Overview Hasbro is a global toys and entertainment company with historically very high gross and operating margins ( 62.0% gross, 39.9% operating) but a more uneven recent earnings profile and elevated balance-sheet leverage ( debt/equity 4.59 ). Strengths The company’s clear strengths are in margin structure and cash generation: gross margin of about 62.0% and an operating margin near 39.9% indic
Hasbro is a global toys and entertainment company with historically very high gross and operating margins (62.0% gross, 39.9% operating) but a more uneven recent earnings profile and elevated balance-sheet leverage (debt/equity 4.59).
The company’s clear strengths are in margin structure and cash generation: gross margin of about 62.0% and an operating margin near 39.9% indicate durable pricing/operating leverage (Profit Margin Trends). Operating cash flow has been consistently positive and sizable, with trailing twelve-month operating cash flow at $847.4M that exceeded reported net income of $385.6M at the 2024-12-29 datapoint, and a free cash flow margin of roughly 12.35% alongside an average cash conversion ratio of 2.20, which supports ongoing cash-funded activity (Earnings Quality Analysis, Strategic Capital Allocation). Liquidity is adequate with a current ratio of 1.59.
Key weaknesses include significant earnings volatility and elevated leverage. Trailing twelve-month net income swung from large losses (near -$1.49B at worst) to +$385.6M and back to a TTM loss of -$124.0M, and the net income volatility metric (avg/stdev) is low at 0.34, signaling unpredictability in profitability (Revenue & Net Income, Earnings Quality Analysis). Return on equity has also been highly unstable, turning from double-digit positive years to extreme negatives (recent TTM ROE -18.4%), and the debt-to-equity ratio at 4.59 remains well above typical conservative thresholds, with financing cash flows showing large swings (TTM financing cash flow ranged from about -$1.06B to -$531.3M) that bear watching (Return on Equity (ROE), Strategic Capital Allocation).
Key Findings: Hasbro demonstrates robust margins and cash flow but faces volatility in earnings and high leverage that merit ongoing monitoring.
The foundation of business quality and long-term value creation
HASBRO, INC.’s net income showed a pronounced inflection over the most recent quarters: after a large loss of -$855.8M reported for the quarter ended 2025-06-29 and an earlier -$1.08B loss at 2023-12-31, results recovered to positive net income of $533.4M for the period ended 2025-12-28 and then moderated to $198.4M in the latest quarter ended 2026-03-29. The sequence indicates a sharp move from significant losses to consecutive positive quarters in late 2025 and early 2026, with the most recent quarter remaining profitable at $198.4M.
Revenue entries in the dataset are mixed across recent quarters. The quarter ended 2025-03-30 shows revenue of $887.1M, prior quarters reported $995.3M (2024-06-30), $757.3M (2024-03-31), and $1.50B (2023-10-01), while the most recent revenue record in the table is a reported value of –$887.1M for the period ended 2025-12-28. The most recent reported net income was $198.4M, and the most recent reported revenue was –$887.1M.
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Period Information
Report Type: Annual (10-K)
Period: Dec 2024 to Dec 2025
Analyzing long-term margin stability and competitive positioning
HASBRO, INC.'s net profit margin shows a decline from the mid-2010s into 2018, followed by a partial recovery by the most recent reporting. The net margin fell from 11.0% at year-end 2016 to 7.6% at year-end 2017 and 4.8% at year-end 2018, then rose to 6.7% in the latest period ending 2021-12-26. The most recent data point therefore indicates a net margin below the 2016 level but above the 2018 trough.
Gross and operating margins in the dataset are only reported for the period ending 2016-12-25 and do not have later observations in this chart. The latest observed gross margin is 62.0% and the latest observed operating margin is 39.9%. The most recent net profit margin observed was 6.7% (period ending 2021-12-26).
Understanding Profit Margins
Between Dec 2024 and Dec 2025, Hasbro Inc converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
HASBRO, INC.'s trailing twelve-month net income shows pronounced volatility over the period: large losses around 2023–mid‑2024 (TTM net income near $-1.43B to $-1.49B) were followed by a recovery to $385.6M at 2024-12-29 and then a decline to a TTM net loss by 2026-03-29.
Operating cash flow (TTM) in the dataset remains positive and relatively stable in the high hundreds of millions across multiple years, with a reported value of $847.4M at 2024-12-29 and prior readings like $976.3M (2020-12-27) and $653.1M (2019-12-29).
At the last date when both metrics are available: operating cash flow ($847.4M) exceeded net income ($385.6M)
Most recent Net Income (TTM): $-124.0M (period end 2026-03-29)
Most recent Operating Cash Flow (TTM): $847.4M (period end 2024-12-29)
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
HASBRO, INC.'s ROE demonstrates a long history of double-digit returns throughout the 2010s, with peaks reaching the high 20s and low 30s in several years. Around 2019–2021, the ROE shifted to lower single- to low-double digits.
Beginning in late 2023, the company experienced very large negative ROE readings, with ‑137.0% on 2023-12-31 and ‑139.0% on 2024-03-31, indicating a pronounced deterioration compared to prior years. This extreme negative period was followed by a strong positive swing to 32.5% for the period ending 2024-12-29.
After that rebound, ROE fell sharply to ‑57.0% for the period ending 2025-12-28 and then improved to ‑18.4% for the most recent period ending 2026-03-29. The most recent trailing twelve-month ROE observed was ‑18.4%.
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
HASBRO, INC.'s trailing twelve‑month operating cash flow has remained positive and relatively stable in recent years, providing the primary cash generation for the company. Operating cash rose from the mid‑$600Ms in 2018–2019 to a peak of $976.3M in 2020 and most recently stands lower than that peak but well above earlier levels at $847.4M (period ending 2024‑12‑29).
Investing cash flow has been consistently negative on a TTM basis, but has moderated versus the large outflow seen in 2020; the most recent investing outflow is a modest -$203.7M (period ending 2024‑12‑29).
Financing cash flow shows larger variability and recent inflection points: financing TTM was -$497.5M at the end of 2024, moved to -$1.06B by 2025‑09‑28, and then moderated to -$531.3M by 2025‑12‑28, indicating fluctuations in net financing activity across the most recent quarters.
The most recent figures are: Operating Cash Flow (TTM) — $847.4M; Investing Cash Flow (TTM) — -$203.7M; Financing Cash Flow (TTM) — -$531.3M.
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.