WALT DISNEY CO/THE (DIS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DIS - US2546871060 - Common Stock
105.3 USD
-0.17 (-0.16%)
105.5 USD
+0.2 (+0.19%)
Overall DIS gets a fundamental rating of 5 out of 10. We evaluated DIS against 80 industry peers in the Entertainment industry. While DIS has a great profitability rating, 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.
DIS had a positive operating cash flow in the past year.
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 Return On Assets of 6.28%. This is amongst the best in the industry. DIS outperforms 81.25% 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 78.75% of the companies in the same industry.
The Return On Invested Capital of DIS (6.46%) is better than 77.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DIS is below the industry average of 9.08%.
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.
DIS's Profit Margin has improved in the last couple of years.
DIS has a Operating Margin of 14.65%. This is amongst the best in the industry. DIS outperforms 87.50% of its industry peers.
In the last couple of years the Operating Margin of DIS has grown nicely.
Looking at the Gross Margin, with a value of 37.76%, DIS is in line with its industry, outperforming 46.25% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DIS is destroying value.
The number of shares outstanding for DIS has been reduced compared to 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 2.36. 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.
DIS has a Altman-Z score of 2.36. This is in the better half of the industry: DIS outperforms 66.25% 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.
With a decent Debt to FCF ratio value of 4.17, DIS is doing good in the industry, outperforming 77.50% of the companies in the same industry.
DIS has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
DIS's Debt to Equity ratio of 0.32 is in line compared to the rest of the industry. DIS outperforms 51.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.8
WACC8.06%
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 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 worse Quick ratio (0.65) than 67.50% 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.
DIS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.16% yearly.
The Revenue has been growing slightly by 3.35% in the past year.
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
The Earnings Per Share is expected to grow by 7.01% 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 3.78% on average per year.
EPS Next Y12.77%
EPS Next 2Y11.81%
EPS Next 3Y11.28%
EPS Next 5Y7.01%
Revenue Next Year6.34%
Revenue Next 2Y5.35%
Revenue Next 3Y4.72%
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 17.76, DIS is valued on the expensive side.
Based on the Price/Earnings ratio, DIS is valued cheaply inside the industry as 82.50% of the companies are valued more expensively.
DIS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.49.
A Price/Forward Earnings ratio of 15.75 indicates a correct valuation of DIS.
DIS's Price/Forward Earnings ratio is rather cheap when compared to the industry. DIS is cheaper than 87.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, DIS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.76 | ||
| Fwd PE | 15.75 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than DIS, based on the Enterprise Value to EBITDA ratio.
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 | 18.66 | ||
| EV/EBITDA | 11.71 |
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)1.39
PEG (5Y)0.74
EPS Next 2Y11.81%
EPS Next 3Y11.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.42%, DIS has a reasonable but not impressive dividend return.
DIS's Dividend Yield is rather good when compared to the industry average which is at 34.07. DIS pays more dividend than 86.25% of the companies in the same industry.
DIS's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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.
The dividend of DIS decreased recently.
Dividend Growth(5Y)-11.07%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DIS pays out 14.54% of its income as dividend. This is a sustainable payout ratio.
DP14.54%
EPS Next 2Y11.81%
EPS Next 3Y11.28%
105.3
-0.17 (-0.16%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners75.63%
Inst Owner Change-1.98%
Ins Owners0.02%
Ins Owner Change1.36%
Market Cap187.99B
Revenue(TTM)94.42B
Net Income(TTM)12.40B
Analysts81.03
Price Target135.63 (28.8%)
Short Float %1.09%
Short Ratio1.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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)6.79%
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)-1.13%
PT rev (3m)-0.13%
EPS NQ rev (1m)-10.09%
EPS NQ rev (3m)-12.98%
EPS NY rev (1m)2.1%
EPS NY rev (3m)2.53%
Revenue NQ rev (1m)-2.51%
Revenue NQ rev (3m)-3.21%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.76 | ||
| Fwd PE | 15.75 | ||
| P/S | 1.99 | ||
| P/FCF | 18.66 | ||
| P/OCF | 10.39 | ||
| P/B | 1.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.71 |
EPS(TTM)5.93
EY5.63%
EPS(NY)6.69
Fwd EY6.35%
FCF(TTM)5.64
FCFY5.36%
OCF(TTM)10.14
OCFY9.63%
SpS52.89
BVpS61.54
TBVpS-2.25
PEG (NY)1.39
PEG (5Y)0.74
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 | 2.36 |
F-Score8
WACC8.06%
ROIC/WACC0.8
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 Y12.77%
EPS Next 2Y11.81%
EPS Next 3Y11.28%
EPS Next 5Y7.01%
Revenue 1Y (TTM)3.35%
Revenue growth 3Y4.51%
Revenue growth 5Y7.63%
Sales Q2Q%-0.49%
Revenue Next Year6.34%
Revenue Next 2Y5.35%
Revenue Next 3Y4.72%
Revenue Next 5Y3.78%
EBIT growth 1Y16.1%
EBIT growth 3Y26.92%
EBIT growth 5Y29.53%
EBIT Next Year32.43%
EBIT Next 3Y14.17%
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.
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 8 / 10.
Can you provide the financial health for DIS stock?
The financial health rating of WALT DISNEY CO/THE (DIS) is 4 / 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 12.77% in the next year.