Hasbro, Inc. (NASDAQ:HAS) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of HAS, it is a financially-sound company with a a great track record of dividend payments and a excellent growth outlook. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Hasbro here.
Excellent balance sheet with reasonable growth potential and pays a dividend
Investors in search for stocks with room to flourish should look no further than HAS, with its expected earnings growth of 30% which is expected to flow into an impressive return on equity of 42% over the next couple of years. HAS’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. HAS appears to have made good use of debt, producing operating cash levels of 0.41x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
HAS dishes out decent dividend payments over time, higher than the low-risk savings rate, which is what investors want in order to compensate them for the risk of holding a stock.
Next Steps:
For Hasbro, there are three essential factors you should further examine:
- Historical Performance: What has HAS’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is HAS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether HAS is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HAS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.