DIS Weiss

June 5, 2016
NYSE: DIS
DISNEY (WALT) CO
BUY
A+
A-
HOLD
B+
Annual Dividend Rate

$1.42
B-
C+
Annual Dividend Yield

1.43%
SELL
C-
D+
Beta
1.36
Sector: Consumer Goods & Svcs

Weekly Price: (US$)
DIS BUSINESS DESCRIPTION

The Walt Disney Company, together with its
subsidiaries, operates as an entertainment
company worldwide.
D-
E+
E-
Market Capitalization
$160.2 Billion
BUY
52-Week Range
$86.25-$122.08
Sub-Industry: Movies & Entertainment

SMA (50)
RATING SINCE
TARGET PRICE
05/04/2010
$114.02
Price as of 6/2/2016
$98.72
Source: S&P
SMA (100)
1 Year
2 Years
125
120
115
TARGET
TARGET
TARGETPRICE
PRICE$114.02
$114.02
PRICE
$114.02
TARGET
STOCK PERFORMANCE (%)

3 Mo.
Price Change
1.77
1 Yr.
-10.87
110
105
3 Yr (Ann)
16.10
100
95
GROWTH (%)
Last Qtr
4.07
1.66
5.69
Revenues
Net Income
EPS
12 Mo.
8.12
13.45
17.02
90
3 Yr CAGR
7.80
15.15
18.18
85
80
75
Rating History
RETURN ON EQUITY (%)
BUY
DIS
20.65
17.45
15.58
Q2 2016
Q2 2015
Q2 2014
Ind Avg
14.59
-37.03
-3.87
S&P 500
11.95
14.20
14.48
Volume in Millions
200
100
2015
P/E COMPARISON
2016
COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History
RECOMMENDATION
We rate DISNEY (WALT) CO (DIS) a BUY. This is based on the convergence of positive investment measures,
which should help this stock outperform the majority of stocks that we rate. The company's strengths can be
seen in multiple areas, such as its growth in earnings per share, revenue growth, notable return on equity,
expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that
the company has had lackluster performance in the stock itself.
18.18
22.89
24.33
DIS
Ind Avg
S&P 500
EPS ANALYSIS ($)
HIGHLIGHTS
DISNEY (WALT) CO has improved earnings per share by 5.7% in the most recent quarter compared to the
same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth
over the past two years. We feel that this trend should continue. During the past fiscal year, DISNEY (WALT)
CO increased its bottom line by earning $4.90 versus $4.25 in the prior year. This year, the market expects an
improvement in earnings ($5.83 versus $4.90).
2014
2015
Q2 1.30
Q1 1.73
Q4 0.95
Q3 1.45
Q2 1.23
Q1 1.27
Q4 0.86
Q3 1.28
Q2 1.08
Q1 1.03
Despite its growing revenue, the company underperformed as compared with the industry average of 4.7%.
Since the same quarter one year prior, revenues slightly increased by 4.1%. This growth in revenue appears
to have trickled down to the company's bottom line, improving the earnings per share.
2016
NA = not available NM = not meaningful

1 Compustat fiscal year convention is used for all fundamental
data items.
The return on equity has improved slightly when compared to the same quarter one year prior. This can be
construed as a modest strength in the organization. Compared to other companies in the Media industry and
the overall market, DISNEY (WALT) CO's return on equity exceeds that of both the industry average and the
S&P 500.
48.21% is the gross profit margin for DISNEY (WALT) CO which we consider to be strong. It has increased
from the same quarter the previous year. Along with this, the net profit margin of 16.52% is above that of the
industry average.
Net operating cash flow has increased to $3,400.00 million or 16.51% when compared to the same quarter last
year. The firm also exceeded the industry average cash flow growth rate of 3.05%.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: June 5, 2016
PAGE 1
June 5, 2016
NYSE: DIS
DISNEY (WALT) CO
Sector: Consumer Goods & Svcs Movies & Entertainment Source: S&P
$1.42

