DIS Stock Report

2-Year Price History

Ockham’s Rating

DIS Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at DIS through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 1.93x and 1.33x respectively.

Utilizing this range we can see that DIS’s current Price to Sales per share ratio of 1.18x is significantly below its average levels historically. In fact, with a current price of $23.43, DIS is a full 28% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for DIS.

DIS Cash Earnings

Looking at DIS specifically in their Cash Earnings capabilities, Ockham views DIS as significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for DIS, the current level of Cash Earnings compared to its historical levels helps identify where DIS is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 15.07 and a historical low Cash Earnings per share ratio of 10.00, an investor can relate where value becomes optimal.

So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for DIS? From the Ockham perspective, we are looking specifically at DIS to see if the market is recognizing the huge disparity between DIS’s past stock price to Cash Earnings ratio to today’s levels. At a difference of 33% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at DIS. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.

DIS Dividends

When determining a company’s future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn’t imperative for DIS to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.

The estimated annual dividend for DIS is $0.35 producing a current dividend yield of 1.49%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from DIS against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from DIS over previous years was 2.31% while the lowest dividend yield was 0.48%. Management at DIS has encouraged us with a current dividend yield of 6.81% above the historical median.