The Walt Disney Company (DIS) | Investment Case

1. Company Snapshot

1.a. Company Description

The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide.It operates through two segments, Disney Media and Entertainment Distribution; and Disney Parks, Experiences and Products.The company engages in the film and episodic television content production and distribution activities, as well as operates television broadcast networks under the ABC, Disney, ESPN, Freeform, FX, Fox, National Geographic, and Star brands; and studios that produces motion pictures under the Walt Disney Pictures, Twentieth Century Studios, Marvel, Lucasfilm, Pixar, and Searchlight Pictures banners.

It also offers direct-to-consumer streaming services through Disney+, Disney+ Hotstar, ESPN+, Hulu, and Star+; sale/licensing of film and television content to third-party television and subscription video-on-demand services; theatrical, home entertainment, and music distribution services; staging and licensing of live entertainment events; and post-production services by Industrial Light & Magic and Skywalker Sound.In addition, the company 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 as well as Aulani, a Disney resort and spa in Hawaii; licenses its intellectual property to a third party for the operations of the Tokyo Disney Resort; and provides consumer products, which include licensing of trade names, characters, visual, literary, and other IP for use on merchandise, published materials, and games.Further, it sells branded merchandise through retail, online, and wholesale businesses; and develops and publishes books, comic books, and magazines.

The Walt Disney Company was founded in 1923 and is based in Burbank, California.

Show Full description

1.b. Last Insights on DIS

The Walt Disney Company's recent performance was negatively impacted by a mixed Q4 FY'25 earnings report, with larger-than-expected declines in its linear TV business. The company's revenue miss, with $22.46 billion reported versus $22.75 billion expected, and ongoing carriage dispute with YouTube TV, affecting live sports streaming, have raised concerns. Additionally, the severe negative reaction post-earnings release suggests underlying problems, justifying downside risk concerns. Disney's struggle to grow its top line, despite recovery momentum, adds to the challenges.

1.c. Company Highlights

Last Price	105.3
Change Percentage	-0.16%
Open	105.18
Previous Close	105.47
Market Cap ( Millions)	189961
Volume	8030156
Year High	124.69
Year Low	80.1
M A 50	110
M A 200	109.68

FCF Yield	6.31%
Dividend Yield	0.95%
ROE	11.67%
Debt / Equity	38.25%
Net Debt / EBIDTA	188.89%
Price To Book	1.73
Price Earnings Ratio	15.31
Price To FCF	15.84
Price To sales	2.01
EV / EBITDA	11.77

2. Disney's Q4 2025 Earnings: A Strong Finish to a Stellar Year

The Walt Disney Company's fourth quarter 2025 financial results showed strong earnings growth, with adjusted EPS up 19% from fiscal 2024 to $1.11, beating analyst estimates of $1.05. The company's revenue growth was robust, driven by the success of its streaming business, film studios, and Experiences segment. The streaming business had another quarter of profit growth, with operating income up 39% in Q4, while the film studios delivered a strong performance, with Disney's live-action Lilo and Stitch being the highest-grossing Hollywood film at the global box office this calendar year.

Publication Date: Nov -14

                                    📋 Highlights
                                    Strong EPS Growth & Share Repurchase Plan::
                                                Adjusted EPS rose 19% YoY with a 19% CAGR over three years; $7B in 2026 share repurchases (double 2025's $3.5B) and a 50% higher $1.5/share dividend.
Streaming Profit Surge::
                                                Operating income jumped 39% in Q4 2025 to $1.3B annually, up $1.2B from 2024, driven by unified consumer experience and content integration.
Film Studios & Merchandise Success::
                                                "Lilo and Stitch" became the highest-grossing Hollywood film globally in 2025, with $4B+ retail sales for the franchise, and 14.3M Disney Plus views in five days.
ESPN DTC Growth::
                                                Enhanced app and "ultra" product attracted 80% of subscribers to the Trio bundle, with significant viewership and subscriber growth in direct-to-consumer sports offerings.
Experiences Segment Records::
                                                Operating income rose 13% in Q4 and 8% annually, driven by strong cruise demand, pricing power, and guest satisfaction, with 2026 growth projections for operating income.

                                

Segment Performance

The Experiences segment delivered a record operating income for both Q4 and the full year, with operating income up 13% for the fourth quarter compared to the prior year and up 8% for the full year. The ESPN direct-to-consumer service and enhanced ESPN app have been successful, with a substantial number of subscribers signing up to the ultra product and a significant increase in viewership. The company is rolling out a more unified experience to better serve consumers and unlock new value.

