WALT DISNEY CO/THE (1DIS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1DIS - US2546871060 - Common Stock
96.17 EUR
-2.13 (-2.17%)
1DIS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 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
- 1DIS had positive earnings in the past year.
- In the past year 1DIS had a positive cash flow from operations.
- 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
- With an excellent Return On Assets value of 6.28%, 1DIS belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
- The Return On Equity of 1DIS (11.29%) is better than 75.00% 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 72.92% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 1DIS is below the industry average of 9.05%.
- The 3 year average ROIC (5.33%) for 1DIS is below the current ROIC(6.46%), indicating increased profibility in the last year.
| 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
- 1DIS's Profit Margin of 13.14% is amongst the best of the industry. 1DIS outperforms 85.42% of its industry peers.
- In the last couple of years the Profit Margin of 1DIS has grown nicely.
- With an excellent Operating Margin value of 14.65%, 1DIS belongs to the best of the industry, outperforming 85.42% 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: 66.67% of the companies in the same industry are doing better.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1DIS is destroying value.
- 1DIS has less shares outstanding than it did 1 year ago.
- 1DIS has more shares outstanding than it did 5 years ago.
- 1DIS has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.45 indicates that 1DIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- 1DIS's Altman-Z score of 2.45 is fine compared to the rest of the industry. 1DIS outperforms 72.92% 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.
- Looking at the Debt to FCF ratio, with a value of 4.17, 1DIS is in line with its industry, outperforming 58.33% of the companies in the same industry.
- A Debt/Equity ratio of 0.32 indicates that 1DIS is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.32, 1DIS is doing good in the industry, outperforming 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.64
WACC10.14%
2.3 Liquidity
- A Current Ratio of 0.71 indicates that 1DIS may have some problems paying its short term obligations.
- 1DIS's Current ratio of 0.71 is in line compared to the rest of the industry. 1DIS outperforms 43.75% of its industry peers.
- 1DIS has a Quick 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.
- The Quick ratio of 1DIS (0.65) is comparable to the rest of the industry.
| 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.
- The Earnings Per Share has been growing by 24.16% on average over the past years. This is a very strong growth
- 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
- 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 Year6.34%
Revenue Next 2Y5.33%
Revenue Next 3Y4.8%
Revenue Next 5Y3.78%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- A Price/Earnings ratio of 18.97 indicates a rather expensive valuation of 1DIS.
- Compared to the rest of the industry, the Price/Earnings ratio of 1DIS indicates a rather cheap valuation: 1DIS is cheaper than 83.33% of the companies listed in the same industry.
- 1DIS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- 1DIS is valuated correctly with a Price/Forward Earnings ratio of 16.84.
- Based on the Price/Forward Earnings ratio, 1DIS is valued cheaper than 81.25% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of 1DIS to the average of the S&P500 Index (24.26), we can say 1DIS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.97 | ||
| Fwd PE | 16.84 |
4.2 Price Multiples
- 1DIS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1DIS is cheaper than 62.50% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, 1DIS is valued a bit cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.94 | ||
| EV/EBITDA | 12.39 |
4.3 Compensation for Growth
- 1DIS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- 1DIS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.49
PEG (5Y)0.79
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.
- 1DIS's Dividend Yield is a higher than the industry average which is at 0.78.
- 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%.