1.43%
PEER GROUP ANALYSIS
35%
DWA
V
FA
AB
OR
LE
DIS
TWX
UN
VIA VIAB
LE
AB
-15%
LGF
R
VO
FA
Revenue Growth (TTM)
52-Week Range
$86.25-$122.08
$98.72
Media companies naturally prosper during election years, thanks to substantial increases in advertising
revenues -- the key metric of growth. This positive cyclical factor -- which is highlighted by an estimated $2
billion increase in both political and Olympic-related advertising -- is why overall growth forecasts for
advertising continue to be positive.
RGC CNK
FOXA FOX
-5%
$160.2 Billion
INDUSTRY ANALYSIS
The $1 trillion global Media industry includes advertising, cable, film, newspapers, radio, and television. The
Media business is dominated by household-name corporations such as Walt Disney (DIS), New York Times
(NYT), and Time-Warner (TWX). However, several smaller, but rapidly growing players include Comcast
(CMCSA), DirecTV (DTV), and DISH Network (DISH). The industry is reliant on the economy and is one of the
first sectors to thrive in a recovery and decline during a recession.
REVENUE GROWTH AND EBITDA MARGIN*
LYV
Beta
1.36
35%
Those threats include potential legislation and court rulings on media merger concentrations within
geographical regions, spliting up the royalty pie of DVD distribution fees with screenwriters, competing with
cheaper cable advertising rates, and the rising popularity of zipping -- fast-forwarding through commercials
by Digital Video Recorder (DVR) owners. Court fights and potential net neutrality legislation may pick
winners and losers. Federal court rulings against the Federal Communications Commission (FCC) risk allowing
broadband internet providers like Comcast charging higher prices to content providers and other websites to
remain being received at top speed stifling new small business growth.
EBITDA Margin (TTM)

Companies with higher EBITDA margins and
revenue growth rates are outperforming companies
with lower EBITDA margins and revenue growth
rates. Companies for this scatter plot have a market
capitalization between $2.8 Billion and $160.2 Billion.
Companies with NA or NM values do not appear.
*EBITDA Earnings Before Interest, Taxes, Depreciation and
Amortization.
Newspaper companies are desperate to see a rebound in corporate and classified advertising. However, the
revenue streams from classified ads are being supplanted by internet ads and newspapers are attempting to
sell online subscriptions to bolster declining print circulations.
As for the film business, Hollywood continues to live or die based on the latest blockbuster releases.
In a bullish trend, products, such as Apples iPad and Googles Nexus, are giving consumers more ways to
consume media.
REVENUE GROWTH AND EARNINGS YIELD

35%
PEER GROUP: Media
DWA
V
FA
AB
OR
CNK
DIS
TWX
R
VO
FA
-2.5%
LGF
LE
AB
-15%
UN
Revenue Growth (TTM)
LE
RGC
LYV
FOXA FOX
VIA
VIAB
12.5%
Earnings Yield (TTM)
Ticker
DIS
TWX
FOX
FOXA
LYV
CNK
LGF
DWA
RGC
VIAB
VIA
Recent
Company Name
Price ($)
DISNEY (WALT) CO
98.72
TIME WARNER INC
76.75
TWENTY-FIRST CENTURY FOX INC 29.86
TWENTY-FIRST CENTURY FOX INC 29.55
LIVE NATION ENTERTAINMENT
24.61
CINEMARK HOLDINGS INC
36.40
LIONS GATE ENTERTAINMENT CP 23.38
DREAMWORKS ANIMATION INC 40.38
REGAL ENTERTAINMENT GROUP 20.77
VIACOM INC
45.09
VIACOM INC
49.21
Market
Cap ($M)
160,167
60,356
56,223
56,223
4,994
4,229
3,442
3,178
2,764
18,061
18,061
Price/
Earnings
18.18
15.54
25.31
25.04
NM
18.11
75.42
269.20
19.06
8.10
8.83
Net Sales
TTM ($M)
54,826.00
28,299.00
26,885.00
26,885.00
7,333.14
2,912.08
2,347.42
939.78
3,223.10
13,001.00
13,001.00
Net Income
TTM ($M)
9,115.00
4,077.00
2,275.00
2,275.00
-61.37
232.87
50.21
13.81
171.00
2,227.00
2,227.00
The peer group comparison is based on Major Movies & Entertainment companies of comparable size.
Companies that exhibit both a high earnings yield

and high revenue growth are generally more
attractive than companies with low revenue growth
and low earnings yield. Companies for this scatter
plot have revenue growth rates between -13.9% and
33.5%. Companies with NA or NM values do not
appear.
PAGE 2
June 5, 2016
NYSE: DIS
DISNEY (WALT) CO
$1.42

