WALT DISNEY CO/THE (DIS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DIS - US2546871060 - Common Stock
112.82 USD
-3.06 (-2.64%)
112.91 USD
+0.09 (+0.08%)
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 has a great profitability rating, there are some minor concerns on its financial health. DIS has a decent growth rate and is not valued too expensively.
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.
In the past 5 years DIS has always been profitable.
In the past 5 years DIS always reported a positive cash flow from operatings.
1.2 Ratios
DIS has a better Return On Assets (6.28%) than 81.25% of its industry peers.
DIS's Return On Equity of 11.29% is fine compared to the rest of the industry. DIS outperforms 78.75% of its industry peers.
DIS has a Return On Invested Capital of 6.46%. This is in the better half of the industry: DIS outperforms 78.75% of its industry peers.
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 last Return On Invested Capital (6.46%) for DIS is above the 3 year average (5.33%), which is a sign of increasing profitability.
| 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
DIS has a better Profit Margin (13.14%) than 87.50% of its industry peers.
DIS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.65%, DIS belongs to the top 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.
DIS has a Gross Margin (37.76%) which is comparable to the rest of the 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DIS is destroying value.
DIS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DIS has been increased compared to 5 years ago.
Compared to 1 year ago, DIS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.49 indicates that DIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.49, DIS is doing good in the industry, outperforming 67.50% of the companies in the same industry.
DIS has a debt to FCF ratio of 4.17. This is a neutral value as DIS would need 4.17 years to pay back of 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.65
WACC9.98%
2.3 Liquidity
A Current Ratio of 0.71 indicates that DIS may have some problems paying its short term obligations.
DIS has a worse Current ratio (0.71) than 67.50% of its industry peers.
A Quick Ratio of 0.65 indicates that DIS may have some problems paying its short term obligations.
DIS has a Quick ratio of 0.65. This is in the lower half of the industry: DIS underperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.56% over the past year.
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%.
DIS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.63% yearly.
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
DIS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.01% yearly.
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.
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
With a Price/Earnings ratio of 19.03, DIS is valued on the expensive side.
82.50% of the companies in the same industry are more expensive than DIS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.25, DIS is valued a bit cheaper.
DIS is valuated correctly with a Price/Forward Earnings ratio of 16.88.
DIS's Price/Forward Earnings ratio is rather cheap when compared to the industry. DIS is cheaper than 86.25% of the companies in the same industry.
DIS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.03 | ||
| Fwd PE | 16.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DIS is valued a bit cheaper than 73.75% of the companies in the same industry.
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 | 19.99 | ||
| EV/EBITDA | 12.69 |
4.3 Compensation for Growth
DIS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of DIS may justify a higher PE ratio.
PEG (NY)1.49
PEG (5Y)0.79
EPS Next 2Y11.78%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
DIS has a Yearly Dividend Yield of 1.31%.
DIS's Dividend Yield is rather good when compared to the industry average which is at 8.69. DIS pays more dividend than 86.25% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 1.92, DIS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
The dividend of DIS decreases each year by -11.07%.
DIS has paid a dividend for at least 10 years, which is a reliable track record.
DIS has decreased its dividend 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%
112.82
-3.06 (-2.64%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners75.62%
Inst Owner Change-0.28%
Ins Owners0.02%
Ins Owner Change2.66%
Market Cap201.42B
Revenue(TTM)94.42B
Net Income(TTM)12.40B
Analysts80.53
Price Target135.63 (20.22%)
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%
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 | 19.03 | ||
| Fwd PE | 16.88 | ||
| P/S | 2.13 | ||
| P/FCF | 19.99 | ||
| P/OCF | 11.13 | ||
| P/B | 1.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.69 |
EPS(TTM)5.93
EY5.26%
EPS(NY)6.69
Fwd EY5.93%
FCF(TTM)5.64
FCFY5%
OCF(TTM)10.14
OCFY8.99%
SpS52.89
BVpS61.54
TBVpS-2.25
PEG (NY)1.49
PEG (5Y)0.79
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 | 2.49 |
F-Score8
WACC9.98%
ROIC/WACC0.65
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%.