WALT DISNEY CO/THE (DIS) Stock Fundamental Analysis
NYSE:DIS - New York Stock Exchange, Inc. - US2546871060 - Common Stock - Currency: USD
Overall DIS gets a fundamental rating of 5 out of 10. We evaluated DIS against 71 industry peers in the Entertainment industry. DIS has a medium profitability rating, but doesn't score so well on its financial health evaluation. DIS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
DIS had positive earnings in the past year.
DIS had a positive operating cash flow in the past year.
DIS had positive earnings in 4 of the past 5 years.
Each year in the past 5 years DIS had a positive operating cash flow.
1.2 Ratios
DIS has a Return On Assets of 4.55%. This is amongst the best in the industry. DIS outperforms 83.10% of its industry peers.
Looking at the Return On Equity, with a value of 8.54%, DIS belongs to the top of the industry, outperforming 81.69% of the companies in the same industry.
DIS's Return On Invested Capital of 6.23% is fine compared to the rest of the industry. DIS outperforms 76.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DIS is significantly below the industry average of 23.28%.
The last Return On Invested Capital (6.23%) for DIS is above the 3 year average (4.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 8.54% | ||
| ROIC | 6.23% |
ROA(3y)1.74%
ROA(5y)0.96%
ROE(3y)3.54%
ROE(5y)1.89%
ROIC(3y)4.02%
ROIC(5y)3.04%
1.3 Margins
DIS has a Profit Margin of 9.47%. This is amongst the best in the industry. DIS outperforms 88.73% of its industry peers.
In the last couple of years the Profit Margin of DIS has declined.
Looking at the Operating Margin, with a value of 14.55%, DIS belongs to the top of the industry, outperforming 84.51% of the companies in the same industry.
In the last couple of years the Operating Margin of DIS has declined.
DIS's Gross Margin of 37.10% is on the low side compared to the rest of the industry. DIS is outperformed by 60.56% of its industry peers.
DIS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.55% | ||
| PM (TTM) | 9.47% | ||
| GM | 37.1% |
OM growth 3Y33.94%
OM growth 5Y-5.16%
PM growth 3Y22.52%
PM growth 5Y-19.28%
GM growth 3Y2.65%
GM growth 5Y-2.01%
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 has been increased compared to 1 year ago.
DIS has more shares outstanding than it did 5 years ago.
DIS has a worse debt/assets ratio than last year.
2.2 Solvency
DIS has an Altman-Z score of 2.34. 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's Altman-Z score of 2.34 is fine compared to the rest of the industry. DIS outperforms 69.01% of its industry peers.
DIS has a debt to FCF ratio of 3.94. This is a good value and a sign of high solvency as DIS would need 3.94 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.94, DIS is in the better half of the industry, outperforming 71.83% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that DIS is not too dependend on debt financing.
DIS has a Debt to Equity ratio of 0.35. This is comparable to the rest of the industry: DIS outperforms 53.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.77
WACC8.13%
2.3 Liquidity
A Current Ratio of 0.67 indicates that DIS may have some problems paying its short term obligations.
DIS's Current ratio of 0.67 is on the low side compared to the rest of the industry. DIS is outperformed by 64.79% of its industry peers.
DIS has a Quick Ratio of 0.67. This is a bad value and indicates that DIS is not financially healthy enough and could expect problems in meeting its short term obligations.
DIS's Quick ratio of 0.61 is on the low side compared to the rest of the industry. DIS is outperformed by 66.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.11% over the past year.
The Earnings Per Share has been decreasing by -3.31% on average over the past years.
DIS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.42%.
Measured over the past years, DIS shows a small growth in Revenue. The Revenue has been growing by 5.59% on average per year.
EPS 1Y (TTM)34.11%
EPS 3Y29.57%
EPS 5Y-3.31%
EPS Q2Q%19.83%
Revenue 1Y (TTM)5.42%
Revenue growth 3Y10.66%
Revenue growth 5Y5.59%
Sales Q2Q%6.96%
3.2 Future
The Earnings Per Share is expected to grow by 6.28% on average over the next years.
Based on estimates for the next years, DIS will show a small growth in Revenue. The Revenue will grow by 2.82% on average per year.
EPS Next Y17.6%
EPS Next 2Y13.22%
EPS Next 3Y13.11%
EPS Next 5Y6.28%
Revenue Next Year4.1%
Revenue Next 2Y4.72%
Revenue Next 3Y4.57%
Revenue Next 5Y2.82%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 19.14, which indicates a rather expensive current valuation of DIS.
Compared to the rest of the industry, the Price/Earnings ratio of DIS indicates a rather cheap valuation: DIS is cheaper than 85.92% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, DIS is valued a bit cheaper.
DIS is valuated rather expensively with a Price/Forward Earnings ratio of 17.28.
DIS's Price/Forward Earnings ratio is rather cheap when compared to the industry. DIS is cheaper than 84.51% of the companies in the same industry.
DIS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.14 | ||
| Fwd PE | 17.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DIS is valued a bit cheaper than 74.65% of the companies in the same industry.
77.46% of the companies in the same industry are more expensive than DIS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.23 | ||
| EV/EBITDA | 12.66 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of DIS may justify a higher PE ratio.
