WALT DISNEY CO/THE (DIS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DIS - US2546871060 - Common Stock
115.88 USD
+1.71 (+1.5%)
115.83 USD
-0.05 (-0.04%)
We assign a fundamental rating of 5 out of 10 to DIS. DIS was compared to 80 industry peers in the Entertainment industry. While DIS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 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.
Each year in the past 5 years DIS has been profitable.
In the past 5 years DIS always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.28%, DIS belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.29%, DIS is in the better half of the industry, outperforming 78.75% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.46%, DIS is doing good in the industry, outperforming 78.75% of the companies in the same industry.
DIS had an Average Return On Invested Capital over the past 3 years of 5.33%. This is below the industry average of 8.70%.
The 3 year average ROIC (5.33%) for DIS 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
With an excellent Profit Margin value of 13.14%, DIS belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Profit Margin of DIS has grown nicely.
With an excellent Operating Margin value of 14.65%, DIS belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
DIS's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 37.76%, DIS perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
DIS'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), DIS is destroying value.
DIS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DIS has more shares outstanding
DIS has a better debt/assets ratio than last year.
2.2 Solvency
DIS has an Altman-Z score of 2.47. This is not the best score and indicates that DIS is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.47, DIS is in the better half of the industry, outperforming 66.25% of the companies in the same industry.
The Debt to FCF ratio of DIS is 4.17, which is a neutral value as it means it would take DIS, 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, DIS is in the better half of the industry, outperforming 78.75% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that DIS is not too dependend on debt financing.
DIS has a Debt to Equity ratio (0.32) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 2.47 |
ROIC/WACC0.64
WACC10.12%
2.3 Liquidity
DIS has a Current Ratio of 0.71. This is a bad value and indicates that DIS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.71, DIS is doing worse than 67.50% of the companies in the same industry.
DIS has a Quick Ratio of 0.71. 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 worse Quick ratio (0.65) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
DIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.56%, which is quite good.
Measured over the past years, DIS shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.16% on average per year.
DIS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.35%.
Measured over the past years, DIS 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.
DIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.78% yearly.
EPS Next Y12.74%
EPS Next 2Y11.78%
EPS Next 3Y11.53%
EPS Next 5Y7.01%
Revenue Next Year6.33%
Revenue Next 2Y5.34%
Revenue Next 3Y4.76%
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.
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
DIS is valuated rather expensively with a Price/Earnings ratio of 19.54.
Compared to the rest of the industry, the Price/Earnings ratio of DIS indicates a rather cheap valuation: DIS is cheaper than 82.50% of the companies listed in the same industry.
DIS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.33, DIS is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DIS indicates a rather cheap valuation: DIS is cheaper than 86.25% of the companies listed in the same industry.
DIS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.54 | ||
| Fwd PE | 17.33 |
4.2 Price Multiples
73.75% of the companies in the same industry are more expensive than DIS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DIS indicates a rather cheap valuation: DIS is cheaper than 82.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.53 | ||
| EV/EBITDA | 12.54 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DIS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.53
PEG (5Y)0.81
EPS Next 2Y11.78%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.31%, DIS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.64, DIS pays a better dividend. On top of this DIS pays more dividend than 86.25% of the companies listed in the same industry.
DIS's Dividend Yield is slightly below the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
The dividend of DIS decreases each year by -11.07%.
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)-11.07%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
14.54% of the earnings are spent on dividend by DIS. This is a low number and sustainable payout ratio.
