Walt Disney (DIS) AI Stock Analysis

• Market Cap: $213.61B
• Dividend Yield: 0.85%
• Average Volume (3M): 7.83M
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.91
• Revenue Growth: 5.00%
• EPS Growth: 144.65%
• Country: US
• Employees: 177,080
• Sector: Communication Services
• Sector Strength: 96
• Industry: Entertainment
• EPS (TTM): 1.61
• Shares Outstanding: 1,797,933,800
• 10 Day Avg. Volume: 5,933,855
• 30 Day Avg. Volume: 7,829,728
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 2.78
• Enterprise Value/Gross Profit: 7.68
• Enterprise Value/Ebitda: 14.61
• 1Y Price Target: $136.80
• Price Target Upside: 16.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 23

• Rating: 78 Outperform
• Price Target: $133.00 ▲(12.80% Upside)

Disney's overall stock score reflects strong financial performance and strategic initiatives that position it well for future growth. The positive sentiment from the earnings call and the strategic acquisition of Hulu are significant factors. However, mixed technical indicators and modest valuation metrics slightly temper the overall score.

Positive Factors

Earnings

DIS delivered a beat and raise in F3Q25 as an EBIT beat in Sports, Experiences, and DTC offset a miss in Linear Networks and CSL.

Growth Prospects

ESPN DTC will launch at $29.99/month, with promising growth prospects supported by new partnerships, setting the stage for long-term growth in the Sports segment.

Negative Factors

Legacy Business Challenges

Challenges remain on the legacy side of the business due to PayTV subscription losses and advertising headwinds.

Operating Income

Operating income estimate is reduced by 6% due to adjustments in the Content, Sales & Licensing segment.

Walt Disney Business Overview & Revenue Model

Company Description

The Walt Disney Company (NYSE: DIS) is a diversified multinational entertainment and media conglomerate headquartered in Burbank, California. Founded in 1923, Disney operates through various segments, including Media Networks, Parks, Experiences and Products, Studio Entertainment, and Direct-to-Consumer & International. The company is known for its iconic characters and franchises, such as Mickey Mouse, Star Wars, and Marvel, as well as its theme parks like Disneyland and Walt Disney World, animated films, and television networks including ABC and ESPN.

How the Company Makes Money

Disney generates revenue through multiple streams. The Media Networks segment includes advertising revenue from cable and broadcast television, subscription fees from cable providers, and affiliate fees. The Parks, Experiences and Products segment generates income from theme park admissions, hotel accommodations, merchandise sales, and licensing of Disney-branded products. Studio Entertainment earns revenue from the box office sales of films, home video sales, and licensing of content. The Direct-to-Consumer segment includes subscription revenue from Disney+, ESPN+, and Hulu, as well as advertising revenue from these platforms. Significant partnerships, such as exclusive streaming deals and collaborations with other content creators, also contribute to its earnings.

Walt Disney Financial Statement Overview

Summary

Walt Disney exhibits strong financial health with impressive revenue growth and profitability improvements. The company has effectively managed its leverage and enhanced its cash flow generation, positioning itself well for future growth. Continued focus on profitability and debt management will be crucial to sustaining this positive momentum.

Income Statement

Walt Disney's income statement shows strong performance with a significant revenue growth rate of 52.6% in the TTM period. The company has maintained healthy margins, with a gross profit margin of 37.1% and a net profit margin of 9.5%. The EBIT and EBITDA margins are also robust at 13.6% and 18.7%, respectively. This indicates effective cost management and operational efficiency. However, the net profit margin, while improved, suggests room for further profitability enhancement.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.41, showing a decrease from previous years, indicating improved leverage management. The return on equity stands at 8.7%, demonstrating effective use of equity to generate profits. The equity ratio is solid, suggesting a strong capital structure. However, the company should continue to monitor its debt levels to maintain financial flexibility.

Cash Flow

Cash flow analysis reveals a positive trajectory with a free cash flow growth rate of 598.4% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.53, and the free cash flow to net income ratio is 0.60, both reflecting efficient cash conversion. The company has shown significant improvement in cash flow metrics, supporting its operational and strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	94.46B	91.36B	88.90B	82.72B	67.42B	65.39B
Gross Profit	34.15B	32.66B	29.70B	28.32B	22.29B	21.51B
EBITDA	17.96B	14.63B	12.11B	12.00B	9.08B	5.09B
Net Income	11.55B	4.97B	2.35B	3.15B	2.00B	-2.86B
Balance Sheet
Total Assets	196.61B	196.22B	205.58B	203.63B	203.61B	201.55B
Cash, Cash Equivalents and Short-Term Investments	5.37B	6.00B	14.18B	11.62B	15.96B	17.91B
Total Debt	42.26B	49.52B	50.67B	52.26B	58.31B	62.32B
Total Liabilities	82.86B	90.70B	92.57B	95.25B	101.39B	104.04B
Stockholders Equity	109.14B	100.70B	99.28B	95.01B	88.55B	83.58B
Cash Flow
Free Cash Flow	11.55B	8.56B	4.90B	1.07B	1.99B	3.60B
Operating Cash Flow	19.14B	13.97B	9.87B	6.01B	5.57B	7.62B
Investing Cash Flow	-8.61B	-6.88B	-4.64B	-5.01B	-3.16B	-3.64B
Financing Cash Flow	-11.22B	-15.29B	-2.72B	-4.74B	-4.38B	8.48B

Walt Disney Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 117.91
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DIS, the sentiment is Positive. The current price of 117.91 is above the 20-day moving average (MA) of 116.69, below the 50-day MA of 119.02, and above the 200-day MA of 109.67, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 51.23 is Neutral, neither overbought nor oversold. The STOCH value of 56.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DIS.

Walt Disney Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMCSA	81 Outperform	$125.35B	5.60	25.44%	3.77%	2.54%	60.53%
NFLX	80 Outperform	$534.34B	53.00	43.55%	―	14.28%	46.86%
DIS	78 Outperform	$213.61B	18.40	11.01%	0.85%	5.00%	144.65%
FOXA	78 Outperform	$25.80B	12.24	19.96%	0.89%	16.60%	57.39%
LYV	68 Neutral	$37.80B	70.98	345.87%	―	-0.39%	108.72%
WBD	64 Neutral	$29.14B	38.97	2.18%	―	-3.79%	―
Sector *	60 Neutral	$46.29B	4.07	-13.11%	4.12%	1.85%	-42.71%

Walt Disney Corporate Events

Disney Finalizes Hulu Acquisition with NBC Universal

On November 1, 2023, NBC Universal exercised its right to require Disney to purchase its 33% interest in Hulu for a guaranteed floor value of $27.5 billion. After a contractual appraisal process completed on June 9, 2025, Disney is set to pay an additional $438.7 million to NBCU, with the acquisition closing by July 24, 2025. This acquisition will allow Disney to integrate Hulu’s content with Disney+ and ESPN, enhancing its streaming offerings.

The most recent analyst rating on (DIS) stock is a Buy with a $147.00 price target. To see the full list of analyst forecasts on Walt Disney stock, see the DIS Stock Forecast page.