HASBRO, INC. (HAS) Stock Analysis
HASBRO, INC. (HAS) Stock Analysis
Overall Grade: F (Concerning)
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HASBRO, INC. faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | -8.0% | Below expectations |
| FCF Margin | 13.6% | Healthy cash flow |
Investment Thesis: Healthy free cash flow margin of 13.6% provides financial flexibility for growth and shareholder returns.
What is HASBRO, INC.'s Profitability and ROIC?
HASBRO, INC.'s return on invested capital of -8.0% is below the typical cost of capital. Gross margin of 75.9% with operating margin at -4.5% reflects the company's strong market position.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -8.0% | Red flag | Below cost of capital |
| Gross Margin | 75.9% | Excellent | Strong pricing power |
| Operating Margin | -4.5% | Warning | Moderate operational efficiency |
How Strong is HASBRO, INC.'s Cash Flow Quality?
HASBRO, INC. generated $680.9M in free cash flow over the trailing twelve months, representing a 13.6% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | 13.6% | Good | Healthy cash generation |
| Free Cash Flow (TTM) | $680.9M | Good | Positive cash generation |
| OCF/Net Income | -1.3x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is HASBRO, INC.'s Financial Health?
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Net Cash Position | $-2.7B | Warning | Net debt position |
Is HASBRO, INC. Stock Overvalued or Undervalued?
HASBRO, INC. trades at a P/E of -19.0x, representing a premium to the sector median of N/A. Free cash flow yield of 6.4% offers attractive cash returns.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| P/E Ratio | -19.0x | Red flag | Reasonable valuation |
| EV/Sales | 2.7x | Good | Attractive revenue multiple |
| FCF Yield | 6.4% | Good | Attractive cash return |
| Dividend Yield | 3.7% | Adequate | Meaningful income |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -8.0% | Bottom 10% | -1.0x below |
| Free Cash Flow Margin | 13.6% | Top 25% | 2.5x above |
| Gross Margin | 75.9% | Top 5% | 2.3x above |
| Operating Margin | -4.5% | Bottom 10% | -0.6x below |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: -8.0% (Red flag)
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: 13.6% (Good - Top 25% of sector (median: 5.4%))
Gross Margin
Revenue minus cost of goods sold as a percentage. Higher gross margins indicate pricing power and competitive advantage.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 50% | Strong pricing power and competitive moat |
| Good | 30% - 50% | Healthy margins, differentiated product |
| Adequate | 20% - 30% | Moderate margins, competitive industry |
| Warning | 10% - 20% | Thin margins, commodity-like business |
| Red flag | < 10% | Very thin margins, structural challenges |
Current: 75.9% (Excellent - Top 5% of sector (median: 33.4%))
Free Cash Flow Yield
Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 8% | High cash return, potential value opportunity |
| Good | 5% - 8% | Solid cash yield |
| Adequate | 3% - 5% | Moderate cash return |
| Warning | 1% - 3% | Low cash yield, growth expectations |
| Red flag | < 1% | Minimal cash return to shareholders |
Current: 6.4% (Good)
Frequently Asked Questions
Q: What is HASBRO, INC.'s Return on Invested Capital (ROIC)?
HASBRO, INC. (HAS) has a trailing twelve-month Return on Invested Capital (ROIC) of -8.0%. This compares below the sector median of 8.0%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is HASBRO, INC.'s Free Cash Flow Margin?
HASBRO, INC. (HAS) has a free cash flow margin of 13.6%, generating $680.9 million in free cash flow over the trailing twelve months. A FCF margin between 10-20% represents healthy cash generation for most industries.
Q: Is HASBRO, INC. stock overvalued or undervalued?
HASBRO, INC. (HAS) trades at a P/E ratio of -19.0x, which is above the sector median of N/A. The EV/Sales multiple is 2.7x. Free cash flow yield is 6.4%, which represents an attractive cash return to investors.
Q: Does HASBRO, INC. pay a dividend?
HASBRO, INC. (HAS) currently pays a dividend yield of 3.7%. Including share buybacks, the total shareholder yield is 3.7%. This yield is moderate, suggesting a balance between income and growth reinvestment.
Q: What is HASBRO, INC.'s revenue and earnings growth?
HASBRO, INC. (HAS) declined revenue by 9.0% year-over-year. Earnings per share increased by 13.6% compared to the prior year. Revenue decline may indicate market challenges or industry headwinds.
Q: How does HASBRO, INC. compare to competitors in Industrials?
Compared to other companies in Industrials, HASBRO, INC. (HAS) shows: ROIC of -8.0% is below the sector median of 8.0% (-1.0x median). FCF margin of 13.6% exceeds the sector median of 5.4% (Top 19% of sector). Gross margin at 75.9% is 42.5 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.
Q: What warning signs should I watch for with HASBRO, INC.?
HASBRO, INC. (HAS) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-11-05. TTM metrics as of Q3 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.