The technical chart pattern of Walt Disney Company (The) shares shows signs of a medium term reversal, which speaks in favor of opening new long positions.
Summary
● From a short-term investment perspective, the company presents a deteriorated fundamental situation
● According to Refinitiv, the company's ESG score for its industry is good.
Strengths
● The company's profit outlook over the next few years is a strong asset.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
● The group shows a rather high level of debt in proportion to its EBITDA.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 40.84 times its estimated earnings per share for the ongoing year.
● The company is highly valued given the cash flows generated by its activity.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● For the past year, analysts have significantly revised downwards their profit estimates.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● The average price target of analysts who are interested in the stock has been significantly revised downwards over the last four months.
● The average consensus view of analysts covering the stock has deteriorated over the past four months.
● The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.
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The Walt Disney Company is a media and entertainment group. Net sales (including intragroup) break down by activity as follows:
- operation of theme parks and hotel resorts (33.9%): operation, as of 01/10/2022, of 10 theme parks (35 hotels) located in the United States (Walt Disney World Resort, Disneyland Resort and Aulani; 6 theme parks and 23 hotels), France (Disneyland Paris; 2 theme parks and 7 hotels), Japan (Tokyo Disney Resort; 2 theme parks and 5 hotels), Hong Kong (Hong Kong Disneyland; 1 theme park and 3 hotels) and China (Shanghai Disney Resort; 1 theme park and 2 hotels). The group is also involved in cruise sales (Disney Cruise Line), travel organization (Disney Vacation Club and Adventures By Disney), design and development of parks and other real estate properties, and sale of consumer products (children's books, toys, game software, films, etc.);
- operation of TV and radio channels (33.4%): domestic channels (Disney Channels, ESPN, ESPN Radio, Freeform, FX Channels and National Geographic Channels) and international channels (Disney, ESPN, Fox, National Geographic and Star). The group is also developing film post-production and website operation businesses;
- video streaming (23.1%);
- audiovisual content production and distribution (9.6%): TV programs, animated films, TV series, music, live entertainment, etc.
Net sales are distributed geographically as follows: Americas (81.5%), Europe (10.4%) and Asia/Pacific (8.1%).