NYSE:DIS

Stock Analysis Report

Executive Summary

The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide.

Rewards

Trading at 7.6% below its fair value

Earnings are forecast to grow 10.67% per year

Pays a reliable dividend of 1.26%

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Average dividend payer and slightly overvalued.


Similar Companies

Netflix

NasdaqGS:NFLX

Share Price & News

How has Walt Disney's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DIS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

DIS

0.3%

US Entertainment

0.9%

US Market


1 Year Return

23.9%

DIS

20.4%

US Entertainment

20.0%

US Market

Return vs Industry: DIS exceeded the US Entertainment industry which returned 20.7% over the past year.

Return vs Market: DIS exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

DISIndustryMarket
7 Day-2.1%0.3%0.9%
30 Day-3.3%1.6%1.4%
90 Day-6.0%7.3%8.8%
1 Year25.5%23.9%21.2%20.4%22.5%20.0%
3 Year32.4%26.8%55.0%50.0%49.9%40.3%
5 Year42.6%32.9%92.1%80.4%73.2%54.1%

Price Volatility Vs. Market

How volatile is Walt Disney's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Walt Disney undervalued compared to its fair value and its price relative to the market?

7.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DIS ($139.54) is trading below our estimate of fair value ($150.98)

Significantly Below Fair Value: DIS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DIS is good value based on its PE Ratio (24.7x) compared to the Entertainment industry average (24.9x).

PE vs Market: DIS is poor value based on its PE Ratio (24.7x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: DIS is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: DIS is overvalued based on its PB Ratio (2.8x) compared to the US Entertainment industry average (2.4x).


Next Steps

Future Growth

How is Walt Disney forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DIS's forecast earnings growth (10.7% per year) is above the savings rate (1.7%).

Earnings vs Market: DIS's earnings (10.7% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: DIS's earnings are forecast to grow, but not significantly.

Revenue vs Market: DIS's revenue (6.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: DIS's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DIS's Return on Equity is forecast to be low in 3 years time (13.1%).


Next Steps

Past Performance

How has Walt Disney performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DIS has a large one-off gain of $2.9B impacting its December 28 2019 financial results.

Growing Profit Margin: DIS's current net profit margins (13%) are lower than last year (18.5%).


Past Earnings Growth Analysis

Earnings Trend: DIS's earnings have grown by 8.1% per year over the past 5 years.

Accelerating Growth: DIS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DIS had negative earnings growth (-10.9%) over the past year, making it difficult to compare to the Entertainment industry average (-8.9%).


Return on Equity

High ROE: DIS's Return on Equity (9.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Walt Disney's financial position?


Financial Position Analysis

Short Term Liabilities: DIS's short term assets ($27.8B) do not cover its short term liabilities ($34.8B).

Long Term Liabilities: DIS's short term assets ($27.8B) do not cover its long term liabilities ($62.3B).


Debt to Equity History and Analysis

Debt Level: DIS's debt to equity ratio (46.3%) is considered high.

Reducing Debt: DIS's debt to equity ratio has increased from 34.5% to 46.3% over the past 5 years.

Debt Coverage: DIS's debt is not well covered by operating cash flow (12.7%).

Interest Coverage: DIS's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet

Inventory Level: DIS has a low level of unsold assets or inventory.

Debt Coverage by Assets: DIS's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Walt Disney's current dividend yield, its reliability and sustainability?

1.26%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: DIS's dividend (1.26%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: DIS's dividend (1.26%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: DIS's dividends per share have been stable in the past 10 years.

Growing Dividend: DIS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.2%), DIS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DIS's dividends in 3 years are forecast to be well covered by earnings (28.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.4yrs

Average management tenure


CEO

Bob Iger (68yo)

14.3yrs

Tenure

US$47,517,762

Compensation

Mr. Robert A. Iger, also known as Bob, has been the Chairman of The Walt Disney Company since March 13, 2012 and has been its Chief Executive Officer since October 2, 2005. Mr. Iger served as the President ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD47.52M) is above average for companies of similar size in the US market ($USD10.78M).

