WALT DISNEY CO/THE (DIS) Stock Fundamental Analysis
NYSE:DIS - New York Stock Exchange, Inc. - US2546871060 - Common Stock - Currency: USD
Taking everything into account, DIS scores 4 out of 10 in our fundamental rating. DIS was compared to 72 industry peers in the Entertainment industry. There are concerns on the financial health of DIS while its profitability can be described as average. DIS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
DIS had positive earnings in the past year.
In the past year DIS had a positive cash flow from operations.
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 better Return On Assets (4.55%) than 80.56% of its industry peers.
With a decent Return On Equity value of 8.54%, DIS is doing good in the industry, outperforming 79.17% of the companies in the same industry.
DIS has a better Return On Invested Capital (6.23%) than 76.39% of its industry peers.
DIS had an Average Return On Invested Capital over the past 3 years of 4.02%. This is significantly below the industry average of 22.90%.
The 3 year average ROIC (4.02%) for DIS is below the current ROIC(6.23%), indicating increased profibility in the last year.
| 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 better Profit Margin (9.47%) than 86.11% of its industry peers.
In the last couple of years the Profit Margin of DIS has declined.
DIS has a Operating Margin of 14.55%. This is amongst the best in the industry. DIS outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of DIS has declined.
With a Gross Margin value of 37.10%, DIS is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of DIS has declined.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DIS is destroying value.
DIS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DIS has been increased compared to 5 years ago.
DIS has a worse debt/assets ratio than last year.
2.2 Solvency
DIS has an Altman-Z score of 2.42. 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 2.42. This is in the better half of the industry: DIS outperforms 70.83% 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.
DIS's Debt to FCF ratio of 3.94 is fine compared to the rest of the industry. DIS outperforms 73.61% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that DIS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.35, DIS is in line with its industry, outperforming 51.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.45
WACC13.75%
2.3 Liquidity
A Current Ratio of 0.67 indicates that DIS may have some problems paying its short term obligations.
The Current ratio of DIS (0.67) is worse than 68.06% of its industry peers.
A Quick Ratio of 0.61 indicates that DIS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.61, DIS is doing worse than 68.06% of the companies in the same industry.
| 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.
Measured over the past years, DIS shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.31% on average per year.
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
DIS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.50% yearly.
DIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.35% yearly.
EPS Next Y17.6%
EPS Next 2Y13.22%
EPS Next 3Y13.11%
EPS Next 5Y7.5%
Revenue Next Year4.07%
Revenue Next 2Y4.72%
Revenue Next 3Y4.58%
Revenue Next 5Y3.35%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
DIS is valuated rather expensively with a Price/Earnings ratio of 20.55.
Compared to the rest of the industry, the Price/Earnings ratio of DIS indicates a rather cheap valuation: DIS is cheaper than 84.72% of the companies listed in the same industry.
DIS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
A Price/Forward Earnings ratio of 18.55 indicates a rather expensive valuation of DIS.
79.17% of the companies in the same industry are more expensive than DIS, based on the Price/Forward Earnings ratio.
DIS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.55 | ||
| Fwd PE | 18.55 |
4.2 Price Multiples
DIS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DIS is cheaper than 75.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DIS indicates a somewhat cheap valuation: DIS is cheaper than 79.17% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.46 | ||
| EV/EBITDA | 13.32 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DIS has a very decent profitability rating, which may justify a higher PE ratio.
DIS's earnings are expected to grow with 13.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.17
PEG (5Y)N/A
EPS Next 2Y13.22%
EPS Next 3Y13.11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.84%, DIS is not a good candidate for dividend investing.
DIS's Dividend Yield is rather good when compared to the industry average which is at 6.31. DIS pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, DIS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
The dividend of DIS decreases each year by -14.82%.
DIS has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of DIS decreased recently.
Dividend Growth(5Y)-14.82%
Div Incr Years1
Div Non Decr Years1
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%
117.94
-0.67 (-0.56%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners73.16%
Inst Owner Change2.04%
Ins Owners0.02%
Ins Owner Change3.53%
Market Cap212.03B
Analysts80
Price Target127.22 (7.87%)
Short Float %1.2%
Short Ratio1.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Yearly Dividend0.75
Dividend Growth(5Y)-14.82%
DP19.33%
Div Incr Years1
Div Non Decr Years1
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)2.07%
PT rev (3m)-1.51%
EPS NQ rev (1m)0.67%
EPS NQ rev (3m)1.15%
EPS NY rev (1m)6%
EPS NY rev (3m)5.12%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.55 | ||
| Fwd PE | 18.55 | ||
| P/S | 2.25 | ||
| P/FCF | 19.46 | ||
| P/OCF | 11.73 | ||
| P/B | 2.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.32 |
EPS(TTM)5.74
EY4.87%
EPS(NY)6.36
Fwd EY5.39%
FCF(TTM)6.06
FCFY5.14%
OCF(TTM)10.06
OCFY8.53%
SpS52.31
BVpS58.04
TBVpS-6.01
PEG (NY)1.17
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 | 2.42 |
F-Score8
WACC13.75%
ROIC/WACC0.45
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 5Y7.5%
Revenue 1Y (TTM)5.42%
Revenue growth 3Y10.66%
Revenue growth 5Y5.59%
Sales Q2Q%6.96%
Revenue Next Year4.07%
Revenue Next 2Y4.72%
Revenue Next 3Y4.58%
Revenue Next 5Y3.35%
EBIT growth 1Y31.09%
EBIT growth 3Y48.22%
EBIT growth 5Y0.14%
EBIT Next Year34.42%
EBIT Next 3Y15.74%
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%