The Walt Disney Co.

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DIS : NYSE : Consumer Services
$105.05 -0.93 | -0.88%
Today's Range: 105.02 - 106.91
Avg. Daily Volume: 8735000.0
02/21/18 - 4:02 PM ET

Financial Analysis


DISNEY (WALT) CO's gross profit margin for the first quarter of its fiscal year 2018 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 0.73 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained unchanged 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 Q1 FY18 Q1 FY17
Net Sales ($mil)15351.014784.0
EBITDA ($mil)4535.04393.0
EBIT ($mil)3793.03706.0
Net Income ($mil)4423.02479.0


Balance Sheet Q1 FY18 Q1 FY17
Cash & Equiv. ($mil)4690.03736.0
Total Assets ($mil)97734.091576.0
Total Debt ($mil)26091.020490.0
Equity ($mil)43289.043210.0


Profitability Q1 FY18 Q1 FY17
Gross Profit Margin43.0943.14
EBITDA Margin29.5429.71
Operating Margin24.7125.07
Sales Turnover0.570.6
Return on Assets11.179.81
Return on Equity25.2320.8
Debt Q1 FY18 Q1 FY17
Current Ratio0.870.86
Debt/Capital0.380.32
Interest Expense146.0121.0
Interest Coverage25.9830.63


Share Data Q1 FY18 Q1 FY17
Shares outstanding (mil)1500.01600.0
Div / share0.840.78
EPS2.911.55
Book value / share28.8627.01
Institutional Own % n/a n/a
Avg Daily Volume8978885.07919286.0

Valuation


BUY. DISNEY (WALT) CO's P/E ratio indicates a significant discount compared to an average of 72.49 for the Media industry and a significant discount compared to the S&P 500 average of 25.51. For additional comparison, its price-to-book ratio of 3.64 indicates a premium versus the S&P 500 average of 3.26 and a premium versus the industry average of 3.41. 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 14.92 Peers 72.49   DIS 11.78 Peers 12.21

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

DIS is trading at a significant discount to its peers.

 

Average. 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 valuation on par 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 13.75 Peers 26.00   DIS 0.68 Peers 1.06

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 significant 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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DIS 3.64 Peers 3.41   DIS 27.25 Peers 72.15

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

DIS is trading at a valuation on par with 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 2.83 Peers 40.04   DIS 0.96 Peers 5.34

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

DIS significantly trails its peers on the basis of sales growth

 

 

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