Walt Disney Co (NYSE: DIS)

Sector: Communication Services Industry: Entertainment CIK: 0001744489
Market Cap 195.56 Bn
P/B 1.80
P/E 15.96
P/S 2.04
ROIC (Qtr) 5.61
Div Yield % 1.15
Rev 1y % (Qtr) 5.23
Total Debt (Qtr) 46.64 Bn
Debt/Equity (Qtr) 0.43

About

The Walt Disney Company, commonly known as Disney, is a prominent player in the global entertainment industry, with its ticker symbol being DIS. The company's operations span across three segments: Entertainment, Sports, and Experiences. Disney's main business activities encompass the production and distribution of films, television shows, and digital content, as well as the operation of theme parks and resorts around the world. Disney's operations are spread across various business activities and countries. The company is involved in the production...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 15.63B provides exceptional 15.34x coverage of minority interest expenses 1.02B, showing strong core operations.
  • Operating cash flow of 15.63B provides exceptional 12.89x coverage of interest expenses 1.21B, showing strong debt service capability.
  • Operating cash flow of 15.63B provides strong 11.34x coverage of stock compensation 1.38B, indicating sustainable incentive practices.
  • Tangible assets of 86.80B provide exceptional 12.98x coverage of deferred revenue 6.69B, showing strong service capability backing.
  • Retained earnings of 60.16B provide full 1.68x coverage of long-term debt 35.82B, indicating strong internal capital position.

Bear case

  • Operating cash flow of 15.63B barely covers its investment activities of (8.21B), with a coverage ratio of -1.91, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 15.63B provides thin coverage of dividend payments of (1.80B) with a -8.67 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • High receivables of 15.05B relative to inventory of 2.16B (6.98 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of 15.63B provides minimal -12.66x coverage of tax expenses of (1.24B), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 12.23B show weak coverage of depreciation charges of 5.37B, with a 2.28 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Entertainment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NFLX Netflix Inc 349.87 Bn 31.86 7.74 14.46 Bn
2 DIS Walt Disney Co 195.56 Bn 15.96 2.04 46.64 Bn
3 WBD Warner Bros. Discovery, Inc. 66.35 Bn 136.80 1.75 33.52 Bn
4 FWONA Liberty Media Corp 46.91 Bn -352.74 11.61 7.04 Bn
5 LYV Live Nation Entertainment, Inc. 32.65 Bn 101.32 1.33 9.39 Bn
6 FOXA Fox Corp 29.03 Bn 15.35 1.75 6.60 Bn
7 TKO TKO Group Holdings, Inc. 17.65 Bn -220.73 5.07 4.04 Bn
8 WMG Warner Music Group Corp. 15.37 Bn 768.35 4.64 4.61 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.15 1.60
EV to Cash from Ops. EV/CFO 14.84 74.22
EV to Debt EV to Debt 4.97 109.74
EV to EBIT EV/EBIT 18.96 24.34
EV to EBITDA EV/EBITDA 12.66 31.84
EV to Free Cash Flow [EV/FCF] EV/FCF 32.85 -338.96
EV to Market Cap EV to Market Cap 1.19 62.35
EV to Revenue EV/Rev 2.42 9.43
Price to Book Value [P/B] P/B 1.80 3.87
Price to Earnings [P/E] P/E 15.96 -61.07
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 6.80 1.25
Dividend Payout Ratio % Div Payout % (Qtr) 18.40 -16.52
Dividend per Basic Share Div per Share (Qtr) 1.25 0.14
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 31.62 7.95
Interest Coverage Int. cover (Qtr) 10.08 -7.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -30.28 -46.16
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 3.50 2,379.93
Dividend Growth (1y) % Div 1y % (Qtr) 31.58 0.45
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 105.42 -74.64
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 27.74 3.12
EBIT Growth (1y) % EBIT 1y % (Qtr) 34.57 -56.93
EBT Growth (1y) % EBT 1y % (Qtr) 42.95 11.72
EPS Growth (1y) % EPS 1y % (Qtr) 120.39 23.88
FCF Growth (1y) % FCF 1y % (Qtr) -16.07 -92.46
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 5.01 0.48
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.47 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.07 0.04
Cash Ratio Cash Ratio (Qtr) 0.15 0.48
Current Ratio Curr Ratio (Qtr) 0.67 1.22
Debt to Equity Ratio Debt/Equity (Qtr) 0.43 1.03
Interest Cover Ratio Int Coverage (Qtr) 10.08 -7.86
Times Interest Earned Times Interest Earned (Qtr) 10.08 -7.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 18.40 -64.95
EBIT Margin % EBIT Margin % (Qtr) 12.78 -79.29
EBT Margin % EBT Margin % (Qtr) 11.51 -82.30
Gross Margin % Gross Margin % (Qtr) 37.30 35.55
Net Profit Margin % Net Margin % (Qtr) 12.80 -82.96