Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
-- Walt Disney
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A+ . The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.
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Highlights from the ratings report include:
- Powered by its strong earnings growth of 31.16% and other important driving factors, this stock has surged by 50.35% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DIS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- DISNEY (WALT) CO has improved earnings per share by 31.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DISNEY (WALT) CO increased its bottom line by earning $2.52 versus $2.02 in the prior year. This year, the market expects an improvement in earnings ($3.09 versus $2.52).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Media industry average. The net income increased by 24.1% when compared to the same quarter one year prior, going from $1,476.00 million to $1,831.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.4%. Since the same quarter one year prior, revenues slightly increased by 3.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has significantly increased by 58.34% to $2,885.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 14.19%.
The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. The company has a P/E ratio of 16.4, below the average media industry P/E ratio of 18.1 and below the S&P 500 P/E ratio of 17.7. Walt Disney has a market cap of $90.59 billion and is part of the
industry. Shares are up 32.4% year to date as of the close of trading on Thursday.
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--Written by a member of TheStreet Ratings Staff.