Walt Disney Co

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DIS : NYSE : Services
$95.75 -0.22 | -0.23%
Today's Range: 95.57 - 96.22
Avg. Daily Volume: 7,425,000
08/24/16 - 11:00 AM ET

Financial Analysis


DISNEY (WALT) CO's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. DISNEY (WALT) CO has weak liquidity. Currently, the Quick Ratio is 0.78 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 5.00% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)14277.013101.0
EBITDA ($mil)4771.04337.0
EBIT ($mil)4145.03762.0
Net Income ($mil)2597.02483.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)5227.04475.0
Total Assets ($mil)90914.087367.0
Total Debt ($mil)20441.015273.0
Equity ($mil)44193.046519.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin49.5649.14
EBITDA Margin33.4133.1
Operating Margin29.0328.72
Sales Turnover0.620.59
Return on Assets10.159.46
Return on Equity20.8817.78
Debt Q3 FY16 Q3 FY15
Current Ratio0.971.11
Debt/Capital0.320.25
Interest Expense88.062.0
Interest Coverage47.160.68


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)1700.01600.0
Div / share0.00.0
EPS1.591.45
Book value / share26.029.07
Institutional Own % n/a n/a
Avg Daily Volume7260738.07398148.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 23.04 for the Media industry and a discount compared to the S&P 500 average of 25.30. For additional comparison, its price-to-book ratio of 3.72 indicates a premium versus the S&P 500 average of 2.83 and a premium versus the industry average of 3.30. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, DISNEY (WALT) CO seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DIS 17.35 Peers 23.04   DIS 13.42 Peers 11.78

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

DIS is trading at a discount to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

DIS is trading at a premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DIS 15.78 Peers 21.18   DIS 0.94 Peers 1.18

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

DIS is trading at a discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

DIS trades at a discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DIS 3.72 Peers 3.30   DIS 15.80 Peers 29.72

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

DIS is trading at a premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, DIS is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DIS 2.93 Peers 6.16   DIS 9.07 Peers 10.01

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

DIS is trading at a significant discount to its industry on this measurement.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

DIS is keeping pace with its peers on the basis of sales growth.

 

 

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