Walt Disney Company (DIS)
- 34.67 (USD)
(+2.2 %)
9/3/2010 4:00:00 PM
DIS Stock Report
NYSE:
DIS
34.67
(USD)
(2.2 %
)
09/03 4:00 PM
Open
34.02
Day's Range
34.02
-
34.7
52Wk Range
25.35 - 37.98
Mkt Cap
62.7 Billion
Vol/Avg
8473700/11.0 Million
Div/Yield
1.07%
Key Fundamentals
| Price (9/3/2010) | 34.67 |
|---|---|
| Volume (9/3/2010) | 8473700 |
| Last Close Price | 34.67 |
| 10 Day Average Volume | 11.0 Million |
| 13 Week Price Range | 31.36 - 35.83 |
| 52 Week Price Range | 25.35 - 37.98 |
| LTM Revenue | 38.2 Billion |
| Shares Outstanding (9/30/2009) | 1.9 Billion |
| Market Capitalization | 62.7 Billion |
| Shares Held By Institutions | 87.2 Million |
| Institutional Holders | 1,510 |
| % Shares Held By Institutions | 70.61% |
| Earnings Per Share (EPS) | 1.78 |
| P/E Ratio | 16.129 |
| Book Value Per Share | 19.8467 |
| Gross Margin | 17.81% |
| Annual Dividend | 0.35 |
| Dividend Yield | 1.07% |
| Beta | 1.156613 |
| Fiscal Year Ends | September |
About Walt Disney Company
Walt Disney Companyis considered to operate in the Media sector. They specifically operate in the Entertainment - Diversified business segment contained within the Entertainment industry.
Walt Disney Company was incorporated in Delaware. The Company together with its subsidiaries is a worldwide entertainment Company with operations in five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive Media. The Media Networks segment is comprised of a domestic broadcast television network, television production and distribution operations, domestic television stations, international and domestic cable networks, domestic broadcast radio networks and stations, and publishing and digital operations. The Company produces and distributes live action and animated television programming under the ABC Studios, ABC Media Productions, and ABC Family Productions labels. It owns ten television stations, six of which are located in the top-ten markets in the United States. Its cable networks group provides national programming networks, licenses television programming in domestic and international markets and invests in foreign television broadcasting, programming, production and distribution entities. Programming at cable networks is both internally produced and acquired from third parties. ESPN is a multimedia, multinational sports entertainment Company that operates six domestic television sports networks: ESPN, ESPN2, ESPN Classic, ESPNEWS, ESPN Deportes (a Spanish language network) and ESPNU (a network devoted to college sports). Disney Channel Disney Channel is a 24-hour cable network with programming targeted to children and families through original series and movies. Radio Disney is a 24/7 radio network for kids, tweens and families. The Company owns and operates the Walt Disney World Resort in Florida, the Disneyland Resort in California, the Disney Vacation Club, the Disney Cruise Line, and Adventures by Disney. The Walt Disney World Resort is located 22 miles southwest of Orlando, Florida, on approximately 25,000 acres of owned land. The Company owns 461 acres and has the rights under long-term lease for use of an additional 49 acres of land in Anaheim, California. The Studio Entertainment segment produces and acquires live-action and animated motion pictures, direct-to-video content, musical recordings and live stage plays. The Company distributes produced and acquired films in the theatrical, home entertainment and television markets. The Consumer Products segment engages with licensees, manufacturers, publishers and retailers throughout the world to design, develop, publish, promote and sell products based on existing and new Disney characters and other Company intellectual property through its Merchandise Licensing, Publishing and Retail businesses. The Disney Interactive Media Group creates and delivers Disney-branded entertainment and lifestyle content across interactive media platforms. The main operating businesses of the Disney Interactive Media Group are Disney Interactive Studios which produces video games for global distribution and Disney Online which produces web sites and online virtual worlds in the United States and internationally. It competes for viewers with other television and cable networks, independent television stations and other media, such as DVDs, video games and the internet.
Ockham's Rating/Recommendation Summary
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DIS Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at DIS through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 1.84x and 1.26x respectively.
Utilizing this range we can see that DIS’s current Price to Sales per share ratio of 1.75x is slightly above its historical average. This level of Price to Sales gives us a fairly neutral position on the shares. We would like to see a drop in the Price to Sales ratio of 12% given current sales figures before we would become more positive on a Price to Sales basis. Such a drop would put Price to Sales per share in line with DIS's weighted historical average.
DIS Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. DIS is above its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from DIS. For example, DIS's Cash Earnings ratio per share has fluctuated between 13.21 and 19.66 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where DIS is with respect to prior business periods.
Given this range of ratios per share, DIS at its current price of 32.93 and a Price to Cash Earnings ratio of 17.69 is 7% above its average historical Price to Cash Earnings ratio. Obviously this makes us more hesitant about DIS because cash earnings would need to rise to improve the valuation. Likewise, a decline in Price to Cash Earnings to below the average of 16.43 would significantly improve our outlook for DIS given the current profit levels.
DIS Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for DIS to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.
The estimated annual dividend for DIS is 0.35 producing a current dividend yield of 1.06%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from DIS against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from DIS over previous years was 2.31% while the lowest dividend yield was 0.75%. With that range in mind, DIS’s current dividend yield is a full 30.65% below its median dividend yield historically. This is a negative from our perspective.