WALT DISNEY CO/THE (DIS) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:DIS • US2546871060
112.8 USD
+1.22 (+1.09%)
At close: Jan 30, 2026
113 USD
+0.2 (+0.18%)
After Hours: 1/30/2026, 8:04:00 PM
We assign a fundamental rating of 5 out of 10 to DIS. DIS was compared to 80 industry peers in the Entertainment industry. DIS has an excellent profitability rating, but there are some minor concerns on its financial health. DIS has a correct valuation and a medium growth rate.
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 each of the past 5 years.
- 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 Return On Equity of 11.29%. This is in the better half of the industry: DIS outperforms 78.75% of its industry peers.
- DIS has a Return On Invested Capital of 6.46%. This is in the better half of the industry: DIS outperforms 78.75% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for DIS is below the industry average of 8.74%.
- 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
- DIS's Profit Margin of 13.14% is amongst the best of the industry. DIS outperforms 87.50% of its industry peers.
- In the last couple of years the Profit Margin of DIS has grown nicely.
- With an excellent Operating Margin value of 14.65%, DIS belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- 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 45.00% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DIS is destroying value.
- Compared to 1 year ago, DIS has less shares outstanding
- Compared to 5 years ago, DIS has more shares outstanding
- DIS has a better debt/assets ratio than last year.
2.2 Solvency
- DIS has an Altman-Z score of 2.44. 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.
- With a decent Altman-Z score value of 2.44, DIS is doing good in the industry, outperforming 67.50% of the companies in the same industry.
- DIS has a debt to FCF ratio of 4.17. This is a neutral value as DIS would need 4.17 years to pay back of all of its debts.
- The Debt to FCF ratio of DIS (4.17) is better than 78.75% 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.
- Looking at the Debt to Equity ratio, with a value of 0.32, DIS is in line with its industry, outperforming 52.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.68
WACC9.46%
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 has a worse Current ratio (0.71) than 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.
- With a Quick ratio value of 0.65, DIS is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 19.56% over the past year.
- The Earnings Per Share has been growing by 24.16% on average over the past years. This is a very strong growth
- Looking at the last year, DIS shows a small growth in Revenue. The Revenue has grown by 3.35% in the last 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
- The Earnings Per Share is expected to grow by 7.01% on average over the next years.
- DIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.78% yearly.
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
- 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.
- 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 19.02.
- Based on the Price/Earnings ratio, DIS is valued cheaply inside the industry as 83.75% of the companies are valued more expensively.
- DIS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 16.87, DIS is valued correctly.
- DIS's Price/Forward Earnings ratio is rather cheap when compared to the industry. DIS is cheaper than 87.50% of the companies in the same industry.
- DIS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.02 | ||
| Fwd PE | 16.87 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DIS is valued a bit cheaper than the industry average as 72.50% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, DIS is valued cheaper than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.98 | ||
| EV/EBITDA | 12.29 |
4.3 Compensation for Growth
- DIS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of DIS may justify a higher PE ratio.
PEG (NY)1.5
PEG (5Y)0.79
EPS Next 2Y11.88%
EPS Next 3Y11.77%
5. Dividend
5.1 Amount
- DIS has a Yearly Dividend Yield of 1.34%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 7.54, DIS pays a better dividend. On top of this DIS pays more dividend than 86.25% of the companies listed in the same industry.
- DIS's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
- The dividend of DIS decreases each year by -11.07%.
- 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)-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 2Y11.88%
EPS Next 3Y11.77%
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.
Can you provide the valuation status for WALT DISNEY CO/THE?
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.
What is the expected EPS growth for WALT DISNEY CO/THE (DIS) stock?
The Earnings per Share (EPS) of WALT DISNEY CO/THE (DIS) is expected to grow by 12.72% in the next year.
How sustainable is the dividend of WALT DISNEY CO/THE (DIS) stock?
The dividend rating of WALT DISNEY CO/THE (DIS) is 4 / 10 and the dividend payout ratio is 14.54%.