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The Walt Disney Company is an
entertainment conglomerate broken
down into 5 business segments; media
networks, parks & resorts, studio
entertainment, consumer products, and
interactive media
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•Motion Picture and Video Production
•Consumer services
•Entertainment diversified
•Broadcasting & Cable
•Media Conglomerates
•Amusement parks & Arcades
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• Disney’s largest operating segment in terms of revenue is its
media networks, which accounts for 45% of overall sales
• Second biggest and 30% of its revenue generator comes from its
parks & resorts
• 15% of revenues comes from studio entertainment
• 7% consumer products and interactive media (publishing)
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Motion Picture & Video Production
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Fox
MGM
Paramount
Sony Productions
Broadcasting & cable
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NewsCorp
Time Warner
Comcast
NBC Universal
CBS
Media Conglomerates
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Universal
Warner Bros
Lions Gate
DreamWorks
WWE
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•Economy/Consumer spending
•Current events ( including weather)
•High production costs
•High production failures
•Audience saturation
•Transition to digital filming ( both TV and Movies)
•Piracy
•Demand for new technology/entertainment
• Liability issues (primarily amusement parks)
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Motion Picture and Video Production
• U.S. Consumer spending rose 1.2% in January 2013
• U.S. personal income rose 2.2
• Total U.S. revenue rose 19% in the 4th quarter of 2012
• The output of US Motion picture and video production is expected
to grow at a annual compounded rate of 5% between 2013 and 2017
Hoovers, March 2013
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Television Broadcasting
• U.S corporate profits rose 8.7% in the 3rd quarter of 2012
• Total U.S. retail sales increased 3.6% in the first two months
of 2013
• U.S. revenue for motion pictures rose 19% in the 4th quarter of
2012
• Projected to grow at 5% annual compound interest between
2013 and 2017
Hoovers, 2013
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Amusement Parks & Arcades
• Total U.S. consumer spending rose 1.2% in January 2013
• U.S average retail price for diesel and regular fuel fell 3.1% in
March 2013
• U.S. revenue for amusement parks fell 34% in the 4th quarter of
2012
• The industry is expected to grow at an annual compound interest
rate of 4% between 2013 and 2017
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Motion Picture and Video Production
•Pixar, Marvel, and Lucasfilms are Disney's “moneymakers” and
will be releasing multiple films in 2013
Television Broadcasting
•Disney owns ABC along with an additional 10 broadcast stations
including ESPN
•Disney owns a 30% stake in Hulu
•Partner with media giant NewsCorp
•Partner with YouTube
•A digital distributor of films and TV shows through Apple’s iTunes
Amusement Parks & Arcades
•Disney plans to build a $3.6 billion theme park in Shanghai
• The construction of Disney Springs
• Getting away from Disney branded vendors
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In 2012 The Walt Disney Company, for the second
year in a row Disney achieved record net income,
revenue, and earnings per share. In fiscal
2012, net income for shareholders was a record $5.7
billion, an increase of 18% over last year, and
revenue was a record $42.3 billion, up 3% from last
year. Diluted earnings per share increased 24% to a
record $3.13.
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EPS Growth
12 Month
36 Month
60 Month
24.21%
21.16%
6.92%
Chart made by Jeanna Divita with information from Hoovers,2013
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P/E Ratio, Comparison to Industry
Walt Disney Co.
15.18
12.48
17.62
17.36
7.83
12.79
Industry, Consumer
Services
15.58
13.92
15.97
15.05
21.73
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Walt Disney PE Ratio 5y TTM Chart
Graph from YCharts 2013
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Graph from Yahoo.finance.com 4/19/2013
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Chart constructed by MSN money
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Graphs taken from Hoovers.com
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WALT DISNEY CO: STOCK RATING SUMMARY
StockScouter gave The Walt Disney a 8 out of 10 rating
PRO
• Walt Disney Co, a large-cap growth company in the consumer services sector, is expected to
outperform the market over the next six months with less than average risk.
• The StockScouter measure of relative price change and consistency is very high.
• Earnings growth in the past year is holding steady compared to earnings growth in the past
three years.
• Previous day's closing price for DIS was slightly above its 50-day moving average.
CON
• Shares are being heavily sold by financial institutions
• One or more analysts has modestly decreased quarterly earnings estimates for DIS
• Two or more executives, directors or major shareholders sold a small number of shares recently.
• The ratio of DIS's price-to-earnings multiple to its five-year growth rate is above the average of18
all stocks in the StockScouter universe
• Healthy and strong company who has their ups and downs with the
industry
• Very strong competitor in all of its industries ranked in the top 3 of all
• Make the appropriate acquisitions and partnerships in their industry
to get ahead
• Future depends on innovation which they have proven capable of
• Have a strong competitive edge and predict continual growth in 2013
• Their Ratio’s are competitive with the industry
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• There is always going to be a demand for entertainment
•The Walt Disney Company is nearly a century old
company that continues to grow
• They continually bounce back from slumps in the
industry
• Their recent acquisition of lucasfilms shows promise for
future growth
• Disney has submerged themselves in all areas of
entertainment making themselves prevalent in many
industries
• You’re never too old for Disney!
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Mergent Online (2013). The Walt Disney Company. Retrieved from:
http://www.mergentonline.com/.
MSN Money (2013). The Walt Disney Company. Retrieved from:
http://investing.money.msn.com/investments/stockprice?Symbol=DIS&ocid=qbes
Schein, A (2013). The Walt Disney Company. Retrieved from
http://www.hoovers.com/.
The Walt Disney Company (2013). Annual Report. Retrieved
from www.thewaltdisneycompany.com
Yahoo Finance (2013). The Walt Disney Company. Retrieved from:
http://finance.yahoo.com/q?s=DIS&ql=1
YCharts (2013). The Walt Disney Company. Retrieved from:
http://ycharts.com/companies/DIS/pe_ratio
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