WALT DISNEY CO/THE (WDP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:WDP - US2546871060 - Common Stock
94.89 EUR
-1.94 (-2%)
Overall WDP gets a fundamental rating of 5 out of 10. We evaluated WDP against 46 industry peers in the Entertainment industry. WDP scores excellent on profitability, but there are some minor concerns on its financial health. WDP has a correct valuation and a medium growth rate.
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.
- WDP had positive earnings in each of the past 5 years.
- Each year in the past 5 years WDP had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.28%, WDP belongs to the top of the industry, outperforming 85.42% of the companies in the same industry.
- WDP has a Return On Equity of 11.29%. This is in the better half of the industry: WDP outperforms 75.00% of its industry peers.
- WDP has a Return On Invested Capital of 6.46%. This is in the better half of the industry: WDP outperforms 72.92% 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 last Return On Invested Capital (6.46%) for WDP 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
- WDP's Profit Margin of 13.14% is amongst the best of the industry. WDP outperforms 85.42% of its industry peers.
- WDP's Profit Margin has improved in the last couple of years.
- WDP has a Operating Margin of 14.65%. This is amongst the best in the industry. WDP outperforms 85.42% of its industry peers.
- WDP's Operating Margin has improved in the last couple of years.
- WDP has a Gross Margin of 37.76%. This is in the lower half of the industry: WDP underperforms 66.67% of its industry peers.
- WDP's Gross Margin has improved in the last couple of years.
| 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.
- WDP has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, WDP has more shares outstanding
- Compared to 1 year ago, WDP has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.44 indicates that WDP is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of WDP (2.44) is better than 72.92% of its industry peers.
- The Debt to FCF ratio of WDP is 4.17, which is a neutral value as it means it would take WDP, 4.17 years of fcf income to pay off all of its debts.
- WDP has a Debt to FCF ratio (4.17) which is in line with its industry peers.
- WDP has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of WDP (0.32) is better than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.64
WACC10.12%
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.
- With a Current ratio value of 0.71, WDP perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
- A Quick Ratio of 0.65 indicates that WDP may have some problems paying its short term obligations.
- WDP has a Quick ratio of 0.65. This is comparable to the rest of the industry: WDP outperforms 41.67% of 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.
- WDP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.63% yearly.
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
- The Earnings Per Share is expected to grow by 7.01% on average over the next years.
- 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
- WDP is valuated rather expensively with a Price/Earnings ratio of 18.79.
- Compared to the rest of the industry, the Price/Earnings ratio of WDP indicates a rather cheap valuation: WDP is cheaper than 83.33% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. WDP is valued slightly cheaper when compared to this.
- WDP is valuated correctly with a Price/Forward Earnings ratio of 16.67.
- WDP's Price/Forward Earnings ratio is rather cheap when compared to the industry. WDP is cheaper than 81.25% of the companies in the same industry.
- WDP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.79 | ||
| Fwd PE | 16.67 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WDP is valued a bit cheaper than the industry average as 60.42% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, WDP is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.74 | ||
| EV/EBITDA | 12.28 |
4.3 Compensation for Growth
- WDP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- WDP has an outstanding profitability rating, which 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%, WDP has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.83, WDP pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.81, WDP is paying slightly less dividend.
| 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 5 / 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%.