WALT DISNEY CO/THE (WDP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:WDP - US2546871060 - Common Stock
92.07 EUR
-0.29 (-0.31%)
Taking everything into account, WDP scores 5 out of 10 in our fundamental rating. WDP was compared to 46 industry peers in the Entertainment industry. While WDP belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. WDP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- WDP had positive earnings in the past year.
- In the past year WDP had a positive cash flow from operations.
- Each year in the past 5 years WDP has been profitable.
- Each year in the past 5 years WDP had a positive operating cash flow.
1.2 Ratios
- WDP has a Return On Assets of 6.28%. This is amongst the best in the industry. WDP outperforms 84.78% of its industry peers.
- Looking at the Return On Equity, with a value of 11.29%, WDP is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
- WDP has a better Return On Invested Capital (6.46%) than 71.74% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WDP is below the industry average of 9.28%.
- The 3 year average ROIC (5.33%) for WDP 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
- With an excellent Profit Margin value of 13.14%, WDP belongs to the best of the industry, outperforming 84.78% of the companies in the same industry.
- WDP's Profit Margin has improved in the last couple of years.
- WDP has a better Operating Margin (14.65%) than 84.78% of its industry peers.
- WDP's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 37.76%, WDP is doing worse than 67.39% of the companies in the same industry.
- In the last couple of years the Gross Margin of WDP 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
- WDP 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 WDP has been reduced compared to 1 year ago.
- The number of shares outstanding for WDP has been increased compared to 5 years ago.
- Compared to 1 year ago, WDP has an improved debt to assets ratio.
2.2 Solvency
- WDP has an Altman-Z score of 2.42. This is not the best score and indicates that WDP is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of WDP (2.42) is better than 73.91% of its industry peers.
- WDP has a debt to FCF ratio of 4.17. This is a neutral value as WDP would need 4.17 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.17, WDP is in line with its industry, outperforming 58.70% of the companies in the same industry.
- WDP has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
- WDP has a better Debt to Equity ratio (0.32) than 71.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.69
WACC9.39%
2.3 Liquidity
- WDP has a Current Ratio of 0.71. This is a bad value and indicates that WDP is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.71, WDP is in line with its industry, outperforming 43.48% of the companies in the same industry.
- WDP has a Quick Ratio of 0.71. This is a bad value and indicates that WDP is not financially healthy enough and could expect problems in meeting its short term obligations.
- WDP has a Quick ratio (0.65) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
- WDP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.56%, which is quite good.
- WDP 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
- WDP 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, WDP 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.
- 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 18.53 indicates a rather expensive valuation of WDP.
- Based on the Price/Earnings ratio, WDP is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.82. WDP is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 16.43, which indicates a correct valuation of WDP.
- Based on the Price/Forward Earnings ratio, WDP is valued cheaply inside the industry as 80.43% of the companies are valued more expensively.
- WDP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.53 | ||
| Fwd PE | 16.43 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as WDP.
- 67.39% of the companies in the same industry are more expensive than WDP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.46 | ||
| EV/EBITDA | 12.16 |
4.3 Compensation for Growth
- WDP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of WDP may justify a higher PE ratio.
PEG (NY)1.46
PEG (5Y)0.77
EPS Next 2Y11.88%
EPS Next 3Y11.77%
5. Dividend
5.1 Amount
- WDP has a Yearly Dividend Yield of 1.32%.
- Compared to an average industry Dividend Yield of 0.83, WDP pays a bit more dividend than its industry peers.
- WDP'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 WDP decreases each year by -11.07%.
Dividend Growth(5Y)-11.07%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- WDP 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 / WDP.DE FAQ
What is the ChartMill fundamental rating of WALT DISNEY CO/THE (WDP.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to WDP.DE.
What is the valuation status of WALT DISNEY CO/THE (WDP.DE) stock?
ChartMill assigns a valuation rating of 6 / 10 to WALT DISNEY CO/THE (WDP.DE). This can be considered as Fairly Valued.
How profitable is WALT DISNEY CO/THE (WDP.DE) stock?
WALT DISNEY CO/THE (WDP.DE) has a profitability rating of 8 / 10.
Can you provide the financial health for WDP stock?
The financial health rating of WALT DISNEY CO/THE (WDP.DE) is 4 / 10.
How sustainable is the dividend of WALT DISNEY CO/THE (WDP.DE) stock?
The dividend rating of WALT DISNEY CO/THE (WDP.DE) is 3 / 10 and the dividend payout ratio is 14.54%.