The Walt Disney Co. (NYSE: $DIS) is a multimedia entertainment and media conglomerate, also known as Disney. Disney operates diverse businesses, including media networks, theme parks, studio entertainment, consumer products, and interactive media.
Some of its well-known subsidiaries and brands include Walt Disney Studios, Pixar Animation Studios, Marvel Entertainment, Lucasfilm, ESPN, ABC, and Disney Theme Parks. It is one of the top media companies in the United States. According to Forbes, it is one of the world’s largest media companies.
The company has had a fantastic run with a significant 11% increase in price in the last three months. However, Walt Disney‘s key metrics are inconsistent across the board. Consequently, it has led to doubts as to whether its current momentum will continue.
Walt Disney’s Low Return on Equity (ROE): 3.0%
Return on Equity (ROE) is an indispensable financial metric crucial in understanding and evaluating a company’s performance and potential for earnings growth. ROE measures a company’s profitability compared to its shareholders’ equity. It allows us to measure how well it utilizes its equity capital to generate profits.
The annual return for Disney is 3.0%, calculated by dividing its yearly profit of US$3.4 billion by its total shareholders’ capital of US$113 billion for the trailing twelve months ending in September 2023. In simpler terms, for every $1 of shareholders’ capital invested, the company generated a profit of $0.03.
The ROE number is quite disappointing for one of the largest media companies. It is even less than the industry average of 14%. The company has also faced a massive decline of 35% in net income over the past five years.
In Q4 and FY23 earnings report, revenue increased by 5% compared to the same quarter in the previous year. For the entire year, there was a 7% growth compared to last year.
Walt Disney Stock Update: $DIS
$DIS is currently trading at $91.31, increasing 0.60%, from the last closing of $90.90 per share. At the time of writing, its market cap is $167.072B with a volume of 2,608,874. Critical areas of support and resistance have been labeled on the Disney (NYSE: $DIS) chart below:
Should You Invest In The Walt Disney Company?
The current ROE is low for a major media company. Therefore, you need to factor that in when investing in this stock. However, Walt Disney’s revenue and net-income are up year-to-year. Additionally, it is favored by 65% of institutional investors. Therefore, it is a lucrative investment if you are looking for long-term profit.
Disclaimer: This website provides information about cryptocurrency and stock market investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for educational and informational purposes only. The owner of this website is not a registered investment advisor and does not offer investment advice. You, the reader / viewer, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.
One thought on “Walt Disney (NYSE: $DIS) Stock Is Going Back Up, But Finances Are Still Uncertain”
Comments are closed.