WALT DISNEY CO/THE (DIS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DIS - US2546871060 - Common Stock
104.47 USD
+1.04 (+1.01%)
104.32 USD
-0.15 (-0.14%)
Overall DIS gets a fundamental rating of 5 out of 10. We evaluated DIS against 80 industry peers in the Entertainment industry. DIS has an excellent profitability rating, but there are some minor concerns on its financial health. 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.
In the past year DIS had a positive cash flow from operations.
In the past 5 years DIS has always been profitable.
DIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DIS's Return On Assets of 6.28% is amongst the best of the industry. DIS outperforms 81.25% of its industry peers.
DIS has a better Return On Equity (11.29%) than 78.75% of its industry peers.
DIS has a better Return On Invested Capital (6.46%) than 76.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DIS is below the industry average of 9.33%.
The 3 year average ROIC (5.33%) for DIS 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
Looking at the Profit Margin, with a value of 13.14%, DIS belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Profit Margin of DIS has grown nicely.
DIS has a better Operating Margin (14.65%) than 87.50% of its industry peers.
DIS's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 37.76%, DIS perfoms like the industry average, outperforming 46.25% of the companies in the same industry.
In the last couple of years the Gross Margin of DIS 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
DIS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DIS has less shares outstanding than it did 1 year ago.
DIS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, DIS has an improved debt to assets ratio.
2.2 Solvency
DIS has an Altman-Z score of 2.35. 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 2.35. This is in the better half of the industry: DIS outperforms 67.50% of its industry peers.
The Debt to FCF ratio of DIS is 4.17, which is a neutral value as it means it would take DIS, 4.17 years of fcf income to pay off all of its debts.
DIS has a better Debt to FCF ratio (4.17) than 76.25% of its industry peers.
DIS has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
DIS has a Debt to Equity ratio (0.32) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 2.35 |
ROIC/WACC0.84
WACC7.67%
2.3 Liquidity
DIS has a Current Ratio of 0.71. 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 Current ratio of 0.71 is on the low side compared to the rest of the industry. DIS is outperformed by 67.50% of its industry peers.
DIS has a Quick Ratio of 0.71. 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 has a worse Quick ratio (0.65) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
DIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.56%, which is quite good.
DIS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.16% yearly.
The Revenue has been growing slightly by 3.35% in the past year.
DIS 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
DIS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.76% yearly.
The Revenue is expected to grow by 3.08% on average over the next years.
EPS Next Y10.45%
EPS Next 2Y11.19%
EPS Next 3Y10.03%
EPS Next 5Y5.76%
Revenue Next Year6.24%
Revenue Next 2Y5.24%
Revenue Next 3Y4.75%
Revenue Next 5Y3.08%
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 decreasing.
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
With a Price/Earnings ratio of 17.62, DIS is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of DIS indicates a rather cheap valuation: DIS is cheaper than 83.75% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DIS to the average of the S&P500 Index (26.31), we can say DIS is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.95, DIS is valued correctly.
Based on the Price/Forward Earnings ratio, DIS is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
DIS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 15.95 |
4.2 Price Multiples
DIS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DIS is cheaper than 73.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DIS is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.64 | ||
| EV/EBITDA | 11.6 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.69
PEG (5Y)0.73
EPS Next 2Y11.19%
EPS Next 3Y10.03%
5. Dividend
5.1 Amount
DIS has a Yearly Dividend Yield of 1.46%.
Compared to an average industry Dividend Yield of 44.93, DIS pays a better dividend. On top of this DIS pays more dividend than 87.50% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, DIS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
The dividend of DIS decreases each year by -11.07%.
DIS has paid a dividend for at least 10 years, which is a reliable track record.
DIS has decreased its dividend recently.
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 DIS. This is a low number and sustainable payout ratio.
