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Walt Disney (DIS)
NYSE:DIS
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Walt Disney
(NYSE:DIS)
76Outperform
Positive Factors
Cruise expansion
The addition of a new cruise ship is expected to be profitable in its first full quarter, aiding operating income growth.
Financial performance
Adjusted EPS beat expectations by 21%, with operational income across all segments exceeding expectations driven by margin improvements.
Parks and experiences
Disney's experiences segment, which includes parks, is showing strong performance with high operating margins expected.
Negative Factors
Economic impact
Economic downturns could negatively impact demand for theme parks and streaming services, affecting overall performance.
Streaming challenges
The exit from a wholesale deal and the impact of price hikes led to guidance of continued subscriber losses in the second quarter.
Subscriber growth concerns
Disney+ subscribers declined quarter-over-quarter, with management guiding to further declines, raising concerns about long-term growth.
Walt Disney (DIS) vs. S&P 500 (SPY)
Market Cap
$160.60B
Dividend Yield1.07%
Average Volume (3M)9.52M
Price to Earnings (P/E)28.8
Beta (1Y)0.68
Revenue Growth3.97%
EPS Growth89.53%
CountryUS
Employees177,080
SectorCommunication Services
Sector Strength74
IndustryEntertainment
Share Statistics
EPS (TTM)3.08
Shares Outstanding1,807,788,800
10 Day Avg. Volume8,638,194
30 Day Avg. Volume9,520,148
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)N/A
Price to Sales (P/S)1.94
Price to Cash Flow (P/CF)14.00
P/FCF Ratio12.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$129.74Price Target Upside46.04% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering21
Walt Disney Business Overview & Revenue Model
Company DescriptionThe Walt Disney Company, commonly referred to as Disney, is a leading diversified international family entertainment and media enterprise. Founded in 1923, the company operates through several segments: Media Networks, Parks, Experiences and Products, Studio Entertainment, and Direct-to-Consumer & International. Disney is renowned for its iconic characters, films, theme parks, and television networks, including the Disney Channel and ABC. It also owns Marvel, Lucasfilm, and Pixar, adding to its robust portfolio of entertainment assets.
How the Company Makes MoneyThe Walt Disney Company generates revenue through multiple streams. The Media Networks segment earns money primarily from advertising sales, affiliate fees, and licensing of programming. Parks, Experiences and Products generate revenue from theme park admissions, merchandise, food, and accommodations. Studio Entertainment brings in revenue through the theatrical distribution of films, home entertainment sales, and licensing. The Direct-to-Consumer & International segment includes revenue from streaming services like Disney+, ESPN+, and Hulu, driven by subscription fees and advertising. Additionally, Disney benefits from strategic partnerships and collaborations that enhance its market reach and brand value.
Walt Disney Financial Statement Overview
Summary
Walt Disney shows strong financial health across all statements. The Income Statement reflects robust revenue growth and operational efficiency, though there's potential for higher profitability. The Balance Sheet highlights a stable financial foundation with well-managed leverage. The Cash Flow statement indicates excellent cash generation and efficiency. Overall, Disney is poised for sustainable growth with a solid financial footing.Income Statement
Walt Disney has shown strong performance in the TTM with a Gross Profit Margin of 36.73% and a Net Profit Margin of 6.07%. The company achieved a notable Revenue Growth Rate of 4.08% from 2023 to 2024, indicating robust revenue growth. EBIT Margin stands at 15.60% and EBITDA Margin at 12.57%, highlighting efficient operational management. The company's profitability and revenue growth are commendable, though the Net Profit Margin suggests room for improvement in profitability.85
Very Positive
Balance Sheet
The Balance Sheet shows a stable financial position, with a Debt-to-Equity Ratio of 0.44, indicating a balanced leverage profile. Return on Equity (ROE) at 5.51% reflects moderate shareholder returns. The Equity Ratio of 51.73% showcases a strong equity base relative to assets, ensuring financial stability. While leverage is well-managed, enhancing ROE could further strengthen financial health.78
Positive
Cash Flow
Operating Cash Flow to Net Income Ratio is 2.67, demonstrating strong cash generation relative to net income. Free Cash Flow Growth Rate from 2023 to 2024 is 71.75%, indicating significant improvement in cash efficiency. The Free Cash Flow to Net Income Ratio of 1.50 suggests effective conversion of earnings to cash flow, supporting business flexibility and growth initiatives.82
Very Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 92.50B | 91.36B | 88.90B | 82.72B | 67.42B | 65.39B | Gross Profit |
| 33.98B | 32.66B | 29.70B | 28.32B | 22.29B | 21.51B | EBIT |
| 14.44B | 11.58B | 8.99B | 6.83B | 3.49B | 3.78B | EBITDA |
| 11.63B | 14.01B | 11.60B | 12.00B | 9.22B | 5.25B | Net Income Common Stockholders |
| 5.62B | 4.97B | 2.35B | 3.19B | 2.02B | -2.83B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.08B | 6.00B | 14.18B | 11.62B | 15.96B | 17.91B | Total Assets |
| 68.76B | 196.22B | 205.58B | 203.63B | 203.61B | 201.55B | Total Debt |
| 13.24B | 48.74B | 49.90B | 48.37B | 54.41B | 58.63B | Net Debt |
| 10.17B | 42.74B | 35.71B | 36.75B | 38.45B | 40.71B | Total Liabilities |
| 29.79B | 90.70B | 92.57B | 95.25B | 101.39B | 104.04B | Stockholders Equity |
| 37.48B | 100.70B | 99.28B | 95.01B | 88.55B | 83.58B |
| Cash Flow | Free Cash Flow | ||||
| 8.41B | 8.56B | 4.90B | 1.07B | 1.99B | 3.60B | Operating Cash Flow |
| 14.99B | 13.97B | 9.87B | 6.01B | 5.57B | 7.62B | Investing Cash Flow |
| -8.21B | -6.88B | -4.64B | -5.01B | -3.16B | -3.64B | Financing Cash Flow |
| -8.28B | -15.29B | -2.72B | -4.74B | -4.38B | 8.48B |
Walt Disney Technical Analysis
Negative
88.84
Price Trends
106.29
Negative
108.69
Negative
100.99
Negative
Market Momentum
-2.42
Negative
35.49
Neutral
27.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DIS, the sentiment is Negative. The current price of 88.84 is below the 20-day moving average (MA) of 99.11, below the 50-day MA of 106.29, and below the 200-day MA of 100.99, indicating a bearish trend. The MACD of -2.42 indicates Negative momentum. The RSI at 35.49 is Neutral, neither overbought nor oversold. The STOCH value of 27.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DIS.
