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Walt Disney Company Analysis (#DIS)

Walt Disney Company Analysis (#DIS)

12 May 2021

Walt Disney is one of the largest media conglomerates in the entertainment industry in the world. Currently, it is one of the largest multinational media corporations, one of the largest Hollywood studios, the owner of 11 amusement parks and two water parks, as well as several broadcasting networks, including the American Broadcasting Company (ABC). As one of the world’s largest multinational media corporations, Disney is currently one of the largest players in the modern media market.

The main competitors of the Disney company, at the moment, are other major media corporations such as Warner Media, Sony Corporation, Comcast Corporation and Viacom.

Revenue for 2020: $65.4 B (-6% y-o-y)

Operating profit for 2020: $3.8 B (-68% year-over-year)

Net loss for 2020: $2.5 B

Earnings per share for the latest quarter: $0.32, up from$0.41 forecast

The amusement parks segment seriously worsened the company’s financial results 

Revenue distribution by business segment:

Media Networks – 39.71%

Direct-to-Consumer & International – 23.73%

Parks, Experiences & Consumer Products – 23.08%

Studio Entertainment – 13.48%

The company pleases investors with its quarterly dividend payments. Even if the dividend yield remains small (only 2.5%), the company aims to increase its dividend payments in the future. Despite the slightly outdated business model of the company in some segments, the management strives to create new products for further organic growth. One of these products at the moment is the streaming service Disney+ (the main competitor of which is the service Netflix).

Thus, the Walt Disney company has a diversified cash flow from its operations. This brings a certain stability to the company’s financial performance. Moreover, the company’s management regularly updates the range of services and products.

As regards DIS, a correction to 155 levels is asked, and only then the growth may continue. Those. if you aim at this particular company, then it is better to wait with purchases.

12 May 2021
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