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Home > Shares > Analysis
 
The Walt Disney Company ( DIS )  
     
Comapny name : The Walt Disney Company
Share : DIS Analysis date : 24-Oct-2007
Stock exchange : NYSE Rating : 8/9
 
1 History of Consistently Increasing EPS, Sales & Cash Flow.
  1) EPS has increased consistently over 5 years? Yes
  2) Sales has increased Consistently over 5 years? Yes
  3) Cash Flow has increased consistently over 5 years? Yes
  4) What is the historical/projected EPS growth rate? 12.30%
 
2 Sunstainable Competitive Advantage
  1) The company has a sustainable competitive advantage? Yes
 
Yes, The Walt Disney Company, together with its subsidiaries, is a diversified worldwide entertainment company.

The Media Networks segment includes a domestic broadcast television network, domestic television stations, cable/satellite networks and international broadcast operations, television production and distribution, domestic broadcast radio networks and stations, and Internet and mobile operations.

The Parks and Resorts segment generates revenues predominately from the sale of admissions to the theme parks, room nights at the hotels, and rentals at the resort properties. The Studio Entertainment segment produces and acquires live-action and animated motion pictures, direct-to-video programming, musical recordings and live-stage plays.

The Consumer Products segment partners with licensees, manufacturers, publishers and retailers worldwide to design, promote and sell a variety of products based on Disney characters and other intellectual property.

3 Future Growth Drivers
  1) The company has future growth drivers in place? Yes
 
Yes, Disney is making progress especially in the rapidly emerging markets of China and India. In those two countries alone, there are more than 800 million consumers under 21 years of age, which poses a remarkable opportunity for Disney entertainment to be enjoyed by a largely untapped audience.

In China, Hong Kong Disneyland, which opened in September 2005, anchors Disney\\\'s presence. They are also rapidly boosting their retail merchandising through the licensing of thousands of “Disney Corners” at department stores throughout the region, while increasing their presence in the booming mobile entertainment sector.

To expand in India, Disney has made the strategic acquisition of one of the country’s leading kids television networks, Hungama. In addition, Disney channels in India reach 30 million households and hold the largest share of the children’s television market.

4 Conservative Debt
  1) The company has Long Term Debt <3x Net Profit? Yes
  2) Long-Term Debt is $ 10,843.0
  3) Net Profit is $ 3,374.0 Million
 
5 High & Consistent ROE and ROA
  1) The company has ROE>12-15% over 5 years? No
  2) The company has ROA>7% over 5 years? No
 
6 Low CAPEX for Maintenance of Current Operations? (Not a key criterion)
  1) The business requires low CAPEX for maintenance of Current operations? Yes
  2) Is ( Free Cash Flow/Sales Revenue )>5%? Yes
 
7 Management is Holding/Buying the Stock
  1) Key Management has not been selling large Proportion of company stock? Yes
 
8 The Stock Price is Selling at a Discount (High Margin of Safety)
  1) Current operating cash flow/EPS $6,058.0 Million (Cashflow)
  2) Projected Earnings Growth Rate 12.30%
  3) Number of shares outstanding 2076 Million
  4) Intrinsic Value $43.02
  5) Share price is below intrinsic value? Yes
 
9 Stock Price is Consolidating or on an Uptrend
  1) Stock price breaking out of consolidating Yes
  2) Stock price at a dip on a uptrend Yes
  3) Stock price above 20 or 50 day moving average Yes
 
 
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