HASHasbro
Is the business good?
The checks split: earnings fully cash-backed (1.4×), but margins compressing.
Operating profit is fully backed by cash.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is HAS?
Hasbro earns 27% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 18 points above what the capital costs: growth creates value
- Cash conversion
- 1.43×
Cash conversion · operating cash flow covers the operating profit after tax
- Share count, year on year
- +2.0%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 9.2% |
| FY2021 | 12% |
| FY2023 | −27% |
| FY2024 | 15% |
| FY2025 | 0.21% |
Details›
- Free cash flow, trailing twelve months
- $1.21B
- Net income, trailing twelve months
- $794M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 27%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Leisure
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