1.43%
COMPANY DESCRIPTION
The Walt Disney Company, together with its
subsidiaries, operates as an entertainment company
worldwide. The company operates broadcast and cable
television networks, domestic television stations, and
radio networks and stations; and is involved in the
television production and television distribution
operations. Its cable networks include ESPN, Disney
Channels, and ABC Family, as well as UTV/Bindass and
Hungama. The company owns eight domestic television
stations. It also owns and operates the Walt Disney
World Resort in Florida that includes theme parks;
hotels; vacation club properties; a retail, dining, and
entertainment complex; a sports complex; conference
centers; campgrounds; golf courses; water parks; and
other recreational facilities. In addition, the company
operates Disneyland Resort in California; Disney Resort
& Spa in Hawaii; Disney Vacation Club, Disney Cruise
Line, and Adventures by Disney; and Disneyland Paris,
Hong Kong Disneyland Resort, and Shanghai Disney
Resort, as well as licenses its intellectual property to a
third party for the operations of the Tokyo Disney Resort
in Japan. Further, it produces and acquires live-action
and animated motion pictures, direct-to-video content,
musical recordings, and live stage plays; licenses trade
names, characters, and visual and literary properties to
retailers and publishers; publishes entertainment and
educational books, magazines, and comic books; and
operates English language learning centers in China.
Additionally, the company is involved in the sale of
merchandise through its retail stores, Internet shopping
sites, and wholesale business. In addition, it creates and
distributes entertainment and lifestyle content for
interactive media platforms. The company was founded
in 1923 and is based in Burbank, California.
DISNEY (WALT) CO
500 South Buena Vista Street
Burbank, CA 91521
USA
Phone: 818-560-1000
http://www.thewaltdisneycompany.com
Beta
1.36
$160.2 Billion
52-Week Range
$86.25-$122.08
$98.72
STOCK-AT-A-GLANCE
Below is a summary of the major fundamental and technical factors we consider when determining our
overall recommendation of DIS shares. It is provided in order to give you a deeper understanding of our rating
methodology as well as to paint a more complete picture of a stock's strengths and weaknesses. It is
important to note, however, that these factors only tell part of the story. To gain an even more comprehensive
understanding of our stance on the stock, these factors must be assessed in combination with the stocks
valuation. Please refer to our Valuation section on page 5 for further information.
FACTOR
SCORE
5.0
Growth
out of 5 stars
weak
Measures the growth of both the company's income statement and
cash flow. On this factor, DIS has a growth score better than 90% of the
stocks we rate.
strong
3.5
Total Return
out of 5 stars
weak
Measures the historical price movement of the stock. The stock
performance of this company has beaten 60% of the companies we
cover.
strong
5.0
Efficiency
out of 5 stars
weak
Measures the strength and historic growth of a company's return on
invested capital. The company has generated more income per dollar of
capital than 90% of the companies we review.
strong
4.0
Price volatility
out of 5 stars
weak
Measures the volatility of the company's stock price historically. The
stock is less volatile than 70% of the stocks we monitor.
strong
5.0
Solvency
out of 5 stars
weak
Measures the solvency of the company based on several ratios. The
company is more solvent than 90% of the companies we analyze.
strong
3.5
Income
out of 5 stars
weak
Measures dividend yield and payouts to shareholders. The company's
dividend is higher than 60% of the companies we track.
strong
THESTREET RATINGS RESEARCH METHODOLOGY

TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both
price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to
perform against a general benchmark of the equities market and interest rates. While our model is
quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include
expected equities market returns, future interest rates, implied industry outlook and forecasted company
earnings. Objective elements include volatility of past operating revenues, financial strength, and company
cash flows.
Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown
as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of
acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings
growth; and the financial strength of the underlying company as compared to its stock's valuation as
compared to projected earnings growth; and the financial strength of the underlying company as compared
to its stock's performance. These and many more derived observations are then combined, ranked, weighted,
and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of
selecting stocks.
PAGE 3
June 5, 2016
NYSE: DIS
DISNEY (WALT) CO
$1.42

