Quant Scorecard Under the Lens for Hasbro, Inc. (NasdaqGS:HAS) as FCF Reaches -0.368921

The FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value.  Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents.  The average FCF of a company is determined by looking at the cash generated by operations of the company.  The Free Cash Flow Yield 5 Year Average of Hasbro, Inc. (NasdaqGS:HAS) is 0.028403. 

Investors who have stayed on the sidelines may be considering if the markets will continue to rally higher. Staying vigilant and watching for signs of the next bear may prove to be a crucial element for helping to guide certain portfolio moves. Keeping an eye on historical corrections as well as sentiment and technicals, may help provide the proper insight needed. Investors may be mindful of any meaningful pullback or correction, and they may have a certain percentage in mind for when things seem to be getting out of hand. Cautious optimism may prove to be a profit saver when the bearish winds start to blow. Investors may need to figure out a plan for when to take some profit off the table. Conducting thorough fundamental research on stocks even after they have broken out may help the investor understand the reason behind the move, and whether it is likely to continue or if it is just a temporary spike. 

Shifting gears, we can see that Hasbro, Inc. (NasdaqGS:HAS) has a Q.i. Value of 42.00000. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be.

Checking in on some valuation rankings, Hasbro, Inc. (NasdaqGS:HAS) has a Value Composite score of 63. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 56.

Watching some historical volatility numbers on shares of Hasbro, Inc. (NasdaqGS:HAS), we can see that the 12 month volatility is presently 34.096300. The 6 month volatility is 34.655400, and the 3 month is spotted at 34.761300. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period. 

The C-Score is a system developed by James Montier that helps determine whether a company is involved in falsifying their financial statements.  The C-Score is calculated by a variety of items, including a growing difference in net income verse cash flow, increasing days outstanding, growing days sales of inventory, increasing assets to sales, declines in depreciation, and high total asset growth.  The C-Score of Hasbro, Inc. (NasdaqGS:HAS) is 3.00000.  The score ranges on a scale of -1 to 6.  If the score is -1, then there is not enough information to determine the C-Score.  If the number is at zero (0) then there is no evidence of fraudulent book cooking, whereas a number of 6 indicates a high likelihood of fraudulent activity. The C-Score assists investors in assessing the likelihood of a company cheating in the books.

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength.  The score helps determine if a company’s stock is valuable or not.  The Piotroski F-Score of Hasbro, Inc. (NasdaqGS:HAS) is 4.  A score of nine indicates a high value stock, while a score of one indicates a low value stock.  The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings.  It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue.  The score is also determined by change in gross margin and change in asset turnover.

The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price.  The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital.  The MF Rank of Hasbro, Inc. (NasdaqGS:HAS) is 4571.  A company with a low rank is considered a good company to invest in.  The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

The Return on Invested Capital (aka ROIC) for Hasbro, Inc. (NasdaqGS:HAS) is 0.344103.  The Return on Invested Capital is a ratio that determines whether a company is profitable or not.  It tells investors how well a company is turning their capital into profits.  The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital.  The employed capital is calculated by subrating current liabilities from total assets.  Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years.  The ROIC Quality of Hasbro, Inc. (NasdaqGS:HAS) is 11.108866.  This is calculated by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC.  The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets).  The ROIC 5 year average of Hasbro, Inc. (NasdaqGS:HAS) is 0.312860.

Price Index 

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Hasbro, Inc. (NasdaqGS:HAS) for last month was 1.02916. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month. If the ratio is less than 1, then we can determine that there has been a decrease in price. Similarly, investors look up the share price over 12 month periods. The Price Index 12m for Hasbro, Inc. (NasdaqGS:HAS) is 1.18308.

Investors may be searching for stocks that are undervalued. Scanning the markets during obvious pullbacks may be one strategy, but it may take a more concerted effort to identify these names if the market decides to climb further. Getting caught up in the details from news and various economic reports may leave the average investor dizzy and confused. Focusing on the most important data sets may be helpful when trying to muffle all the noise. Heading into the next quarter, investors will be watching which companies are experiencing positive earnings momentum. Often times, earnings that vastly beat expectations may cause the stock to skyrocket. Filling the portfolio with stocks experiencing positive earnings momentum may be a popular choice. Investors may want to look a little bit deeper into the situation to make sure that the momentum is justified. Some investors may already be adept at figuring this out while others may need to put in a bit more work. 

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