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 Rating4.3/10
Generated at:2026-06-03 17:40:46
Analysis based on real financial data. Data sources include company financial reports. The analysis uses financial reports for periods ending 2023-09-30 and 2022-12-31. A total of 2 financial reports were used. Stock price data is as of 2026-06-03.
Overview

Walt Disney Company (DIS) is a global entertainment conglomerate with a strong portfolio of iconic brands and theme parks. The fundamental analysis presents a mixed picture: the company has a stable financial foundation with reasonable leverage, but faces significant profitability challenges with low returns and declining net income. The current valuation appears fair to slightly conservative, reflecting these uncertainties.

Valuation
6/10
Profitability
2/10
Financial health
5/10
Operation Advice
  • Maintain existing positions (Hold).
  • New investors should wait for clearer signs of a profitability turnaround, particularly in streaming operations, before initiating a position.
  • Monitor for progress toward improved net margins and ROE above 5%.
  • The stock is currently trading within its fair value range of $98-$108.

Valuation

P/E TTM
15.69
P/E LYR
15.95
P/B MRQ
1.62
P/S TTM
--
AI Analysis
  • Valuation metrics suggest the stock is trading at a reasonable to slightly conservative level. The P/E ratio of ~15.7 is below historical averages for large-cap companies, and the P/B ratio of 1.62 is reasonable given Disney's intangible assets. The current price does not appear overvalued.
  • The trailing P/E (TTM) is 15.69 and the forward P/E is 15.95, which is below the historical average for many large-cap, stable companies.
  • The P/B ratio is 1.62, implying a 62% premium to book value, which is reasonable for a firm with significant intangible assets like brands and intellectual property.
  • The P/S ratio (TTM) is 1.94, reflecting Disney's asset-heavy model (parks, studios) and current profitability challenges.
  • The stock's 60-day trading range is approximately $92.18 to $110.48, with a closing price of $99.39 on 2026-06-03.
  • Based on the provided P/E, P/B, and P/S metrics, the current stock price does not appear overvalued.
  • The low P/E ratio may already be pricing in the company's profitability struggles.
  • The valuation seems fair to slightly conservative.
Valuation trend

Profitability

ROE TTM
2.42%
Net margin
3.81%
Gross margin
33.41%
Total revenue
88.90B
AI Analysis
  • Profitability metrics reveal significant challenges. Return on Equity (2.42%) and Return on Assets (1.15%) are notably low, indicating inefficient use of capital. Net margin compression from gross margin highlights high operating costs, and net income declined -25.15% year-over-year despite revenue growth.
  • Return on Equity (ROE-TTM) is 2.42% and Return on Assets (ROA-TTM) is 1.15%, which are notably low, indicating inefficient use of shareholder equity and company assets to generate profit.
  • The gross margin for the latest annual period (2023-09-30) was 33.41%, but the net margin was only 3.81%.
  • The significant compression from gross to net profit highlights high operating costs, likely related to content production, park operations, and streaming investments.
  • The annual report for 2023-09-30 shows a concerning -25.15% year-over-year decline in net income attributable to shareholders.
  • This decline occurred despite a 7.47% increase in revenue, underscoring ongoing margin pressures.
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 but manageable picture. Liquidity ratios are adequate, and the debt-to-asset ratio of 45.03% suggests a moderate, reasonable level of leverage for its capital-intensive industry. The balance sheet is not a significant point of concern.
  • The current ratio of 1.05 and quick ratio of 0.99 indicate adequate, though not robust, short-term liquidity to cover immediate obligations.
  • The debt-to-asset ratio of 45.03% suggests a moderate level of financial leverage.
  • This leverage level is reasonable for a capital-intensive company in the entertainment and experiences sector, providing balance between growth funding and risk.
  • The balance sheet is not a significant point of concern.
  • The liquidity metrics are acceptable, and the leverage is within a typical range for its industry, indicating a stable financial foundation.
Leverage
2022Q32022Q42023Q12023Q22023Q3
Debt/Asset--46.13%----45.03%
Liquidity
2022Q32022Q42023Q12023Q22023Q3
Current ratio--0.99----1.05