Walt Disney Risk Analysis
Walt Disney disclosed 23 risk factors in its most recent earnings report. Walt Disney reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Walt Disney Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $155.60B | 20.41 | 14.40% | 0.39% | 1.77% | 18.85% | |
77 Outperform | $135.06B | 8.62 | 19.24% | 3.47% | 1.78% | 11.62% | |
76 Outperform | $160.60B | 28.85 | 5.54% | 1.07% | 3.97% | 89.53% | |
74 Outperform | $392.27B | 46.25 | 38.43% | ― | 15.28% | 65.72% | |
61 Neutral | $8.15B | ― | -31.94% | 1.74% | -1.48% | -450.15% | |
59 Neutral | $27.83B | 1.88 | -18.16% | 4.00% | 2.13% | -44.45% | |
58 Neutral | $25.06B | ― | -28.54% | ― | -4.97% | -259.71% |
* Communication Services Sector Average
Performance Comparison
DIS
Walt Disney
88.84
-27.20
-23.44%
PARA
Paramount Global Class B
11.48
-0.66
-5.44%
CMCSA
Comcast
35.72
-4.05
-10.18%
SONY
Sony Group
23.38
6.53
38.75%
NFLX
Netflix
917.05
299.91
48.60%
WBD
Warner Bros
9.16
0.72
8.53%
Walt Disney Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -21.59% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
Disney's earnings call highlighted significant achievements in their film studios, streaming profitability, ESPN's ratings, and Disney Experiences. Despite some concerns regarding the NBA contract costs and potential restructuring of linear networks, the overall performance and strategic initiatives position the company positively for future growth.Highlights
Top 3 Movies of 2024
Disney's film studios had the top 3 movies of 2024 at the global box office, showcasing their creative strength and success.
Growth in Streaming Profitability
Significant growth in streaming profitability, highlighted by technological advancements and strategic planning for ESPN and Disney+.
ESPN's Historic Ratings
ESPN achieved historic ratings, contributing positively to Disney's overall performance.
Strong Performance of Disney Experiences
Disney's Experiences business showed strong and enduring appeal, with bookings up for the summer and Disney Treasure launch being a success.
Successful Cost-Cutting Initiatives
Disney continues to identify and implement cost-cutting opportunities, contributing to their financial management and profitability.
Lowlights
Potential Impact of NBA Contract
Concerns about the step-up in rights costs for the NBA contract, though the company remains confident in its growth strategy.
Linear Networks Concerns
While currently an asset, there is an ongoing consideration for restructuring smaller linear networks, indicating potential future challenges.
Company Guidance
During The Walt Disney Company's First Quarter 2025 Financial Results Conference Call, CEO Bob Iger highlighted several key metrics and strategic initiatives. The company achieved notable success in its film studios, with the top three movies of 2024 at the global box office, contributing to robust financial performance. Additionally, Disney reported growth in streaming profitability, with a focus on technological enhancements and personalization to drive further gains. The company also maintained a positive outlook for its Experiences and Parks segment, projecting a 6% to 8% increase for the year, bolstered by strong Q1 results and upcoming attractions. Furthermore, Disney's direct-to-consumer segment saw operating profit growth, with expectations of achieving over $1 billion in profit for the fiscal year. Overall, the call underscored Disney's strategic focus on leveraging its diverse portfolio and technological advancements to sustain growth across its various business segments.Walt Disney Corporate Events
Executive/Board Changes
Walt Disney Announces Leadership Transition and New Chairman
Neutral
Oct 21, 2024
The Walt Disney Company announces a significant leadership transition as James P. Gorman steps up as Chairman of the Board, succeeding Mark G. Parker who will resign in January 2025 after nine years of service. Gorman, who is also stepping down as Executive Chairman of Morgan Stanley, will lead Disney’s Board through the crucial process of selecting a new CEO, expected to be announced by early 2026. This change marks a pivotal moment for Disney, reinforcing its strategic succession planning within the financial markets.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.