WALT DISNEY CO/THE (DIS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DIS - US2546871060 - Common Stock
111.31 USD
+0.33 (+0.3%)
111.33 USD
+0.02 (+0.02%)
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 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 each of the past 5 years.
- In the past 5 years DIS always reported a positive cash flow from operatings.
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.
- DIS has a Return On Equity of 11.29%. This is in the better half of the industry: DIS outperforms 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 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
- The Profit Margin of DIS (13.14%) is better than 87.50% of its industry peers.
- In the last couple of years the Profit Margin of DIS has grown nicely.
- DIS has a Operating Margin of 14.65%. This is amongst the best in the industry. DIS outperforms 87.50% of its industry peers.
- DIS's Operating Margin has improved in the last couple of years.
- DIS's Gross Margin of 37.76% is in line compared to the rest of the industry. DIS outperforms 45.00% of 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.
- Compared to 1 year ago, DIS has less shares outstanding
- The number of shares outstanding for DIS has been increased compared to 5 years ago.
- Compared to 1 year ago, DIS has an improved debt to assets ratio.
2.2 Solvency
- DIS has an Altman-Z score of 2.44. 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 better Altman-Z score (2.44) than 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.
- DIS's Debt to FCF ratio of 4.17 is fine compared to the rest of the industry. DIS outperforms 78.75% of its industry peers.
- DIS has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
- DIS has a Debt to Equity ratio (0.32) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.68
WACC9.49%
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.
- The Quick ratio of DIS (0.65) is worse than 68.75% of its industry peers.
| 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.
- Measured over the past years, DIS shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.16% on average per year.
- DIS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.35%.
- 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
- DIS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.01% yearly.
- 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 Y12.72%
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.
- 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
- DIS is valuated rather expensively with a Price/Earnings ratio of 18.77.
- Based on the Price/Earnings ratio, DIS is valued cheaply inside the industry as 82.50% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.25. DIS is valued slightly cheaper when compared to this.
- DIS is valuated correctly with a Price/Forward Earnings ratio of 16.65.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DIS indicates a rather cheap valuation: DIS is cheaper than 87.50% 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 (25.98), we can say DIS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.77 | ||
| Fwd PE | 16.65 |
4.2 Price Multiples
- DIS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DIS is cheaper than 73.75% of the companies in the same industry.
- 85.00% of the companies in the same industry are more expensive than DIS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.72 | ||
| EV/EBITDA | 12.27 |
4.3 Compensation for Growth
- The 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)1.48
PEG (5Y)0.78
EPS Next 2Y11.88%
EPS Next 3Y11.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.32%, DIS has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 7.58, DIS pays a better dividend. On top of this DIS pays more dividend than 86.25% of the companies listed in the same industry.
- DIS's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| 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.
- DIS has decreased its dividend recently.
Dividend Growth(5Y)-11.07%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 14.54% of the earnings are spent on dividend by DIS. This is a low number and 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%.