Hasbro Industry

Hasbro's business model focuses on the importance of innovation in order to compete and be successful in a competitive environment that is based on differentiation. Another important part of their model is that they only have two production offices: Massachusetts and Ireland. This means that they must maintain very good relationships with third-party vendors in order to remain competitive. As of right now, net revenues in both the US and the International market are fairly similar. Both are approximately $2Billion and allow the company to compete in the toy segment. However the Global Operations segment has not been doing as well, which is due to the fact that it depends on a lot more segments (it derives revenue from intersegment activities). So if one segment is affected, it could have a very negative repercussion on this segment.

The company's PB ratio is 4.23, compared to the industry's 2.00. It is rated #2 among the related toy companies as it indicates the good value that the company has. Its current ROE is 22.8% and its gone down by about 5% over the last few years. However, I don't think this change is so meaningful because SE has been increasing as well. However, net earning has been reducing due to increased competition and an emphasis on more technological games and toys. Hasbro's current P/E ratio is 16.96 and it is forecasted to increase in the coming years. I believe that this price is meaningful because the company has fairly high revenues and these revenues are coming both from a domestic and an international market.