WALT DISNEY CO/THE (DIS) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:DIS • US2546871060
104.45 USD
-8.35 (-7.4%)
At close: Feb 2, 2026
104.85 USD
+0.4 (+0.38%)
After Hours: 2/2/2026, 6:46:43 PM
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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DIS has a correct valuation and a medium growth rate.
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.
- Each year in the past 5 years DIS had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 6.28%, DIS belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
- The Return On Equity of DIS (11.29%) is better than 78.75% of its industry peers.
- DIS has a better Return On Invested Capital (6.46%) than 78.75% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DIS is below the industry average of 8.74%.
- 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
- DIS has a Profit Margin of 13.14%. This is amongst the best in the industry. DIS outperforms 87.50% of its industry peers.
- 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.
- DIS has a Gross Margin (37.76%) which is in line with its industry peers.
- 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.
- The number of shares outstanding for DIS has been reduced compared to 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 2.46 indicates that DIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of DIS (2.46) is better than 68.75% 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.
- The Debt to FCF ratio of DIS (4.17) is better than 78.75% of its industry peers.
- A Debt/Equity ratio of 0.32 indicates that DIS is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.32, DIS perfoms like the industry average, outperforming 52.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.69
WACC9.38%
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.
- DIS's Current ratio of 0.71 is on the low side compared to the rest of the industry. DIS is outperformed by 67.50% of its industry peers.
- A Quick Ratio of 0.65 indicates that DIS may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.65, DIS is doing worse than 68.75% of the companies in the same industry.
| 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.
- 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.
- 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
- Based on estimates for the next years, DIS will show a small growth in Earnings Per Share. The EPS will grow by 7.01% on average per year.
- DIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.78% yearly.
EPS Next Y12.72%
EPS Next 2Y11.88%
EPS Next 3Y11.77%
EPS Next 5Y7.01%
Revenue Next Year6.32%
Revenue Next 2Y5.31%
Revenue Next 3Y4.77%
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
- The Price/Earnings ratio is 17.61, which indicates a rather expensive current valuation of DIS.
- Based on the Price/Earnings ratio, DIS is valued cheaply inside the industry as 83.75% of the companies are valued more expensively.
- DIS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.41, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 15.63 indicates a correct valuation of DIS.
- 87.50% of the companies in the same industry are more expensive than DIS, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of DIS to the average of the S&P500 Index (25.64), we can say DIS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.61 | ||
| Fwd PE | 15.63 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DIS is valued a bit cheaper than 72.50% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, DIS is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.5 | ||
| EV/EBITDA | 12.41 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.38
PEG (5Y)0.73
EPS Next 2Y11.88%
EPS Next 3Y11.77%
5. Dividend
5.1 Amount
- DIS has a Yearly Dividend Yield of 1.34%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 7.59, DIS pays a better dividend. On top of this DIS pays more dividend than 86.25% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.83, DIS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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.
- DIS has decreased its dividend 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 2Y11.88%
EPS Next 3Y11.77%
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 12.72% 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%.