DP14.54%
EPS Next 2Y11.19%
EPS Next 3Y10.03%
104.47
+1.04 (+1.01%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners74.2%
Inst Owner Change-2%
Ins Owners0.02%
Ins Owner Change1.36%
Market Cap187.83B
Revenue(TTM)94.42B
Net Income(TTM)12.40B
Analysts81.5
Price Target135.88 (30.07%)
Short Float %1.02%
Short Ratio1.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend0.98
Dividend Growth(5Y)-11.07%
DP14.54%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.79%
Min EPS beat(2)5.15%
Max EPS beat(2)8.42%
EPS beat(4)4
Avg EPS beat(4)13.4%
Min EPS beat(4)5.15%
Max EPS beat(4)20.27%
EPS beat(8)8
Avg EPS beat(8)12.85%
EPS beat(12)11
Avg EPS beat(12)12.49%
EPS beat(16)13
Avg EPS beat(16)10.81%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-2.22%
Max Revenue beat(2)-1.31%
Revenue beat(4)1
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)1.06%
Revenue beat(8)1
Avg Revenue beat(8)-0.85%
Revenue beat(12)1
Avg Revenue beat(12)-0.93%
Revenue beat(16)3
Avg Revenue beat(16)-1.07%
PT rev (1m)-0.29%
PT rev (3m)-0.13%
EPS NQ rev (1m)-10.49%
EPS NQ rev (3m)-12.42%
EPS NY rev (1m)0%
EPS NY rev (3m)0.41%
Revenue NQ rev (1m)-2.7%
Revenue NQ rev (3m)-2.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 15.95 | ||
| P/S | 1.99 | ||
| P/FCF | 18.64 | ||
| P/OCF | 10.38 | ||
| P/B | 1.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.6 |
EPS(TTM)5.93
EY5.68%
EPS(NY)6.55
Fwd EY6.27%
FCF(TTM)5.6
FCFY5.36%
OCF(TTM)10.07
OCFY9.64%
SpS52.52
BVpS61.11
TBVpS-2.24
PEG (NY)1.69
PEG (5Y)0.73
Graham Number90.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.28% | ||
| ROE | 11.29% | ||
| ROCE | 8.47% | ||
| ROIC | 6.46% | ||
| ROICexc | 6.69% | ||
| ROICexgc | 24.11% | ||
| OM | 14.65% | ||
| PM (TTM) | 13.14% | ||
| GM | 37.76% | ||
| FCFM | 10.67% |
ROA(3y)3.32%
ROA(5y)2.5%
ROE(3y)6.2%
ROE(5y)4.83%
ROIC(3y)5.33%
ROIC(5y)4.11%
ROICexc(3y)5.59%
ROICexc(5y)4.35%
ROICexgc(3y)21.96%
ROICexgc(5y)17.93%
ROCE(3y)6.98%
ROCE(5y)5.39%
ROICexgc growth 3Y17.17%
ROICexgc growth 5Y23.95%
ROICexc growth 3Y28.32%
ROICexc growth 5Y29.42%
OM growth 3Y21.44%
OM growth 5Y20.35%
PM growth 3Y51.18%
PM growth 5YN/A
GM growth 3Y3.32%
GM growth 5Y2.8%
F-Score8
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.17 | ||
| Debt/EBITDA | 1.84 | ||
| Cap/Depr | 150.66% | ||
| Cap/Sales | 8.5% | ||
| Interest Coverage | 6.75 | ||
| Cash Conversion | 94.48% | ||
| Profit Quality | 81.24% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 2.35 |
F-Score8
WACC7.67%
ROIC/WACC0.84
Cap/Depr(3y)117.22%
Cap/Depr(5y)103.48%
Cap/Sales(3y)6.67%
Cap/Sales(5y)6.26%
Profit Quality(3y)153.8%
Profit Quality(5y)119.01%
High Growth Momentum
Growth
EPS 1Y (TTM)19.56%
EPS 3Y18.88%
EPS 5Y24.16%
EPS Q2Q%-2.63%
EPS Next Y10.45%
EPS Next 2Y11.19%
EPS Next 3Y10.03%
EPS Next 5Y5.76%
Revenue 1Y (TTM)3.35%
Revenue growth 3Y4.51%
Revenue growth 5Y7.63%
Sales Q2Q%-0.49%
Revenue Next Year6.24%
Revenue Next 2Y5.24%
Revenue Next 3Y4.75%
Revenue Next 5Y3.08%
EBIT growth 1Y16.1%
EBIT growth 3Y26.92%
EBIT growth 5Y29.53%
EBIT Next Year32.89%
EBIT Next 3Y16.25%
EBIT Next 5Y7.94%
FCF growth 1Y17.74%
FCF growth 3Y111.38%
FCF growth 5Y22.89%
OCF growth 1Y29.56%
OCF growth 3Y44.41%
OCF growth 5Y18.9%
WALT DISNEY CO/THE / DIS FAQ
What is the ChartMill fundamental rating of WALT DISNEY CO/THE (DIS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to DIS.
What is the valuation status for DIS stock?
ChartMill assigns a valuation rating of 6 / 10 to WALT DISNEY CO/THE (DIS). This can be considered as Fairly Valued.
How profitable is WALT DISNEY CO/THE (DIS) stock?
WALT DISNEY CO/THE (DIS) has a profitability rating of 8 / 10.
Can you provide the financial health for DIS stock?
The financial health rating of WALT DISNEY CO/THE (DIS) is 4 / 10.
Can you provide the expected EPS growth for DIS stock?
The Earnings per Share (EPS) of WALT DISNEY CO/THE (DIS) is expected to grow by 10.45% in the next year.