Apr 23 2008

Dividend Stock Wednesday: Hasbro (HAS-N)


This is an analysis completed by The Dividend Guy. It is not to be used as investment advice or a recommendation to buy, hold, or sell any stocks discussed. Please ensure you complete your own analysis.

Hasbro

Remember playing with Mr. Potato Head as a child. Well, apparently millions of kids STILL play with it and the maker of these toys has been posting performance to prove it as of late. Hasbro has posted some very strong earnings and sales growth in the past, and overall the toy industry is up 7% even with the markets being down overall. I also has had good dividend growth in the past couple of years. However, I know it is not on the Dividend Achiever or the Dividend Aristocrat lists. Here is how the company stacks up using my dividend analysis.

Six Points

The Company: Hasbro (HAS-N)

Hasbro Inc. is a worldwide leader in children’s and family leisure time and entertainment products and services, including the design, manufacture and marketing of games and toys ranging from traditional to high-tech. Both internationally and in the U.S., its PLAYSKOOL, KENNER, TONKA, ODDZON, SUPER SOAKER, MILTON BRADLEY, PARKER BROTHERS, TIGER, HASBRO INTERACTIVE, MICROPROSE, GALOOB and WIZARDS OF THE COAST brands and products provide what the company believes to be the highest quality and most recognizable play experiences in the world.

Dividend Aristocrat (25+ yrs dividend growth)
No
Dividend Achiever (10+ yrs dividend growth)
No


THE FUNDAMENTALS

Revenue

HAS - RevenueClick to Enlarge

Revenue Scoring

Criteria Scoring
Consistenly Up with No Down Years 1.0
Up Trend with Less Than 2 Down Years 0.5
Choppy with Greater Than 2 Down Years 0.0
My Revenue Score 0.0 out of 1.0

Earnings Per Share

HAS - EPSClick to Enlarge

Earnings Per Share Scoring

Criteria Scoring
Consistenly Up with No Down Years 1.0
Up Trend with Less Than 2 Down Years 0.5
Choppy with Greater Than 2 Down Years 0.0
My EPS Score 0.0 out of 1.0

TOTAL FUNDAMENTALS SCORE: 0.0 out of 2.0


THE RATIOS

Return on Equity

HAS - ROEClick to Enlarge

Return on Equity Scoring

Criteria Scoring
Above 15% for Last 5 Years 1.0
At Least One Year Below 15% in Last 5 Years 0.0
My ROE Score 0.0 out of 1.0

Other Ratios

Ratio Criteria Value Score (Pass=1 / Fail = 0)
Debt to Equity Less Than 0.50 0.62 0.0
Payout Ratio Less Than 60% 30% 1.0
Credit Rating BBB+ BBB 0.0
Total Ratio Score
1.0 out of 3.0

TOTAL RATIOS SCORE: 1.0 out of 4.0


DIVIDEND DATA
Annual Dividends

HAS - DPSClick to Enlarge

Dividend Scoring

Criteria Scoring
25+ Years of Dividend Growth 1.0
10+ Years of Dividend Growth 1.0
Less Than 10 Years of Dividend Growth 0.0
My Dividend Growth Score 0.0 out of 2.0

TOTAL DIVIDEND GROWTH SCORE: 0.0 out of 2.0


STOCK VALUATION

Valuation Metric Criteria Value Score (Pass=1 / Fail = 0)
Dividend Yield Cur Yld Greater Than 10 Yr Avg Yld 1.4% 1.0
Div Yld Compared to SPY Div Yld Cur Yld Greater Than SPY Yld 1.9% 1.0
P/E Ratio Cur P/E Less Than 10 Yr Avg P/E 21.1 1.0
Relative P/E Relative P/E Less Than 1.0 0.86 1.0
Price to Sales Less Than 1.5 1.17 1.0
Total Ratio Valuation Score
5.0 out of 5.0

Canadian Shareowner’s Association Stock Selection Guide Software Buy Price

Buy Zone
Maybe Zone
Sell Zone
Current Price Rating Scoring (Buy=1.0, Other=0.0)
$27.72 to $32.16
$32.16 to $36.59
$36.59 to $41.03
$34.65
Maybe
0.0

TOTAL STOCK VALUATION SCORE: 5.0 out of 6.0


SUMMARY

Points Earned:

6 out of 14 – half points are rounded down to be conservative

The stock is rated LOW with 6 points earned through my analysis of the stock. Although this stock has seen some very strong EPS and revenue growth. However, the ten year history is not very positive. I want to see more consistency from management on how they perform and would not be an investor at this time. In addition, even though the dividend growth has been very strong in the past two years, it is not strong for the ten year period and even had a reduction in dividends for a couple of years. This is not a stock for me at this time.

Rating Points Required
High 11+ points
Medium 8-10 points
Low < 8 points

Reminder: This is an analysis completed by The Dividend Guy. It is not to be used as investment advice or a recommendation to buy, hold, or sell any stocks discussed. Please ensure you complete your own analysis.

The Dividend Guy does not own shares in YUM


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3 Comments on this post

Trackbacks

  1. Festival of Stocks at Finance ViewPoint - Fat Pitch Financials wrote:

    [...] Allocate 50% to Non-U.S. Stocks, According to Wharton Professor, Let Volatility Be Your Friend, and Dividend Stock Wednesday: Hasbro (HAS-N). My Ultimate 2008 Berkshire Hathaway Annual Meeting Guide was also included in the Festival of [...]

    May 6th, 2008 at 8:53 am
  2. From the Land down under, here is the 87th Edition of the Festival of Stocks | Finance Review Guide - Financial Daily News Source wrote:

    [...] The Dividend Guy presents Dividend Stock Wednesday: Hasbro (HAS-N) posted at The Dividend Guy Blog. A detailed analysis of a stock – Hasbro – which shows [...]

    July 17th, 2010 at 4:52 pm
  1. moneygardener said:

    You don’t own shares in YUM…?

    April 23rd, 2008 at 10:44 am

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