Walt Disney (NYSE:DIS) shareholders have endured a 30% loss from investing in the stock a year ago (2024)
Simply Wall St
·3 min read
The Walt Disney Company (NYSE:DIS) shareholders should be happy to see the share price up 15% in the last quarter. But that doesn't change the fact that the returns over the last year have been less than pleasing. In fact the stock is down 30% in the last year, well below the market return.
So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
During the unfortunate twelve months during which the Walt Disney share price fell, it actually saw its earnings per share (EPS) improve by 5.6%. It's quite possible that growth expectations may have been unreasonable in the past.
The divergence between the EPS and the share price is quite notable, during the year. But we might find some different metrics explain the share price movements better.
Walt Disney's revenue is actually up 16% over the last year. Since the fundamental metrics don't readily explain the share price drop, there might be an opportunity if the market has overreacted.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
Walt Disney is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. So it makes a lot of sense to check out what analysts think Walt Disney will earn in the future (free analyst consensus estimates)
A Different Perspective
While the broader market lost about 6.3% in the twelve months, Walt Disney shareholders did even worse, losing 30%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. On the bright side, long term shareholders have made money, with a gain of 0.3% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. Before deciding if you like the current share price, check how Walt Disney scores on these 3 valuation metrics.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
If You'd Put $1,000 Into Disney Stock 20 Years Ago, Here's What You'd Have Today. Disney stock, a long-time market laggard, has shed $175 billion in value since its all-time high. Walt Disney (DIS) stock was having a terrific 2024 through early May.
As people emerged from lockdown they had less time to watch streaming shows and canceled subscriptions to Disney+ so subscriber numbers dropped. At the same time, the platform's costs surged due to the content splurge causing Disney's stock price to plummet.
It's got box office success. It's got the theme parks.” Cramer said that the stock should not be sold and “if anything, I'd be inclined to buy some.” Some analysts believe Walt Disney is back on a growth trajectory .
If a stock certificate is lost, stolen, destroyed, or never received, we require a signed letter mailed to our office: or call. Your letter should include the name(s) of the registered owner(s), the Disney account number, and the stock certificate number(s) lost, stolen or destroyed.
Disney's largest individual shareholders are the company's insiders, including the current CEO, Robert Iger, and top managers, such as Brent A.Woodford, Maria Elena Lagomasino, and Mary Barra. The largest institutional investors include the Vanguard Group, BlackRock, and State Street.
$20 billion. That's how much market value Disney lost Tuesday, roughly equivalent to the total market capitalization of entertainment rival and HBO parent WarnerBros Discovery.
The price of a Disney experience these days is, for a lot of families out there, downright impossible to fit into a budget. So Disney, facing a decline in park attendance, is working to turn things around because a couple dozen super-wealthy people a day do not make for a working theme park.
After a successful run acquiring Marvel and Pixar in the 2000s, the entertainment giant has been hurt by the transition to streaming TV, the slow decline of movie theaters, and a bloated cost base. Over the last 10 years, Disney's stock has posted a total return of just 26%.
Disney Stock Forecast: Analysts Rate It as a “Strong Buy”
While the company's streaming business is not expected to deliver “Netflix-like” (NFLX) margins anytime soon, they should improve gradually and help to boost the company's overall profit margins.
Unfortunately, there isn't a discount exclusively for Disney shareholders, however, there are different ways you can plan your vacation and take advantage of potential savings opportunities. First, I would recommend visiting the Special Offers, Deals & Discounts page to see what current promotions are being offered.
While Disney stock is undervalued, we think that the upside for the company in the near term could be limited by a mixed economy and weaker consumer confidence. Our detailed analysis of Disney's upside post-inflation shock captures trends in the company's stock during the turbulent market conditions seen recently.
Historical daily share price chart and data for Disney since 1962 adjusted for splits and dividends. The latest closing stock price for Disney as of July 30, 2024 is 93.79. The all-time high Disney stock closing price was 201.91 on March 08, 2021.
Conversation. Because he opted for a half-stock/half-cash deal when he sold Lucasfilm, George Lucas owns 2+ percent of Disney. His current stock holdings are worth more than $4 billion even at today's not-great price.
Based on analyst ratings, Walt Disney's 12-month average price target is $128.04. Walt Disney has 42.38% upside potential, based on the analysts' average price target. Walt Disney has a consensus rating of Strong Buy which is based on 21 buy ratings, 5 hold ratings and 0 sell ratings.
In fact, Disney has announced $3 billion in share buybacks. And the company's generating $8 billion a year in positive free cash flow today, so it has plenty of cash with which to do that.
Walt Disney has 38.96% upside potential, based on the analysts' average price target. Walt Disney has a consensus rating of Strong Buy which is based on 21 buy ratings, 5 hold ratings and 0 sell ratings.
Disney Stock Forecast: Analysts Rate It as a “Strong Buy”
While the company's streaming business is not expected to deliver “Netflix-like” (NFLX) margins anytime soon, they should improve gradually and help to boost the company's overall profit margins.
Address: Suite 369 9754 Roberts Pines, West Benitaburgh, NM 69180-7958
Phone: +522993866487
Job: Sales Executive
Hobby: Worldbuilding, Shopping, Quilting, Cooking, Homebrewing, Leather crafting, Pet
Introduction: My name is Golda Nolan II, I am a thoughtful, clever, cute, jolly, brave, powerful, splendid person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
