WALT DISNEY CO/THE (DIS)
US2546871060 - Common Stock
Taking everything into account, DIS scores 4 out of 10 in our fundamental rating. DIS was compared to 77 industry peers in the Entertainment industry. There are concerns on the financial health of DIS while its profitability can be described as average. DIS is not valued too expensively and it also shows a decent 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.
Of the past 5 years DIS 4 years were profitable.
In the past 5 years DIS always reported a positive cash flow from operatings.
1.2 Ratios
DIS has a better Return On Assets (1.51%) than 70.13% of its industry peers.
Looking at the Return On Equity, with a value of 2.96%, DIS is in the better half of the industry, outperforming 75.32% of the companies in the same industry.
The Return On Invested Capital of DIS (4.08%) is better than 74.03% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DIS is significantly below the industry average of 37.63%.
The last Return On Invested Capital (4.08%) for DIS is above the 3 year average (2.56%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 2.96% | ||
| ROIC | 4.08% |
ROA(3y)1.22%
ROA(5y)1.59%
ROE(3y)2.64%
ROE(5y)3.39%
ROIC(3y)2.56%
ROIC(5y)2.84%
1.3 Margins
DIS has a better Profit Margin (3.36%) than 74.03% of its industry peers.
DIS's Profit Margin has declined in the last couple of years.
DIS has a better Operating Margin (11.06%) than 77.92% of its industry peers.
In the last couple of years the Operating Margin of DIS has declined.
DIS has a Gross Margin (34.33%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DIS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.06% | ||
| PM (TTM) | 3.36% | ||
| GM | 34.33% |
OM growth 3Y20.03%
OM growth 5Y-16.67%
PM growth 3YN/A
PM growth 5Y-34.03%
GM growth 3Y0.52%
GM growth 5Y-5.76%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DIS is destroying value.
Compared to 1 year ago, DIS has about the same amount of shares outstanding.
DIS has more shares outstanding than it did 5 years ago.
DIS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.21 indicates that DIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
DIS's Altman-Z score of 2.21 is fine compared to the rest of the industry. DIS outperforms 79.22% of its industry peers.
The Debt to FCF ratio of DIS is 6.01, which is on the high side as it means it would take DIS, 6.01 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.01, DIS is in the better half of the industry, outperforming 76.62% of the companies in the same industry.
A Debt/Equity ratio of 0.41 indicates that DIS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.41, DIS perfoms like the industry average, outperforming 50.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 6.01 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.5
WACC8.12%
2.3 Liquidity
A Current Ratio of 0.84 indicates that DIS may have some problems paying its short term obligations.
The Current ratio of DIS (0.84) is comparable to the rest of the industry.
DIS has a Quick Ratio of 0.84. 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 0.77, DIS is not doing good in the industry: 61.04% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.61% over the past year.
Measured over the past years, DIS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.84% on average per year.
DIS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.35%.
Measured over the past years, DIS shows a quite strong growth in Revenue. The Revenue has been growing by 8.39% on average per year.
EPS 1Y (TTM)15.61%
EPS 3Y23.32%
EPS 5Y-11.84%
EPS growth Q2Q23.23%
Revenue 1Y (TTM)5.35%
Revenue growth 3Y10.78%
Revenue growth 5Y8.39%
Revenue growth Q2Q0.16%
3.2 Future
Based on estimates for the next years, DIS will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.95% on average per year.
The Revenue is expected to grow by 4.02% on average over the next years.
EPS Next Y25.54%
EPS Next 2Y21.58%
EPS Next 3Y17.83%
EPS Next 5Y18.95%
Revenue Next Year3.16%
Revenue Next 2Y4.23%
Revenue Next 3Y4.44%
Revenue Next 5Y4.02%
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 28.19, the valuation of DIS can be described as expensive.
76.62% of the companies in the same industry are more expensive than DIS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.25. DIS is around the same levels.
DIS is valuated rather expensively with a Price/Forward Earnings ratio of 20.24.
Based on the Price/Forward Earnings ratio, DIS is valued cheaply inside the industry as 83.12% of the companies are valued more expensively.
DIS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.19 | ||
| Fwd PE | 20.24 |
4.2 Price Multiples
67.53% of the companies in the same industry are more expensive than DIS, based on the Enterprise Value to EBITDA ratio.
DIS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DIS is cheaper than 77.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.06 | ||
| EV/EBITDA | 16.48 |
4.3 Compensation for Growth
DIS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as DIS's earnings are expected to grow with 17.83% in the coming years.
PEG (NY)1.1
PEG (5Y)N/A
EPS Next 2Y21.58%
EPS Next 3Y17.83%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, DIS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 34.99, DIS pays a better dividend. On top of this DIS pays more dividend than 85.71% of the companies listed in the same industry.
With a Dividend Yield of 0.67, DIS pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
DIS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y21.58%
EPS Next 3Y17.83%
WALT DISNEY CO/THE
NYSE:DIS (4/25/2024, 4:27:09 PM)
After market: 112.85 +0.08 (+0.07%)112.77
-1.15 (-1.01%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap206.86B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.19 | ||
| Fwd PE | 20.24 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 2.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.06% | ||
| PM (TTM) | 3.36% | ||
| GM | 34.33% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)15.61%
EPS 3Y23.32%
EPS 5Y
EPS growth Q2Q
EPS Next Y25.54%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.35%
Revenue growth 3Y10.78%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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