A more expensive valuation may be justified as DIS's earnings are expected to grow with 13.11% in the coming years.
PEG (NY)1.09
PEG (5Y)N/A
EPS Next 2Y13.22%
EPS Next 3Y13.11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.89%, DIS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.63, DIS pays a better dividend. On top of this DIS pays more dividend than 84.51% of the companies listed in the same industry.
With a Dividend Yield of 0.89, DIS pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
The dividend of DIS decreases each year by -14.82%.
DIS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-14.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DIS pays out 19.33% of its income as dividend. This is a sustainable payout ratio.
DP19.33%
EPS Next 2Y13.22%
EPS Next 3Y13.11%
NYSE:DIS (5/23/2025, 12:03:06 PM)
109.87
-1.26 (-1.13%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners71.43%
Inst Owner Change1.91%
Ins Owners0.01%
Ins Owner Change6.01%
Market Cap198.62B
Analysts80.56
Price Target124.64 (13.44%)
Short Float %1.19%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend0.75
Dividend Growth(5Y)-14.82%
DP19.33%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.01%
Min EPS beat(2)19.75%
Max EPS beat(2)20.27%
EPS beat(4)4
Avg EPS beat(4)14.45%
Min EPS beat(4)2.45%
Max EPS beat(4)20.27%
EPS beat(8)8
Avg EPS beat(8)14.05%
EPS beat(12)10
Avg EPS beat(12)8.54%
EPS beat(16)12
Avg EPS beat(16)11.04%
Revenue beat(2)1
Avg Revenue beat(2)0.17%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)1.06%
Revenue beat(4)1
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-0.72%
Max Revenue beat(4)1.06%
Revenue beat(8)1
Avg Revenue beat(8)-0.8%
Revenue beat(12)2
Avg Revenue beat(12)-1.01%
Revenue beat(16)4
Avg Revenue beat(16)-0.96%
PT rev (1m)-3.26%
PT rev (3m)-2.65%
EPS NQ rev (1m)0.49%
EPS NQ rev (3m)0.98%
EPS NY rev (1m)6%
EPS NY rev (3m)5.21%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.14 | ||
| Fwd PE | 17.28 | ||
| P/S | 2.11 | ||
| P/FCF | 18.23 | ||
| P/OCF | 10.99 | ||
| P/B | 1.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.66 |
EPS(TTM)5.74
EY5.22%
EPS(NY)6.36
Fwd EY5.79%
FCF(TTM)6.03
FCFY5.49%
OCF(TTM)10
OCFY9.1%
SpS52.02
BVpS57.72
TBVpS-5.97
PEG (NY)1.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 8.54% | ||
| ROCE | 8.46% | ||
| ROIC | 6.23% | ||
| ROICexc | 6.46% | ||
| ROICexgc | 24.7% | ||
| OM | 14.55% | ||
| PM (TTM) | 9.47% | ||
| GM | 37.1% | ||
| FCFM | 11.59% |
ROA(3y)1.74%
ROA(5y)0.96%
ROE(3y)3.54%
ROE(5y)1.89%
ROIC(3y)4.02%
ROIC(5y)3.04%
ROICexc(3y)4.27%
ROICexc(5y)3.26%
ROICexgc(3y)18.28%
ROICexgc(5y)14.25%
ROCE(3y)5.45%
ROCE(5y)4.13%
ROICexcg growth 3Y38.24%
ROICexcg growth 5Y-4.53%
ROICexc growth 3Y48.52%
ROICexc growth 5Y0.35%
OM growth 3Y33.94%
OM growth 5Y-5.16%
PM growth 3Y22.52%
PM growth 5Y-19.28%
GM growth 3Y2.65%
GM growth 5Y-2.01%
F-Score8
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.94 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 140.69% | ||
| Cap/Sales | 7.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.22% | ||
| Profit Quality | 122.29% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 2.34 |
F-Score8
WACC8.13%
ROIC/WACC0.77
Cap/Depr(3y)98.92%
Cap/Depr(5y)88.4%
Cap/Sales(3y)5.83%
Cap/Sales(5y)5.79%
Profit Quality(3y)138.03%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)34.11%
EPS 3Y29.57%
EPS 5Y-3.31%
EPS Q2Q%19.83%
EPS Next Y17.6%
EPS Next 2Y13.22%
EPS Next 3Y13.11%
EPS Next 5Y6.28%
Revenue 1Y (TTM)5.42%
Revenue growth 3Y10.66%
Revenue growth 5Y5.59%
Sales Q2Q%6.96%
Revenue Next Year4.1%
Revenue Next 2Y4.72%
Revenue Next 3Y4.57%
Revenue Next 5Y2.82%
EBIT growth 1Y31.09%
EBIT growth 3Y48.22%
EBIT growth 5Y0.14%
EBIT Next Year32.25%
EBIT Next 3Y15.9%
EBIT Next 5Y8.92%
FCF growth 1Y681.08%
FCF growth 3Y62.65%
FCF growth 5Y37.68%
OCF growth 1Y169.5%
OCF growth 3Y35.89%
OCF growth 5Y16.16%