WALT DISNEY CO/THE (DIS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DIS - US2546871060 - Common Stock
112.91 USD
-1.66 (-1.45%)
112.78 USD
-0.13 (-0.12%)
DIS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years DIS has been profitable.
DIS had a positive operating cash flow in each of the past 5 years.
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.
DIS has a better Return On Equity (11.29%) than 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.
The Average Return On Invested Capital over the past 3 years for DIS 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
Looking at the Profit Margin, with a value of 13.14%, DIS belongs to the top 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's Operating Margin of 14.65% 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 grown nicely.
With a Gross Margin value of 37.76%, DIS perfoms like the industry average, outperforming 45.00% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DIS is destroying value.
DIS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DIS has more shares outstanding
The debt/assets ratio for DIS has been reduced compared to a year ago.
2.2 Solvency
DIS has an Altman-Z score of 2.48. 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's Altman-Z score of 2.48 is fine compared to the rest of the industry. DIS outperforms 67.50% of its industry peers.
The Debt to FCF ratio of DIS is 4.17, which is a neutral value as it means it would take DIS, 4.17 years of fcf income to pay off 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.
DIS has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.32, DIS is in line with its industry, outperforming 52.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.64
WACC10.13%
2.3 Liquidity
A Current Ratio of 0.71 indicates that DIS may have some problems paying its short term obligations.
With a Current ratio value of 0.71, DIS is not doing good in the industry: 67.50% of the companies in the same industry are doing better.
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 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
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.
The Earnings Per Share has been growing by 24.16% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 3.35% in the past year.
Measured over the past years, DIS shows a small growth in Revenue. The Revenue has been growing by 7.63% on average per year.
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.
The Revenue is expected to grow by 3.78% on average over the next years.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.04, the valuation of DIS can be described as rather expensive.
DIS's Price/Earnings ratio is rather cheap when compared to the industry. DIS is cheaper than 82.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of DIS to the average of the S&P500 Index (26.92), we can say DIS is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.89, DIS is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DIS indicates a rather cheap valuation: DIS is cheaper than 86.25% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DIS to the average of the S&P500 Index (23.57), we can say DIS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.04 | ||
| Fwd PE | 16.89 |
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.
DIS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DIS is cheaper than 83.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20 | ||
| EV/EBITDA | 12.57 |
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)1.49
PEG (5Y)0.79
EPS Next 2Y11.78%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
DIS has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
DIS's Dividend Yield is rather good when compared to the industry average which is at 8.64. DIS pays more dividend than 86.25% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 1.94, DIS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
The dividend of DIS decreases each year by -11.07%.
DIS has been paying a dividend for at least 10 years, so it has 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 2Y11.78%
EPS Next 3Y11.53%
112.91
-1.66 (-1.45%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners75.62%
Inst Owner Change0%
Ins Owners0.02%
Ins Owner Change2.66%
Market Cap201.58B
Revenue(TTM)94.42B
Net Income(TTM)12.40B
Analysts81.03
Price Target135.63 (20.12%)
Short Float %1.22%
Short Ratio1.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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)-0.18%
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 | 19.04 | ||
| Fwd PE | 16.89 | ||
| P/S | 2.13 | ||
| P/FCF | 20 | ||
| P/OCF | 11.14 | ||
| P/B | 1.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.57 |
EPS(TTM)5.93
EY5.25%
EPS(NY)6.69
Fwd EY5.92%
FCF(TTM)5.64
FCFY5%
OCF(TTM)10.14
OCFY8.98%
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 | 2.48 |
F-Score8
WACC10.13%
ROIC/WACC0.64
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%.