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 5 out of 10 in our fundamental rating. DIS was compared to 72 industry peers in the Entertainment industry. While DIS is still in line with the averages on profitability rating, there are 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.
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 2.85%. This is in the better half of the industry: DIS outperforms 76.39% of its industry peers.
DIS has a better Return On Equity (5.51%) than 80.56% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.93%, DIS is in the better half of the industry, outperforming 76.39% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DIS is significantly below the industry average of 21.79%.
The last Return On Invested Capital (5.93%) for DIS is above the 3 year average (4.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 5.51% | ||
| ROIC | 5.93% |
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
Looking at the Profit Margin, with a value of 6.07%, DIS belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Profit Margin of DIS has declined.
DIS has a Operating Margin of 14.11%. This is amongst the best in the industry. DIS outperforms 86.11% of its industry peers.
In the last couple of years the Operating Margin of DIS has declined.
The Gross Margin of DIS (36.74%) is worse than 61.11% of its industry peers.
In the last couple of years the Gross Margin of DIS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.11% | ||
| PM (TTM) | 6.07% | ||
| GM | 36.74% |
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.
The number of shares outstanding for DIS has been increased compared to 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
An Altman-Z score of 2.01 indicates that DIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of DIS (2.01) is better than 68.06% of its industry peers.
DIS has a debt to FCF ratio of 5.39. This is a neutral value as DIS would need 5.39 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.39, DIS is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
DIS has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
DIS has a Debt to Equity ratio (0.38) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 5.39 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.78
WACC7.63%
2.3 Liquidity
A Current Ratio of 0.68 indicates that DIS may have some problems paying its short term obligations.
DIS's Current ratio of 0.68 is on the low side compared to the rest of the industry. DIS is outperformed by 61.11% of its industry peers.
A Quick Ratio of 0.62 indicates that DIS may have some problems paying its short term obligations.
DIS has a worse Quick ratio (0.62) than 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.50% 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 4.01%.
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)37.5%
EPS 3Y29.57%
EPS 5Y-3.31%
EPS Q2Q%44.26%
Revenue 1Y (TTM)4.01%
Revenue growth 3Y10.66%
Revenue growth 5Y5.59%
Sales Q2Q%4.85%
3.2 Future
The Earnings Per Share is expected to grow by 6.28% on average over the next years.
The Revenue is expected to grow by 2.82% on average over the next years.
EPS Next Y10.95%
EPS Next 2Y11.08%
EPS Next 3Y11.72%
EPS Next 5Y6.28%
Revenue Next Year3.39%
Revenue Next 2Y4.44%
Revenue Next 3Y4.36%
Revenue Next 5Y2.82%
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.
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
Based on the Price/Earnings ratio of 16.81, the valuation of DIS can be described as correct.
Based on the Price/Earnings ratio, DIS is valued cheaply inside the industry as 86.11% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.75. DIS is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.11, which indicates a correct valuation of DIS.
91.67% of the companies in the same industry are more expensive than DIS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.49. DIS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.81 | ||
| Fwd PE | 15.11 |
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 73.61% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DIS is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.87 | ||
| EV/EBITDA | 11.28 |
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.
PEG (NY)1.54
PEG (5Y)N/A
EPS Next 2Y11.08%
EPS Next 3Y11.72%
5. Dividend
5.1 Amount
DIS has a Yearly Dividend Yield of 1.11%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.28, DIS pays a better dividend. On top of this DIS pays more dividend than 86.11% of the companies listed in the same industry.
With a Dividend Yield of 1.11, DIS pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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.
Dividend Growth(5Y)-14.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DIS pays out 24.33% of its income as dividend. This is a sustainable payout ratio.
DP24.33%
EPS Next 2Y11.08%
EPS Next 3Y11.72%
NYSE:DIS (5/2/2025, 10:20:10 AM)
92.445
+1.63 (+1.8%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners71.43%
Inst Owner Change0.39%
Ins Owners0.01%
Ins Owner Change5.9%
Market Cap167.12B
Analysts79.44
Price Target126.38 (36.71%)
Short Float %1.26%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend0.75
Dividend Growth(5Y)-14.82%
DP24.33%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.36%
Min EPS beat(2)2.45%
Max EPS beat(2)20.27%
EPS beat(4)4
Avg EPS beat(4)11.78%
Min EPS beat(4)2.45%
Max EPS beat(4)20.27%
EPS beat(8)7
Avg EPS beat(8)11.45%
EPS beat(12)9
Avg EPS beat(12)6.07%
EPS beat(16)12
Avg EPS beat(16)21.49%
Revenue beat(2)0
Avg Revenue beat(2)-0.59%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)-0.45%
Revenue beat(4)0
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-1.11%
Max Revenue beat(4)-0.45%
Revenue beat(8)0
Avg Revenue beat(8)-1.03%
Revenue beat(12)1
Avg Revenue beat(12)-1.5%
Revenue beat(16)3
Avg Revenue beat(16)-1.19%
PT rev (1m)-2.16%
PT rev (3m)0.12%
EPS NQ rev (1m)-0.88%
EPS NQ rev (3m)-6.08%
EPS NY rev (1m)-0.87%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.81 | ||
| Fwd PE | 15.11 | ||
| P/S | 1.81 | ||
| P/FCF | 19.87 | ||
| P/OCF | 11.15 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.28 |
EPS(TTM)5.5
EY5.95%
EPS(NY)6.12
Fwd EY6.62%
FCF(TTM)4.65
FCFY5.03%
OCF(TTM)8.29
OCFY8.97%
SpS51.17
BVpS56.39
TBVpS-7.89
PEG (NY)1.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 5.51% | ||
| ROCE | 8.05% | ||
| ROIC | 5.93% | ||
| ROICexc | 6.14% | ||
| ROICexgc | 23.74% | ||
| OM | 14.11% | ||
| PM (TTM) | 6.07% | ||
| GM | 36.74% | ||
| FCFM | 9.09% |
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-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 5.39 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 130.98% | ||
| Cap/Sales | 7.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.92% | ||
| Profit Quality | 149.81% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 2.01 |
F-Score7
WACC7.63%
ROIC/WACC0.78
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)37.5%
EPS 3Y29.57%
EPS 5Y-3.31%
EPS Q2Q%44.26%
EPS Next Y10.95%
EPS Next 2Y11.08%
EPS Next 3Y11.72%
EPS Next 5Y6.28%
Revenue 1Y (TTM)4.01%
Revenue growth 3Y10.66%
Revenue growth 5Y5.59%
Sales Q2Q%4.85%
Revenue Next Year3.39%
Revenue Next 2Y4.44%
Revenue Next 3Y4.36%
Revenue Next 5Y2.82%
EBIT growth 1Y32.76%
EBIT growth 3Y48.22%
EBIT growth 5Y0.14%
EBIT Next Year32.25%
EBIT Next 3Y15.9%
EBIT Next 5Y8.92%
FCF growth 1Y8848.94%
FCF growth 3Y62.65%
FCF growth 5Y37.68%
OCF growth 1Y186.25%
OCF growth 3Y35.89%
OCF growth 5Y16.16%