What You Need to Know About the Financials of Disney
If you’ve been wondering about the financials of Disney, you’ve come to the right place. This article will answer some of your burning questions about Disney stock, including how much debt the company has and its number of shares outstanding. You’ll also learn what stock sector DIS is in and what its debt to equity ratio is. And we’ll discuss whether or not Disney stock is worth buying right now.
What is Disney’s debt?
Disney has a large debt load, but it’s still profitable and is not insolvent. Its short-term debt is $5,580 Mil, while its long-term debt is $46,022 Mil. At the same time, its total stockholders’ equity is $92,500 Mil. This means that the company’s debt to equity ratio is 0.56. A high debt-to-equity ratio is a problem because it makes earnings volatile.
The key to understanding the Disney debt-to-equity ratio is to understand its capital structure. This ratio measures how much a company uses debt to finance its operations and growth. Some companies favor debt because it is cheaper to obtain, while others prefer equity because it does not need to be paid back. Nevertheless, most companies try to find a good balance between debt and equity. The debt-to-equity ratio for Disney was 0.23 during the second quarter of 2019 and is near its 10-year highs.
Disney’s debt is not too high – the company has a large cash balance and access to capital markets. This enables it to balance higher content investments with lower debt levels.
What is a good price for Disney stock?
Disney stocks have been in a wild ride lately. The stock dropped more than 40% during the coronavirus market crash, but they have popped back up again and are trading near their record highs from March. The company recently reopened its movie theaters, boosting prospects for box office sales. In the near term, the company will have to find a balance between in-person and streaming revenue to stay competitive.
While Disney stock has lost value in the past year, the company’s financials are still better than most other companies. The company’s history isn’t overly bleak compared to other companies, but last year’s pandemic had an adverse effect on many companies, including Disney. Purchasing Disney stock is a relatively straightforward process, but before making a decision, do your research.
Analysts expect Disney to grow its revenue 6% next year and 16.8% in fiscal 2023. Adjusted EPS is expected to increase 68% this year and 40% in fiscal 2023. Disney’s stock is currently trading at about 31 times next year’s adjusted earnings forecast, but less than three times its yearly sales.
Is dis a Buy Sell or Hold?
If you’re a long-term investor, you should strive to buy stocks with a lower beta than the industry or sector in which they operate. In general, you should look for a company that has a beta lower than 1.25 and no volatility greater than 125%. For instance, DIS’s 60-month trailing beta was 1.25 and its shorter-term beta was 1.07. However, the stock’s price volatility is higher than the S&P 500 standard of one.
What will Disney stock be in 5 years?
Despite the recent dip in Disney stock, this iconic entertainment company’s future looks bright. It’s expected to grow its streaming service and reach 194 million subscribers by 2025. However, the stock is still trading at a discount to its year-ago price, which could lead to some near-term pain.
The next five years will determine how far Disney’s stock can rise. Analysts forecast the stock to hit $300 by 2027, up 113%. But that’s not going to happen overnight – the stock is expected to hit $291 mid-year, and then improve slowly in the last half of the year.
Disney has a great business with solid fundamentals, but it’s struggling to beat the industry’s performance. Last year, the stock suffered a 42% drop, while the S&P 500 rose 15%. The stock has lagged behind, primarily due to poor performance in recent quarters.
Is Disney overvalued or undervalued?
In order to determine whether a company is undervalued or overvalued, we look at its price-to-earnings ratio (PEG). This is a critical metric for determining whether a company is expensive or cheap. While the S&P 500 has a PEG of around 1.0, the PEG for Disney is nearly three times higher. Additionally, we look at its growth rate.
The theme parks have recovered strongly from last year’s loss. In the first quarter, the company reported an increase in earnings of $1.76 billion, and earnings should continue to climb through the summer months. However, Disney remains an undervalued stock because of the expectations for revenue growth in the following years. The company’s theme parks should remain open throughout 2019, and its video streaming service, Disney+, should boost its numbers in the coming months.
However, the company’s traditional businesses are still undergoing a turnaround. While Netflix is approaching 200 million subscribers, Disney’s streaming business is likely to reach the same milestone sooner. With strong revenue growth, Disney’s stock should continue to rise. Trefis, a market research firm, values the company at $205 a share.
