Walt Disney (DIS) AI Stock Analysis

• Market Cap: $202.74B
• Dividend Yield: 1.1%
• Average Volume (3M): 12.46M
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.80
• Revenue Growth: 3.61%
• EPS Growth: 152.34%
• Country: US
• Employees: 177,080
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 1.11
• Shares Outstanding: 1,785,288,800
• 10 Day Avg. Volume: 12,347,794
• 30 Day Avg. Volume: 12,458,966
• PEG Ratio: 0.11
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 2.17
• P/FCF Ratio: 20.31
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 2.55
• Enterprise Value/Gross Profit: 6.76
• Enterprise Value/Ebitda: 12.53
• 1Y Price Target: $137.75
• Price Target Upside: 21.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 6.62
• Revenue Forecast (FY): $100.71B

• Rating: 75 Outperform
• Price Target: $120.00 ▲(5.67% Upside)

Disney's strong financial performance and positive earnings call are the most significant factors driving the score. While technical indicators suggest caution, the company's strategic growth initiatives and fair valuation support a positive outlook.

Positive Factors

Earnings Growth

The consistent growth in earnings per share indicates strong operational performance and effective cost management, supporting long-term profitability.

Strategic Advancements

Expansion into new markets and offerings enhances Disney's global presence and diversifies revenue streams, providing a competitive edge.

Leadership Stability

Retaining experienced leadership ensures strategic continuity and stability, crucial for navigating industry challenges and executing long-term plans.

Negative Factors

Revenue Decline

A decline in revenue can signal challenges in market demand or competitive pressures, potentially impacting future growth prospects.

Content Cost Pressures

Rising content costs can squeeze margins and reduce profitability, necessitating strategic cost management to maintain financial health.

Free Cash Flow Decline

A decline in free cash flow growth may limit Disney's ability to invest in new opportunities and return capital to shareholders.

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 key streams: Theme Parks and Resorts account for a significant portion of its earnings, driven by ticket sales, hotel accommodations, food and beverage sales, and merchandise. Disney Media Networks contributes revenue through advertising, subscriptions, and affiliate fees from its television networks. Disney Studio Entertainment earns money from theatrical releases, home entertainment, and licensing of its film and television content. The Direct-to-Consumer segment, particularly through Disney+, Hulu, and ESPN+, generates income via subscription fees and advertising revenue. Additionally, Disney benefits from merchandise licensing, where it earns royalties from third-party products featuring its characters and brands. Strategic partnerships, such as those with streaming platforms and retailers, further enhance its revenue potential.

Walt Disney Financial Statement Overview

Summary

Walt Disney demonstrates strong profitability with robust margins and a solid balance sheet. Despite a slight revenue decline and concerns over free cash flow growth, the company's financial health remains strong, supported by efficient operations and moderate leverage.

Income Statement

Walt Disney's income statement shows strong profitability with a gross profit margin of 37.76% and a net profit margin of 13.14% for the latest year. Despite a slight revenue decline of 3.8% in the most recent year, the company has demonstrated robust EBIT and EBITDA margins of 14.63% and 20.27%, respectively, indicating efficient cost management and operational strength.

Balance Sheet

The balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.38, indicating moderate leverage. Return on equity stands at 11.29%, showcasing effective use of equity to generate profits. The equity ratio is strong, suggesting a stable asset base supported by equity.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 12.74%, which could be a concern. However, the operating cash flow to net income ratio is 0.53, indicating decent cash generation relative to net income. The free cash flow to net income ratio of 0.56 suggests that a significant portion of net income is converted into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	94.42B	94.42B	91.36B	88.90B	82.72B	67.42B
Gross Profit	35.66B	35.66B	32.66B	29.70B	28.32B	22.29B
EBITDA	19.23B	19.14B	14.63B	12.11B	12.00B	9.08B
Net Income	12.40B	12.40B	4.97B	2.35B	3.15B	2.00B
Balance Sheet
Total Assets	197.51B	197.51B	196.22B	205.58B	203.63B	203.61B
Cash, Cash Equivalents and Short-Term Investments	5.70B	5.70B	6.00B	14.18B	11.62B	15.96B
Total Debt	44.88B	44.88B	49.52B	50.67B	52.26B	58.31B
Total Liabilities	82.90B	82.90B	90.70B	92.57B	95.25B	101.39B
Stockholders Equity	109.87B	109.87B	100.70B	99.28B	95.01B	88.55B
Cash Flow
Free Cash Flow	10.08B	10.08B	8.56B	4.90B	1.07B	1.99B
Operating Cash Flow	18.10B	18.10B	13.97B	9.87B	6.01B	5.57B
Investing Cash Flow	-8.04B	-8.04B	-6.88B	-4.64B	-5.01B	-3.16B
Financing Cash Flow	-10.37B	-10.37B	-15.29B	-2.72B	-4.74B	-4.38B

Walt Disney Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 113.56
• 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 113.56 is above the 20-day moving average (MA) of 109.03, above the 50-day MA of 108.95, and above the 200-day MA of 109.03, indicating a bullish trend. The MACD of 1.66 indicates Negative momentum. The RSI at 62.69 is Neutral, neither overbought nor oversold. The STOCH value of 91.62 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
FOXA	77 Outperform	$30.89B	16.72	17.33%	0.75%	14.91%	9.30%
DIS	75 Outperform	$202.74B	16.58	11.78%	1.10%	3.61%	152.34%
CMCSA	74 Outperform	$108.08B	4.92	24.73%	4.42%	0.20%	61.54%
NFLX	73 Outperform	$431.68B	39.47	42.86%	―	15.49%	35.54%
LYV	69 Neutral	$33.86B	106.43	79.63%	―	5.39%	36.94%
WBD	68 Neutral	$71.38B	153.52	1.36%	―	-4.29%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Walt Disney Corporate Events

Walt Disney Nominates Jeffrey Williams to Board

On December 9, 2025, The Walt Disney Company announced the nomination of Jeffrey E. Williams, former Chief Operating Officer of Apple Inc., for election to its Board of Directors at the 2026 annual meeting. With his extensive experience in technology and global operations, Williams is expected to contribute significantly to Disney’s focus on creative storytelling and innovation. The board will expand from 10 to 11 members following the election, reflecting Disney’s commitment to strengthening its leadership as it continues its journey of creativity and excellence.

Walt Disney Extends CFO Hugh Johnston’s Contract

On November 10, 2025, The Walt Disney Company extended the employment agreement of Hugh F. Johnston, the Senior Executive Vice President and Chief Financial Officer, to January 31, 2029. The amendment increases Johnston’s long-term equity incentive annual award to $16,500,000, starting from the current fiscal year, while maintaining his current base salary and annual bonus target. This move underscores Disney’s commitment to retaining key leadership and may impact the company’s financial strategies and stakeholder interests.

Disney Extends Horacio Gutierrez’s Employment Agreement

On November 4, 2025, The Walt Disney Company extended the employment agreement of Horacio E. Gutierrez, its Senior Executive Vice President, Chief Legal and Compliance Officer, to September 30, 2028, and changed his title to Senior Executive Vice President, Chief Legal and Global Affairs Officer. The amendment increases his long-term equity incentive annual award value to $12,365,000 but does not alter his base salary or target annual bonus. This adjustment reflects Disney’s commitment to retaining key executives and ensuring leadership stability, potentially impacting the company’s strategic legal and global affairs operations.

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.

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.