WALT DISNEY CO/THE (1DIS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1DIS - US2546871060 - Common Stock
92.45 EUR
-5.85 (-5.95%)
1DIS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 46 industry peers in the Entertainment industry. While 1DIS has a great profitability rating, there are some minor concerns on its financial health. 1DIS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- 1DIS had positive earnings in the past year.
- In the past year 1DIS had a positive cash flow from operations.
- In the past 5 years 1DIS has always been profitable.
- Each year in the past 5 years 1DIS had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of 1DIS (6.28%) is better than 83.33% of its industry peers.
- 1DIS has a better Return On Equity (11.29%) than 72.92% of its industry peers.
- 1DIS has a better Return On Invested Capital (6.46%) than 70.83% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1DIS is below the industry average of 9.28%.
- The last Return On Invested Capital (6.46%) for 1DIS is above the 3 year average (5.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.28% | ||
| ROE | 11.29% | ||
| ROIC | 6.46% |
ROA(3y)3.32%
ROA(5y)2.5%
ROE(3y)6.2%
ROE(5y)4.83%
ROIC(3y)5.33%
ROIC(5y)4.11%
1.3 Margins
- Looking at the Profit Margin, with a value of 13.14%, 1DIS belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- 1DIS's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 14.65%, 1DIS belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- 1DIS's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 37.76%, 1DIS is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of 1DIS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.65% | ||
| PM (TTM) | 13.14% | ||
| GM | 37.76% |
OM growth 3Y21.44%
OM growth 5Y20.35%
PM growth 3Y51.18%
PM growth 5YN/A
GM growth 3Y3.32%
GM growth 5Y2.8%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1DIS is destroying value.
- Compared to 1 year ago, 1DIS has less shares outstanding
- 1DIS has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for 1DIS has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.46 indicates that 1DIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- 1DIS has a better Altman-Z score (2.46) than 75.00% of its industry peers.
- The Debt to FCF ratio of 1DIS is 4.17, which is a neutral value as it means it would take 1DIS, 4.17 years of fcf income to pay off all of its debts.
- 1DIS has a Debt to FCF ratio (4.17) which is in line with its industry peers.
- A Debt/Equity ratio of 0.32 indicates that 1DIS is not too dependend on debt financing.
- 1DIS has a better Debt to Equity ratio (0.32) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.64
WACC10.12%
2.3 Liquidity
- 1DIS has a Current Ratio of 0.71. This is a bad value and indicates that 1DIS is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1DIS has a Current ratio (0.71) which is in line with its industry peers.
- A Quick Ratio of 0.65 indicates that 1DIS may have some problems paying its short term obligations.
- The Quick ratio of 1DIS (0.65) is worse than 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
- 1DIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.56%, which is quite good.
- Measured over the past years, 1DIS shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.16% on average per year.
- 1DIS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.35%.
- The Revenue has been growing slightly by 7.63% on average over the past years.
EPS 1Y (TTM)19.56%
EPS 3Y18.88%
EPS 5Y24.16%
EPS Q2Q%-2.63%
Revenue 1Y (TTM)3.35%
Revenue growth 3Y4.51%
Revenue growth 5Y7.63%
Sales Q2Q%-0.49%
3.2 Future
- 1DIS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.01% yearly.
- 1DIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.78% yearly.
EPS Next Y12.72%
EPS Next 2Y11.88%
EPS Next 3Y11.77%
EPS Next 5Y7.01%
Revenue Next Year6.32%
Revenue Next 2Y5.31%
Revenue Next 3Y4.77%
Revenue Next 5Y3.78%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- 1DIS is valuated rather expensively with a Price/Earnings ratio of 18.31.
- Compared to the rest of the industry, the Price/Earnings ratio of 1DIS indicates a rather cheap valuation: 1DIS is cheaper than 81.25% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of 1DIS to the average of the S&P500 Index (28.87), we can say 1DIS is valued slightly cheaper.
- The Price/Forward Earnings ratio is 16.24, which indicates a correct valuation of 1DIS.
- 79.17% of the companies in the same industry are more expensive than 1DIS, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. 1DIS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.31 | ||
| Fwd PE | 16.24 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1DIS.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1DIS indicates a somewhat cheap valuation: 1DIS is cheaper than 64.58% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.23 | ||
| EV/EBITDA | 12.42 |
4.3 Compensation for Growth
- 1DIS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of 1DIS may justify a higher PE ratio.
PEG (NY)1.44
PEG (5Y)0.76
EPS Next 2Y11.88%
EPS Next 3Y11.77%
5. Dividend
5.1 Amount
- 1DIS has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.83, 1DIS pays a bit more dividend than its industry peers.
- 1DIS's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
- The dividend of 1DIS decreases each year by -11.07%.
Dividend Growth(5Y)-11.07%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1DIS pays out 14.54% of its income as dividend. This is a sustainable payout ratio.
DP14.54%
EPS Next 2Y11.88%
EPS Next 3Y11.77%
WALT DISNEY CO/THE / 1DIS.MI FAQ
What is the ChartMill fundamental rating of WALT DISNEY CO/THE (1DIS.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1DIS.MI.
What is the valuation status of WALT DISNEY CO/THE (1DIS.MI) stock?
ChartMill assigns a valuation rating of 6 / 10 to WALT DISNEY CO/THE (1DIS.MI). This can be considered as Fairly Valued.
What is the profitability of 1DIS stock?
WALT DISNEY CO/THE (1DIS.MI) has a profitability rating of 8 / 10.
What is the earnings growth outlook for WALT DISNEY CO/THE?
The Earnings per Share (EPS) of WALT DISNEY CO/THE (1DIS.MI) is expected to grow by 12.72% in the next year.
How sustainable is the dividend of WALT DISNEY CO/THE (1DIS.MI) stock?
The dividend rating of WALT DISNEY CO/THE (1DIS.MI) is 3 / 10 and the dividend payout ratio is 14.54%.