Walt Disney Co

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DIS : NYSE : Services
$108.16 up 0.19 | 0.18%
Today's Range: 106.81 - 108.4
Avg. Daily Volume: 8338100.0
01/18/17 - 3:59 PM ET

Financial Analysis


DISNEY (WALT) CO's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. DISNEY (WALT) CO has weak liquidity. Currently, the Quick Ratio is 0.81 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 virtually unchanged only decreasing by 2.82% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)13142.013512.0
EBITDA ($mil)3532.03751.0
EBIT ($mil)2843.03148.0
Net Income ($mil)1771.01609.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)4610.04269.0
Total Assets ($mil)92033.088182.0
Total Debt ($mil)20364.017558.0
Equity ($mil)43265.044525.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin44.2845.57
EBITDA Margin26.8727.76
Operating Margin21.6323.3
Sales Turnover0.60.59
Return on Assets10.29.5
Return on Equity21.718.82
Debt Q4 FY16 Q4 FY15
Current Ratio1.011.03
Debt/Capital0.320.28
Interest Expense119.068.0
Interest Coverage23.8946.29


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)1600.01700.0
Div / share0.710.66
EPS1.10.95
Book value / share27.0426.19
Institutional Own % n/a n/a
Avg Daily Volume8286663.07451183.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 30.44 for the Media industry and a discount compared to the S&P 500 average of 25.49. For additional comparison, its price-to-book ratio of 3.98 indicates a premium versus the S&P 500 average of 2.84 and a premium versus the industry average of 3.52. 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 18.80 Peers 30.44   DIS 13.02 Peers 11.62

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.

 

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 16.27 Peers 79.83   DIS 5.84 Peers 2.49

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DIS 3.98 Peers 3.52   DIS 16.73 Peers 58.62

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 3.09 Peers 6.61   DIS 6.03 Peers 16.44

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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