WALT DISNEY CO/THE (WDP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:WDP - US2546871060 - Common Stock
94.89 EUR
-1.94 (-2%)
We assign a fundamental rating of 5 out of 10 to WDP. WDP was compared to 48 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year WDP was profitable.
- WDP had a positive operating cash flow in the past year.
- Each year in the past 5 years WDP has been profitable.
- WDP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- WDP has a Return On Assets of 6.28%. This is amongst the best in the industry. WDP outperforms 83.33% 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 72.92% of the companies in the same industry.
- The Return On Invested Capital of WDP (6.46%) is better than 70.83% of its industry peers.
- WDP had an Average Return On Invested Capital over the past 3 years of 5.33%. This is below the industry average of 9.05%.
- 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 has a Profit Margin of 13.14%. This is amongst the best in the industry. WDP outperforms 83.33% of its industry peers.
- In the last couple of years the Profit Margin of WDP has grown nicely.
- With an excellent Operating Margin value of 14.65%, WDP belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- In the last couple of years the Operating Margin of WDP has grown nicely.
- Looking at the Gross Margin, with a value of 37.76%, WDP is doing worse than 68.75% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WDP is destroying value.
- The number of shares outstanding for WDP has been reduced compared to 1 year ago.
- WDP has more shares outstanding than it did 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 2.46. 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.
- WDP's Altman-Z score of 2.46 is fine compared to the rest of the industry. WDP outperforms 75.00% 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's Debt to FCF ratio of 4.17 is in line compared to the rest of the industry. WDP outperforms 56.25% of 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.
- Looking at the Debt to Equity ratio, with a value of 0.32, WDP is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 2.46 |
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.
- WDP has a Current ratio (0.71) which is in line with its industry peers.
- A Quick Ratio of 0.65 indicates that WDP may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.65, WDP is doing worse than 60.42% of the companies in the same industry.
| 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, WDP shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.16% on average per year.
- Looking at the last year, WDP shows a small growth in Revenue. The Revenue has grown by 3.35% in the last 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
- Based on estimates for the next years, WDP will show a small growth in Earnings Per Share. The EPS will grow by 7.01% on average per year.
- WDP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.78% yearly.
EPS Next Y12.74%
EPS Next 2Y11.78%
EPS Next 3Y11.53%
EPS Next 5Y7.01%
Revenue Next Year6.34%
Revenue Next 2Y5.33%
Revenue Next 3Y4.8%
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
- The Price/Earnings ratio is 18.72, which indicates a rather expensive current valuation of WDP.
- WDP's Price/Earnings ratio is rather cheap when compared to the industry. WDP is cheaper than 81.25% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. WDP is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 16.61, which indicates a correct valuation of WDP.
- 79.17% of the companies in the same industry are more expensive than WDP, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, WDP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 16.61 |
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 | 19.68 | ||
| EV/EBITDA | 12.46 |
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 WDP may justify a higher PE ratio.
PEG (NY)1.47
PEG (5Y)0.77
EPS Next 2Y11.78%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
- WDP has a Yearly Dividend Yield of 1.32%.
- WDP's Dividend Yield is a higher than the industry average which is at 0.78.
- Compared to the average S&P500 Dividend Yield of 1.82, 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
- 14.54% of the earnings are spent on dividend by WDP. This is a low number and sustainable payout ratio.
DP14.54%
EPS Next 2Y11.78%
EPS Next 3Y11.53%
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%.