Walt Disney Company (The)(DIS) - Stock detail

Walt Disney Company (The)

US
DIS
The Walt Disney Company(Listing date: 11/12/1957)

The Walt Disney Company is incorporated in the State of Delaware. The Walt Disney Company and its subsidiaries are a diversified global entertainment company, operating the following businesses: Media Networks; Parks, Experiences and Products; Studio Entertainment; and Direct-to-Consumer and International (DTCI). In October 2020, the Company announced a strategic reorganization of its media and entertainment businesses to accelerate the growth of its direct-to-consumer (DTC) strategy. The operations of the Media Networks, Studio Entertainment and DTCI segments were reorganized into four groups: three content groups (Studios, General Entertainment and Sports) focused on developing and producing content that will be used across all of its traditional and DTC platforms, and a group focused on the distribution and commercialization of these platforms, with full responsibility for the results of global media and entertainment operations.

AI Value AnalystHold
Overall Rating5.3/10
Generated at:2026-03-04 16:37:03
Analysis based on financial reports from 2023-09-30 and 2022-12-31 periods, stock price data as of 2026-03-05, using 2 financial reports for comprehensive analysis
Overview

Walt Disney Company is a global entertainment conglomerate with dominant position in communication services sector, showing mixed fundamental signals with positive revenue growth but constrained profitability and moderate financial leverage.

Valuation
7/10
Profitability
4/10
Financial health
5/10
Operation Advice
  • Hold existing positions, accumulate on dips below $102, set stop-loss near $100, target price range $109-$120 with mid-point at $114

Valuation

P/E TTM
14.94
P/E LYR
15.95
P/B MRQ
1.69
P/S TTM
--
AI Analysis
  • Disney appears moderately undervalued with PE ratios below S&P 500 average, reasonable PB ratio for media/entertainment sector, and current price trading approximately 10% below estimated fair value.
  • Dynamic PE (15.95) and TTM PE (14.94) are below S&P 500 average (~20x), indicating potential undervaluation
  • PB ratio of 1.69x is reasonable for a media/entertainment firm, reflecting market skepticism about asset-heavy models
  • PS-TTM of 2.06x is aligned with peers considering Disney's diversified revenue streams
  • Current price of $103.04 trades below estimated fair value of $114.75, suggesting undervaluation of ~10%
  • Target price calculation using PE-based approach with conservative EPS growth (5% forward EPS estimate ~$1.35) and PE 17x yields $114.75
  • Factoring in volatility (historical MAE -4.73%), reasonable target range is $109-$120
  • Support level: $102-$104 based on recent lows in Feb-Mar 2026
  • Resistance level: $115-$117 from Dec 2025 and Jan 2026 peaks
Valuation trend

Profitability

ROE TTM
2.42%
Net margin
3.81%
Gross margin
33.41%
Total revenue
88.90B
AI Analysis
  • Profitability is constrained by high costs and competitive pressures with declining margins and earnings, though gross margin remains strong reflecting pricing power.
  • Gross margin of 33.41% reflects strong pricing power in content and experiences
  • Net margin of 3.81% is diluted by operating expenses (content production, park maintenance)
  • Net margin declined from 5.79% in 2022-12-31, suggesting ongoing investments impacting bottom-line returns
  • Diluted EPS of $1.29 (2023-09-30) declined year-over-year (-25.15%)
  • Attributed to macroeconomic headwinds and streaming investments
  • Recent quarterly data (2022-12-31) showed improvement (15.85% net income growth) but consistency is lacking
  • Low ROE (2.42%) and ROA (1.15%) indicate suboptimal capital allocation
  • Low efficiency metrics possibly due to high intangible assets (content libraries) and cyclical park revenues
  • Company's scale defends profitability but execution risks persist
Profitability
2022Q32022Q42023Q12023Q22023Q3
ROE TTM--------2.42%
Earnings
2022Q32022Q42023Q12023Q22023Q3
Total revenue--23.51B----88.90B

Financial health

Debt/Asset
45.03%
Current ratio
1.05
Quick ratio
0.99
Cash ratio
0.99
AI Analysis
  • Mixed financial health with adequate liquidity but tight margins, moderate leverage, and positive revenue growth offset by profitability challenges.
  • Current ratio (1.05) and quick ratio (0.99) indicate adequate short-term liquidity
  • Liquidity margins are tight, suggesting potential vulnerability to immediate obligations
  • Debt-to-equity ratio of 45.03% reflects moderate leverage
  • Leverage is manageable for capital-intensive business but warrants monitoring if interest rates rise
  • ROE (2.42%) and ROA (1.15%) are low, indicating inefficient use of equity and assets
  • Aligns with recent profit challenges (annual net income decline of -25.15% as of 2023-09-30)
  • Top-line growth remains positive (7.47% annual revenue growth to $88.90B)
  • Profitability is pressured as seen in net margin compression (3.81% vs. 5.79% in prior quarters)
Leverage
2022Q32022Q42023Q12023Q22023Q3
Debt/Asset--46.13%----45.03%
Liquidity
2022Q32022Q42023Q12023Q22023Q3
Current ratio--0.99----1.05