WALT DISNEY CO/THE (DIS) Stock Fundamental Analysis
NYSE:DIS - New York Stock Exchange, Inc. - US2546871060 - Common Stock - Currency: USD
Overall DIS gets a fundamental rating of 4 out of 10. We evaluated DIS against 71 industry peers in the Entertainment industry. There are concerns on the financial health of DIS while its profitability can be described as average. 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.
DIS had a positive operating cash flow in the past year.
Of the past 5 years DIS 4 years were profitable.
In the past 5 years DIS always reported a positive cash flow from operatings.
1.2 Ratios
DIS's Return On Assets of 2.53% is fine compared to the rest of the industry. DIS outperforms 74.24% of its industry peers.
DIS's Return On Equity of 4.94% is fine compared to the rest of the industry. DIS outperforms 77.27% of its industry peers.
DIS has a better Return On Invested Capital (5.43%) than 75.76% of its industry peers.
DIS had an Average Return On Invested Capital over the past 3 years of 4.02%. This is significantly below the industry average of 94.01%.
The 3 year average ROIC (4.02%) for DIS is below the current ROIC(5.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.53% | ||
| ROE | 4.94% | ||
| ROIC | 5.43% |
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
DIS has a better Profit Margin (5.44%) than 78.79% of its industry peers.
DIS's Profit Margin has declined in the last couple of years.
DIS has a better Operating Margin (13.04%) than 81.82% of its industry peers.
DIS's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 35.75%, DIS is not doing good in the industry: 65.15% of the companies in the same industry are doing better.
DIS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.04% | ||
| PM (TTM) | 5.44% | ||
| GM | 35.75% |
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
DIS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DIS has more shares outstanding
DIS has more shares outstanding than it did 5 years ago.
DIS has a worse debt/assets ratio than last year.
2.2 Solvency
DIS has an Altman-Z score of 2.25. 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.
With a decent Altman-Z score value of 2.25, DIS is doing good in the industry, outperforming 71.21% of the companies in the same industry.
The Debt to FCF ratio of DIS is 5.35, which is a neutral value as it means it would take DIS, 5.35 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DIS (5.35) is better than 71.21% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that DIS is not too dependend on debt financing.
DIS's Debt to Equity ratio of 0.39 is in line compared to the rest of the industry. DIS outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 2.25 |
ROIC/WACC0.67
WACC8.08%
2.3 Liquidity
A Current Ratio of 0.73 indicates that DIS may have some problems paying its short term obligations.
DIS has a worse Current ratio (0.73) than 62.12% of its industry peers.
DIS has a Quick Ratio of 0.73. 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 Quick ratio of 0.67 is on the low side compared to the rest of the industry. DIS is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.56% over the past year.
The Earnings Per Share has been decreasing by -3.31% on average over the past years.
The Revenue has been growing slightly by 2.77% in the past year.
DIS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.59% yearly.
EPS 1Y (TTM)31.56%
EPS 3Y29.57%
EPS 5Y-3.31%
EPS Q2Q%39.02%
Revenue 1Y (TTM)2.77%
Revenue growth 3Y10.66%
Revenue growth 5Y5.59%
Sales Q2Q%6.28%
3.2 Future
Based on estimates for the next years, DIS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.43% on average per year.
DIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.01% yearly.
EPS Next Y10.31%
EPS Next 2Y11.96%
EPS Next 3Y11.82%
EPS Next 5Y8.43%
Revenue Next Year3.67%
Revenue Next 2Y4.67%
Revenue Next 3Y4.63%
Revenue Next 5Y4.01%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
A Price/Earnings ratio of 22.29 indicates a rather expensive valuation of DIS.
DIS's Price/Earnings ratio is a bit cheaper when compared to the industry. DIS is cheaper than 78.79% of the companies in the same industry.
When comparing the Price/Earnings ratio of DIS to the average of the S&P500 Index (28.58), we can say DIS is valued slightly cheaper.
DIS is valuated rather expensively with a Price/Forward Earnings ratio of 20.20.
Based on the Price/Forward Earnings ratio, DIS is valued a bit cheaper than 77.27% of the companies in the same industry.
DIS is valuated cheaply when we compare the Price/Forward Earnings ratio to 95.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.29 | ||
| Fwd PE | 20.2 |
4.2 Price Multiples
DIS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DIS is cheaper than 74.24% of the companies in the same industry.
