WALT DISNEY CO/THE (DIS)
US2546871060 - Common Stock
We assign a fundamental rating of 4 out of 10 to DIS. DIS was compared to 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.
Of the past 5 years DIS 4 years were profitable.
Each year in the past 5 years DIS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DIS (2.53%) is better than 73.24% of its industry peers.
The Return On Equity of DIS (4.94%) is better than 76.06% of its industry peers.
The Return On Invested Capital of DIS (5.43%) is better than 76.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DIS is significantly below the industry average of 88.68%.
The last Return On Invested Capital (5.43%) for DIS is above the 3 year average (4.01%), which is a sign of increasing profitability.
| 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)4.01%
ROIC(5y)3.04%
1.3 Margins
Looking at the Profit Margin, with a value of 5.44%, DIS is in the better half of the industry, outperforming 77.46% of the companies in the same industry.
In the last couple of years the Profit Margin of DIS has declined.
Looking at the Operating Margin, with a value of 13.04%, DIS belongs to the top of the industry, outperforming 80.28% of the companies in the same industry.
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: 61.97% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of DIS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.04% | ||
| PM (TTM) | 5.44% | ||
| GM | 35.75% |
OM growth 3Y33.69%
OM growth 5Y-5.26%
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.
DIS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DIS has been increased compared to 5 years ago.
DIS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.28 indicates that DIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.28, DIS is doing good in the industry, outperforming 74.65% 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.
DIS has a Debt to FCF ratio of 5.35. This is in the better half of the industry: DIS outperforms 73.24% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that DIS is not too dependend on debt financing.
DIS has a Debt to Equity ratio (0.39) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 5.35 | ||
| Altman-Z | 2.28 |
ROIC/WACC0.68
WACC8.04%
2.3 Liquidity
DIS has a Current 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.
With a Current ratio value of 0.73, DIS is not doing good in the industry: 63.38% of the companies in the same industry are doing better.
A Quick Ratio of 0.67 indicates that DIS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.67, DIS is doing worse than 67.61% of the companies in the same industry.
| 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.
DIS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.31% yearly.
Looking at the last year, DIS shows a small growth in Revenue. The Revenue has grown by 2.77% in the last year.
Measured over the past years, DIS shows a small growth in Revenue. The Revenue has been growing by 5.59% on average per year.
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
DIS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.09% yearly.
Based on estimates for the next years, DIS will show a small growth in Revenue. The Revenue will grow by 5.73% on average per year.
EPS Next Y4.98%
EPS Next 2Y8.43%
EPS Next 3Y10%
EPS Next 5Y12.09%
Revenue Next Year4.01%
Revenue Next 2Y4.33%
Revenue Next 3Y4.96%
Revenue Next 5Y5.73%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.32, the valuation of DIS can be described as rather expensive.
Based on the Price/Earnings ratio, DIS is valued a bit cheaper than 74.65% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.20. DIS is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 22.21, which indicates a rather expensive current valuation of DIS.
Based on the Price/Forward Earnings ratio, DIS is valued a bit cheaper than the industry average as 76.06% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.00. DIS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.32 | ||
| Fwd PE | 22.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DIS is valued a bit cheaper than the industry average as 70.42% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DIS is valued cheaply inside the industry as 80.28% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.47 | ||
| EV/EBITDA | 14.74 |
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)4.69
PEG (5Y)N/A
EPS Next 2Y8.43%
EPS Next 3Y10%
5. Dividend
5.1 Amount
DIS has a yearly dividend return of 0.65%, which is pretty low.
Compared to an average industry Dividend Yield of 3.62, DIS pays a better dividend. On top of this DIS pays more dividend than 84.51% of the companies listed in the same industry.
With a Dividend Yield of 0.65, DIS pays less dividend than the S&P500 average, which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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
27.47% of the earnings are spent on dividend by DIS. This is a low number and sustainable payout ratio.
DP27.47%
EPS Next 2Y8.43%
EPS Next 3Y10%
WALT DISNEY CO/THE
NYSE:DIS (11/22/2024, 8:04:00 PM)
After market: 115.6 -0.05 (-0.04%)115.65
+0.93 (+0.81%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap209.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.32 | ||
| Fwd PE | 22.21 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.69
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.53% | ||
| ROE | 4.94% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.04% | ||
| PM (TTM) | 5.44% | ||
| GM | 35.75% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)31.56%
EPS 3Y29.57%
EPS 5Y
EPS Q2Q%
EPS Next Y4.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.77%
Revenue growth 3Y10.66%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y