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 Rating4.7/10
Generated at:2026-06-11 17:41:33
Analysis based on financial reports for periods ending 2023-09-30 and 2022-12-31. A total of 2 financial reports were used. Data includes real-time and TTM (Trailing Twelve Months) metrics. Current price as of analysis date is $100.34. Data sources include company financial statements and market data.
Overview

The Walt Disney Company (DIS) is a global entertainment conglomerate with iconic brands, operating in Entertainment, Sports, and Experiences segments. Its fundamental analysis reveals a mixed picture: strong brand equity and revenue growth are offset by weak current profitability and moderate financial leverage. The company is in a challenging transition phase, particularly with streaming investments impacting margins. Valuation appears fair to slightly undervalued, reflecting the current earnings challenges without pricing in significant future growth.

Valuation
6/10
Profitability
3/10
Financial health
5/10
Operation Advice
  • Existing shareholders should hold, awaiting clearer signs of a fundamental turnaround such as consistent improvement in streaming profitability and a sustained rise in ROE.
  • New investors might consider initiating a position on weakness as a long-term bet on management execution, but should not expect immediate multiple expansion without demonstrable profit growth.
  • Target price ranges: Base Case (Hold) $105-$118, Bull Case (Buy) $124-$137, Bear Case (Sell) $85-$92.

Valuation

P/E TTM
15.26
P/E LYR
15.95
P/B MRQ
1.58
P/S TTM
--
AI Analysis
  • The stock appears fairly valued to slightly undervalued based on traditional multiples. P/E and P/B ratios are low, commensurate with the company's low ROE and net margins, and do not price in significant future growth or a sharp profitability turnaround.
  • The stock trades at a P/E (TTM) of 15.26 and a forward P/E of 15.95.
  • The Price-to-Book (P/B) ratio is 1.58, and the Price-to-Sales (P/S) ratio is 1.96.
  • The P/E multiples are not excessive and sit below the market average for a growth-oriented company, reflecting the market's discount for Disney's current low profitability.
  • The low P/B ratio is justified by the ROE of 2.42%.
  • The P/S ratio near 2x is reasonable for a media company of its scale.
  • The current price of $100.34 appears to be fairly valued to slightly undervalued based on traditional multiples.
  • The valuation does not price in significant future growth or a sharp profitability turnaround.
Valuation trend

Profitability

ROE TTM
2.42%
Net margin
3.81%
Gross margin
33.41%
Total revenue
88.90B
AI Analysis
  • Profitability metrics reveal a company in a challenging transition phase with significant margin compression and exceptionally low returns, indicating inefficient profit generation from its substantial asset base despite revenue growth.
  • The annual report (Sep 2023) shows a gross margin of 33.41% but a net margin of only 3.81%.
  • The significant margin compression indicates high operating costs (likely from content investment and streaming losses) eroding gross profits.
  • The Return on Equity (ROE) of 2.42% and Return on Assets (ROA) of 1.15% are exceptionally low.
  • The low returns suggest the company is not efficiently generating profits from its substantial equity base and asset portfolio.
  • Recent quarterly data (Dec 2022) showed some improvement in net margin (5.79%) and profit growth, hinting at potential recovery.
  • The full-year TTM figures confirm overall profitability remains depressed.
  • While annual revenue grew 7.47% to $88.90B, net income declined -25.15% to $2.35B, highlighting the core profitability challenge.
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
  • The company's financial health shows a mixed picture with adequate but not robust short-term liquidity and a moderate, manageable level of financial leverage. The balance sheet is not a significant point of strength or critical weakness.
  • The current ratio of 1.05 and quick ratio of 0.99 indicate adequate but not robust short-term liquidity.
  • The company can meet its immediate obligations, but the margin is slim.
  • A debt-to-asset ratio of 45.03% suggests a moderate level of financial leverage.
  • This leverage level is manageable for a large, cash-generative company like Disney, providing balance between funding growth and maintaining financial flexibility.
  • The balance sheet is not a significant point of strength or critical weakness.
  • The focus for value creation lies more in operational execution and profitability recovery.
Leverage
2022Q32022Q42023Q12023Q22023Q3
Debt/Asset--46.13%----45.03%
Liquidity
2022Q32022Q42023Q12023Q22023Q3
Current ratio--0.99----1.05