WALT DISNEY CO/THE (DIS) Stock Fundamental Analysis
NYSE:DIS - New York Stock Exchange, Inc. - US2546871060 - Common Stock - Currency: USD
DIS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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
In the past year DIS was profitable.
In the past year DIS had a positive cash flow from operations.
DIS had positive earnings in 4 of the past 5 years.
DIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.85%, DIS is doing good in the industry, outperforming 76.39% of the companies in the same industry.
DIS has a better Return On Equity (5.51%) than 77.78% of its industry peers.
The Return On Invested Capital of DIS (5.93%) is better than 77.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DIS is significantly below the industry average of 85.03%.
The 3 year average ROIC (4.02%) for DIS is below the current ROIC(5.93%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 5.51% | ||
| ROIC | 5.93% |
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
Looking at the Profit Margin, with a value of 6.07%, DIS belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
In the last couple of years the Profit Margin of DIS has declined.
DIS's Operating Margin of 14.11% is amongst the best of the industry. DIS outperforms 87.50% of its industry peers.
In the last couple of years the Operating Margin of DIS has declined.
DIS has a worse Gross Margin (36.74%) than 61.11% of its industry peers.
DIS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.11% | ||
| PM (TTM) | 6.07% | ||
| GM | 36.74% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DIS is destroying value.
The number of shares outstanding for DIS has been increased compared to 1 year ago.
Compared to 5 years ago, DIS has more shares outstanding
DIS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.18 indicates that DIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of DIS (2.18) is better than 73.61% of its industry peers.
DIS has a debt to FCF ratio of 5.39. This is a neutral value as DIS would need 5.39 years to pay back of all of its debts.
The Debt to FCF ratio of DIS (5.39) is better than 70.83% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that DIS is not too dependend on debt financing.
The Debt to Equity ratio of DIS (0.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 5.39 | ||
| Altman-Z | 2.18 |
ROIC/WACC0.75
WACC7.87%
2.3 Liquidity
DIS has a Current Ratio of 0.68. 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 (0.68) is worse than 65.28% of its industry peers.
A Quick Ratio of 0.62 indicates that DIS may have some problems paying its short term obligations.
The Quick ratio of DIS (0.62) is worse than 65.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.50% over the past year.
Measured over the past years, DIS shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.31% on average per year.
DIS shows a small growth in Revenue. In the last year, the Revenue has grown by 4.01%.
The Revenue has been growing slightly by 5.59% on average over the past years.
EPS 1Y (TTM)37.5%
EPS 3Y29.57%
EPS 5Y-3.31%
EPS Q2Q%44.26%
Revenue 1Y (TTM)4.01%
Revenue growth 3Y10.66%
Revenue growth 5Y5.59%
Sales Q2Q%4.85%
3.2 Future
DIS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.43% yearly.
DIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.01% yearly.
EPS Next Y11.87%
EPS Next 2Y12%
EPS Next 3Y12.35%
EPS Next 5Y8.43%
Revenue Next Year3.56%
Revenue Next 2Y4.67%
Revenue Next 3Y4.57%
Revenue Next 5Y4.01%
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 19.18, which indicates a rather expensive current valuation of DIS.
Based on the Price/Earnings ratio, DIS is valued cheaply inside the industry as 81.94% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DIS to the average of the S&P500 Index (29.35), we can say DIS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.96, the valuation of DIS can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DIS indicates a rather cheap valuation: DIS is cheaper than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, DIS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.18 | ||
| Fwd PE | 16.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DIS is valued a bit cheaper than 72.22% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DIS is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.67 | ||
| EV/EBITDA | 12.75 |
4.3 Compensation for Growth
DIS's 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.
DIS's earnings are expected to grow with 12.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.62
PEG (5Y)N/A
EPS Next 2Y12%
EPS Next 3Y12.35%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, DIS is not a good candidate for dividend investing.
DIS's Dividend Yield is rather good when compared to the industry average which is at 5.44. DIS pays more dividend than 86.11% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, DIS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
The dividend of DIS decreases each year by -14.82%.
DIS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-14.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
24.33% of the earnings are spent on dividend by DIS. This is a low number and sustainable payout ratio.
DP24.33%
EPS Next 2Y12%
EPS Next 3Y12.35%
105.51
+0.08 (+0.08%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners71.43%
Inst Owner Change2.35%
Ins Owners0.01%
Ins Owner Change6.02%
Market Cap190.74B
Analysts78.38
Price Target129.17 (22.42%)
Short Float %1.12%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend0.75
Dividend Growth(5Y)-14.82%
DP24.33%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.36%
Min EPS beat(2)2.45%
Max EPS beat(2)20.27%
EPS beat(4)4
Avg EPS beat(4)11.78%
Min EPS beat(4)2.45%
Max EPS beat(4)20.27%
EPS beat(8)7
Avg EPS beat(8)11.45%
EPS beat(12)9
Avg EPS beat(12)6.07%
EPS beat(16)12
Avg EPS beat(16)21.49%
Revenue beat(2)0
Avg Revenue beat(2)-0.59%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)-0.45%
Revenue beat(4)0
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-1.11%
Max Revenue beat(4)-0.45%
Revenue beat(8)0
Avg Revenue beat(8)-1.03%
Revenue beat(12)1
Avg Revenue beat(12)-1.5%
Revenue beat(16)3
Avg Revenue beat(16)-1.19%
PT rev (1m)0.89%
PT rev (3m)3.36%
EPS NQ rev (1m)-4.88%
EPS NQ rev (3m)-5.44%
EPS NY rev (1m)1.42%
EPS NY rev (3m)1.39%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.18 | ||
| Fwd PE | 16.96 | ||
| P/S | 2.06 | ||
| P/FCF | 22.67 | ||
| P/OCF | 12.72 | ||
| P/B | 1.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.75 |
EPS(TTM)5.5
EY5.21%
EPS(NY)6.22
Fwd EY5.9%
FCF(TTM)4.65
FCFY4.41%
OCF(TTM)8.29
OCFY7.86%
SpS51.17
BVpS56.39
TBVpS-7.89
PEG (NY)1.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 5.51% | ||
| ROCE | 8.05% | ||
| ROIC | 5.93% | ||
| ROICexc | 6.14% | ||
| ROICexgc | 23.74% | ||
| OM | 14.11% | ||
| PM (TTM) | 6.07% | ||
| GM | 36.74% | ||
| FCFM | 9.09% |
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-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 5.39 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 130.98% | ||
| Cap/Sales | 7.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.92% | ||
| Profit Quality | 149.81% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 2.18 |
F-Score7
WACC7.87%
ROIC/WACC0.75
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)37.5%
EPS 3Y29.57%
EPS 5Y-3.31%
EPS Q2Q%44.26%
EPS Next Y11.87%
EPS Next 2Y12%
EPS Next 3Y12.35%
EPS Next 5Y8.43%
Revenue 1Y (TTM)4.01%
Revenue growth 3Y10.66%
Revenue growth 5Y5.59%
Sales Q2Q%4.85%
Revenue Next Year3.56%
Revenue Next 2Y4.67%
Revenue Next 3Y4.57%
Revenue Next 5Y4.01%
EBIT growth 1Y32.76%
EBIT growth 3Y48.22%
EBIT growth 5Y0.14%
EBIT Next Year30.72%
EBIT Next 3Y15.23%
EBIT Next 5Y9.95%
FCF growth 1Y8848.94%
FCF growth 3Y62.65%
FCF growth 5Y37.68%
OCF growth 1Y186.25%
OCF growth 3Y35.89%
OCF growth 5Y16.16%