Walt Disney (DIS) AI Stock Analysis

• Market Cap: $197.25B
• Dividend Yield: 0.86%
• Average Volume (3M): 11.38M
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.86
• Revenue Growth: 5.33%
• EPS Growth: 431.28%
• Country: US
• Employees: 177,080
• Sector: Communication Services
• Sector Strength: 89
• Industry: Entertainment
• EPS (TTM): 1.45
• Shares Outstanding: 1,797,746,300
• 10 Day Avg. Volume: 10,686,233
• 30 Day Avg. Volume: 11,375,261
• PEG Ratio: 2.51
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.64
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 6.78
• Enterprise Value/Ebitda: 4.28
• 1Y Price Target: $123.47
• Price Target Upside: 12.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 78 Outperform
• Price Target: $127.00 ▲( 15.75% Upside)

Disney's strong financial performance and optimistic earnings call drive a solid overall score. The company's strategic investments and successful streaming integration highlight its growth potential. However, technical indicators signal caution due to overbought conditions, and valuation metrics suggest the stock is fairly priced, leading to a balanced outlook.

Positive Factors

Intellectual Property and Streaming

Walt Disney's ability to produce and distribute popular intellectual property, including live sports, is a key strength for the company.

Theme Parks

Theme Parks defied expectations with domestic theme park attendance increasing 2% yoy and per caps accelerating to +5% yoy.

Negative Factors

Cord-Cutting Impact

Cord-cutting has negatively impacted ESPN's largest revenue stream, domestic distribution revenues.

International Parks Performance

International Parks & Experiences revenue and operating income missed estimates due to lower attendance and increased costs in Shanghai and Hong Kong.

Walt Disney Business Overview & Revenue Model

Company Description

The Walt Disney Company, commonly referred to as Disney, is a leading diversified international family entertainment and media enterprise. Founded in 1923, the company operates through several segments: Media Networks, Parks, Experiences and Products, Studio Entertainment, and Direct-to-Consumer & International. Disney is renowned for its iconic characters, films, theme parks, and television networks, including the Disney Channel and ABC. It also owns Marvel, Lucasfilm, and Pixar, adding to its robust portfolio of entertainment assets.

How the Company Makes Money

The Walt Disney Company generates revenue through multiple streams. The Media Networks segment earns money primarily from advertising sales, affiliate fees, and licensing of programming. Parks, Experiences and Products generate revenue from theme park admissions, merchandise, food, and accommodations. Studio Entertainment brings in revenue through the theatrical distribution of films, home entertainment sales, and licensing. The Direct-to-Consumer & International segment includes revenue from streaming services like Disney+, ESPN+, and Hulu, driven by subscription fees and advertising. Additionally, Disney benefits from strategic partnerships and collaborations that enhance its market reach and brand value.

Walt Disney Financial Statement Overview

Summary

Walt Disney shows strong financial health with robust revenue growth and operational efficiency. The Income Statement reflects good performance, though there's room for improved profitability. The Balance Sheet is stable with well-managed leverage, and the Cash Flow statement demonstrates excellent cash generation.

Income Statement

Walt Disney has shown strong performance in the TTM with a Gross Profit Margin of 36.73% and a Net Profit Margin of 6.07%. The company achieved a notable Revenue Growth Rate of 4.08% from 2023 to 2024, indicating robust revenue growth. EBIT Margin stands at 15.60% and EBITDA Margin at 12.57%, highlighting efficient operational management. The company's profitability and revenue growth are commendable, though the Net Profit Margin suggests room for improvement in profitability.

Balance Sheet

The Balance Sheet shows a stable financial position, with a Debt-to-Equity Ratio of 0.44, indicating a balanced leverage profile. Return on Equity (ROE) at 5.51% reflects moderate shareholder returns. The Equity Ratio of 51.73% showcases a strong equity base relative to assets, ensuring financial stability. While leverage is well-managed, enhancing ROE could further strengthen financial health.

Cash Flow

Operating Cash Flow to Net Income Ratio is 2.67, demonstrating strong cash generation relative to net income. Free Cash Flow Growth Rate from 2023 to 2024 is 71.75%, indicating significant improvement in cash efficiency. The Free Cash Flow to Net Income Ratio of 1.50 suggests effective conversion of earnings to cash flow, supporting business flexibility and growth initiatives.

Breakdown
TTM	Sep 2024	Sep 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
92.50B	91.36B	88.90B	82.72B	67.42B	65.39B
	Gross Profit
33.98B	32.66B	29.70B	28.32B	22.29B	21.51B
	EBIT
13.16B	11.58B	8.99B	6.83B	3.49B	3.78B
	EBITDA
14.92B	14.01B	11.60B	12.00B	9.22B	5.25B
	Net Income Common Stockholders
5.62B	4.97B	2.35B	3.19B	2.02B	-2.83B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.49B	6.00B	14.18B	11.62B	15.96B	17.91B
	Total Assets
197.05B	196.22B	205.58B	203.63B	203.61B	201.55B
	Total Debt
45.31B	48.74B	49.90B	48.37B	54.41B	58.63B
	Net Debt
39.82B	42.74B	35.71B	36.75B	38.45B	40.71B
	Total Liabilities
90.31B	90.70B	92.57B	95.25B	101.39B	104.04B
	Stockholders Equity
101.93B	100.70B	99.28B	95.01B	88.55B	83.58B
Cash Flow		Free Cash Flow
8.41B	8.56B	4.90B	1.07B	1.99B	3.60B
	Operating Cash Flow
14.99B	13.97B	9.87B	6.01B	5.57B	7.62B
	Investing Cash Flow
-8.21B	-6.88B	-4.64B	-5.01B	-3.16B	-3.64B
	Financing Cash Flow
-8.28B	-15.29B	-2.72B	-4.74B	-4.38B	8.48B

Walt Disney Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 109.72
• 50DMA: Positive
• 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 109.72 is above the 20-day moving average (MA) of 103.49, above the 50-day MA of 96.70, and above the 200-day MA of 101.01, indicating a bullish trend. The MACD of 5.14 indicates Negative momentum. The RSI at 65.62 is Neutral, neither overbought nor oversold. The STOCH value of 45.84 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
FOXA	81 Outperform	$23.66B	13.69	16.89%	0.98%	15.70%	26.73%
DIS	78 Outperform	$197.25B	22.41	8.75%	0.86%	5.33%	431.28%
LYV	77 Outperform	$33.61B	49.65	827.53%	―	-2.92%	166.63%
NFLX	75 Outperform	$504.47B	56.01	40.84%	―	14.11%	47.22%
WMG	64 Neutral	$13.67B	30.47	89.20%	2.71%	-0.91%	-14.87%
Sector *	60 Neutral	$14.12B	6.43	-3.56%	3.69%	2.49%	-35.43%
WBD	56 Neutral	$22.27B	―	-27.69%	―	-5.58%	-254.85%

Walt Disney Corporate Events

Walt Disney Announces Leadership Transition and New Chairman

The Walt Disney Company announces a significant leadership transition as James P. Gorman steps up as Chairman of the Board, succeeding Mark G. Parker who will resign in January 2025 after nine years of service. Gorman, who is also stepping down as Executive Chairman of Morgan Stanley, will lead Disney’s Board through the crucial process of selecting a new CEO, expected to be announced by early 2026. This change marks a pivotal moment for Disney, reinforcing its strategic succession planning within the financial markets.