1.43%
Consensus EPS Estimates ($)

IBES consensus estimates are provided by Thomson Financial
1.61
5.83 E
6.18 E
Q3 FY16
2016(E)
2017(E)
$160.2 Billion
52-Week Range
$86.25-$122.08
$98.72
FINANCIAL ANALYSIS
DISNEY (WALT) CO's gross profit margin for the second quarter of its fiscal year 2016 is essentially
unchanged when compared to the same period a year ago. The company has grown sales and net income
during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up
with the growth of the average competitor within its industry. DISNEY (WALT) CO has weak liquidity.
Currently, the Quick Ratio is 0.81 which shows a lack of ability to cover short-term cash needs. The company's
liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing
by 4.15% from the same quarter last year. Overall, the key liquidity measurements indicate that the company
is in a position in which financial difficulties could develop in the future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the
next 12-months. To learn more visit www.TheStreetRatings.com.
INCOME STATEMENT
Net Sales ($mil)
EBITDA ($mil)
EBIT ($mil)
Net Income ($mil)
Beta
1.36
Q2 FY16
12,969.00
4,115.00
3,510.00
2,143.00
Q2 FY15
12,461.00
3,690.00
3,106.00
2,108.00
Q2 FY16
5,015.00
90,264.00
21,122.00
44,124.00
Q2 FY15
3,745.00
85,715.00
14,957.00
46,038.00
Q2 FY16
48.21%
31.72%
27.06%
0.61
10.09%
20.65%
Q2 FY15
46.31%
29.61%
24.93%
0.59
9.37%
17.45%
Q2 FY16
1.00
0.32
81.00
43.33
Q2 FY15
1.17
0.25
66.00
47.06
Q2 FY16
1,700
0.00
1.30
25.96
NA
7,315,596
Q2 FY15
1,700
0.00
1.23
27.08
NA
10,733,584
BALANCE SHEET
Cash & Equiv. ($mil)
Total Assets ($mil)
Total Debt ($mil)
Equity ($mil)
PROFITABILITY
Gross Profit Margin
EBITDA Margin
Operating Margin
Sales Turnover
Return on Assets
Return on Equity
DEBT
Current Ratio
Debt/Capital
Interest Expense
Interest Coverage
SHARE DATA
Shares outstanding (mil)
Div / share
EPS
Book value / share
Institutional Own %
Avg Daily Volume
2 Sum of quarterly figures may not match annual estimates due to

use of median consensus estimates.
PAGE 4
June 5, 2016
NYSE: DIS
DISNEY (WALT) CO
$1.42

1.43%
RATINGS HISTORY
Our rating for DISNEY (WALT) CO has not changed
since 5/4/2010. As of 6/2/2016, the stock was trading
at a price of $98.72 which is 19.1% below its
52-week high of $122.08 and 14.5% above its
52-week low of $86.25.
2 Year Chart
Beta
1.36
$160.2 Billion
BUY: $84.27
Price/Earnings
premium
2014
DIS 18.18
Peers 22.89
Discount. A lower P/E ratio than its peers can
signify a less expensive stock or lower growth
expectations.
DIS is trading at a discount to its peers.
Price/Projected Earnings
From
Buy
To
Buy
RATINGS DEFINITIONS &

DISTRIBUTION OF THESTREET RATINGS
38.50% Buy - We believe that this stock has the