Outlook and Guidance

For fiscal 2026, the company expects double-digit adjusted EPS growth and is targeting $7 billion in share repurchases, double the $3.5 billion repurchased in fiscal 2025. A cash dividend of $1.5 per share, a 50% increase, was also announced. The company expects sustained double-digit growth in its direct-to-consumer revenue through a combination of subscriber engagement and advertising increases. Disney guided to double-digit margins and expects to achieve this through revenue growth and operating leverage.

Valuation

Disney's current valuation metrics indicate a reasonable price for the stock. The P/E Ratio is 15.65, and the EV/EBITDA is 11.95. The Dividend Yield is 0.93%, while the Free Cash Flow Yield is 6.2%. Analysts estimate next year's revenue growth at 6.3%. The company's strong financial performance and guidance suggest that it is on track to meet or exceed expectations.

Growth Drivers

The company has a strong slate of upcoming films, including Zootopia 2, Avatar: Fire and Ash, The Mandalorian and Grogu, Toy Story 5, live-action Moana, and Avengers: Doomsday. The NBA investment is expected to drive growth, with the property attracting a scale audience that is attractive to advertisers. Disney's parks business saw bookings up 3% in the first quarter, and demand is strong. On the cruise side, demand is very strong, with utilization rates in line with the past.

3. NewsRoom

Netflix Pulls Further Ahead While Disney Struggles to Stabilize Legacy Media

Dec -04

Source: 247wallst.com

Central Pattana, TAT and The Walt Disney (Thailand) Launched Magical Festivities Land in Thailand: Disney-Themed Christmas Experience

Dec -04

Source: globenewswire.com

‘The card served its purpose': It's time to cancel our Chase Disney Visa credit card. What's our next card for middle age?

Dec -02

Source: marketwatch.com

Beacon Pointe Advisors LLC Has $26.05 Million Stake in The Walt Disney Company $DIS

Dec -02

Source: defenseworld.net

Arjuna Capital Sells 662 Shares of The Walt Disney Company $DIS

Dec -02

Source: defenseworld.net

AMJ Financial Wealth Management Invests $395,000 in The Walt Disney Company $DIS

Dec -02

Source: defenseworld.net

Disney's Succession Race Enters Final Stage as Iger's Reign Draws to End

Dec -02

Source: wsj.com

Dow Jones Today: Stock Indexes Close Lower to Begin December Trading; Big Tech, Crypto-Tied Shares Drop Amid Risk-Off Sentiment

Dec -02

Source: investopedia.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.42%)

6. Segments

Experiences - Domestic

Expected Growth: 5.4%

Disney's domestic entertainment and leisure experiences are driven by increasing demand for immersive experiences, innovative theme park attractions, and a strong brand portfolio, including Marvel, Star Wars, and Pixar.

Experiences - International

Expected Growth: 7.4%

The Walt Disney Company's international experiences driven by increasing demand for Disney+, ESPN+, and Hulu, as well as growth in theme park attendance, will drive segment growth. Expansion into new markets, such as India and Latin America, will also contribute to growth.

Entertainment - Direct-to-consumer

Expected Growth: 24.3%

Growing demand for online streaming, expansion into new markets, and a strong content pipeline, including popular franchises like Marvel and Star Wars, will drive The Walt Disney Company's direct-to-consumer entertainment segment growth.

Entertainment - Content Sales/licensing and Other

Expected Growth: 7.9%

Disney’s iconic brands, such as Marvel, Star Wars, and Pixar, drive growth in entertainment content sales and licensing. The company’s strategic expansion into digital streaming and theme park expansions will further fuel growth.

Sports - Domestic

Expected Growth: 4.5%

The Walt Disney Company's Sports Domestic growth is driven by increasing popularity of ESPN+, strong advertising sales, and growing demand for live sports events, contributing to its domestic segment growth.

Entertainment - Linear Networks

Expected Growth: 3.8%

The Walt Disney Company's traditional television channels are expected to grow driven by increasing demand for live sports and news, growth in affiliate revenue, and the company's strong brand portfolio, including ABC, ESPN, and Disney Channel, which will help it to maintain its market position.

Sports - International

Expected Growth: 7.4%

Disney's international sports coverage growth is driven by increasing demand for premium sports content, expansion into emerging markets, and strategic partnerships with sports leagues and federations.

Sports - Star India

Expected Growth: 12.3%

Strong demand for sports coverage, especially cricket, drives growth. Star India’s Disney subsidiary benefits from its established presence and investments in premium content and digital platforms.

Experiences - Consumer Products

Expected Growth: 10.4%

Driven by growth in theme park attendance, expansion of e-commerce platforms, and increasing demand for licensed merchandise, Disney Consumer Products and Experiences is poised for continued growth.

