Hasbro
Hasbro Quality Analysis
Hasbro (HAS) scores 36/100, indicating below-average business quality. Multiple dimensions of the analysis reveal weaknesses that could erode shareholder value over time. This business does not meet the quality threshold for long-term investment at most price levels.
Does Hasbro have a strong competitive moat?
Hasbro shows limited evidence of a durable competitive moat. Margins and returns on capital are below levels that would indicate meaningful competitive advantages. The business may struggle to maintain its current profitability as competitive dynamics evolve.
Does Hasbro have pricing power in its industry?
Hasbro shows weak pricing power. Margins are below industry norms and may be declining. The business appears to compete primarily on price, leaving it vulnerable to cost increases and competitive pressure on profitability.
How predictable is Hasbro's business?
Hasbro is a relatively unpredictable business. Revenue and cash flows have been volatile, making it difficult to forecast future performance with confidence. This level of uncertainty introduces additional risk for long-term investors.
Is Hasbro financially strong?
Hasbro has a moderate financial position. The debt-to-equity ratio of 7.65x warrants monitoring. The balance sheet could face stress in an economic downturn. Management should prioritize debt reduction to strengthen the company's resilience.
How effective is Hasbro's capital allocation strategy?
Hasbro has mixed capital allocation. Returns on capital are mediocre, suggesting some investments are not generating adequate returns. Share dilution of 1.6% is a concern. Management could be more disciplined in deploying shareholder capital.
Does Hasbro have high-quality management?
Hasbro's management raises concerns. Returns on capital have been weak, suggesting poor strategic decisions or operational execution. Investors should carefully evaluate whether leadership changes might improve the company's trajectory.
Is Hasbro a quality company?
Hasbro is a weak quality company with a quality score of 36/100
Predicted probability of operating margin improvement over the next 12 months
- Capital allocation is the strongest dimension at 52/100.
- Pricing power is the weakest area at 24/100 and needs attention.
- Average gross margin of 69.4% over 5 years.
- Positive free cash flow in 7 of the last 7 years.
- Debt-to-equity ratio of 7.65x.
What is the fair value of Hasbro stock?
Is Hasbro a good investment at $93?
The following analysis is provided for informational and educational purposes only. It does not constitute financial advice, investment advice, or a recommendation to buy or sell any security. The opinions expressed are based on publicly available information and historical data. Beanvest and its contributors may hold positions in the securities mentioned. Investors should conduct their own due diligence or consult a licensed financial advisor before making any investment decision.