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Walt Disney (DIS) Stock Analysis
The Walt Disney Company Dividend
Sector: Communication Services
Industry: Entertainment
The Walt Disney Company (DIS) dividend had been paid since 1977 until suspended in May 2020, In Nov. 2023 Disney reinstated a semi-annual dividend of $0.30, increased it to $0.45 in Feb. 2024, and to $..50 in Feb. 2025.
Current Dividend Annualized: $1.00
Disney, Walt Co. (DIS) Intrinsic Value – Margin of Safety Analysis
(updated February 2025)
Normalized Diluted Earnings Per Share (TTM): $3.08
Free Cash Flow Per Share (TTM): $4.60
Cash Flow From Operations (CFO) Per Share (TTM): $8.21
Estimated Intrinsic Value: $111
Target Buy Price Based on Required Margin of Safety = $79
(Required Margin of Safety Based On Risk Stability Grade:
A = 10%, B = 20%, C = 40%, D = 60%, F = 80%)
Target SELL Price Based on Estimated Intrinsic Value = $127
(Allow Overvaluation Adjusted by Risk Stability Grade:
A = 40%, B = 25%, C = 15%, D = 5%, F = 0%)
Risk / Stability Grade: C
A grade indicates a quality company with a strong balance sheet, high earnings quality, and a positive business environment. These stocks require the slimmest margin of safety within the stock universe.
B grade indicates a company with a good balance sheet, good earning quality, and a stable business environment. The margin of safety required should be greater than stocks with an A grade but less than the average stock.
C grade indicates a company with a sufficient balance sheet, at least average earnings quality, and a reasonably stable business environment. The margin of safety required is greater than A & B stocks, but less than D & F stocks.
D grade indicates a company in good standing but has issues that could affect its stability and long term risks. D rated stocks should require a large margin of safety when purchased.
F grade indicates a company with significant issues that are currently affecting its stability and long term risks. Require an extremely large margin of safety for F rated stocks when purchased.
Financial Risk Grade: B-
A grade indicates an extremely low probability of a dividend cut. This rating is reserved for companies with strong balance sheets and/or excellent dividend histories.
B grade indicates a very low probability for a dividend cut.
C grade indicates a low probability for a dividend cut and/or average safety risk.
D grade indicates there are issues that should be considered concerning future dividend payments.
F grade indicates serious dividend safety risks. Investors should complete comprehensive due diligence before investing.
Business Quality Grade: C
A grade indicates earnings quality is high or far above average.
B grade indicates earnings quality is good and/or above average.
C grade indicates earnings quality is acceptable or average.
D grade indicates earnings quality is poor and requires thoughtful due diligence.
F grade indicates the quality of the earnings is poor or far below average requiring serious due diligence.
Earnings Report: 12/31/24
AAAMP Portfolios Position Disclosures:
Treasure Trove Dividend (DGI) – None
Global Dividend Value (DGI) – None
Dividend Growth & Income (DGI) – None
Global Value (GV) – None
Global Value Aggressive (GVA) – None
Global Conservative Income (GCI) – None
Global High Income (GHI) – None
Company Description
Sector: Consumer Cyclical
Industry: Media – Diversified
Company Overview:
The Walt Disney Co. is a global entertainment conglomerate known for its iconic brands, including Walt Disney Studios, ESPN, ABC, and its theme parks and resorts. The company operates across multiple segments, including media networks, parks, and direct-to-consumer streaming services like Disney+ and Hulu. Disney is a leader in entertainment content, with a diverse portfolio spanning film, television, theme parks, and merchandise.
Company Strengths:
Disney benefits from its strong brand recognition, a vast portfolio of beloved intellectual properties (IP) like Marvel, Star Wars, and Pixar, and its leadership in media and entertainment. The company’s theme parks and resorts provide significant revenue, and its rapidly growing streaming services (Disney+, ESPN+) are expanding its digital footprint. Disney’s ability to monetize its content across multiple platforms gives it a competitive edge.
Company Challenges:
Disney faces challenges from the ongoing competition in the streaming wars, particularly with Netflix, Amazon, and others. The company is investing heavily in its direct-to-consumer platforms, but profitability remains a concern. Additionally, Disney’s theme park business is vulnerable to external factors like economic downturns, health crises, and natural disasters. Rising content production costs and regulatory pressures in international markets add to its operational challenges.
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Disclaimer:
While Arbor Investment Planner has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, or completeness of third-party information presented herein. The sole purpose of this analysis is information. Nothing presented herein is, or is intended to constitute investment advice. Consult your financial advisor before making investment decisions.