The Walt Disney Company [NYSE:DIS]: Analyst Rating and Earnings
Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to The Walt Disney Company [DIS], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in September. On average, stock market experts give DIS an Outperform rating. Its stock price has been found in the range of 97.68 to 132.70. This is compared to its latest closing price of $131.75.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for The Walt Disney Company [DIS] is sitting at 1.96. This is compared to 1 month ago, when its average rating was 2.00.
For the quarter ending in Dec-18 The Walt Disney Company [DIS] generated $15.3 billion in sales. That’s 1.06% higher than the average estimate of $15.14 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes on this company’s next financial results, which are scheduled to be made public on Wed 8 May (In 19 Days).
Fundamental Analysis of The Walt Disney Company [DIS]
Now let’s turn to look at profitability: with a current Operating Margin for The Walt Disney Company [DIS] sitting at +25.08 and its Gross Margin at +39.98, this company’s Net Margin is now 18.50%. These measurements indicate that The Walt Disney Company [DIS] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 20.39, and its Return on Invested Capital has reached 16.50%. Its Return on Equity is 27.97, and its Return on Assets is 12.96. These metrics all suggest that The Walt Disney Company is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, The Walt Disney Company [DIS] has generated a Total Debt to Total Equity ratio of 42.80. Similarly, its Total Debt to Total Capital is 29.97, while its Total Debt to Total Assets stands at 21.17. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 35.03, and its Long-Term Debt to Total Capital is 24.53.
What about valuation? This company’s Enterprise Value to EBITDA is 12.47 and its Total Debt to EBITDA Value is 1.16. The Enterprise Value to Sales for this firm is now 3.76, and its Total Debt to Enterprise Value stands at 0.11. The Walt Disney Company [DIS] has a Price to Book Ratio of 3.60, a Price to Cash Flow Ratio of 12.33 and P/E Ratio of 18.12. These metrics all suggest that The Walt Disney Company is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, The Walt Disney Company [DIS] earns $295,866 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 6.62 and its Total Asset Turnover is 0.61. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.79 and its Current Ratio is 0.87. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
The Walt Disney Company [DIS] has 1.79B shares outstanding, amounting to a total market cap of $237.58B. Its stock price has been found in the range of 97.68 to 132.70. At its current price, it has moved by -0.19% from its 52-week high, and it has moved 35.60% from its 52-week low.
This stock’s Beta value is currently 0.92, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 80.71. This RSI suggests that The Walt Disney Company is currently Overbought.
Conclusion: Is The Walt Disney Company [DIS] a Reliable Buy?
Shares of The Walt Disney Company [DIS], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.