The Walt Disney Co. (DIS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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The Walt Disney Co.

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Six Flags Entertainment Corp.

Why is The Walt Disney Co. ?

Company has a low Debt to Equity ratio (avg) at times

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 19,145 MM
ROCE(HY) Highest at 11.01%
INTEREST COVERAGE RATIO(Q) Highest at 1,421.16

With ROCE of 9.39%, it has a fair valuation with a 1.73 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -2.75%, its profits have risen by 45.3% ; the PEG ratio of the company is 0.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.75% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to The Walt Disney Co. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is The Walt Disney Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Walt Disney Co.

0.16%

0.28

29.90%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.62%

EBIT Growth (5y)

69.89%

EBIT to Interest (avg)

5.08

Debt to EBITDA (avg)

3.49

Net Debt to Equity (avg)

0.36

Sales to Capital Employed (avg)

0.62

Tax Ratio

12.39%

Dividend Payout Ratio

14.60%

Pledged Shares

Institutional Holding

76.09%

ROCE (avg)

5.50%

ROE (avg)

5.78%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.63

EV to EBIT

16.08

EV to EBITDA

11.52

EV to Capital Employed

1.46

EV to Sales

2.28

PEG Ratio

0.17

Dividend Yield

1.28%

ROCE (Latest)

9.05%

ROE (Latest)

13.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 15,631 MM

ROCE(HY)

Highest at 11.65%

INTEREST COVERAGE RATIO(Q)

Highest at 1,467.6

NET SALES(Q)

Highest at USD 26,044 MM

-6What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 31.33 times

INTEREST(Q)

At USD 358 MM has Grown at 10.84%

CASH AND EQV(HY)

Lowest at USD 11,373 MM

NET PROFIT(Q)

At USD 2,459.17 MM has Fallen at -26.63%

Here's what is working for The Walt Disney Co.

Operating Cash Flow

Highest at USD 15,631 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Highest at 1,467.6

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at USD 26,044 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Here's what is not working for The Walt Disney Co.

Interest

At USD 358 MM has Grown at 10.84%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Inventory Turnover Ratio

Lowest at 31.33 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Profit

At USD 2,459.17 MM has Fallen at -26.63%

over average net sales of the previous four periods of USD 3,351.92 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 11,373 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents