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Summary of The Walt Disney Company. The Walt Disney Company is an entertainment conglomerate broken down into 5 business segments; media networks, parks & resorts, studio entertainment, consumer products, and interactive media. The Walt Disney Company Industries.
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Summary of The Walt Disney Company • The Walt Disney Company is an entertainment conglomerate broken down into 5 business segments; media networks, parks & resorts, studio entertainment, consumer products, and interactive media
The Walt Disney Company Industries • Motion Picture and Video Production • Consumer services • Entertainment diversified • Broadcasting & Cable • Media Conglomerates • Amusement parks & Arcades
Disney's Breakdown of Industries • Disney’s largest operating segment in terms of revenue is its media networks, which accounts for 45% of overall sales • Second biggest and 30% of its revenue generator comes from its parks & resorts • 15% of revenues comes from studio entertainment • 7% consumer products and interactive media (publishing)
Fox MGM Paramount Sony Productions Universal Warner Bros Lions Gate DreamWorks WWE NewsCorp Time Warner Comcast NBC Universal CBS Disney's Compeitors Motion Picture & Video Production Broadcasting & cable Media Conglomerates
Current Issues Facing the Industry • Economy/Consumer spending • Current events ( including weather) • High production costs • High production failures • Audience saturation • Transition to digital filming ( both TV and Movies) • Piracy • Demand for new technology/entertainment • Liability issues (primarily amusement parks)
y Industry's Competitive Situation • Motion Picture and Video Production • U.S. Consumer spending rose 1.2% in January 2013 • U.S. personal income rose 2.2 • Total U.S. revenue rose 19% in the 4th quarter of 2012 • The output of US Motion picture and video production is expected to grow at a annual compounded rate of 5% between 2013 and 2017 Hoovers, March 2013
Industry's Competitive Situation • Television Broadcasting • U.S corporate profits rose 8.7% in the 3rd quarter of 2012 • Total U.S. retail sales increased 3.6% in the first two months of 2013 • U.S. revenue for motion pictures rose 19% in the 4th quarter of 2012 • Projected to grow at 5% annual compound interest between 2013 and 2017 Hoovers, 2013
Industry's Competitive Situation • Amusement Parks & Arcades • Total U.S. consumer spending rose 1.2% in January 2013 • U.S average retail price for diesel and regular fuel fell 3.1% in March 2013 • U.S. revenue for amusement parks fell 34% in the 4th quarter of 2012 • The industry is expected to grow at an annual compound interest rate of 4% between 2013 and 2017
Disney’s Competitive Advantages in the Industry • Motion Picture and Video Production • Pixar, Marvel, and Lucasfilms are Disney's “moneymakers” and will be releasing multiple films in 2013 • Television Broadcasting • Disney owns ABC along with an additional 10 broadcast stations including ESPN • Disney owns a 30% stake in Hulu • Partner with media giant NewsCorp • Partner with YouTube • A digital distributor of films and TV shows through Apple’s iTunes • Amusement Parks & Arcades • Disney plans to build a $3.6 billion theme park in Shanghai • The construction of Disney Springs • Getting away from Disney branded vendors
Is the Walt Disney Company Stock a Good Investment?
Disney’s 2012 Achievements In 2012 The Walt Disney Company, for the second year in a row Disney achieved record net income, revenue, and earnings per share. In fiscal 2012, net income for shareholders was a record $5.7 billion, an increase of 18% over last year, and revenue was a record $42.3 billion, up 3% from last year. Diluted earnings per share increased 24% to a record $3.13.
Disney's 5 Year EPS Chart made by Jeanna Divita with information from Hoovers,2013
P/E Trends Walt Disney PE Ratio 5y TTM Chart Graph from YCharts 2013
Disney's 5 Year Stock History Graph from Yahoo.finance.com 4/19/2013
5 Year Stock Trends for the Broadcasting Industry Chart constructed by MSN money
Financial Ratios For Disney & Industry Graphs taken from Hoovers.com
StockScouter Review from MSN Money • WALT DISNEY CO: STOCK RATING SUMMARY • StockScouter gave The Walt Disney a 8 out of 10 rating • PRO • Walt Disney Co, a large-cap growth company in the consumer services sector, is expected to outperform the market over the next six months with less than average risk. • The StockScouter measure of relative price change and consistency is very high. • Earnings growth in the past year is holding steady compared to earnings growth in the past three years. • Previous day's closing price for DIS was slightly above its 50-day moving average. • CON • Shares are being heavily sold by financial institutions • One or more analysts has modestly decreased quarterly earnings estimates for DIS • Two or more executives, directors or major shareholders sold a small number of shares recently. • The ratio of DIS's price-to-earnings multiple to its five-year growth rate is above the average of all stocks in the StockScouter universe
Summary of Disney’s Future • Healthy and strong company who has their ups and downs with the industry • Very strong competitor in all of its industries ranked in the top 3 of all • Make the appropriate acquisitions and partnerships in their industry to get ahead • Future depends on innovation which they have proven capable of • Have a strong competitive edge and predict continual growth in 2013 • Their Ratio’s are competitive with the industry
Yes!! I Would Invest in The Walt Disney Company • There is always going to be a demand for entertainment • The Walt Disney Company is nearly a century old company that continues to grow • They continually bounce back from slumps in the industry • Their recent acquisition of lucasfilms shows promise for future growth • Disney has submerged themselves in all areas of entertainment making themselves prevalent in many industries • You’re never too old for Disney!
The End! Thank You
References Mergent Online (2013). The Walt Disney Company. Retrieved from: http://www.mergentonline.com/. MSN Money (2013). The Walt Disney Company. Retrieved from: http://investing.money.msn.com/investments/stock-price?Symbol=DIS&ocid=qbes Schein, A (2013). The Walt Disney Company. Retrieved from http://www.hoovers.com/. The Walt Disney Company (2013). Annual Report. Retrieved from www.thewaltdisneycompany.com Yahoo Finance (2013). The Walt Disney Company. Retrieved from: http://finance.yahoo.com/q?s=DIS&ql=1 YCharts (2013). The Walt Disney Company. Retrieved from: http://ycharts.com/companies/DIS/pe_ratio