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

Liberty Media Corp.

DraftKings, Inc.

The Walt Disney Co.

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Cinemark Holdings, Inc.

Cedar Fair LP

PENN Entertainment, Inc.

Madison Square Garden Sports Corp.

Live Nation Entertainment, Inc.

Six Flags Entertainment Corp.

United Parks & Resorts, Inc.

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.

-11.85%

0.28

29.90%

S&P 500

25.41%

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

78.20%

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

1.53

EV to EBIT

15.26

EV to EBITDA

10.93

EV to Capital Employed

1.38

EV to Sales

2.16

PEG Ratio

0.16

Dividend Yield

1.37%

ROCE (Latest)

9.05%

ROE (Latest)

13.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

5What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 59.14%

RAW MATERIAL COST(Y)

Fallen by -0.36% (YoY

DIVIDEND PER SHARE(HY)

Highest at USD 7.22

OPERATING PROFIT(Q)

Highest at USD 5,280 MM

OPERATING PROFIT MARGIN(Q)

Highest at 20.91 %

-4What is not working for the Company

INTEREST(Q)

Highest at USD 410 MM

NET PROFIT(Q)

At USD 2,468.1 MM has Fallen at -24.81%

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

Operating Profit

Highest at USD 5,280 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 20.91 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Dividend per share

Highest at USD 7.22

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 59.14%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -0.36% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 1,405 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

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

Interest

At USD 410 MM has Grown at 14.53%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 410 MM

in the last five periods and Increased by 14.53% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Profit

At USD 2,468.1 MM has Fallen at -24.81%

over average net sales of the previous four periods of USD 3,282.34 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)