WALT DISNEY CO/THE (1DIS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1DIS - US2546871060 - Common Stock
92.45 EUR
-5.85 (-5.95%)
We assign a fundamental rating of 5 out of 10 to 1DIS. 1DIS was compared to 46 industry peers in the Entertainment industry. 1DIS has an excellent profitability rating, but there are some minor concerns on its financial health. 1DIS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1DIS was profitable.
- 1DIS had a positive operating cash flow in the past year.
- 1DIS had positive earnings in each of the past 5 years.
- In the past 5 years 1DIS always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of 1DIS (6.28%) is better than 83.33% of its industry peers.
- 1DIS has a Return On Equity of 11.29%. This is in the better half of the industry: 1DIS outperforms 72.92% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.46%, 1DIS is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
- 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
- The Profit Margin of 1DIS (13.14%) is better than 83.33% of its industry peers.
- In the last couple of years the Profit Margin of 1DIS has grown nicely.
- Looking at the Operating Margin, with a value of 14.65%, 1DIS belongs to the top 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.
- 1DIS has a Gross Margin of 37.76%. This is in the lower half of the industry: 1DIS underperforms 68.75% of its industry peers.
- 1DIS's Gross Margin has improved in the last couple of years.
| 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.
- 1DIS has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for 1DIS has been increased compared to 5 years ago.
- Compared to 1 year ago, 1DIS has an improved debt to assets ratio.
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 of 4.17. This is comparable to the rest of the industry: 1DIS outperforms 56.25% of its industry peers.
- A Debt/Equity ratio of 0.32 indicates that 1DIS is not too dependend on debt financing.
- The Debt to Equity ratio of 1DIS (0.32) is better 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
- A Current Ratio of 0.71 indicates that 1DIS may have some problems paying its short term obligations.
- The Current ratio of 1DIS (0.71) is comparable to the rest of the industry.
- A Quick Ratio of 0.65 indicates that 1DIS may have some problems paying its short term obligations.
- 1DIS has a worse Quick ratio (0.65) than 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 19.56% over the past year.
- 1DIS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.16% yearly.
- The Revenue has been growing slightly by 3.35% in the past year.
- Measured over the past years, 1DIS shows a small growth in Revenue. The Revenue has been growing by 7.63% on average per year.
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
- The Earnings Per Share is expected to grow by 7.01% on average over the next years.
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 18.31, 1DIS is valued on the expensive side.
- 81.25% of the companies in the same industry are more expensive than 1DIS, based on the Price/Earnings ratio.
- 1DIS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 16.24, 1DIS is valued correctly.
- Based on the Price/Forward Earnings ratio, 1DIS is valued a bit cheaper than 79.17% of the companies in the same industry.
- 1DIS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.31 | ||
| Fwd PE | 16.24 |
4.2 Price Multiples
- 1DIS's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, 1DIS is valued a bit cheaper than the industry average as 64.58% of the companies are valued more expensively.
| 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
- With a Yearly Dividend Yield of 1.32%, 1DIS has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.83, 1DIS pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.82, 1DIS is paying slightly less dividend.
| 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
- 14.54% of the earnings are spent on dividend by 1DIS. This is a low number and 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%.