Dividend Stock Analysis: Walt Disney (DIS)

Written by The Dividend Guy on January 16, 2008

Walt Disney

This is an analysis completed by The Dividend Guy. It is not to be used as investment advice or a recommendation to buy, hold, or sell any stocks discussed. Please ensure you complete your own analysis.

Today’s analysis is doing to focus on my daughter’s favorite company in the world and the one that brought us Cinderella, Jasmine, Belle and all the other Disney princesses.

The Company: The Walt Disney Corporation (DIS-NYSE)

Walt Disney Company owns 100% of Disney Enterprises, Inc. which, together with its subsidiaries, is a diversified worldwide entertainment company with operations in five business segments: Media Networks, Studio Entertainment, Theme Parks and Resorts, Consumer Products and Internet and Direct Marketing.

Dividend Aristocrat (25+ yrs dividend growth)
 No
Dividend Achiever (10+ yrs dividend growth)
 No

THE FUNDAMENTALS

Revenue

Disney RevenueClick to Enlarge

Revenue Scoring

Criteria Scoring
Consistenly Up with No Down Years 1.0
Up Trend with < 2 Down Years 0.5
Choppy with > 2 Down Years 0.0
My Revenue Score 0.0

Earnings Per Share

Disney EPSClick to Enlarge

Earnings Per Share Scoring

Criteria Scoring
Consistenly Up with No Down Years 1.0
Up Trend with < 2 Down Years 0.5
Choppy with > 2 Down Years 0.0
My EPS Score 0.0

TOTAL FUNDAMENTALS SCORE: 0.0

THE RATIOS
Return on Equity

Disney ROEClick to Enlarge

Return on Equity Scoring

Criteria Scoring
Above 15% for Last 5 Years 1.0
At Least One Year Below 15% in Last 5 Years 0.0
My ROE Score 0.0

Other Ratios

Ratio Criteria Value Score (Pass=1 / Fail = 0)
Debt to Equity < 50% 49% 1.0
Payout Ratio < 60% 13% 1.0
Credit Rating > BBB+ A 1.0
Total Ratio Score
-
-
3.0

TOTAL RATIOS SCORE: 3.0

DIVIDEND DATA
Annual Dividends
Disney DPSClick to Enlarge

Dividend Scoring

Criteria Scoring
25+ Years of Dividend Growth 1.0
10+ Years of Dividend Growth 1.0
< 10 Years of Dividend Growth 0.0
My Dividend Growth Score 0.0

TOTAL DIVIDEND GROWTH SCORE: 0.0

STOCK VALUATION

Valuation Metric Criteria Value Score (Pass=1 / Fail = 0)
Dividend Yield Cur Yld > 10 Yr Avg Yld 0.9% 1.0
Div Yld Compared to SPY Div Yld Cur Yld > SPY Yld (0.25) 2.20% 0.0
P/E Ratio Cur P/E < 10 Yr Avg P/E (1.0) 33.9% 1.0
Relative P/E Relative P/E < 1.0 0.44 1.0
Price to Sales < 1.5 1.8 0.0
Total Ratio Score
-
-
3.0

Canadian Shareowner’s Association Stock Selection Guide Software Buy Price

Buy Zone
 Maybe Zone
 Sell Zone
 Current Price Rating Scoring (Buy=1.0, Other=0.0)
$21.22 to $27.37
$27.37 to $33.53
$33.53 to $39.68
$30.32
Maybe
 0.0

TOTAL STOCK VALUATION SCORE: 3.0

SUMMARY
Points Earned:

Six Pointsout of 14

The stock is rated LOW with 6 points earned through my analysis of the stock. The stock does not fall within my calculated buy zone.

Rating Points Required
High 12+ points
Medium 8-11 points
Low < 8 points

Reminder: This is an analysis completed by The Dividend Guy. It is not to be used as investment advice or a recommendation to buy, hold, or sell any stocks discussed. Please ensure you complete your own analysis.


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3 Comments so far

  1. Patty January 16, 2008 6:20 pm

    Your dividend scoring lines show 2 seperate “1.0’s” The total listed is 0. Would you please explain how the 2 x1 do not give a 2 in total?

    Thank you!

  2. The Dividend Guy January 17, 2008 9:07 am

    Hey Patty - good question - I am not adding them up there - what the table means is that if the company has 10+ year then they get 1 point, and if they have 25+ years they get another point. If they have neither then they get 0 points. Sorry about the confusion!

    The Dividend Guy

  3. Disney » Blog Archive » Dividend Stock Analysis: Walt Disney (DIS) January 20, 2008 7:54 am

    […] The Dividend Guy wrote an interesting post today on Dividend Stock Analysis: Walt Disney (DIS)Here’s a quick excerptWalt Disney Company owns 100% of Disney Enterprises, Inc. which, together with its subsidiaries, is a diversified worldwide entertainment company with operations in five business segments: Media Networks, Studio Entertainment, … […]

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