over the past three years, which underperforms worse than 83.16% of 790 companies in the Travel & Leisure industry. Stagnating revenues may pose concerns in a fast-evolving market. Lastly, Hasbro's predictability rank is just one star out of five, adding to investor uncertainty regarding revenue and earnings consistency.

Hasbro's recent strategic initiatives, such as the acquisition of EOne and the launch of Dungeons & Dragons Beyond, have had mixed impacts on its financial performance and dividend growth prospects. While the acquisition of EOne brought popular family properties like Peppa Pig and PJ Masks into Hasbro's portfolio, the company has since pruned noncore lines from the tie-up, indicating a focus on streamlining operations and improving efficiency. The launch of Dungeons & Dragons Beyond offers Hasbro access to 18 million digital tabletop players, which could drive growth in the Wizards of the Coast and Digital Gaming segment. However, the company's overall financial strength, profitability, and growth metrics, as indicated by its GF Score, suggest that it may face challenges in maintaining or accelerating dividend growth.

In conclusion, while Hasbro, Inc. (HAS) has a strong brand portfolio and a diverse range of products, its financial strength indicators and lack of significant growth suggest that it may not be the best high dividend stock under $100. Investors seeking more robust investment opportunities may consider exploring other companies with stronger financial profiles and growth prospects. GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen.