The Walt Disney Company
Joel Cardella
Fred Newton
Thea Picklesimer
Brandy Rotarius
Introduction
• 1923
– Walt Disney peddled his cartoon in
California
• Alice in Wonderland
– October 16th Disney Brothers Cartoon
studio was born
• 1927
– Decision to move towards an all cartoon
series
• Oswald the lucky rabbit was born
– Painful lesson for Walt
» He learned the distributors owned all rights
Introduction
• 1928
– 2 unsellable silent films were made
– November 18th Mickey Mouse was
born
• Walter wanted more
– His dream
• Amusement park
– Where dreams come true
• 1971
– Disney land opens
• Walt Disney did not live to see his
The Walt Disney Company
• Operates as an entertainment
company
– Media Networks
•
•
•
•
Television Networks
Television Production and Distribution
Television Stations
Broadcast Radio
– Networks and Stations
• Publishing and digital operations
– Parks and Resorts
The Walt Disney Company
• Employees at Disney
–
–
–
–
Well Trained
Well Compensated
Encouraged to submit ideas
Part of the family
• Strengths
– The brand name
– Effective diversification around the
globe
– Wholesome family goodness
• Roots that Walt Disney himself
Financial Analysis
• Disney
• Current Ratio
– 5.03
• ROE
– 7.8%
• Current profit margin
– 6.8%
• Inventory turnover
– 4.06%
• Operating margin
– 32.06
• PE
– 29%
• Debt ratio
– 44.64%
Financial Analysis
• Disney is a long-term growth stock.
• In 2012, it was held by 33 different
hedge funds with around $2.5B in
investments.
• Currently several market houses have
given Disney a Buy rating, based on a
+26% YTD increase in stock price.
• Target prices have been set to an
average of $71.38.
Conclusion
• Walt Disney has good investment
potential.
• Many are rating the stock
outperform, with an average price
target of $61.04.
• Next quarter’s average estimate
for revenue is $11.74 billion and the
average EPS estimate is $1.07.
Conclusion
• They continue to improve their
numbers in performance and earnings
and have a good projection for the
future.
• Disney is definitely heading in the right
direction and a good place to invest.
Questions ?