WALT DISNEY CO/THE (1DIS.MI) Stock Fundamental Analysis
BIT:1DIS - Borsa Italiana Milan - US2546871060 - Common Stock - Currency: EUR
Taking everything into account, 1DIS scores 4 out of 10 in our fundamental rating. 1DIS was compared to 44 industry peers in the Entertainment industry. While 1DIS is still in line with the averages on profitability rating, there are 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.
In the past year 1DIS had a positive cash flow from operations.
Of the past 5 years 1DIS 4 years were profitable.
Each year in the past 5 years 1DIS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.53%, 1DIS is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
The Return On Equity of 1DIS (4.94%) is comparable to the rest of the industry.
1DIS has a Return On Invested Capital of 5.43%. This is in the better half of the industry: 1DIS outperforms 65.00% of its industry peers.
1DIS had an Average Return On Invested Capital over the past 3 years of 4.02%. This is below the industry average of 8.82%.
The 3 year average ROIC (4.02%) for 1DIS is below the current ROIC(5.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.53% | ||
| ROE | 4.94% | ||
| ROIC | 5.43% |
ROA(3y)1.74%
ROA(5y)0.96%
ROE(3y)3.54%
ROE(5y)1.89%
ROIC(3y)4.02%
ROIC(5y)3.04%
1.3 Margins
The Profit Margin of 1DIS (5.44%) is better than 67.50% of its industry peers.
1DIS's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 13.04%, 1DIS belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
1DIS's Operating Margin has declined in the last couple of years.
The Gross Margin of 1DIS (35.75%) is worse than 67.50% of its industry peers.
In the last couple of years the Gross Margin of 1DIS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.04% | ||
| PM (TTM) | 5.44% | ||
| GM | 35.75% |
OM growth 3Y33.94%
OM growth 5Y-5.16%
PM growth 3Y22.52%
PM growth 5Y-19.28%
GM growth 3Y2.65%
GM growth 5Y-2.01%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1DIS is destroying value.
Compared to 1 year ago, 1DIS has more shares outstanding
Compared to 5 years ago, 1DIS has more shares outstanding
The debt/assets ratio for 1DIS is higher compared to a year ago.
2.2 Solvency
1DIS has an Altman-Z score of 2.20. This is not the best score and indicates that 1DIS is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.20, 1DIS is doing good in the industry, outperforming 77.50% of the companies in the same industry.
1DIS has a debt to FCF ratio of 5.35. This is a neutral value as 1DIS would need 5.35 years to pay back of all of its debts.
1DIS has a better Debt to FCF ratio (5.35) than 65.00% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that 1DIS is not too dependend on debt financing.
1DIS has a Debt to Equity ratio of 0.39. This is in the better half of the industry: 1DIS outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.67
WACC8.06%
2.3 Liquidity
A Current Ratio of 0.73 indicates that 1DIS may have some problems paying its short term obligations.
The Current ratio of 1DIS (0.73) is comparable to the rest of the industry.
1DIS has a Quick Ratio of 0.73. This is a bad value and indicates that 1DIS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.67, 1DIS perfoms like the industry average, outperforming 42.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
1DIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.56%, which is quite impressive.
Measured over the past years, 1DIS shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.31% on average per year.
Looking at the last year, 1DIS shows a small growth in Revenue. The Revenue has grown by 2.77% in the last year.
Measured over the past years, 1DIS shows a small growth in Revenue. The Revenue has been growing by 5.59% on average per year.
EPS 1Y (TTM)31.56%
EPS 3Y29.57%
EPS 5Y-3.31%
EPS Q2Q%39.02%
Revenue 1Y (TTM)2.77%
Revenue growth 3Y10.66%
Revenue growth 5Y5.59%
Sales Q2Q%6.28%
3.2 Future
Based on estimates for the next years, 1DIS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.43% on average per year.
1DIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.01% yearly.
EPS Next Y10.31%
EPS Next 2Y11.96%
EPS Next 3Y11.82%
EPS Next 5Y8.43%
Revenue Next Year3.67%
Revenue Next 2Y4.67%
Revenue Next 3Y4.63%
Revenue Next 5Y4.01%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 21.95, 1DIS is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of 1DIS indicates a somewhat cheap valuation: 1DIS is cheaper than 80.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, 1DIS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 19.89, 1DIS is valued on the expensive side.
Based on the Price/Forward Earnings ratio, 1DIS is valued a bit cheaper than 67.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. 1DIS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.95 | ||
| Fwd PE | 19.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1DIS is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, 1DIS is valued a bit cheaper than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.02 | ||
| EV/EBITDA | 14.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.13
PEG (5Y)N/A
EPS Next 2Y11.96%
EPS Next 3Y11.82%
5. Dividend
5.1 Amount
1DIS has a yearly dividend return of 0.88%, which is pretty low.
