0.44 | 0.98%
HASBRO INC's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. HASBRO INC is extremely liquid. Currently, the Quick Ratio is 2.16 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.70% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 663.69 | 648.85 |
| EBITDA ($mil) | 70.32 | 56.82 |
| EBIT ($mil) | 39.55 | 26.86 |
| Net Income ($mil) | -6.67 | -2.58 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 1090.95 | 904.01 |
| Total Assets ($mil) | 4060.65 | 3897.14 |
| Total Debt ($mil) | 1556.36 | 1572.12 |
| Equity ($mil) | 1463.09 | 1397.39 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 55.58 | 55.22 |
| EBITDA Margin | 10.59 | 8.75 |
| Operating Margin | 5.96 | 4.14 |
| Sales Turnover | 1.01 | 1.09 |
| Return on Assets | 8.17 | 9.38 |
| Return on Equity | 22.68 | 26.16 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 3.03 | 2.78 |
| Debt/Capital | 0.52 | 0.53 |
| Interest Expense | 22.98 | 23.11 |
| Interest Coverage | 1.72 | 1.16 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 129.33 | 129.68 |
| Div / share | 0.0 | 0.3 |
| EPS | -0.05 | -0.02 |
| Book value / share | 11.31 | 10.78 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1314493.0 | 1931946.0 |
BUY. HASBRO INC's P/E ratio indicates a discount compared to an average of 18.85 for the Leisure Equipment & Products industry and a value on par with the S&P 500 average of 18.91. To use another comparison, its price-to-book ratio of 3.92 indicates a significant premium versus the S&P 500 average of 2.42 and a significant discount versus the industry average of 6.76. The current price-to-sales ratio is similar to the S&P 500 average, but it is below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, HASBRO INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| HAS 17.66 | Peers 18.85 | HAS 10.42 | Peers 14.33 | |||||||||||||||||||||
|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation. HAS is trading at a valuation on par with its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. HAS is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| HAS 13.74 | Peers 15.85 | HAS 1.10 | Peers 0.82 | |||||||||||||||||||||
|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations. HAS is trading at a valuation on par with its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. HAS trades at a significant premium to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| HAS 3.92 | Peers 6.76 | HAS -8.06 | Peers 5.72 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. HAS is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, HAS is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| HAS 1.40 | Peers 1.85 | HAS -3.73 | Peers 7.29 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. HAS is trading at a discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. HAS significantly trails its peers on the basis of sales growth |
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