The Walt Disney Company
The Walt Disney Company Fundamental Analysis
The Walt Disney Company (DIS) shows moderate financial fundamentals with a PE ratio of 15.38, profit margin of 12.80%, and ROE of 11.35%. The company generates $95.0B in annual revenue with moderate year-over-year growth of 3.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DIS's fundamental strength across five key dimensions:
Efficiency Score
WeakDIS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDIS trades at attractive valuation levels.
Growth Score
WeakDIS faces weak or negative growth trends.
Financial Health Score
ModerateDIS shows balanced financial health with some risks.
Profitability Score
WeakDIS struggles to sustain strong margins.
Key Financial Metrics
Is DIS Expensive or Cheap?
P/E Ratio
DIS trades at 15.38 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DIS's PEG of -15.09 indicates potential undervaluation.
Price to Book
The market values The Walt Disney Company at 1.74 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.59 times EBITDA. This is generally considered low.
How Well Does DIS Make Money?
Net Profit Margin
For every $100 in sales, The Walt Disney Company keeps $12.80 as profit after all expenses.
Operating Margin
Core operations generate 14.24 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.35 in profit for every $100 of shareholder equity.
ROA
The Walt Disney Company generates $6.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Walt Disney Company produces operating cash flow of $15.52B, showing steady but balanced cash generation.
Free Cash Flow
The Walt Disney Company produces free cash flow of $7.01B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.95 in free cash annually.
FCF Yield
DIS converts 3.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-15.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.95
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How DIS Stacks Against Its Sector Peers
| Metric | DIS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.38 | 21.66 | Better (Cheaper) |
| ROE | 11.35% | 1190.00% | Weak |
| Net Margin | 12.80% | -55754.00% (disorted) | Strong |
| Debt/Equity | 0.43 | 1.32 | Strong (Low Leverage) |
| Current Ratio | 0.67 | 1.59 | Weak Liquidity |
| ROA | 6.06% | -202359.00% (disorted) | Weak |
DIS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Walt Disney Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.73%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
534.06%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
138.14%
Industry Style: Growth, Technology, Streaming
High Growth