WALT DISNEY CO/THE (DIS)
US2546871060 - Common Stock
DIS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 72 industry peers in the Entertainment industry. There are concerns on the financial health of DIS while its profitability can be described as average. While showing a medium growth rate, DIS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year DIS was profitable.
DIS had a positive operating cash flow in the past year.
DIS had positive earnings in 4 of the past 5 years.
DIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DIS's Return On Assets of 2.53% is fine compared to the rest of the industry. DIS outperforms 74.24% of its industry peers.
DIS has a Return On Equity of 4.94%. This is in the better half of the industry: DIS outperforms 77.27% of its industry peers.
DIS has a Return On Invested Capital of 5.43%. This is in the better half of the industry: DIS outperforms 75.76% of its industry peers.
DIS had an Average Return On Invested Capital over the past 3 years of 4.02%. This is significantly below the industry average of 94.24%.
The 3 year average ROIC (4.02%) for DIS 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
DIS has a Profit Margin of 5.44%. This is in the better half of the industry: DIS outperforms 78.79% of its industry peers.
DIS's Profit Margin has declined in the last couple of years.
DIS's Operating Margin of 13.04% is amongst the best of the industry. DIS outperforms 81.82% of its industry peers.
DIS's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 35.75%, DIS is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of DIS 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DIS is destroying value.
DIS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DIS has been increased compared to 5 years ago.
The debt/assets ratio for DIS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.23 indicates that DIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
DIS's Altman-Z score of 2.23 is fine compared to the rest of the industry. DIS outperforms 72.73% of its industry peers.
The Debt to FCF ratio of DIS is 5.35, which is a neutral value as it means it would take DIS, 5.35 years of fcf income to pay off all of its debts.
DIS's Debt to FCF ratio of 5.35 is fine compared to the rest of the industry. DIS outperforms 71.21% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that DIS is not too dependend on debt financing.
DIS has a Debt to Equity ratio of 0.39. This is comparable to the rest of the industry: DIS outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.67
WACC8.15%
2.3 Liquidity
A Current Ratio of 0.73 indicates that DIS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.73, DIS is doing worse than 62.12% of the companies in the same industry.
DIS has a Quick Ratio of 0.73. This is a bad value and indicates that DIS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of DIS (0.67) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
DIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.56%, which is quite impressive.
DIS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.31% yearly.
The Revenue has been growing slightly by 2.77% in the past year.
Measured over the past years, DIS 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
The Earnings Per Share is expected to grow by 8.43% on average over the next years. This is quite good.
DIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.01% yearly.
EPS Next Y10.17%
EPS Next 2Y11.94%
EPS Next 3Y11.87%
EPS Next 5Y8.43%
Revenue Next Year3.7%
Revenue Next 2Y4.64%
Revenue Next 3Y4.69%
Revenue Next 5Y4.01%
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 accelerating.
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 22.41 indicates a rather expensive valuation of DIS.
75.76% of the companies in the same industry are more expensive than DIS, based on the Price/Earnings ratio.
DIS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.48.
With a Price/Forward Earnings ratio of 20.34, DIS is valued on the expensive side.
Based on the Price/Forward Earnings ratio, DIS is valued a bit cheaper than 77.27% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, DIS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.41 | ||
| Fwd PE | 20.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DIS is valued a bit cheaper than the industry average as 71.21% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DIS is valued a bit cheaper than 78.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.52 | ||
| EV/EBITDA | 14.26 |
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)2.2
PEG (5Y)N/A
EPS Next 2Y11.94%
EPS Next 3Y11.87%
5. Dividend
5.1 Amount
DIS has a yearly dividend return of 0.90%, which is pretty low.
Compared to an average industry Dividend Yield of 3.66, DIS pays a better dividend. On top of this DIS pays more dividend than 86.36% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, DIS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
The dividend of DIS decreases each year by -14.82%.
DIS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-14.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DIS pays out 27.47% of its income as dividend. This is a sustainable payout ratio.
DP27.47%
EPS Next 2Y11.94%
EPS Next 3Y11.87%
WALT DISNEY CO/THE
NYSE:DIS (1/3/2025, 8:04:00 PM)
After market: 111 -0.16 (-0.14%)111.16
+0.34 (+0.31%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners69.26%
Inst Owner Change0%
Ins Owners0.01%
Ins Owner Change6.75%
Market Cap201.30B
Analysts76.92
Price Target126.23 (13.56%)
Short Float %1.15%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Dividend Growth(5Y)-14.82%
DP27.47%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)1.01%
PT rev (3m)11.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.62%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)4.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.07%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.41 | ||
| Fwd PE | 20.34 | ||
| P/S | 2.2 | ||
| P/FCF | 23.52 | ||
| P/OCF | 14.41 | ||
| P/B | 2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.26 |
EPS(TTM)4.96
EY4.46%
EPS(NY)5.46
Fwd EY4.92%
FCF(TTM)4.73
FCFY4.25%
OCF(TTM)7.71
OCFY6.94%
SpS50.45
BVpS55.6
TBVpS-8.66
PEG (NY)2.2
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 | 2.23 |
F-Score8
WACC8.15%
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 Y10.17%
EPS Next 2Y11.94%
EPS Next 3Y11.87%
EPS Next 5Y8.43%
Revenue 1Y (TTM)2.77%
Revenue growth 3Y10.66%
Revenue growth 5Y5.59%
Sales Q2Q%6.28%
Revenue Next Year3.7%
Revenue Next 2Y4.64%
Revenue Next 3Y4.69%
Revenue Next 5Y4.01%
EBIT growth 1Y33.58%
EBIT growth 3Y48.22%
EBIT growth 5Y0.14%
EBIT Next Year29.76%
EBIT Next 3Y15.28%
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%