Walt Disney (DIS) AI Stock Analysis

• Market Cap: $153.46B
• Dividend Yield: 1.03%
• Average Volume (3M): 11.82M
• Price to Earnings (P/E): 27.6
• Beta (1Y): 0.84
• Revenue Growth: 3.97%
• EPS Growth: 89.53%
• Country: US
• Employees: 177,080
• Sector: Communication Services
• Sector Strength: 81
• Industry: Entertainment
• EPS (TTM): 1.76
• Shares Outstanding: 1,807,788,800
• 10 Day Avg. Volume: 15,603,593
• 30 Day Avg. Volume: 11,821,121
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.94
• Price to Cash Flow (P/CF): 14.00
• P/FCF Ratio: 12.70
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.58
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $125.26
• Price Target Upside: 35.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

Disney's overall stock score reflects its strong financial performance and positive earnings outlook, which are offset by bearish technical indicators and a premium valuation. The financial health and strategic initiatives position Disney well, though current market momentum suggests caution.

Positive Factors

Earnings

Adjusted EPS beat expectations by 21%, with operational income across all segments exceeding expectations driven by margin improvements.

Growth and Expansion

Shanghai and Paris are expected to lead international expansion, with growth supported by consumer recovery and new attractions.

Operating Income

The addition of a new cruise ship is expected to be profitable in its first full quarter, aiding operating income growth.

Negative Factors

Geopolitical and Economic Challenges

Impact of tariffs and geopolitical tensions on Theme Park traffic and cruise ship bookings globally.

Market Concerns

Recent macro uncertainty alongside the opening of Universal’s Epic Universe have only amplified concerns around the trajectory of the recovery in this segment.

Subscriber Loss

Disney+ subscribers declined quarter-over-quarter, with management guiding to further declines, raising concerns about long-term growth.

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

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 exhibits strong financial health with robust revenue growth and efficient operations. The Income Statement shows commendable revenue and operational efficiency, while the Balance Sheet indicates stability with well-managed leverage. Cash Flow highlights excellent cash generation and efficiency, supporting growth initiatives.

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

Walt Disney Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 92.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 92.49 is above the 20-day moving average (MA) of 87.03, below the 50-day MA of 96.54, and below the 200-day MA of 99.83, indicating a neutral trend. The MACD of -1.23 indicates Negative momentum. The RSI at 53.42 is Neutral, neither overbought nor oversold. The STOCH value of 91.35 is Negative, 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
FOXA	77 Outperform	$21.65B	10.59	20.09%	1.09%	4.29%	177.70%
NFLX	75 Outperform	$392.81B	46.31	40.84%	―	14.11%	47.22%
DIS	73 Outperform	$153.46B	27.56	5.54%	1.03%	3.97%	89.53%
LYV	73 Outperform	$31.31B	49.30	827.53%	―	1.79%	99.46%
WMG	64 Neutral	$15.75B	31.05	100.20%	2.35%	0.75%	9.36%
Sector *	59 Neutral	$13.76B	7.65	-2.18%	3.85%	2.32%	-36.56%
WBD	50 Neutral	$21.13B	―	-28.54%	―	-4.91%	-259.71%

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.