Home Sectors Consumer Cyclical Stock Analysis: The Walt Disney Company (NYSE: DIS)

Stock Analysis: The Walt Disney Company (NYSE: DIS)


The Walt Disney Company is in the consumer cyclical sector and trades as part of the entertainment industry. The company CEO is Robert A. Iger. Walt Disney Co together with its subsidiaries is a diversified worldwide entertainment company with operations in four business segments: Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products and Interactive Media.

Previous Intraday Trading Performance:

The DIS stock showed a previous change of -1.86% with an open at 111.79 and a close of 109.44. It reached an intraday high of 111.81 and a low of 109.25.

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The stock has a market cap of $163.2b with 1.5b shares outstanding, of which the float is 1.5b shares. Trading volume reached 10,891,303 shares compared to its average volume of 7,877,791 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, The Walt Disney Company shares returned -2.86% and in the past 30 trading days it returned 1.99%. Over three months, it changed -5.49%. In one year it has changed 7.53% and within that year its 52-week high was 120.20 and its 52-week low was 97.68. DIS stock is 12.04% above its 52 Week Low.

Our calculations show a 200 day moving average of 109.14 and a 50 day moving average of 111.00. Currently DIS stock is trading 0.27% above its 200 day moving average and may be a good opportunity to buy.

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The last annual fiscal EPS for the company was reported at 8.36 that ended on 30th of September 2018, which according to the previous close, that is a PE of 13.09. Based on 7 analyst estimates, the consensus EPS for the next quarter is 1.31. The TTM EPS is 7.08, which comes to a TTM PE of 15.46. Historically, the PE high was 28.70 and the PE low was 13.09. If the stock reached its PE low, that would represent a price of 92.67, which is a decrease of -15.32%.

The following are the last four quarter reported earnings per share:
12-31-2018:  1.84
09-30-2018:  1.48
06-30-2018:  1.87
03-31-2018:  1.84

The dividend per share is currently 1.76, which is a dividend yield of 1.61%. Also, the payout ratio is 24.86%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 93.83, which means it may be overvalued by -16.64%

Indicators to Watch:

Based on the latest filings, there is 1.20% of insider ownership and 94.30% of institutional ownership. Short-interest is 28,362,873, which is 1.90% of shares outstanding. The short-interest ratio or days-to-cover ratio is 3.38. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.93

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 23.42%, return on assets is 11.09%, profit margin is 19.16%, price-to-sales is 2.80 and price-to-book is 3.30.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 3  :Past Performance Score
 3  :Financial Strength Score
 1  :Future Growth Score
 5  :Dividend Score
 2  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.