Compared to an average industry Dividend Yield of 2.26, 1DIS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.88, 1DIS pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
The dividend of 1DIS decreases each year by -14.82%.
Dividend Growth(5Y)-14.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
27.47% of the earnings are spent on dividend by 1DIS. This is a low number and sustainable payout ratio.
DP27.47%
EPS Next 2Y11.96%
EPS Next 3Y11.82%
WALT DISNEY CO/THE
BIT:1DIS (1/22/2025, 7:00:00 PM)
104.7
+0.52 (+0.5%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners69.26%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap189.61B
Analysts76.92
Price Target121.73 (16.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend0.75
Dividend Growth(5Y)-14.82%
DP27.47%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.89%
Min EPS beat(2)2.45%
Max EPS beat(2)15.33%
EPS beat(4)4
Avg EPS beat(4)12.3%
Min EPS beat(4)2.45%
Max EPS beat(4)22.33%
EPS beat(8)7
Avg EPS beat(8)12.04%
EPS beat(12)9
Avg EPS beat(12)9.95%
EPS beat(16)12
Avg EPS beat(16)31.28%
Revenue beat(2)0
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-0.63%
Max Revenue beat(2)-0.45%
Revenue beat(4)0
Avg Revenue beat(4)-0.89%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)-0.45%
Revenue beat(8)0
Avg Revenue beat(8)-0.99%
Revenue beat(12)2
Avg Revenue beat(12)-1.16%
Revenue beat(16)4
Avg Revenue beat(16)-1.08%
PT rev (1m)1.06%
PT rev (3m)17.73%
EPS NQ rev (1m)1.2%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)0.12%
EPS NY rev (3m)4.37%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-1.17%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.95 | ||
| Fwd PE | 19.89 | ||
| P/S | 2.16 | ||
| P/FCF | 23.02 | ||
| P/OCF | 14.1 | ||
| P/B | 1.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.01 |
EPS(TTM)4.77
EY4.56%
EPS(NY)5.26
Fwd EY5.03%
FCF(TTM)4.55
FCFY4.34%
OCF(TTM)7.42
OCFY7.09%
SpS48.54
BVpS53.5
TBVpS-8.33
PEG (NY)2.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.53% | ||
| ROE | 4.94% | ||
| ROCE | 7.37% | ||
| ROIC | 5.43% | ||
| ROICexc | 5.64% | ||
| ROICexgc | 22.37% | ||
| OM | 13.04% | ||
| PM (TTM) | 5.44% | ||
| GM | 35.75% | ||
| FCFM | 9.37% |
ROA(3y)1.74%
ROA(5y)0.96%
ROE(3y)3.54%
ROE(5y)1.89%
ROIC(3y)4.02%
ROIC(5y)3.04%
ROICexc(3y)4.27%
ROICexc(5y)3.26%
ROICexgc(3y)18.28%
ROICexgc(5y)14.25%
ROCE(3y)5.45%
ROCE(5y)4.13%
ROICexcg growth 3Y38.24%
ROICexcg growth 5Y-4.53%
ROICexc growth 3Y48.52%
ROICexc growth 5Y0.35%
OM growth 3Y33.94%
OM growth 5Y-5.16%
PM growth 3Y22.52%
PM growth 5Y-19.28%
GM growth 3Y2.65%
GM growth 5Y-2.01%
F-Score8
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 5.35 | ||
| Debt/EBITDA | 2.31 | ||
| Cap/Depr | 108.46% | ||
| Cap/Sales | 5.92% | ||
| Interest Coverage | 5.58 | ||
| Cash Conversion | 82.65% | ||
| Profit Quality | 172.14% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 2.2 |
F-Score8
WACC8.06%
ROIC/WACC0.67
Cap/Depr(3y)98.92%
Cap/Depr(5y)88.4%
Cap/Sales(3y)5.83%
Cap/Sales(5y)5.79%
Profit Quality(3y)138.03%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.56%
EPS 3Y29.57%
EPS 5Y-3.31%
EPS Q2Q%39.02%
EPS Next Y10.31%
EPS Next 2Y11.96%
EPS Next 3Y11.82%
EPS Next 5Y8.43%
Revenue 1Y (TTM)2.77%
Revenue growth 3Y10.66%
Revenue growth 5Y5.59%
Sales Q2Q%6.28%
Revenue Next Year3.67%
Revenue Next 2Y4.67%
Revenue Next 3Y4.63%
Revenue Next 5Y4.01%
EBIT growth 1Y33.58%
EBIT growth 3Y48.22%
EBIT growth 5Y0.14%
EBIT Next Year29.93%
EBIT Next 3Y15.07%
EBIT Next 5Y9.95%
FCF growth 1Y74.78%
FCF growth 3Y62.65%
FCF growth 5Y37.68%
OCF growth 1Y41.61%
OCF growth 3Y35.89%
OCF growth 5Y16.16%