WALT DISNEY CO/THE (DIS) Stock Fundamental Analysis
NYSE:DIS - New York Stock Exchange, Inc. - US2546871060 - Common Stock - Currency: USD
Overall DIS gets a fundamental rating of 4 out of 10. We evaluated DIS against 72 industry peers in the Entertainment industry. DIS has a medium profitability rating, but doesn't score so well on its financial health evaluation. DIS has a correct valuation and a medium 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.
Of the past 5 years DIS 4 years were profitable.
In the past 5 years DIS always reported a positive cash flow from operatings.
1.2 Ratios
DIS's Return On Assets of 4.55% is amongst the best of the industry. DIS outperforms 80.56% of its industry peers.
With a decent Return On Equity value of 8.54%, DIS is doing good in the industry, outperforming 79.17% of the companies in the same industry.
DIS has a better Return On Invested Capital (6.23%) than 76.39% 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 22.90%.
The last Return On Invested Capital (6.23%) for DIS is above the 3 year average (4.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 8.54% | ||
| ROIC | 6.23% |
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's Profit Margin of 9.47% is amongst the best of the industry. DIS outperforms 86.11% of its industry peers.
DIS's Profit Margin has declined in the last couple of years.
DIS has a Operating Margin of 14.55%. This is amongst the best in the industry. DIS outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of DIS has declined.
DIS's Gross Margin of 37.10% is on the low side compared to the rest of the industry. DIS is outperformed by 62.50% of its industry peers.
In the last couple of years the Gross Margin of DIS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.55% | ||
| PM (TTM) | 9.47% | ||
| GM | 37.1% |
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
DIS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DIS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, DIS has more shares outstanding
The debt/assets ratio for DIS is higher compared to a year ago.
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.
With a decent Altman-Z score value of 2.47, DIS is doing good in the industry, outperforming 69.44% of the companies in the same industry.
DIS has a debt to FCF ratio of 3.94. This is a good value and a sign of high solvency as DIS would need 3.94 years to pay back of all of its debts.
DIS's Debt to FCF ratio of 3.94 is fine compared to the rest of the industry. DIS outperforms 73.61% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that DIS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.35, DIS perfoms like the industry average, outperforming 51.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 2.47 |
ROIC/WACC0.78
WACC7.97%
2.3 Liquidity
DIS has a Current Ratio of 0.67. 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 Current ratio of DIS (0.67) is worse than 68.06% of its industry peers.
A Quick Ratio of 0.61 indicates that DIS may have some problems paying its short term obligations.
With a Quick ratio value of 0.61, DIS is not doing good in the industry: 68.06% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.11% over the past year.
DIS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.31% yearly.
Looking at the last year, DIS shows a small growth in Revenue. The Revenue has grown by 5.42% in the last year.
The Revenue has been growing slightly by 5.59% on average over the past years.
EPS 1Y (TTM)34.11%
EPS 3Y29.57%
EPS 5Y-3.31%
EPS Q2Q%19.83%
Revenue 1Y (TTM)5.42%
Revenue growth 3Y10.66%
Revenue growth 5Y5.59%
Sales Q2Q%6.96%
3.2 Future
Based on estimates for the next years, DIS will show a small growth in Earnings Per Share. The EPS will grow by 7.50% on average per year.
Based on estimates for the next years, DIS will show a small growth in Revenue. The Revenue will grow by 3.35% on average per year.
EPS Next Y17.6%
EPS Next 2Y13.12%
EPS Next 3Y12.92%
EPS Next 5Y7.5%
Revenue Next Year4.1%
Revenue Next 2Y4.78%
Revenue Next 3Y4.58%
Revenue Next 5Y3.35%
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
The Price/Earnings ratio is 21.60, which indicates a rather expensive current valuation of DIS.
83.33% of the companies in the same industry are more expensive than DIS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.15. DIS is valued slightly cheaper when compared to this.
DIS is valuated rather expensively with a Price/Forward Earnings ratio of 19.54.
83.33% of the companies in the same industry are more expensive than DIS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DIS to the average of the S&P500 Index (21.60), we can say DIS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 19.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DIS is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
79.17% of the companies in the same industry are more expensive than DIS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.46 | ||
| EV/EBITDA | 13.68 |
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 a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as DIS's earnings are expected to grow with 12.92% in the coming years.
