WALT DISNEY CO/THE (WDP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:WDP - US2546871060 - Common Stock
93.65 EUR
-1.24 (-1.31%)
Overall WDP gets a fundamental rating of 5 out of 10. We evaluated WDP against 46 industry peers in the Entertainment industry. While WDP has a great profitability rating, 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
- 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
- The Return On Assets of WDP (6.28%) is better than 84.78% of its industry peers.
- WDP has a Return On Equity of 11.29%. This is in the better half of the industry: WDP outperforms 73.91% of its industry peers.
- With a decent Return On Invested Capital value of 6.46%, WDP is doing good in the industry, outperforming 71.74% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years 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
- WDP's Profit Margin of 13.14% is amongst the best of the industry. WDP outperforms 84.78% of its industry peers.
- WDP's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 14.65%, WDP belongs to the top of the industry, outperforming 84.78% of the companies in the same industry.
- In the last couple of years the Operating Margin of WDP has grown nicely.
- The Gross Margin of WDP (37.76%) is worse than 67.39% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WDP is destroying value.
- Compared to 1 year ago, WDP has less shares outstanding
- 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.
- WDP has a better Altman-Z score (2.44) than 73.91% 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 of 4.17. This is comparable to the rest of the industry: WDP outperforms 58.70% 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.
- 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 | 2.44 |
ROIC/WACC0.68
WACC9.44%
2.3 Liquidity
- A Current Ratio of 0.71 indicates that WDP may have some problems paying its short term obligations.
- WDP's Current ratio of 0.71 is in line compared to the rest of the industry. WDP outperforms 43.48% of its industry peers.
- 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.
- Looking at the last year, WDP shows a small growth in Revenue. The Revenue has grown by 3.35% in the last year.
- Measured over the past years, WDP 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
- 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.
- 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
- WDP is valuated rather expensively with a Price/Earnings ratio of 18.54.
- WDP's Price/Earnings ratio is rather cheap when compared to the industry. WDP is cheaper than 82.61% of the companies in the same industry.
- When comparing the Price/Earnings ratio of WDP to the average of the S&P500 Index (27.21), we can say WDP is valued slightly cheaper.
- WDP is valuated correctly with a Price/Forward Earnings ratio of 16.45.
- WDP's Price/Forward Earnings ratio is rather cheap when compared to the industry. WDP is cheaper than 80.43% of the companies in the same industry.
- WDP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.54 | ||
| Fwd PE | 16.45 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WDP is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, WDP is valued a bit cheaper than the industry average as 67.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.48 | ||
| 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.
- 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%.
- WDP's Dividend Yield is a higher than the industry average which is at 0.83.
- 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
- 14.54% of the earnings are spent on dividend by WDP. This is a low number and sustainable payout ratio.
DP14.54%
EPS Next 2Y11.88%
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%.