WALT DISNEY CO/THE (DIS) Stock Fundamental Analysis
USA - NYSE:DIS - US2546871060 - Common Stock
112.62 USD
+0.78 (+0.7%)
112.05 USD
-0.57 (-0.51%)
Overall DIS gets a fundamental rating of 5 out of 10. We evaluated DIS against 79 industry peers in the Entertainment industry. DIS has a medium profitability rating, but doesn't score so well on its financial health evaluation. DIS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
DIS had positive earnings in the past year.
In the past year DIS had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 5.88%, DIS is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
DIS's Return On Equity of 10.58% is fine compared to the rest of the industry. DIS outperforms 76.25% of its industry peers.
DIS has a Return On Invested Capital of 6.29%. This is in the better half of the industry: DIS outperforms 77.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DIS is significantly below the industry average of 9.25%.
The 3 year average ROIC (4.02%) for DIS is below the current ROIC(6.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 10.58% | ||
| ROIC | 6.29% |
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
Looking at the Profit Margin, with a value of 12.22%, DIS belongs to the top of the industry, outperforming 86.25% of the companies in the same industry.
DIS's Profit Margin has declined in the last couple of years.
DIS's Operating Margin of 14.78% is amongst the best of the industry. DIS outperforms 88.75% of its industry peers.
In the last couple of years the Operating Margin of DIS has declined.
DIS has a Gross Margin (37.61%) which is in line with its industry peers.
In the last couple of years the Gross Margin of DIS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.78% | ||
| PM (TTM) | 12.22% | ||
| GM | 37.61% |
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), DIS is destroying value.
Compared to 1 year ago, DIS has more shares outstanding
DIS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, DIS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.47 indicates that DIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
DIS's Altman-Z score of 2.47 is fine compared to the rest of the industry. DIS outperforms 66.25% of its industry peers.
The Debt to FCF ratio of DIS is 3.66, which is a good value as it means it would take DIS, 3.66 years of fcf income to pay off all of its debts.
DIS has a better Debt to FCF ratio (3.66) than 73.75% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that DIS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.33, DIS perfoms like the industry average, outperforming 52.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.66 | ||
| Altman-Z | 2.47 |
ROIC/WACC0.81
WACC7.75%
2.3 Liquidity
DIS has a Current Ratio of 0.72. This is a bad value and indicates that DIS is not financially healthy enough and could expect problems in meeting its short term obligations.
DIS has a Current ratio of 0.72. This is in the lower half of the industry: DIS underperforms 65.00% of its industry peers.
DIS has a Quick Ratio of 0.72. 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 (0.66) is worse than 66.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
DIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.45%, 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.
DIS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.01%.
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)28.45%
EPS 3Y29.57%
EPS 5Y-3.31%
EPS Q2Q%15.83%
Revenue 1Y (TTM)5.01%
Revenue growth 3Y10.66%
Revenue growth 5Y5.59%
Sales Q2Q%2.14%
3.2 Future
DIS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.35% yearly.
DIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.08% yearly.
EPS Next Y19.59%
EPS Next 2Y14.91%
EPS Next 3Y13.91%
EPS Next 5Y7.35%
Revenue Next Year3.79%
Revenue Next 2Y5.01%
Revenue Next 3Y4.76%
Revenue Next 5Y3.08%
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
DIS is valuated rather expensively with a Price/Earnings ratio of 18.90.
Based on the Price/Earnings ratio, DIS is valued cheaply inside the industry as 82.50% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DIS to the average of the S&P500 Index (26.11), we can say DIS is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.19, DIS is valued on the expensive side.
DIS's Price/Forward Earnings ratio is rather cheap when compared to the industry. DIS is cheaper than 88.75% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, DIS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.9 | ||
| Fwd PE | 17.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DIS indicates a somewhat cheap valuation: DIS is cheaper than 72.50% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DIS is valued cheaper than 86.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.53 | ||
| EV/EBITDA | 12.47 |
4.3 Compensation for Growth
DIS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of DIS may justify a higher PE ratio.
A more expensive valuation may be justified as DIS's earnings are expected to grow with 13.91% in the coming years.
PEG (NY)0.96
PEG (5Y)N/A
EPS Next 2Y14.91%
EPS Next 3Y13.91%
5. Dividend
5.1 Amount
With a yearly dividend of 0.89%, DIS is not a good candidate for dividend investing.
DIS's Dividend Yield is rather good when compared to the industry average which is at 40.52. DIS pays more dividend than 85.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, DIS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
The dividend of DIS decreases each year by -14.82%.
DIS has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of DIS decreased recently.
