tiprankstipranks
Trending News
More News >
Walt Disney (DIS)
NYSE:DIS

Walt Disney (DIS) AI Stock Analysis

Compare
41,275 Followers

Top Page

DI

Walt Disney

(NYSE:DIS)

Rating:78Outperform
Price Target:
$132.00
▲(6.45%Upside)
Disney's overall stock score reflects its solid financial performance, driven by strong profitability and efficient cash management. While technical analysis indicates bullish momentum, the overbought signals suggest caution. Valuation metrics highlight a relatively high price compared to peers, balanced by strategic growth initiatives such as the Hulu acquisition and international expansion plans. Earnings call insights and corporate events further bolster the stock's potential, despite some external challenges.
Positive Factors
Advertising Revenue
The ESPN direct-to-consumer launch is anticipated to increase average revenue per user and drive higher advertising revenue.
Earnings Growth
DIS raised future earnings per share guidance following a strong earnings report, indicating confidence in achieving financial goals.
Revenue Growth
The launch of two new cruise ships is expected to contribute significantly to revenue growth for Disney.
Negative Factors
Box Office Performance
There is a reduction in expected revenue, operating income, and earnings per share due to the disappointment of a film at the box office.
Film Performance
Revenue and operating income expectations were lowered due to the disappointment of Elio at the box office.
Pricing Challenges
Long-term demand curves suggest Disney may not be able to materially raise US prices without hurting Admissions and MFB revenue.

Walt Disney (DIS) vs. SPDR S&P 500 ETF (SPY)

Walt Disney Business Overview & Revenue Model

Company DescriptionThe 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 MoneyDisney generates revenue through multiple streams. The Media Networks segment earns money primarily from advertising sales, affiliate fees, and subscription revenues across its various television networks like ABC and ESPN. Parks, Experiences and Products derive income from theme park admissions, merchandise sales, hotel accommodation, and food and beverage sales. Studio Entertainment generates revenue from the production and distribution of films and related content through box office sales, home entertainment, and licensing deals. The Direct-to-Consumer & International segment includes revenue from subscription fees for streaming services such as Disney+, Hulu, and ESPN+, as well as advertising and sponsorships. Significant partnerships, such as those with other streaming platforms and content distributors, as well as licensing arrangements, also contribute to Disney's earnings.

Walt Disney Key Performance Indicators (KPIs)

Any
Any
Total Subscribers
Total Subscribers
Indicates the scale of the company’s customer base, crucial for assessing growth potential and market penetration.
Chart InsightsDisney's subscriber base has shown a recovery after a decline, with recent growth attributed to strategic streaming enhancements. The integration of Hulu and sports content into Disney+ has boosted engagement and reduced churn, aligning with the company's optimistic growth outlook. Despite past subscriber losses, the positive momentum in streaming and robust performance in other segments, such as theme parks and entertainment, suggest a resilient strategy. However, challenges in the direct-to-consumer advertising space and economic pressures in China could pose risks to sustained growth.
Data provided by:Main Street Data

Walt Disney Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q2-2025)
|
% Change Since: 35.11%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Disney's strong financial performance in Q2, successful expansion plans, and positive streaming developments. Despite some challenges in China and in the direct-to-consumer advertising space, the overall outlook remains optimistic.
Q2-2025 Updates
Positive Updates
Strong Q2 Financial Performance
The Walt Disney Company reported a strong second quarter with adjusted EPS up 20% from the prior year, showcasing solid performance in the first half of fiscal 2025.
Disneyland Abu Dhabi Announcement
Disney announced a new theme park in Abu Dhabi, which will be developed in partnership with the Miral Group. This seventh Disney theme park resort aims to blend Disney stories with local culture.
Successful Entertainment Segment
Disney's Entertainment business, particularly movies and sports, showed strong growth. Marvel's Thunderbolts became the number one movie in the world, and ESPN's Q2 primetime audience increased by 32%.
Positive Streaming Developments
Disney+ and Hulu integration is positively impacting engagement and reducing churn. The company's three-year guidance remains intact, reflecting confidence in future growth.
Theme Parks and Experiences Growth
Disney's Experiences segment achieved strong results with domestic businesses performing exceptionally well, supported by over $30 billion investment in theme parks in Florida and California.
Negative Updates
Challenges in China
Although attendance in China remains strong, per capita spending has decreased due to the economic challenges faced by Chinese consumers.
Supply Challenges in DTC Advertising
Disney's direct-to-consumer advertising faced challenges due to increased supply, despite strong demand in other sectors such as live sports.
Company Guidance
During The Walt Disney Company's second quarter 2025 earnings call, CEO Bob Iger highlighted strong financial performance with a 20% increase in adjusted EPS compared to the previous year. The company's Experiences segment delivered robust results, driven by domestic business performance and all-time high returns on invested capital. Disney announced a strategic partnership with the Miral Group to develop a new theme park in Abu Dhabi, projected to attract millions of visitors. The company is investing over $30 billion in its Florida and California parks, aiming for expansion and job creation. Streaming remains a core growth platform, with Disney seeing positive impacts from integrated Hulu and sports content into Disney+, resulting in increased engagement and reduced churn. ESPN's primetime audience in the key 18 to 49 demographic rose by 32%, marking its most-watched Q2 in primetime ever, driven by NFL, college football, and other sports events. Disney remains optimistic about its growth strategy for the rest of fiscal 2025 and beyond.