PEG (NY)1.23
PEG (5Y)N/A
EPS Next 2Y13.12%
EPS Next 3Y12.92%
5. Dividend
5.1 Amount
DIS has a yearly dividend return of 0.82%, which is pretty low.
DIS's Dividend Yield is rather good when compared to the industry average which is at 6.65. DIS pays more dividend than 83.33% of the companies in the same industry.
With a Dividend Yield of 0.82, DIS pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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.
DIS has decreased its dividend recently.
Dividend Growth(5Y)-14.82%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
19.33% of the earnings are spent on dividend by DIS. This is a low number and sustainable payout ratio.
DP19.33%
EPS Next 2Y13.12%
EPS Next 3Y12.92%
124.01
+1.67 (+1.37%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners73.16%
Inst Owner Change2.04%
Ins Owners0.02%
Ins Owner Change1.25%
Market Cap222.94B
Analysts80
Price Target127.93 (3.16%)
Short Float %0.99%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend0.75
Dividend Growth(5Y)-14.82%
DP19.33%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.01%
Min EPS beat(2)19.75%
Max EPS beat(2)20.27%
EPS beat(4)4
Avg EPS beat(4)14.45%
Min EPS beat(4)2.45%
Max EPS beat(4)20.27%
EPS beat(8)8
Avg EPS beat(8)14.05%
EPS beat(12)10
Avg EPS beat(12)8.54%
EPS beat(16)12
Avg EPS beat(16)11.04%
Revenue beat(2)1
Avg Revenue beat(2)0.17%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)1.06%
Revenue beat(4)1
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-0.72%
Max Revenue beat(4)1.06%
Revenue beat(8)1
Avg Revenue beat(8)-0.8%
Revenue beat(12)2
Avg Revenue beat(12)-1.01%
Revenue beat(16)4
Avg Revenue beat(16)-0.96%
PT rev (1m)2.64%
PT rev (3m)-1.48%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)0.77%
EPS NY rev (1m)0%
EPS NY rev (3m)5.08%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 19.54 | ||
| P/S | 2.37 | ||
| P/FCF | 20.46 | ||
| P/OCF | 12.33 | ||
| P/B | 2.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.68 |
EPS(TTM)5.74
EY4.63%
EPS(NY)6.35
Fwd EY5.12%
FCF(TTM)6.06
FCFY4.89%
OCF(TTM)10.06
OCFY8.11%
SpS52.31
BVpS58.04
TBVpS-6.01
PEG (NY)1.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 8.54% | ||
| ROCE | 8.46% | ||
| ROIC | 6.23% | ||
| ROICexc | 6.46% | ||
| ROICexgc | 24.7% | ||
| OM | 14.55% | ||
| PM (TTM) | 9.47% | ||
| GM | 37.1% | ||
| FCFM | 11.59% |
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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.94 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 140.69% | ||
| Cap/Sales | 7.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.22% | ||
| Profit Quality | 122.29% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 2.47 |
F-Score8
WACC7.97%
ROIC/WACC0.78
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)34.11%
EPS 3Y29.57%
EPS 5Y-3.31%
EPS Q2Q%19.83%
EPS Next Y17.6%
EPS Next 2Y13.12%
EPS Next 3Y12.92%
EPS Next 5Y7.5%
Revenue 1Y (TTM)5.42%
Revenue growth 3Y10.66%
Revenue growth 5Y5.59%
Sales Q2Q%6.96%
Revenue Next Year4.1%
Revenue Next 2Y4.78%
Revenue Next 3Y4.58%
Revenue Next 5Y3.35%
EBIT growth 1Y31.09%
EBIT growth 3Y48.22%
EBIT growth 5Y0.14%
EBIT Next Year34.42%
EBIT Next 3Y15.74%
EBIT Next 5Y8.92%
FCF growth 1Y681.08%
FCF growth 3Y62.65%
FCF growth 5Y37.68%
OCF growth 1Y169.5%
OCF growth 3Y35.89%
OCF growth 5Y16.16%