Eliminations

Expected Growth: 7.3%

Driven by synergy benefits from 21st Century Fox acquisition, growth in affiliate fees, and increasing demand for Disney's intellectual property.

7. Detailed Products

Disney+

A streaming service offering a wide range of Disney, Pixar, Marvel, Star Wars, and National Geographic content

Theme Park Tickets

Admission tickets to Disney theme parks, including Disneyland, Disney World, and Disneyland Paris

Disney Cruise Line

Luxury cruise vacations to the Caribbean, Alaska, and Europe with Disney-themed entertainment and activities

Disney Publishing

Books, magazines, and digital media featuring Disney characters and stories

Disney Store Merchandise

Toys, clothing, and collectibles featuring Disney, Pixar, Marvel, and Star Wars characters

ESPN+

A sports streaming service offering exclusive sports content, including MLB, NHL, and MLS games

ABC Television Network

A broadcast television network airing popular TV shows, news, and sports

Marvel Comics

Comic books, graphic novels, and digital comics featuring Marvel characters

Lucasfilm

Film and television productions, including Star Wars and Indiana Jones franchises

Disney Theatrical Productions

Live stage shows and musicals, including The Lion King, Aladdin, and Frozen

8. The Walt Disney Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Disney is low due to its unique brand recognition and diversified business segments, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

Disney's customers have some bargaining power due to the availability of alternative entertainment options, but the company's strong brand loyalty and diversified offerings mitigate this power.

Bargaining Power Of Suppliers

Disney has a strong bargaining position with its suppliers due to its large scale and diversified business segments, allowing it to negotiate favorable terms.

Threat Of New Entrants

The threat of new entrants in Disney's industries is low due to the high barriers to entry, including significant capital requirements and the need for established brand recognition.

Intensity Of Rivalry

The intensity of rivalry in Disney's industries is high due to the presence of established competitors, such as Comcast and AT&T, and the ongoing competition for market share and talent.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	31.87%
Debt Cost	3.95%
Equity Weight	68.13%
Equity Cost	10.92%
WACC	8.70%
Leverage	46.77%

11. Quality Control: The Walt Disney Company passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Nexstar Media

A-Score: 7.3/10

Value: 7.0

Growth: 8.2

Quality: 7.6

Yield: 7.0

Momentum: 7.0

Volatility: 6.7

1-Year Total Return ->

Alphabet

A-Score: 5.9/10

Value: 1.8

Growth: 8.3

Quality: 8.4

Yield: 0.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

T-Mobile US

A-Score: 5.7/10

Value: 4.2

Growth: 7.1

Quality: 5.6

Yield: 2.0

Momentum: 6.5

Volatility: 9.0

1-Year Total Return ->

Netflix

A-Score: 5.6/10

Value: 0.8

Growth: 9.0

Quality: 8.1

Yield: 0.0

Momentum: 9.0

Volatility: 6.7

1-Year Total Return ->

Sirius XM

A-Score: 5.5/10

Value: 8.6

Growth: 3.8

Quality: 7.0

Yield: 7.0

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

Walt Disney

A-Score: 5.4/10

Value: 4.5

Growth: 5.3

Quality: 5.9

Yield: 1.0

Momentum: 7.0

Volatility: 8.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

4.70%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.70%

The Walt Disney Company - US2546871060

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on DIS

1.c. Company Highlights

Less Volatile

Expensive

Stable Momentum

Earnings Beats

Fairly Valued

Average Growth

Average Quality

Revenues Beats

Strong Momentum

Revenues Miss

2. Disney's Q4 2025 Earnings: A Strong Finish to a Stellar Year

Segment Performance

Outlook and Guidance

Valuation

Growth Drivers

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.42%)

6. Segments

Experiences - Domestic

Expected Growth: 5.4%

Experiences - International

Expected Growth: 7.4%

Entertainment - Direct-to-consumer

Expected Growth: 24.3%

Entertainment - Content Sales/licensing and Other

Expected Growth: 7.9%

Sports - Domestic

Expected Growth: 4.5%

Entertainment - Linear Networks

Expected Growth: 3.8%

Sports - International

Expected Growth: 7.4%

Sports - Star India

Expected Growth: 12.3%

Experiences - Consumer Products

Expected Growth: 10.4%

Eliminations

Expected Growth: 7.3%

7. Detailed Products

Disney+

Theme Park Tickets

Disney Cruise Line

Disney Publishing

Disney Store Merchandise

ESPN+

ABC Television Network

Marvel Comics

Lucasfilm

Disney Theatrical Productions

8. The Walt Disney Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: The Walt Disney Company passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.e Scoring ^Insights

12.f DCF ^BETA