WALT DISNEY CO/THE (DIS)
US2546871060 - Common Stock
Taking everything into account, DIS scores 4 out of 10 in our fundamental rating. DIS was compared to 77 industry peers in the Entertainment industry. There are concerns on the financial health of DIS while its profitability can be described as average. DIS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DIS was profitable.
DIS had a positive operating cash flow in the past year.
DIS had positive earnings in 4 of the past 5 years.
In the past 5 years DIS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.51%, DIS is in the better half of the industry, outperforming 70.13% of the companies in the same industry.
DIS has a Return On Equity of 2.96%. This is in the better half of the industry: DIS outperforms 75.32% of its industry peers.
DIS has a better Return On Invested Capital (4.08%) than 74.03% 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 37.63%.
The 3 year average ROIC (2.56%) for DIS is below the current ROIC(4.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 2.96% | ||
| ROIC | 4.08% |
ROA(3y)1.22%
ROA(5y)1.59%
ROE(3y)2.64%
ROE(5y)3.39%
ROIC(3y)2.56%
ROIC(5y)2.84%
1.3 Margins
DIS's Profit Margin of 3.36% is fine compared to the rest of the industry. DIS outperforms 74.03% of its industry peers.
In the last couple of years the Profit Margin of DIS has declined.
DIS's Operating Margin of 11.06% is fine compared to the rest of the industry. DIS outperforms 77.92% of its industry peers.
In the last couple of years the Operating Margin of DIS has declined.
DIS has a Gross Margin (34.33%) which is comparable to the rest of the industry.
DIS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.06% | ||
| PM (TTM) | 3.36% | ||
| GM | 34.33% |
OM growth 3Y20.03%
OM growth 5Y-16.67%
PM growth 3YN/A
PM growth 5Y-34.03%
GM growth 3Y0.52%
GM growth 5Y-5.76%
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.
The number of shares outstanding for DIS remains at a similar level compared to 1 year ago.
DIS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DIS has been reduced compared to a year ago.
2.2 Solvency
DIS has an Altman-Z score of 2.21. This is not the best score and indicates that DIS is in the grey zone with still only limited risk for bankruptcy at the moment.
DIS has a Altman-Z score of 2.21. This is in the better half of the industry: DIS outperforms 79.22% of its industry peers.
The Debt to FCF ratio of DIS is 6.01, which is on the high side as it means it would take DIS, 6.01 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.01, DIS is doing good in the industry, outperforming 76.62% of the companies in the same industry.
DIS has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
DIS has a Debt to Equity ratio (0.41) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 6.01 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.5
WACC8.11%
2.3 Liquidity
DIS has a Current Ratio of 0.84. 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 0.84, DIS perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
A Quick Ratio of 0.77 indicates that DIS may have some problems paying its short term obligations.
The Quick ratio of DIS (0.77) is worse than 61.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.61% over the past year.
The earnings per share for DIS have been decreasing by -11.84% on average. This is quite bad
Looking at the last year, DIS shows a small growth in Revenue. The Revenue has grown by 5.35% in the last year.
DIS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.39% yearly.
EPS 1Y (TTM)15.61%
EPS 3Y23.32%
EPS 5Y-11.84%
EPS growth Q2Q23.23%
Revenue 1Y (TTM)5.35%
Revenue growth 3Y10.78%
Revenue growth 5Y8.39%
Revenue growth Q2Q0.16%
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 18.95% yearly.
DIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.02% yearly.
EPS Next Y25.54%
EPS Next 2Y21.58%
EPS Next 3Y17.83%
EPS Next 5Y18.95%
Revenue Next Year3.16%
Revenue Next 2Y4.23%
Revenue Next 3Y4.44%
Revenue Next 5Y4.02%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
DIS is valuated quite expensively with a Price/Earnings ratio of 28.43.
76.62% of the companies in the same industry are more expensive than DIS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DIS to the average of the S&P500 Index (25.20), we can say DIS is valued inline with the index average.
With a Price/Forward Earnings ratio of 20.41, DIS is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DIS indicates a rather cheap valuation: DIS is cheaper than 83.12% of the companies listed in the same industry.
DIS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.43 | ||
| Fwd PE | 20.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DIS is valued a bit cheaper than 67.53% of the companies in the same industry.
DIS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DIS is cheaper than 77.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.28 | ||
| EV/EBITDA | 16.45 |
4.3 Compensation for Growth
DIS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DIS's earnings are expected to grow with 17.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.11
PEG (5Y)N/A
EPS Next 2Y21.58%
EPS Next 3Y17.83%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, DIS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 34.99, DIS pays a better dividend. On top of this DIS pays more dividend than 85.71% of the companies listed in the same industry.
With a Dividend Yield of 0.67, DIS pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
DIS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y21.58%
EPS Next 3Y17.83%
WALT DISNEY CO/THE
NYSE:DIS (4/23/2024, 7:04:00 PM)
Premarket: 113.89 +0.18 (+0.16%)113.71
+1.72 (+1.54%)
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 Cap208.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.43 | ||
| Fwd PE | 20.41 | ||
| 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)1.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 2.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.06% | ||
| PM (TTM) | 3.36% | ||
| GM | 34.33% | ||
| 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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.77 | ||
| 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)
Growth
EPS 1Y (TTM)15.61%
EPS 3Y23.32%
EPS 5Y
EPS growth Q2Q
EPS Next Y25.54%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.35%
Revenue growth 3Y10.78%
Revenue growth 5Y
Revenue growth 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
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FCF growth 3Y
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