Walt Disney (DIS) AI Stock Analysis

• Market Cap: $201.80B
• Dividend Yield: 0.87%
• Average Volume (3M): 7.79M
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.85
• Revenue Growth: 5.00%
• EPS Growth: 144.65%
• Country: US
• Employees: 177,080
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 1.11
• Shares Outstanding: 1,797,933,800
• 10 Day Avg. Volume: 8,134,179
• 30 Day Avg. Volume: 7,791,567
• PEG Ratio: 0.32
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 1.92
• P/FCF Ratio: 20.51
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 2.78
• Enterprise Value/Gross Profit: 7.36
• Enterprise Value/Ebitda: 17.27
• 1Y Price Target: $141.38
• Price Target Upside: 21.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $127.00 ▲(8.87% Upside)

Disney's strong financial performance and strategic initiatives, particularly the integration of Hulu into Disney+ and ESPN's expansion, are key strengths. While technical indicators show some resistance, the company's fair valuation and positive earnings call sentiment support a favorable outlook. Continued focus on strategic growth and overcoming regional challenges will be crucial.

Positive Factors

Revenue Growth

Disney's robust revenue growth highlights its ability to expand market reach and capitalize on its diverse entertainment portfolio, supporting long-term financial health.

Strategic Initiatives

Integrating Hulu into Disney+ enhances user experience and operational efficiency, potentially increasing engagement and advertising revenue, strengthening Disney's streaming position.

Cash Flow Generation

Strong cash flow growth indicates Disney's effective cash conversion and ability to fund strategic initiatives, ensuring long-term operational and financial stability.

Negative Factors

Content Distribution Challenges

Loss of distribution on YouTube TV could reduce Disney's reach and advertising revenue, highlighting challenges in negotiating favorable terms with digital platforms.

Market Challenges in China

Economic stress in China could limit Disney's growth potential in a key market, affecting revenue from parks and consumer products in the region.

Content Overlap Challenges

Content overlap and tough comparisons may pressure revenue growth, necessitating strategic content planning to maintain competitive advantage and audience engagement.

Walt Disney Business Overview & Revenue Model

Company Description

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. It also offers direct-to-consumer streaming services through Disney+, Disney+ Hotstar, ESPN+, Hulu, and Star+; sale/licensing of film and television content to third-party television and subscription video-on-demand services; theatrical, home entertainment, and music distribution services; staging and licensing of live entertainment events; and post-production services by Industrial Light & Magic and Skywalker Sound. In addition, the company 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 as well as Aulani, a Disney resort and spa in Hawaii; licenses its intellectual property to a third party for the operations of the Tokyo Disney Resort; and provides consumer products, which include licensing of trade names, characters, visual, literary, and other IP for use on merchandise, published materials, and games. Further, it sells branded merchandise through retail, online, and wholesale businesses; and develops and publishes books, comic books, and magazines. The Walt Disney Company was founded in 1923 and is based in Burbank, California.

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	94.35B	91.36B	88.90B	82.72B	67.42B	65.39B
Gross Profit	35.66B	32.66B	29.70B	28.32B	22.29B	21.51B
EBITDA	15.19B	14.63B	12.11B	12.00B	9.08B	5.09B
Net Income	12.40B	4.97B	2.35B	3.15B	2.00B	-2.86B
Balance Sheet
Total Assets	197.51B	196.22B	205.58B	203.63B	203.61B	201.55B
Cash, Cash Equivalents and Short-Term Investments	5.70B	6.00B	14.18B	11.62B	15.96B	17.91B
Total Debt	42.03B	49.52B	50.67B	52.26B	58.31B	62.32B
Total Liabilities	82.90B	90.70B	92.57B	95.25B	101.39B	104.04B
Stockholders Equity	109.87B	100.70B	99.28B	95.01B	88.55B	83.58B
Cash Flow
Free Cash Flow	11.99B	8.56B	4.90B	1.07B	1.99B	3.60B
Operating Cash Flow	18.10B	13.97B	9.87B	6.01B	5.57B	7.62B
Investing Cash Flow	-8.48B	-6.88B	-4.64B	-5.01B	-3.16B	-3.64B
Financing Cash Flow	-9.93B	-15.29B	-2.72B	-4.74B	-4.38B	8.48B

Walt Disney Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 116.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 116.65 is above the 20-day moving average (MA) of 112.16, above the 50-day MA of 113.25, and above the 200-day MA of 109.94, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 64.50 is Neutral, neither overbought nor oversold. The STOCH value of 87.31 is Negative, 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
DIS	77 Outperform	$201.80B	17.60	11.01%	0.87%	5.00%	144.65%
FOXA	77 Outperform	$28.10B	15.01	17.33%	0.82%	14.91%	9.30%
WBD	70 Outperform	$56.94B	122.87	1.36%	―	-4.29%	―
CMCSA	69 Neutral	$98.82B	4.50	24.73%	4.76%	0.20%	61.54%
NFLX	69 Neutral	$490.47B	48.36	42.86%	―	15.49%	35.53%
LYV	63 Neutral	$33.29B	103.54	79.63%	―	5.39%	36.94%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Walt Disney Corporate Events

Walt Disney Extends Kristina Schake’s Employment Agreement

On October 15, 2025, The Walt Disney Company extended the employment agreement of Kristina K. Schake, its Senior Executive Vice President and Chief Communications Officer, to June 30, 2027. The amendment also increased her annual base salary to $875,000, effective immediately, while her bonus and long-term equity incentive targets remained unchanged.

The most recent analyst rating on (DIS) stock is a Buy with a $138.00 price target. To see the full list of analyst forecasts on Walt Disney stock, see the DIS Stock Forecast page.

Walt Disney Extends Sonia Coleman’s Employment Agreement

On September 27, 2025, The Walt Disney Company extended the employment agreement of Sonia L. Coleman, now titled Senior Executive Vice President and Chief People Officer, to June 30, 2028. The amendment increased her base salary to $1,000,000, with a target annual bonus of 175% of her salary starting in fiscal year 2025, and a long-term equity incentive of 375% of her salary starting in fiscal year 2026, reflecting the company’s commitment to retaining key leadership.

The most recent analyst rating on (DIS) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Walt Disney stock, see the DIS Stock Forecast page.

Walt Disney Company Reports Q3 2025 Earnings Growth

The Walt Disney Company is a diversified multinational entertainment and media conglomerate known for its film studios, theme parks, and streaming services, operating primarily in the entertainment and leisure industry.

Disney Earnings Call: Strategic Wins Amid Challenges

The Walt Disney Company’s recent earnings call painted a largely optimistic picture, underscored by significant achievements and strategic advancements. The integration of Hulu into Disney+, the launch of ESPN’s direct-to-consumer service, and ambitious expansion projects in the Parks and Experiences segment were among the highlights. Despite facing challenges in China, the overall sentiment was positive, driven by these strategic moves and financial successes.