Walt Disney (DIS) AI Stock Analysis

• Market Cap: $203.94B
• Dividend Yield: 0.88%
• Average Volume (3M): 7.81M
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.88
• Revenue Growth: 5.00%
• EPS Growth: 144.65%
• Country: US
• Employees: 177,080
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 1.61
• Shares Outstanding: 1,797,933,800
• 10 Day Avg. Volume: 10,760,866
• 30 Day Avg. Volume: 7,808,433
• 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: 1.29
• Enterprise Value/Revenue: 2.78
• Enterprise Value/Gross Profit: 7.68
• Enterprise Value/Ebitda: 14.61
• 1Y Price Target: $137.00
• Price Target Upside: 20.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 22

• Rating: 76 Outperform
• Price Target: $131.00 ▲(15.45% Upside)

Disney's strong financial performance and strategic initiatives, particularly the integration of Hulu and ESPN's expansion, are significant strengths. While technical indicators show mixed signals, the company's fair valuation and positive earnings call sentiment contribute to a solid overall score.

Positive Factors

Revenue Growth

Disney's robust revenue growth indicates successful expansion and strong demand across its diverse business segments, supporting long-term financial health.

Strategic Initiatives

The integration of Hulu into Disney+ is a strategic move to unify streaming services, potentially boosting subscriber engagement and reducing churn, which supports sustained growth.

Cash Flow Generation

Strong cash flow generation enhances Disney's ability to invest in strategic initiatives and manage debt, ensuring long-term operational and financial stability.

Negative Factors

Regulatory Challenges

Regulatory challenges and settlements can lead to increased compliance costs and impact Disney's reputation, potentially affecting future operations and profitability.

Patent Infringement

Patent infringement issues can lead to legal costs and operational disruptions, affecting Disney's ability to leverage certain technologies and impacting long-term strategic plans.

Challenges in China

Economic challenges in China may limit Disney's revenue growth in this key market, impacting overall financial performance and strategic expansion plans.

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	94.46B	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: Negative
• Last Price: 113.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DIS, the sentiment is Negative. The current price of 113.47 is below the 20-day moving average (MA) of 115.80, below the 50-day MA of 117.00, and above the 200-day MA of 109.69, indicating a neutral trend. The MACD of -1.18 indicates Positive momentum. The RSI at 41.26 is Neutral, neither overbought nor oversold. The STOCH value of 33.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DIS.

Walt Disney Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMCSA	78 Outperform	117.12B	5.22	23.65%	4.04%	2.54%	60.53%
FOXA	78 Outperform	25.86B	12.27	18.92%	0.90%	16.60%	57.39%
DIS	76 Outperform	$203.94B	17.78	11.01%	0.88%	5.00%	144.65%
NFLX	71 Outperform	514.42B	51.59	41.07%	―	14.28%	46.86%
WBD	68 Neutral	48.30B	64.60	2.13%	―	-3.79%	―
LYV	68 Neutral	37.53B	70.27	255.34%	―	-0.39%	108.72%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%