Walt Disney (NYSE:DIS) - Share price, News & Analysis

DIS fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	2/6
Financial Health	3/6
Dividends	0/6

DIS Stock Overview

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

Rewards

Trading at 53.1% below our estimate of its fair value

Earnings are forecast to grow 29.91% per year

Became profitable this year

Risk Analysis

No risks detected for DIS from our risk checks.

Walt Disney Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Walt Disney
Historical stock prices
Current Share Price	US$97.78
52 Week High	US$187.58
52 Week Low	US$92.01
Beta	1.22
1 Month Change	-5.31%
3 Month Change	-29.73%
1 Year Change	-45.18%
3 Year Change	-29.98%
5 Year Change	-7.97%
Change since IPO	915.90%

Recent News & Updates

Jun 24

Why 'Lightyear's' Failure To Launch Isn't Tied To Disney's Streaming Strategy

Disney’s approach to streaming has long been a hot button issue over the last year and some blame it for the poor performance of “Lightyear” at last weekend’s box office. The argument is that people stayed home because they knew the movie would be coming to Disney+ within the next few months, lessening initial demand for theatrical viewing. In reality “Lightyear” is a movie that tried to be so many different things it ended up outsmarting itself and that’s why it made less in its initial weekend. In a rare misstep, “Lightyear” was mis-marketed by Disney, with the company not being able to explain how it fit into the “Toy Story” universe and connected to the overall franchise. It is easy to blame the streaming element, but the marketing, the creative choices and a higher parental rating all come into play first.

Jun 20

10% Down Exposure - How Disney's (NYSE:DIS) Stock Compares to Industry Peers

The Walt Disney Company (NYSE:DIS) is trading at a 63x Price to Earnings, while dropping 50%+ from the March 2021 highs. The company is expected to start recovering this year, and in our analysis we will evaluate how much profit can investors expect, as well as what does that mean for Disney's stock price.

Jun 13

Disney: Abundant Uncertainty

Uncertainties regarding Disney’s Direct-to-Consumer strategy make it very challenging to derive a valuation for the company. The Parks, Experiences and Products segment looks to be in excellent shape and provides solid support for the share price. Applying a sustainable earnings approach, I arrive at a HOLD rating.

Shareholder Returns

	DIS	US Entertainment	US Market
7D	3.6%	6.0%	6.6%
1Y	-45.2%	-50.8%	-18.5%

Return vs Industry: DIS exceeded the US Entertainment industry which returned -52.1% over the past year.

Return vs Market: DIS underperformed the US Market which returned -20.5% over the past year.

Price Volatility

Is DIS's price volatile compared to industry and market?
DIS volatility
DIS Average Weekly Movement	4.8%
Entertainment Industry Average Movement	11.5%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.1%

Stable Share Price: DIS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: DIS's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1923	166,250	Bob Chapek	https://www.thewaltdisneycompany.com

The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. It operates through two segments, Disney Media and Entertainment Distribution; and Disney Parks, Experiences and Products. The company engages in the film and episodic television content production and distribution activities, as well as operates television broadcast networks under the ABC, Disney, ESPN, Freeform, FX, Fox, National Geographic, and Star brands; and studios that produces motion pictures under the Walt Disney Pictures, Twentieth Century Studios, Marvel, Lucasfilm, Pixar, and Searchlight Pictures banners.

Walt Disney Fundamentals Summary

How do Walt Disney's earnings and revenue compare to its market cap?
DIS fundamental statistics
Market Cap	US$171.77b
Earnings (TTM)	US$2.71b
Revenue (TTM)	US$76.62b

65.8x

P/E Ratio

2.3x

P/S Ratio

Is DIS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DIS income statement (TTM)
Revenue	US$76.62b
Cost of Revenue	US$50.74b
Gross Profit	US$25.89b
Other Expenses	US$23.18b
Earnings	US$2.71b

Last Reported Earnings

Apr 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.49
Gross Margin	33.79%
Net Profit Margin	3.53%
Debt/Equity Ratio	50.0%

How did DIS perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is DIS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DIS?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for DIS. This is calculated by dividing DIS's market cap by their current preferred multiple.
What is DIS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$171.77b

DIS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.9x
Enterprise Value/EBITDA	20.8x
PEG Ratio	2.2x

Price to Earnings Ratio vs Peers

How does DIS's PE Ratio compare to its peers?

DIS PE Ratio vs Peers

The above table shows the PE ratio for DIS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	25.9x

Forward PE

Price-To-Earnings vs Peers: DIS is expensive based on its Price-To-Earnings Ratio (65.8x) compared to the peer average (25.9x).

Price to Earnings Ratio vs Industry

How does DIS's PE Ratio compare vs other companies in the U.S. Entertainment Industry?

Price-To-Earnings vs Industry: DIS is expensive based on its Price-To-Earnings Ratio (65.8x) compared to the US Entertainment industry average (24x)

Price to Earnings Ratio vs Fair Ratio

What is DIS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DIS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	65.8x
Fair PE Ratio	39.6x

Price-To-Earnings vs Fair Ratio: DIS is expensive based on its Price-To-Earnings Ratio (65.8x) compared to the estimated Fair Price-To-Earnings Ratio (39.6x).

Share Price vs Fair Value

What is the Fair Price of DIS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DIS ($97.78) is trading below our estimate of fair value ($208.41)

Significantly Below Fair Value: DIS is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: DIS is poor value based on its PEG Ratio (2.2x)

Discover undervalued companies

Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

29.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DIS's forecast earnings growth (29.9% per year) is above the savings rate (1.9%).

Earnings vs Market: DIS's earnings (29.9% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: DIS's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DIS's revenue (8.3% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: DIS's revenue (8.3% 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 (11.8%).

Discover growth companies

Past Performance

How has Walt Disney performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-37.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DIS has high quality earnings.

Growing Profit Margin: DIS became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: DIS's earnings have declined by 37.3% per year over the past 5 years.

Accelerating Growth: DIS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: DIS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Entertainment industry (3.7%).

Return on Equity

High ROE: DIS's Return on Equity (3.1%) is considered low.

Discover strong past performing companies

Financial Health

How is Walt Disney's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: DIS's short term assets ($31.4B) exceed its short term liabilities ($29.6B).

Long Term Liabilities: DIS's short term assets ($31.4B) do not cover its long term liabilities ($68.8B).

Debt to Equity History and Analysis

Debt Level: DIS's net debt to equity ratio (37.3%) is considered satisfactory.

Reducing Debt: DIS's debt to equity ratio has increased from 45.9% to 50% over the past 5 years.

Debt Coverage: DIS's debt is not well covered by operating cash flow (10.9%).

Interest Coverage: DIS's interest payments on its debt are well covered by EBIT (4.2x coverage).

Balance Sheet

Discover healthy companies

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.06%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate DIS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DIS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DIS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DIS's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: DIS is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as DIS has not reported any payouts.

Discover strong dividend paying companies

Management

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

1.7yrs

Average management tenure

CEO

Bob Chapek (61 yo)

2.33yrs

Tenure

US$32,464,293

Compensation

Mr. Robert A. Chapek, also known as Bob, has been the Chief Executive Officer of Walt Disney Company since February 24, 2020 and has been its Director since April 14, 2020. He served as Chairman of Disney...

CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD32.46M) is above average for companies of similar size in the US market ($USD13.59M).

Compensation vs Earnings: Insufficient data to compare Bob's compensation with company performance.

Leadership Team

Experienced Management: DIS's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.

Board Members

Experienced Board: DIS's board of directors are considered experienced (4.4 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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/04/02
Annual Earnings	2021/10/02