WALT DISNEY CO/THE (DIS) Stock Fundamental Analysis
USA - NYSE:DIS - US2546871060 - Common Stock
105.8 USD
-1.81 (-1.68%)
106.709 USD
+0.91 (+0.86%)
Overall DIS gets a fundamental rating of 5 out of 10. We evaluated DIS against 79 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 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.
DIS had a positive operating cash flow in the past year.
In the past 5 years DIS has always been profitable.
DIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DIS has a better Return On Assets (6.28%) than 81.01% of its industry peers.
Looking at the Return On Equity, with a value of 11.29%, DIS is in the better half of the industry, outperforming 78.48% of the companies in the same industry.
DIS has a Return On Invested Capital of 6.46%. This is in the better half of the industry: DIS outperforms 75.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DIS is below the industry average of 9.82%.
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 87.34% of its industry peers.
DIS's Profit Margin has improved in the last couple of years.
DIS's Operating Margin of 14.65% is amongst the best of the industry. DIS outperforms 87.34% of its industry peers.
DIS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 37.76%, DIS is in line with its industry, outperforming 45.57% of the companies in the same industry.
In the last couple of years the Gross Margin of DIS has grown nicely.
| 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
DIS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
DIS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.38 indicates that DIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of DIS (2.38) is better than 67.09% of its industry peers.
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.
The Debt to FCF ratio of DIS (4.17) is better than 74.68% of its industry peers.
DIS has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
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 | 2.38 |
ROIC/WACC0.84
WACC7.73%
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.
The Current ratio of DIS (0.71) is worse than 65.82% of its industry peers.
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 67.09% 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%.
The Revenue has been growing slightly by 7.63% on average over the past years.
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 5.76% on average over the next years.
Based on estimates for the next years, DIS will show a small growth in Revenue. The Revenue will grow by 3.08% on average per year.
EPS Next Y10.45%
EPS Next 2Y11.19%
EPS Next 3Y10.03%
EPS Next 5Y5.76%
Revenue Next Year6.24%
Revenue Next 2Y5.24%
Revenue Next 3Y4.75%
Revenue Next 5Y3.08%
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
DIS is valuated rather expensively with a Price/Earnings ratio of 17.84.
Based on the Price/Earnings ratio, DIS is valued cheaper than 83.54% of the companies in the same industry.
When comparing the Price/Earnings ratio of DIS to the average of the S&P500 Index (25.89), we can say DIS is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.15, which indicates a correct valuation of DIS.
Based on the Price/Forward Earnings ratio, DIS is valued cheaper than 87.34% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. DIS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.84 | ||
| Fwd PE | 16.15 |
4.2 Price Multiples
DIS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DIS is cheaper than 74.68% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DIS is valued cheaper than 84.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.88 | ||
| EV/EBITDA | 11.83 |
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)1.71
PEG (5Y)0.74
EPS Next 2Y11.19%
EPS Next 3Y10.03%
5. Dividend
5.1 Amount
DIS has a Yearly Dividend Yield of 1.39%.
DIS's Dividend Yield is rather good when compared to the industry average which is at 41.63. DIS pays more dividend than 87.34% of the companies in the same industry.
With a Dividend Yield of 1.39, DIS pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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 2Y11.19%
EPS Next 3Y10.03%
105.8
-1.81 (-1.68%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners74.2%
Inst Owner Change-1.86%
Ins Owners0.02%
Ins Owner Change2.4%
Market Cap190.22B
Revenue(TTM)94.42B
Net Income(TTM)12.40B
Analysts81.5
Price Target137.19 (29.67%)
Short Float %1.06%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend0.98
Dividend Growth(5Y)-11.07%
DP14.54%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.74%
Min EPS beat(2)5.06%
Max EPS beat(2)8.42%
EPS beat(4)4
Avg EPS beat(4)13.37%
Min EPS beat(4)5.06%
Max EPS beat(4)20.27%
EPS beat(8)8
Avg EPS beat(8)12.84%
EPS beat(12)11
Avg EPS beat(12)12.48%
EPS beat(16)13
Avg EPS beat(16)10.81%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)-1.31%
Revenue beat(4)1
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-2.23%
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)0.67%
PT rev (3m)1.57%
EPS NQ rev (1m)-1.85%
EPS NQ rev (3m)-3.22%
EPS NY rev (1m)0.23%
EPS NY rev (3m)2.42%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.84 | ||
| Fwd PE | 16.15 | ||
| P/S | 2.01 | ||
| P/FCF | 18.88 | ||
| P/OCF | 10.51 | ||
| P/B | 1.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.83 |
EPS(TTM)5.93
EY5.6%
EPS(NY)6.55
Fwd EY6.19%
FCF(TTM)5.6
FCFY5.3%
OCF(TTM)10.07
OCFY9.52%
SpS52.52
BVpS61.11
TBVpS-2.24
PEG (NY)1.71
PEG (5Y)0.74
Graham Number90.3
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 | 2.38 |
F-Score8
WACC7.73%
ROIC/WACC0.84
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 Y10.45%
EPS Next 2Y11.19%
EPS Next 3Y10.03%
EPS Next 5Y5.76%
Revenue 1Y (TTM)3.35%
Revenue growth 3Y4.51%
Revenue growth 5Y7.63%
Sales Q2Q%-0.49%
Revenue Next Year6.24%
Revenue Next 2Y5.24%
Revenue Next 3Y4.75%
Revenue Next 5Y3.08%
EBIT growth 1Y16.1%
EBIT growth 3Y26.92%
EBIT growth 5Y29.53%
EBIT Next Year32.89%
EBIT Next 3Y16.25%
EBIT Next 5Y7.94%
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 4 / 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 10.45% in the next year.