Tuesday, January 25, 2011

Hasbro's Fundamentals: More Than Meets the Eye

Ah Hasbro. My childhood was spent playing with cast iron Transformers and G.I. Joes with the kung fu grip. There were more fights at my dining room table during Monopoly games than in the bleachers at Fenway during a Yankee series. We all know Hasbro. There is no substitute for their products. If your kid wants a G.I. Joe, you get the kid a G.I. Joe. If he wants to play Pokémon- you better get the kid a Pikachu. Now if they would only make that Megan Fox action figure from Transformer’s so I can relive my youth….

What it does:

Hasbro, Inc. engages in the design, manufacture, and marketing of games and toys. It produces many of the most sought after products in the market such as: Playskool, Transformers, Nerf, My Little Pony, Littlest Pet Shop, Tonka, G.I. Joe, Super Soaker, Milton Bradley, Parker Brothers, Cranium, Avalon Hill, Tiger, Strawberry Shortcake, and Wizards of the Coast.

But Hasbro is much more than a simple toy company. It has transformed (pun intended) these popular products into popular brands, slapping these characters and logos on anything and everything. Backpacks, underwear, lunchboxes, notebooks, shirts, cereal have all been graced with Optimus Prime, My Little Pony and the likes. There is simply no substitute for a Transformer (anyone remember the Go-Bots?).  Through its aggressive branding campaign Hasbro has created a wide competitive moat for its products.

Current Stock Data

Seven Year Averages

Company:
Hasbro
Return on Equity:
15.6%
Ticker:
HAS
Payout Ratio:
28.7%
Price:
$44.61
P/E Ratio-High:
20.0
EPS:
$2.87
P/E Ratio-Low:
13.0
DPS:
$1.00
P/E Ratio:
16.5
BVPS:
$10.91
Sustainable Growth
11.1%
P/E:
15.5
Earnings Yield:
6.4%
Dividend Yield:
2.2%
P/BV:
4.1
T20YM.COM

Read the full article at  Seeking Alpha

1 comment: