The analysis was done on the 16 Aug 2013, so there might be some slight changes to the current value.
The Company together with its subsidiaries is a worldwide entertainment Company with operations in five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive Media. The Media Networks segment is comprised of a domestic broadcast television network, television production and distribution operations, domestic television stations, international and domestic cable networks, domestic broadcast radio networks and stations, and publishing and digital operations. The Company owns and operates the Walt Disney World Resort in Florida, the Disneyland Resort in California, the Disney Vacation Club, the Disney Cruise Line, and Adventures by Disney. The Studio Entertainment segment produces and acquires live-action and animated motion pictures, direct-to-video content, musical recordings and live stage plays. The Consumer Products segment engages with licensees, manufacturers, publishers and retailers throughout the world to design, develop, publish, promote and sell products based on existing and new Disney characters and other Company intellectual property through its Merchandise Licensing, Publishing and Retail businesses. The Disney Interactive Media Group creates and delivers Disney-branded entertainment and lifestyle content across interactive media platforms.
Supreme Branding, Disney brand has been around the block for decades. Economic of Scale.
It’s profitable for the past 10 years and expected to be in the next 10 years, any age group will still tune into Disney related media or go on a holiday trip to Disney Theme Parks or purchase their merchandise.
A durable competitive advantage.
A dip in EPS from FY 09 – 10 else everything is predictable and growing positively.
Drop in cash flow from operations from FY 07 – 09 but eventually picked up and increasing at a slow, steady value.
ROE value of 14.3% just a bit off from the desired value of 15%
ROA value of 7.6%
PE Ratio of 18.9
5x Current Income is more then Long Term Debt. Healthy range.
Intrinsic Value of 38.74
Target Buy Price
I love Disney this company, it has been around since I was a kid and will still do when i aged. The financial reports shows that this company is able to perform even during recessions and even made good, slow and steady progression. Disney began paying dividends to her shareholders on an annual basis since 1999. It might appear boring to some investors but that’s what makes it much simpler to understand! Current price of $61.39, awaiting for something to happen till then I will be grabbing some once it hits the price I want. Below is a quote by the founder Walter Elias which I think says very much about this company.
We keep moving forward, opening new doors, and doing new things, because we’re curious and curiosity keeps leading us down new paths. – Walt Disney