DIS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DIS is cheaper than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.39 | ||
| EV/EBITDA | 14.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DIS does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.16
PEG (5Y)N/A
EPS Next 2Y11.96%
EPS Next 3Y11.82%
5. Dividend
5.1 Amount
DIS has a yearly dividend return of 0.88%, which is pretty low.
Compared to an average industry Dividend Yield of 3.78, DIS pays a better dividend. On top of this DIS pays more dividend than 86.36% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, DIS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
The dividend of DIS decreases each year by -14.82%.
DIS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-14.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
27.47% of the earnings are spent on dividend by DIS. This is a low number and sustainable payout ratio.
DP27.47%
EPS Next 2Y11.96%
EPS Next 3Y11.82%
WALT DISNEY CO/THE
NYSE:DIS (2/5/2025, 8:04:00 PM)
After market: 110.3 -0.24 (-0.22%)110.54
-2.76 (-2.44%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners69.26%
Inst Owner Change-0.71%
Ins Owners0.01%
Ins Owner Change6.71%
Market Cap200.18B
Analysts76.92
Price Target128.03 (15.82%)
Short Float %1.07%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend0.75
Dividend Growth(5Y)-14.82%
DP27.47%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.89%
Min EPS beat(2)2.45%
Max EPS beat(2)15.33%
EPS beat(4)4
Avg EPS beat(4)12.3%
Min EPS beat(4)2.45%
Max EPS beat(4)22.33%
EPS beat(8)7
Avg EPS beat(8)12.04%
EPS beat(12)9
Avg EPS beat(12)9.95%
EPS beat(16)12
Avg EPS beat(16)31.28%
Revenue beat(2)0
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-0.63%
Max Revenue beat(2)-0.45%
Revenue beat(4)0
Avg Revenue beat(4)-0.89%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)-0.45%
Revenue beat(8)0
Avg Revenue beat(8)-0.99%
Revenue beat(12)2
Avg Revenue beat(12)-1.16%
Revenue beat(16)4
Avg Revenue beat(16)-1.08%
PT rev (1m)1.43%
PT rev (3m)13.26%
EPS NQ rev (1m)1.2%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)0.12%
EPS NY rev (3m)5.03%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-1.17%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.29 | ||
| Fwd PE | 20.2 | ||
| P/S | 2.19 | ||
| P/FCF | 23.39 | ||
| P/OCF | 14.33 | ||
| P/B | 1.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.49 |
EPS(TTM)4.96
EY4.49%
EPS(NY)5.47
Fwd EY4.95%
FCF(TTM)4.73
FCFY4.28%
OCF(TTM)7.71
OCFY6.98%
SpS50.45
BVpS55.6
TBVpS-8.66
PEG (NY)2.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.53% | ||
| ROE | 4.94% | ||
| ROCE | 7.37% | ||
| ROIC | 5.43% | ||
| ROICexc | 5.64% | ||
| ROICexgc | 22.37% | ||
| OM | 13.04% | ||
| PM (TTM) | 5.44% | ||
| GM | 35.75% | ||
| FCFM | 9.37% |
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-Score8
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 5.35 | ||
| Debt/EBITDA | 2.31 | ||
| Cap/Depr | 108.46% | ||
| Cap/Sales | 5.92% | ||
| Interest Coverage | 5.58 | ||
| Cash Conversion | 82.65% | ||
| Profit Quality | 172.14% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 2.25 |
F-Score8
WACC8.08%
ROIC/WACC0.67
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)31.56%
EPS 3Y29.57%
EPS 5Y-3.31%
EPS Q2Q%39.02%
EPS Next Y10.31%
EPS Next 2Y11.96%
EPS Next 3Y11.82%
EPS Next 5Y8.43%
Revenue 1Y (TTM)2.77%
Revenue growth 3Y10.66%
Revenue growth 5Y5.59%
Sales Q2Q%6.28%
Revenue Next Year3.67%
Revenue Next 2Y4.67%
Revenue Next 3Y4.63%
Revenue Next 5Y4.01%
EBIT growth 1Y33.58%
EBIT growth 3Y48.22%
EBIT growth 5Y0.14%
EBIT Next Year29.93%
EBIT Next 3Y15.07%
EBIT Next 5Y9.95%
FCF growth 1Y74.78%
FCF growth 3Y62.65%
FCF growth 5Y37.68%
OCF growth 1Y41.61%
OCF growth 3Y35.89%
OCF growth 5Y16.16%