Walt Disney (DIS) AI Stock Analysis

• Market Cap: $222.92B
• Dividend Yield: 0.81%
• Average Volume (3M): 8.97M
• Price to Earnings (P/E): 25.3
• Beta (1Y): 0.87
• Revenue Growth: 5.33%
• EPS Growth: 431.28%
• Country: US
• Employees: 177,080
• Sector: Communication Services
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): 1.45
• Shares Outstanding: 1,797,746,300
• 10 Day Avg. Volume: 9,955,099
• 30 Day Avg. Volume: 8,965,999
• PEG Ratio: 0.93
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 161.08
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 5.98
• Enterprise Value/Ebitda: 3.45
• 1Y Price Target: $129.24
• Price Target Upside: 4.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 78 Outperform
• 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 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 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 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

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

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

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.

Breakdown	TTM	Sep 2024	Sep 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	94.04B	91.36B	88.90B	82.72B	67.42B	65.39B
Gross Profit	34.88B	32.66B	29.70B	28.32B	22.29B	21.51B
EBITDA	17.57B	14.01B	11.60B	12.00B	9.22B	5.25B
Net Income	8.91B	4.97B	2.35B	3.19B	2.02B	-2.83B
Balance Sheet
Total Assets	195.83B	196.22B	205.58B	203.63B	203.61B	201.55B
Cash, Cash Equivalents and Short-Term Investments	5.85B	6.00B	14.18B	11.62B	15.96B	17.91B
Total Debt	42.89B	48.74B	49.90B	48.37B	54.41B	58.63B
Total Liabilities	87.07B	90.70B	92.57B	95.25B	101.39B	104.04B
Stockholders Equity	104.34B	100.70B	99.28B	95.01B	88.55B	83.58B
Cash Flow
Free Cash Flow	10.90B	8.56B	4.90B	1.07B	1.99B	3.60B
Operating Cash Flow	18.08B	13.97B	9.87B	6.01B	5.57B	7.62B
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	-4.38B	8.48B

Walt Disney Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 124.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXA	81 Outperform	$24.24B	13.99	16.89%	0.96%	15.70%	26.73%
NFLX	79 Outperform	$552.04B	61.30	40.84%	―	14.11%	47.22%
DIS	78 Outperform	$222.92B	25.33	8.75%	0.81%	5.33%	431.28%
LYV	77 Outperform	$34.60B	51.11	827.53%	―	-2.92%	166.63%
WMG	72 Outperform	$15.32B	34.16	89.20%	2.45%	-0.91%	-14.87%
WBD	59 Neutral	$27.76B	―	-27.69%	―	-5.58%	-254.85%
Sector *	55 Neutral	HK$64.46B	-1.91	-1.90%	7.21%	-4.17%	-13.99%

Walt Disney Corporate Events

Disney Finalizes Hulu Acquisition with NBC Universal

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.