WALT DISNEY CO/THE (DIS) Stock Fundamental Analysis
USA - NYSE:DIS - US2546871060 - Common Stock
112.53 USD
-0.22 (-0.2%)
112.35 USD
-0.18 (-0.16%)
DIS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 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
In the past year DIS was profitable.
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 Return On Assets of 5.88%. This is in the better half of the industry: DIS outperforms 80.00% of its industry peers.
DIS has a better Return On Equity (10.58%) than 76.25% of its industry peers.
DIS has a Return On Invested Capital of 6.29%. This is in the better half of the industry: DIS outperforms 76.25% 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 9.15%.
The last Return On Invested Capital (6.29%) for DIS is above the 3 year average (4.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 10.58% | ||
| ROIC | 6.29% |
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's Profit Margin of 12.22% is amongst the best of the industry. DIS outperforms 86.25% of its industry peers.
In the last couple of years the Profit Margin of DIS has declined.
DIS has a Operating Margin of 14.78%. This is amongst the best in the industry. DIS outperforms 88.75% of its industry peers.
DIS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 37.61%, DIS is in line with its industry, outperforming 43.75% of the companies in the same industry.
In the last couple of years the Gross Margin of DIS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.78% | ||
| PM (TTM) | 12.22% | ||
| GM | 37.61% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
Compared to 1 year ago, DIS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.47 indicates that DIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.47, DIS is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
DIS has a debt to FCF ratio of 3.66. This is a good value and a sign of high solvency as DIS would need 3.66 years to pay back of all of its debts.
DIS's Debt to FCF ratio of 3.66 is fine compared to the rest of the industry. DIS outperforms 76.25% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that DIS is not too dependend on debt financing.
DIS has a Debt to Equity ratio (0.33) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.66 | ||
| Altman-Z | 2.47 |
ROIC/WACC0.81
WACC7.81%
2.3 Liquidity
A Current Ratio of 0.72 indicates that DIS may have some problems paying its short term obligations.
DIS has a worse Current ratio (0.72) than 66.25% of its industry peers.
DIS has a Quick Ratio of 0.72. 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 0.66 is on the low side compared to the rest of the industry. DIS is outperformed by 67.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
DIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.45%, which is quite impressive.
The Earnings Per Share has been decreasing by -3.31% on average over the past years.
The Revenue has been growing slightly by 5.01% in the past year.
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)28.45%
EPS 3Y29.57%
EPS 5Y-3.31%
EPS Q2Q%15.83%
Revenue 1Y (TTM)5.01%
Revenue growth 3Y10.66%
Revenue growth 5Y5.59%
Sales Q2Q%2.14%
3.2 Future
Based on estimates for the next years, DIS will show a small growth in Earnings Per Share. The EPS will grow by 7.35% on average per year.
Based on estimates for the next years, DIS will show a small growth in Revenue. The Revenue will grow by 3.08% on average per year.
EPS Next Y19.36%
EPS Next 2Y14.78%
EPS Next 3Y13.66%
EPS Next 5Y7.35%
Revenue Next Year3.81%
Revenue Next 2Y4.92%
Revenue Next 3Y4.69%
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 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
The Price/Earnings ratio is 18.88, which indicates a rather expensive current valuation of DIS.
Based on the Price/Earnings ratio, DIS is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
DIS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.76, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.22, DIS is valued on the expensive side.
DIS's Price/Forward Earnings ratio is rather cheap when compared to the industry. DIS is cheaper than 88.75% of the companies in the same industry.
DIS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 17.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DIS indicates a somewhat cheap valuation: DIS is cheaper than 72.50% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DIS indicates a rather cheap valuation: DIS is cheaper than 85.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.52 | ||
| EV/EBITDA | 12.49 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DIS has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as DIS's earnings are expected to grow with 13.66% in the coming years.
PEG (NY)0.98
PEG (5Y)N/A
EPS Next 2Y14.78%
EPS Next 3Y13.66%
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 21.41, DIS pays a better dividend. On top of this DIS pays more dividend than 85.00% 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 2.44.
| 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.
DIS has decreased its dividend recently.
Dividend Growth(5Y)-14.82%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DIS pays out 14.91% of its income as dividend. This is a sustainable payout ratio.
DP14.91%
EPS Next 2Y14.78%
EPS Next 3Y13.66%
112.53
-0.22 (-0.2%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners74.2%
Inst Owner Change0%
Ins Owners0.02%
Ins Owner Change1.3%
Market Cap202.32B
Analysts81.58
Price Target136.27 (21.1%)
Short Float %1.1%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend0.75
Dividend Growth(5Y)-14.82%
DP14.91%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.08%
Min EPS beat(2)8.42%
Max EPS beat(2)19.75%
EPS beat(4)4
Avg EPS beat(4)12.72%
Min EPS beat(4)2.45%
Max EPS beat(4)20.27%
EPS beat(8)8
Avg EPS beat(8)14.23%
EPS beat(12)10
Avg EPS beat(12)8.24%
EPS beat(16)12
Avg EPS beat(16)8.74%
Revenue beat(2)1
Avg Revenue beat(2)-0.12%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)1.06%
Revenue beat(4)1
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-1.31%
Max Revenue beat(4)1.06%
Revenue beat(8)1
Avg Revenue beat(8)-0.74%
Revenue beat(12)1
Avg Revenue beat(12)-1.25%
Revenue beat(16)3
Avg Revenue beat(16)-1.08%
PT rev (1m)0.16%
PT rev (3m)6.52%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)-4%
EPS NY rev (1m)0%
EPS NY rev (3m)1.5%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-1.05%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 17.22 | ||
| P/S | 2.14 | ||
| P/FCF | 17.52 | ||
| P/OCF | 10.57 | ||
| P/B | 1.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.49 |
EPS(TTM)5.96
EY5.3%
EPS(NY)6.53
Fwd EY5.81%
FCF(TTM)6.42
FCFY5.71%
OCF(TTM)10.65
OCFY9.46%
SpS52.58
BVpS60.71
TBVpS-2.83
PEG (NY)0.98
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 10.58% | ||
| ROCE | 8.54% | ||
| ROIC | 6.29% | ||
| ROICexc | 6.51% | ||
| ROICexgc | 23.38% | ||
| OM | 14.78% | ||
| PM (TTM) | 12.22% | ||
| GM | 37.61% | ||
| FCFM | 12.22% |
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-Score9
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.66 | ||
| Debt/EBITDA | 1.9 | ||
| Cap/Depr | 145.62% | ||
| Cap/Sales | 8.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.76% | ||
| Profit Quality | 99.97% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 2.47 |
F-Score9
WACC7.81%
ROIC/WACC0.81
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)28.45%
EPS 3Y29.57%
EPS 5Y-3.31%
EPS Q2Q%15.83%
EPS Next Y19.36%
EPS Next 2Y14.78%
EPS Next 3Y13.66%
EPS Next 5Y7.35%
Revenue 1Y (TTM)5.01%
Revenue growth 3Y10.66%
Revenue growth 5Y5.59%
Sales Q2Q%2.14%
Revenue Next Year3.81%
Revenue Next 2Y4.92%
Revenue Next 3Y4.69%
Revenue Next 5Y3.08%
EBIT growth 1Y24.19%
EBIT growth 3Y48.22%
EBIT growth 5Y0.14%
EBIT Next Year34.3%
EBIT Next 3Y16.6%
EBIT Next 5Y8.92%
FCF growth 1Y305.9%
FCF growth 3Y62.65%
FCF growth 5Y37.68%
OCF growth 1Y152.31%
OCF growth 3Y35.89%
OCF growth 5Y16.16%