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DIS The Walt Disney Company - Fundamental Analysis

NEUTRAL
DIS Stock | Fundamental Analysis & Investment Insights
NYSE Communication Services Entertainment
Current Price
$111.85
Analyst Target
$132.5
+18.5% Upside
52W High
$124.69
52W Low
$80.1

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AI Analysis

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Confidence Score
72%
Analysis Accuracy
The Walt Disney Company exhibits mixed financial health with a weak Piotroski F-Score of 4/9 and an implausibly high Altman Z-Score of 399826384896.0, suggesting potential data anomaly or extreme leverage misstatement. While profitability metrics like ROE (12.20%) and operating margins (11.87%) are stable and earnings growth is strong YoY (187.30%), revenue is flat (-0.50% YoY), and liquidity ratios (Current Ratio: 0.71, Quick Ratio: 0.55) indicate near-term financial strain. The stock trades below the analyst target of $132.50 but above the conservative Graham Number of $97.24, with a fair value estimate adjusted to $115.00 considering moderate growth and restructuring risks. Insider selling and bearish technical trend (0/100) add caution despite strong recent earnings surprises.

Key Strengths

Strong year-over-year earnings growth (187.30%) driven by cost optimization and streaming profitability improvements
Low debt/equity ratio of 0.40, indicating conservative capital structure relative to peers
Attractive dividend payout ratio of 14.60%, providing sustainability and room for future increases
Significant earnings beat streak: 3 out of last 4 quarters exceeded estimates, with an average surprise of 52.56%
Trading below analyst mean target price ($111.85 vs $132.50), implying 18% upside potential

Key Risks

Weak Piotroski F-Score of 4/9 signals deteriorating financial health, particularly in liquidity and operating efficiency
Poor liquidity position with Current Ratio (0.71) and Quick Ratio (0.55) below industry standards, raising near-term solvency concerns
Negative revenue growth (-0.50% YoY) reflects ongoing challenges in linear TV and theme park volatility
Insider selling activity (2 transactions, $0.51M total) suggests lack of confidence among executives
Bearish technical trend (0/100) and underperformance over 6M (-9.2%) despite sector tailwinds
AI Fair Value Estimate
Based on comprehensive analysis
$115.0
+2.8% above current price

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