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Iger
Chairman & CEO14.3yrsUS$47.52m0.071% $178.3m
Christine McCarthy
Senior EVP & CFO4.7yrsUS$14.97m0.0080% $20.3m
Alan Braverman
Senior EVP17.1yrsUS$13.72m0.0062% $15.5m
Zenia Mucha
Senior EVP & Chief Communications Officer14.9yrsUS$7.56m0.0017% $4.4m
Mary Parker
Senior EVP & Chief Human Resources Officer10.4yrsUS$9.02m0.0015% $3.9m
Lowell Singer
Senior Vice President of Investor Relations0yrsno datano data
John Rood
Senior Vice President of Marketing3.3yrsno datano data
Kevin Mayer
Chairman of Direct-to-Consumer & International Business Segment14.7yrsUS$11.62mno data
Brent Woodford
Executive Vice President of Controllership0yrsno data0.0019% $4.9m
Mahesh Samat
Executive Vice President of Disney Consumer Products Commercialization for the Asia Pacific region1.3yrsno datano data

12.4yrs

Average Tenure

62yo

Average Age

Experienced Management: DIS's management team is seasoned and experienced (12.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Iger
Chairman & CEO14.3yrsUS$47.52m0.071% $178.3m
James Pitaro
President of ESPN & Co-Chair of Disney Media Networks4yrsno datano data
Maria Lagomasino
Independent Director4.2yrsUS$346.53k0.00016% $403.1k
Susan Arnold
Independent Lead Director1.9yrsUS$393.22k0.0015% $3.8m
Robert Chapek
Chairman of Disney Parks5yrsno datano data
John Landgraf
Chairman of FX Networks & FX Productions2.1yrsno datano data
Gary Knell
Chairman of National Geographic Partners0yrsno datano data
Dana Walden
Chairman of Disney Television Studios & ABC Entertainment0yrsno datano data
Peter Rice
Chairman of Walt Disney Television & Co-Chair of Disney Media Networks2.1yrsno datano data
Ivan Tavrin
Chairman of The Board of Directors of New TV Channel Disney0yrsno datano data

4.0yrs

Average Tenure

64yo

Average Age

Experienced Board: DIS's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.1%.


Top Shareholders

Company Information

The Walt Disney Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Walt Disney Company
  • Ticker: DIS
  • Exchange: NYSE
  • Founded: 1923
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: US$251.931b
  • Shares outstanding: 1.81b
  • Website: https://www.thewaltdisneycompany.com

Number of Employees


Location

  • The Walt Disney Company
  • 500 South Buena Vista Street
  • Burbank
  • California
  • 91521
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DISNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
DISBVL (Bolsa de Valores de Lima)YesCommon SharesPEUSDJan 1968
DIS *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1968
WDPDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
WDPXTRA (XETRA Trading Platform)YesCommon SharesDEEURJan 1968
DISSNSE (Santiago Stock Exchange)YesCommon SharesCLUSDJan 1968
DISSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJan 1968
WD-UETLX (Eurotlx)YesCommon SharesITEURJan 1968
DISWBAG (Wiener Boerse AG)YesCommon SharesATEURJan 1968
DISNBASE (Buenos Aires Stock Exchange)4 CEDEAR EACH REPR 1 COM USD0.01ARARSJan 2001
DISB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM SHSBRBRLJan 2012

Biography

The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. The company’s Media Networks segment operates domestic cable networks under the Disney, ESPN, Freeform, FX, and National Geographic brands; and television broadcast network under the ABC brand, as well as eight owned domestic television stations. This segment is also involved in the television production and distribution; and operation of National Geographic magazines. Its Parks, Experiences and Products segment operates theme parks and resorts, such as Walt Disney World Resort in Florida; Disneyland Resort in California; Disneyland Paris; Hong Kong Disneyland Resort; and Shanghai Disney Resort; Disney Cruise Line, Disney Vacation Club, National Geographic Expeditions, and Adventures by Disney; and Aulani, a Disney resort and spa in Hawaii, as well as licenses its intellectual property to a third party for the operations of the Tokyo Disney Resort in Japan. The company’s Studio Entertainment segment produces and distributes motion pictures under the Walt Disney Pictures, Twentieth Century Fox, Marvel, Lucasfilm, Pixar, Fox Searchlight Pictures, and Blue Sky Studios banners; develops, produces, and licenses live entertainment events; produces and distributes music; and provides post-production services, including visual and audio effects. Its Direct-To-Consumer & International segment operates international television networks and channels comprising Disney, ESPN, Fox, National Geographic, Star, and Other India Channels; direct-to-consumer streaming services consisting of Disney +, ESPN+, Hotstar, and Hulu; and operates branded apps and Websites, such as Disney Movie Club and Disney Digital Network, as well as provides streaming technology support services. The company was founded in 1923 and is based in Burbank, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 23:36
End of Day Share Price2020/02/14 00:00
Earnings2019/12/28
Annual Earnings2019/09/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.