Walt Disney Company
🇺🇸 DIS · NYSE/NASDAQ · US2546871060
Communication Services
USD 100.04 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
16.0
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 100.04 ÷ 6.25 = 16.0
TTM period through: 2026-03-31
Forward P/E (estimated): 13.4
Based on analyst estimates
Reference: Provider P/E (Trailing): 16.1
Net Debt/EBITDA (TTM)
2.0x
Latest quarter: 6.5x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 6.5x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
11.0%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
11.1x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
1.50%
TTM: 1.25%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 1.50%
Trailing Yield (TTM, last 12 months): 1.25%
Payout Ratio (Fwd)
24.0%
TTM: 14.5%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 24.0%
Payout (TTM): 14.5%
Cash Flow Payout (TTM): 10.0%
FCF Coverage (TTM): 5.59x
Growth Streak
1 yrs
Consec. increases
Div. Growth (5Y)
-8.5%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Semiannual | — | 15 Dec 2026 | — | USD | 0.75 |
| Declared | Semiannual | 13 Nov 2025 | 30 Jun 2026 | 22 Jul 2026 | USD | 0.75 |
| Paid | Semiannual | 13 Nov 2025 | 15 Dec 2025 | 15 Jan 2026 | USD | 0.75 |
| Paid | Semiannual | 04 Dec 2024 | 24 Jun 2025 | 23 Jul 2025 | USD | 0.5 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
📊 What Changed From Last Analysis?
Moved from WATCH to CAUTION: Applied our strict strategy mismatch penalty to accurately reflect that the 1.25% yield and the permanent structural decline of legacy linear TV make the stock unsuitable for conservative dividend-focused portfolios, despite the fundamentally attractive forward valuation.
Summary
The Walt Disney Company possesses an unparalleled intellectual property moat and a strengthening balance sheet, but its 1.25% dividend yield and structural transition away from linear television make it a poor fit for our conservative income strategy. While the forward valuation appears attractive and the dividend is heavily covered by free cash flow, the strategic mismatch and execution risks surrounding the streaming transition outweigh the appeal for yield-focused investors. Not recommended for new positions in this strategy, as better income opportunities exist in traditional essential services.
Sector Context
The Walt Disney Company is a premier global entertainment conglomerate, generating revenue through its expansive media networks, direct-to-consumer streaming platforms, studio entertainment, and iconic theme parks. For conservative dividend investors, the consumer discretionary nature of entertainment and cyclical advertising revenues make this sector fundamentally less predictable than regulated essential services.
Temporary Opportunity Identified
The company is absorbing temporary margin pressure from a convergence of major class-action legal settlements (California CCPA, streaming antitrust, wage-theft) alongside near-term costs associated with ongoing corporate restructuring and layoffs.
📊 Strategy Analysis
- • Strong balance sheet execution with Net Debt/EBITDA reduced to a conservative 2.01x, well below the 3x threshold, providing essential financial flexibility.
- • Unrivaled global intellectual property portfolio and theme park assets create a formidable economic moat, supporting robust free cash flow generation ($4.9 billion FCF) that easily covers the dividend with a 9.96% cash payout ratio.
- • Forward P/E of 13.4x sits comfortably within the strategy's ideal 8-15x range, indicating that the market has already priced in many of the company's near-term structural risks.
⚠ What to Watch
- • Current trailing dividend yield of 1.25% falls substantially below the strategy's strict >3% minimum requirement for income generation.
- • The business is facing a permanent structural transition as the highly profitable linear pay-TV dual-revenue model faces terminal obsolescence, requiring massive ongoing capital expenditures to scale the direct-to-consumer streaming alternative.
- • Inflexible, off-balance-sheet commitments for long-term sports programming (e.g., $2.6 billion annually for NBA rights) and the upcoming systemic copyright expirations of foundational character IP present long-term structural blockades.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-06-13
Disclaimer: This information is for educational purposes only. Not financial advice.