Walt Disney Financial Statement Overview

Summary
Walt Disney demonstrates a solid financial performance across all key areas. The income statement reveals strong profitability and operational efficiency, while the balance sheet indicates a stable capital structure with manageable leverage. Cash flow metrics underscore the company's ability to effectively generate and manage cash, supporting ongoing investments and operations. However, the slight deceleration in revenue growth and substantial debt levels are areas to monitor.
Income Statement
85
Very Positive
Disney's income statement shows strong profitability with a TTM gross profit margin of 37.08% and a net profit margin of 9.47%. Revenue growth is robust at 2.93% from the previous annual report, indicating healthy demand. The EBIT margin of 14.55% and EBITDA margin of 18.68% further confirm operational efficiency. However, the lower revenue growth rate compared to previous years suggests a potential slowdown.
Balance Sheet
78
Positive
The balance sheet reflects a strong equity base with an equity ratio of 53.28%. The debt-to-equity ratio is manageable at 0.41, indicating a balanced approach to leverage. Return on Equity (ROE) is solid at 8.54%, showcasing effective use of equity to generate profits. While the debt level is significant, it is well-supported by the company's equity structure.
Cash Flow
82
Very Positive
Cash flow analysis indicates strong operational cash generation, with an operating cash flow to net income ratio of 2.03, suggesting efficient cash conversion. The free cash flow growth rate is impressive at 27.32%, highlighting robust capital management. Free cash flow to net income ratio of 1.22 underscores the firm's ability to generate free cash relative to its earnings, despite significant capital expenditures.
BreakdownTTMSep 2024Sep 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue94.04B91.36B88.90B82.72B67.42B65.39B
Gross Profit34.88B32.66B29.70B28.32B22.29B21.51B
EBITDA17.57B14.01B11.60B12.00B9.22B5.25B
Net Income8.91B4.97B2.35B3.19B2.02B-2.83B
Balance Sheet
Total Assets195.83B196.22B205.58B203.63B203.61B201.55B
Cash, Cash Equivalents and Short-Term Investments5.85B6.00B14.18B11.62B15.96B17.91B
Total Debt42.89B48.74B49.90B48.37B54.41B58.63B
Total Liabilities87.07B90.70B92.57B95.25B101.39B104.04B
Stockholders Equity104.34B100.70B99.28B95.01B88.55B83.58B
Cash Flow
Free Cash Flow10.90B8.56B4.90B1.07B1.99B3.60B
Operating Cash Flow18.08B13.97B9.87B6.01B5.57B7.62B
Investing Cash Flow-8.80B-6.88B-4.64B-5.01B-3.16B-3.64B
Financing Cash Flow-10.02B-15.29B-2.72B-4.74B-4.38B8.48B

Walt Disney Technical Analysis

Technical Analysis Sentiment
Positive
Last Price124.00
Price Trends
50DMA
109.82
Positive
100DMA
104.53
Positive
200DMA
104.52
Positive
Market Momentum
MACD
3.71
Negative
RSI
74.83
Negative
STOCH
87.59
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 124 is above the 20-day moving average (MA) of 118.91, above the 50-day MA of 109.82, and above the 200-day MA of 104.52, indicating a bullish trend. The MACD of 3.71 indicates Negative momentum. The RSI at 74.83 is Negative, neither overbought nor oversold. The STOCH value of 87.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$24.24B13.9916.89%0.96%15.70%26.73%
79
Outperform
$552.04B61.3040.84%14.11%47.22%
DIDIS
78
Outperform
$222.92B25.338.75%0.81%5.33%431.28%
LYLYV
77
Outperform
$34.60B51.11827.53%-2.92%166.63%
WMWMG
72
Outperform
$15.32B34.1689.20%2.45%-0.91%-14.87%
WBWBD
59
Neutral
$27.76B-27.69%-5.58%-254.85%
55
Neutral
HK$64.46B-1.91-1.90%7.21%-4.17%-13.99%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DIS
Walt Disney
124.00
27.47
28.46%
LYV
Live Nation Entertainment
149.27
54.80
58.01%
NFLX
Netflix
1,297.18
611.44
89.16%
FOXA
Fox
56.25
22.12
64.81%
WMG
Warner Music Group
29.39
-0.42
-1.41%
WBD
Warner Bros
11.22
4.11
57.81%

Walt Disney Corporate Events

M&A TransactionsBusiness Operations and Strategy
Disney Finalizes Hulu Acquisition with NBC Universal
Positive
Jun 9, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 10, 2025