DP14.54%
EPS Next 2Y11.78%
EPS Next 3Y11.53%
115.88
+1.71 (+1.5%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners75.62%
Inst Owner Change0%
Ins Owners0.02%
Ins Owner Change2.66%
Market Cap206.88B
Revenue(TTM)94.42B
Net Income(TTM)12.40B
Analysts80.53
Price Target135.63 (17.04%)
Short Float %1.22%
Short Ratio1.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend0.98
Dividend Growth(5Y)-11.07%
DP14.54%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.79%
Min EPS beat(2)5.15%
Max EPS beat(2)8.42%
EPS beat(4)4
Avg EPS beat(4)13.4%
Min EPS beat(4)5.15%
Max EPS beat(4)20.27%
EPS beat(8)8
Avg EPS beat(8)12.85%
EPS beat(12)11
Avg EPS beat(12)12.49%
EPS beat(16)13
Avg EPS beat(16)10.81%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-2.22%
Max Revenue beat(2)-1.31%
Revenue beat(4)1
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)1.06%
Revenue beat(8)1
Avg Revenue beat(8)-0.85%
Revenue beat(12)1
Avg Revenue beat(12)-0.93%
Revenue beat(16)3
Avg Revenue beat(16)-1.07%
PT rev (1m)-0.18%
PT rev (3m)-0.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.89%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)2.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.16%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.54 | ||
| Fwd PE | 17.33 | ||
| P/S | 2.19 | ||
| P/FCF | 20.53 | ||
| P/OCF | 11.43 | ||
| P/B | 1.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.54 |
EPS(TTM)5.93
EY5.12%
EPS(NY)6.69
Fwd EY5.77%
FCF(TTM)5.64
FCFY4.87%
OCF(TTM)10.14
OCFY8.75%
SpS52.89
BVpS61.54
TBVpS-2.25
PEG (NY)1.53
PEG (5Y)0.81
Graham Number90.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.28% | ||
| ROE | 11.29% | ||
| ROCE | 8.47% | ||
| ROIC | 6.46% | ||
| ROICexc | 6.69% | ||
| ROICexgc | 24.11% | ||
| OM | 14.65% | ||
| PM (TTM) | 13.14% | ||
| GM | 37.76% | ||
| FCFM | 10.67% |
ROA(3y)3.32%
ROA(5y)2.5%
ROE(3y)6.2%
ROE(5y)4.83%
ROIC(3y)5.33%
ROIC(5y)4.11%
ROICexc(3y)5.59%
ROICexc(5y)4.35%
ROICexgc(3y)21.96%
ROICexgc(5y)17.93%
ROCE(3y)6.98%
ROCE(5y)5.39%
ROICexgc growth 3Y17.17%
ROICexgc growth 5Y23.95%
ROICexc growth 3Y28.32%
ROICexc growth 5Y29.42%
OM growth 3Y21.44%
OM growth 5Y20.35%
PM growth 3Y51.18%
PM growth 5YN/A
GM growth 3Y3.32%
GM growth 5Y2.8%
F-Score8
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.17 | ||
| Debt/EBITDA | 1.84 | ||
| Cap/Depr | 150.66% | ||
| Cap/Sales | 8.5% | ||
| Interest Coverage | 6.75 | ||
| Cash Conversion | 94.48% | ||
| Profit Quality | 81.24% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 2.47 |
F-Score8
WACC10.12%
ROIC/WACC0.64
Cap/Depr(3y)117.22%
Cap/Depr(5y)103.48%
Cap/Sales(3y)6.67%
Cap/Sales(5y)6.26%
Profit Quality(3y)153.8%
Profit Quality(5y)119.01%
High Growth Momentum
Growth
EPS 1Y (TTM)19.56%
EPS 3Y18.88%
EPS 5Y24.16%
EPS Q2Q%-2.63%
EPS Next Y12.74%
EPS Next 2Y11.78%
EPS Next 3Y11.53%
EPS Next 5Y7.01%
Revenue 1Y (TTM)3.35%
Revenue growth 3Y4.51%
Revenue growth 5Y7.63%
Sales Q2Q%-0.49%
Revenue Next Year6.33%
Revenue Next 2Y5.34%
Revenue Next 3Y4.76%
Revenue Next 5Y3.78%
EBIT growth 1Y16.1%
EBIT growth 3Y26.92%
EBIT growth 5Y29.53%
EBIT Next Year32.42%
EBIT Next 3Y14.3%
EBIT Next 5Y8.5%
FCF growth 1Y17.74%
FCF growth 3Y111.38%
FCF growth 5Y22.89%
OCF growth 1Y29.56%
OCF growth 3Y44.41%
OCF growth 5Y18.9%
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.
Can you provide the valuation status for WALT DISNEY CO/THE?
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 8 / 10.
What is the expected EPS growth for WALT DISNEY CO/THE (DIS) stock?
The Earnings per Share (EPS) of WALT DISNEY CO/THE (DIS) is expected to grow by 12.74% in the next year.
How sustainable is the dividend of WALT DISNEY CO/THE (DIS) stock?
The dividend rating of WALT DISNEY CO/THE (DIS) is 4 / 10 and the dividend payout ratio is 14.54%.