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The Walt Disney Company (DIS) is a leading entertainment business based in the US. It opened the day at $130.64 after a previous close of $131.79. During the day the price has varied from a low of $130.45 to a high of $132.35. The latest price was $130.96 (25 minute delay). Disney is listed on the NYSE and employs 223,000 staff. All prices are listed in US Dollars.
Since the stock market crash in March caused by coronavirus, Disney's share price has had significant negative movement.
Its last market close was $114.43, which is 17.66% down on its pre-crash value of $138.97 and 44.72% up on the lowest point reached during the March crash when the shares fell as low as $79.07.
If you had bought $1,000 worth of Disney shares at the start of February 2020, those shares would have been worth $607.18 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth $810.16.
|52-week range||$79.07 - $153.41|
|50-day moving average||$117.1135|
|200-day moving average||$115.8289|
|Wall St. target price||$131.78|
|Dividend yield||$1.76 (0%)|
|Earnings per share (TTM)||$2.969|
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
|1 week (2020-08-06)||0.11%|
|1 month (2020-07-14)||10.37%|
|3 months (2020-05-14)||23.65%|
|6 months (2020-02-13)||-7.05%|
|1 year (2019-08-13)||-4.42%|
|2 years (2018-08-13)||16.80%|
|3 years (2017-08-11)||28.40%|
|5 years (2015-08-13)||21.80%|
Valuing Disney stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Disney's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Disney's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 51x. In other words, Disney shares trade at around 51x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
However, Disney's P/E ratio is best considered in relation to those of others within the entertainment industry or those of similar companies.
Disney's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 13.8156. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Disney's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
However, it's sensible to consider Disney's PEG ratio in relation to those of similar companies.
Disney's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $11.9 billion (£9.1 billion).
The EBITDA is a measure of a Disney's overall financial performance and is widely used to measure a its profitability.
To put Disney's EBITDA into context you can compare it against that of similar companies.
|Revenue TTM||$69.8 billion|
|Operating margin TTM||9.43%|
|Gross profit TTM||$27.6 billion|
|Return on assets TTM||1.97%|
|Return on equity TTM||-0.87%|
|Market capitalisation||$234.8 billion|
TTM: trailing 12 months
There are currently 26.0 million Disney shares held short by investors – that's known as Disney's "short interest". This figure is 9.1% down from 28.6 million last month.
There are a few different ways that this level of interest in shorting Disney shares can be evaluated.
Disney's "short interest ratio" (SIR) is the quantity of Disney shares currently shorted divided by the average quantity of Disney shares traded daily (recently around 13.6 million). Disney's SIR currently stands at 1.91. In other words for every 100,000 Disney shares traded daily on the market, roughly 1910 shares are currently held short.
To gain some more context, you can compare Disney's short interest ratio against those of similar companies.
However Disney's short interest can also be evaluated against the total number of Disney shares, or, against the total number of tradable Disney shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Disney's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Disney shares in existence, roughly 10 shares are currently held short) or 0.0144% of the tradable shares (for every 100,000 tradable Disney shares, roughly 14 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Disney.
Find out more about how you can short Disney stock.
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Disney.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 20.28
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Disney's overall score of 20.28 (as at 07/01/2020) is excellent – landing it in it in the 17th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Disney is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
To gain some more context, you can compare Disney's total ESG risk score against those of similar companies.
Environmental score: 6.53/100
Disney's environmental score of 6.53 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Disney is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 15.31/100
Disney's social score of 15.31 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Disney is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 14.44/100
Disney's governance score puts it squarely in the 8th percentile of companies rated in the same sector. That could suggest that Disney is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Disney scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Disney has, for the most part, managed to keep its nose clean.
Wondering how that compares? Below are the controversy scores of similar companies.
|Total ESG score||20.28|
|Total ESG percentile||17.32|
|Environmental score percentile||8|
|Social score percentile||8|
|Governance score percentile||8|
|Level of controversy||2|
Dividend payout ratio: 76.86% of net profits
Recently Disney has paid out, on average, around 76.86% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Disney shareholders could enjoy a 0% return on their shares, in the form of dividend payments. In Disney's case, that would currently equate to about $1.76 per share.
Disney's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
Disney's most recent dividend payout was on 16 January 2020. The latest dividend was paid out to all shareholders who bought their shares by 13 December 2019 (the "ex-dividend date").
Disney's dividend payout ratio is perhaps best considered in relation to those of similar companies.
Disney's shares were split on a 10000:9865 basis on 13 June 2007. So if you had owned 9865 shares the day before before the split, the next day you'd have owned 10000 shares. This wouldn't directly have changed the overall worth of your Disney shares – just the quantity. However, indirectly, the new 1.4% lower share price could have impacted the market appetite for Disney shares which in turn could have impacted Disney's share price.
Over the last 12 months, Disney's shares have ranged in value from as little as $79.07 up to $153.41. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Disney's is 1.1. This would suggest that Disney's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).
To put Disney's beta into context you can compare it against those of similar companies.
The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. The company's Media Networks segment operates domestic cable networks under the Disney, ESPN, Freeform, FX, and National Geographic brands; and television broadcast network under the ABC brand, as well as eight owned domestic television stations. This segment is also involved in the television production and distribution; and operation of National Geographic magazines. Its Parks, Experiences and Products segment operates theme parks and resorts, such as Walt Disney World Resort in Florida; Disneyland Resort in California; Disneyland Paris; Hong Kong Disneyland Resort; and Shanghai Disney Resort; Disney Cruise Line, Disney Vacation Club, National Geographic Expeditions, and Adventures by Disney; and Aulani, a Disney resort and spa in Hawaii, as well as licenses its intellectual property to a third party for the operations of the Tokyo Disney Resort in Japan. The company's Studio Entertainment segment produces and distributes motion pictures under the Walt Disney Pictures, Twentieth Century Fox, Marvel, Lucasfilm, Pixar, Fox Searchlight Pictures, and Blue Sky Studios banners; develops, produces, and licenses live entertainment events; produces and distributes music; and provides post-production services, including visual and audio effects. Its Direct-To-Consumer & International segment operates international television networks and channels comprising Disney, ESPN, Fox, National Geographic, Star, and Other India Channels; direct-to-consumer streaming services consisting of Disney +, ESPN+, Hotstar, and Hulu; and operates branded apps and Websites, such as Disney Movie Club and Disney Digital Network, as well as provides streaming technology support services. The company was founded in 1923 and is based in Burbank, California.
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