opportunity to appreciate and produce a total return of
more than 10% over the next 12 months.
31.14% Hold - We do not believe this stock offers
conclusive evidence to warrant the purchase or sale of
shares at this time and that its likelihood of positive total
return is roughly in balance with the risk of loss.
30.36% Sell - We believe that this stock is likely to
decline by more than 10% over the next 12 months, with
the risk involved too great to compensate for any
possible returns.
Price/Book
premium
Price/Sales
premium
Price to Earnings/Growth
discount
premium
discount
DIS 0.96
Peers 1.20
Discount. The PEG ratio is the stocks P/E divided
by the consensus estimate of long-term earnings
growth. Faster growth can justify higher price
multiples.
DIS trades at a discount to its peers.
Earnings Growth
lower
5
higher
DIS 17.02
Peers -9.34
Higher. Elevated earnings growth rates can lead to
capital appreciation and justify higher
price-to-earnings ratios.
DIS is expected to have an earnings growth rate
that significantly exceeds its peers.
Sales Growth
discount
DIS 3.06
Peers 3.62
Discount. In the absence of P/E and P/B multiples,
the price-to-sales ratio can display the value
investors are placing on each dollar of sales.
DIS is trading at a discount to its industry on this
measurement.
DIS 14.11
Peers 18.97
Discount. The P/CF ratio, a stocks price divided by
the company's cash flow from operations, is useful
for comparing companies with different capital
requirements or financing structures.
DIS is trading at a significant discount to its peers.
discount
DIS 3.80
Peers 3.82
Average. A lower price-to-book ratio makes a stock
more attractive to investors seeking stocks with
lower market values per dollar of equity on the
balance sheet.
DIS is trading at a valuation on par with its peers.
premium
discount
DIS 15.97
Peers 95.32
Discount. A lower price-to-projected earnings ratio
than its peers can signify a less expensive stock or
lower future growth expectations.
DIS is trading at a significant discount to its peers.
(as of 6/2/2016)
Research Contact: 212-321-5381

Sales Contact: 866-321-8726
premium
Price reflects the closing price as of the date listed, if available
TheStreet Ratings
14 Wall Street, 15th Floor
New York, NY 10005
www.thestreet.com
Price/CashFlow
discount
2015
MOST RECENT RATINGS CHANGES

Date
Price
Action
6/2/14
$84.27 No Change
$98.72
VALUATION
BUY. This stock's P/E ratio indicates a discount compared to an average of 22.89 for the Media industry and a
discount compared to the S&P 500 average of 24.33. To use another comparison, its price-to-book ratio of 3.80
indicates a premium versus the S&P 500 average of 2.78 and a discount versus the industry average of 3.82.
The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon
assessment of these and other key valuation criteria, DISNEY (WALT) CO proves to trade at a discount to
investment alternatives within the industry.
$125
$100
52-Week Range
$86.25-$122.08
lower
5
higher
DIS 8.12
Peers 40.70
Lower. A sales growth rate that trails the industry
implies that a company is losing market share.
DIS significantly trails its peers on the basis of
sales growth
DISCLAIMER:
The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but
TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided
via the COMPUSTAT Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as
other third-party data providers.
TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided
for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or
other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a
qualified securities professional, before you make any investment. None of the information contained in this report constitutes,
or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a
determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of
the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the
investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at
http://www.thestreet.com/static/about/terms-of-use.html.
PAGE 5

DIS Weiss

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

DIS Weiss

Uploaded by

Copyright:

Available Formats

June 5, 2016

Annual Dividend Rate

Annual Dividend Yield

Sector: Consumer Goods & Svcs

DIS BUSINESS DESCRIPTION

Sub-Industry: Movies & Entertainment

STOCK PERFORMANCE (%)

RETURN ON EQUITY (%)

EPS ANALYSIS ($)

NA = not available NM = not meaningful

Report Date: June 5, 2016

Annual Dividend Yield

PEER GROUP ANALYSIS

Revenue Growth (TTM)

REVENUE GROWTH AND EBITDA MARGIN*

EBITDA Margin (TTM)

REVENUE GROWTH AND EARNINGS YIELD

PEER GROUP: Media

Revenue Growth (TTM)

Earnings Yield (TTM)

Companies that exhibit both a high earnings yield

Report Date: June 5, 2016

Annual Dividend Yield

THESTREET RATINGS RESEARCH METHODOLOGY

Report Date: June 5, 2016

Annual Dividend Yield

Consensus EPS Estimates ($)

2 Sum of quarterly figures may not match annual estimates due to

Report Date: June 5, 2016

Annual Dividend Yield

RATINGS DEFINITIONS &

38.50% Buy - We believe that this stock has the

Research Contact: 212-321-5381

Price reflects the closing price as of the date listed, if available

MOST RECENT RATINGS CHANGES

Report Date: June 5, 2016

You might also like