Dividend Growth(5Y)-14.82%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
14.91% of the earnings are spent on dividend by DIS. This is a low number and sustainable payout ratio.
DP14.91%
EPS Next 2Y14.91%
EPS Next 3Y13.91%
112.62
+0.78 (+0.7%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners74.2%
Inst Owner Change-3.3%
Ins Owners0.02%
Ins Owner Change1.3%
Market Cap202.48B
Revenue(TTM)94.53B
Net Income(TTM)11.55B
Analysts81.58
Price Target137.19 (21.82%)
Short Float %1.06%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend0.75
Dividend Growth(5Y)-14.82%
DP14.91%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.08%
Min EPS beat(2)8.42%
Max EPS beat(2)19.75%
EPS beat(4)4
Avg EPS beat(4)12.72%
Min EPS beat(4)2.45%
Max EPS beat(4)20.27%
EPS beat(8)8
Avg EPS beat(8)14.23%
EPS beat(12)10
Avg EPS beat(12)8.24%
EPS beat(16)12
Avg EPS beat(16)8.74%
Revenue beat(2)1
Avg Revenue beat(2)-0.12%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)1.06%
Revenue beat(4)1
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-1.31%
Max Revenue beat(4)1.06%
Revenue beat(8)1
Avg Revenue beat(8)-0.74%
Revenue beat(12)1
Avg Revenue beat(12)-1.25%
Revenue beat(16)3
Avg Revenue beat(16)-1.08%
PT rev (1m)1.01%
PT rev (3m)2.77%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)-3.49%
EPS NY rev (1m)0.19%
EPS NY rev (3m)1.56%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.9 | ||
| Fwd PE | 17.19 | ||
| P/S | 2.14 | ||
| P/FCF | 17.53 | ||
| P/OCF | 10.58 | ||
| P/B | 1.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.47 |
EPS(TTM)5.96
EY5.29%
EPS(NY)6.55
Fwd EY5.82%
FCF(TTM)6.42
FCFY5.7%
OCF(TTM)10.65
OCFY9.46%
SpS52.58
BVpS60.71
TBVpS-2.83
PEG (NY)0.96
PEG (5Y)N/A
Graham Number90.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 10.58% | ||
| ROCE | 8.54% | ||
| ROIC | 6.29% | ||
| ROICexc | 6.51% | ||
| ROICexgc | 23.38% | ||
| OM | 14.78% | ||
| PM (TTM) | 12.22% | ||
| GM | 37.61% | ||
| FCFM | 12.22% |
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%
ROICexgc growth 3Y38.24%
ROICexgc 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-Score9
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.66 | ||
| Debt/EBITDA | 1.9 | ||
| Cap/Depr | 145.62% | ||
| Cap/Sales | 8.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.76% | ||
| Profit Quality | 99.97% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 2.47 |
F-Score9
WACC7.75%
ROIC/WACC0.81
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)28.45%
EPS 3Y29.57%
EPS 5Y-3.31%
EPS Q2Q%15.83%
EPS Next Y19.59%
EPS Next 2Y14.91%
EPS Next 3Y13.91%
EPS Next 5Y7.35%
Revenue 1Y (TTM)5.01%
Revenue growth 3Y10.66%
Revenue growth 5Y5.59%
Sales Q2Q%2.14%
Revenue Next Year3.79%
Revenue Next 2Y5.01%
Revenue Next 3Y4.76%
Revenue Next 5Y3.08%
EBIT growth 1Y24.19%
EBIT growth 3Y48.22%
EBIT growth 5Y0.14%
EBIT Next Year34.3%
EBIT Next 3Y16.6%
EBIT Next 5Y8.92%
FCF growth 1Y305.9%
FCF growth 3Y62.65%
FCF growth 5Y37.68%
OCF growth 1Y152.31%
OCF growth 3Y35.89%
OCF growth 5Y16.16%
WALT DISNEY CO/THE / DIS FAQ
What is the ChartMill fundamental rating of WALT DISNEY CO/THE (DIS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to DIS.
What is the valuation status for DIS stock?
ChartMill assigns a valuation rating of 6 / 10 to WALT DISNEY CO/THE (DIS). This can be considered as Fairly Valued.
How profitable is WALT DISNEY CO/THE (DIS) stock?
WALT DISNEY CO/THE (DIS) has a profitability rating of 6 / 10.
Can you provide the financial health for DIS stock?
The financial health rating of WALT DISNEY CO/THE (DIS) is 3 / 10.
Can you provide the expected EPS growth for DIS stock?
The Earnings per Share (EPS) of WALT DISNEY CO/THE (DIS) is expected to grow by 19.59% in the next year.