📊 DIS Key Takeaways
Is Walt Disney Co (DIS) a Good Investment?
Disney demonstrates solid operational profitability with 17.7% operating margins and reasonable debt management (0.33x D/E), but faces concerning cash flow deterioration with negative free cash flow of -2.3B despite 3.4% revenue growth. The company's weak liquidity position (0.67x current ratio) and declining net income (-7.6% YoY) despite revenue growth suggest operational challenges that warrant monitoring before further commitment.
Disney’s fundamentals show a mixed picture: revenue growth remains positive and operating profitability is solid, while leverage appears manageable with good interest coverage. However, the latest period shows weaker earnings quality, with net income declining, returns on capital still low, liquidity below 1x, and free cash flow turning negative due to weak operating cash generation relative to capital spending.
Why Buy Walt Disney Co Stock? DIS Key Strengths
- Strong operating margin of 17.7% demonstrates pricing power and operational efficiency
- Manageable debt-to-equity ratio of 0.33x with solid 10.4x interest coverage provides financial flexibility
- Revenue growth of 3.4% YoY shows resilience in core business operations
- Large asset base of $202.1B with $108.5B equity provides substantial business scale
- Solid operating margin of 17.7% indicates the core business remains profitable
- Debt load looks manageable with 0.33x debt-to-equity and 10.4x interest coverage
- Revenue grew 3.4% year over year and diluted EPS improved sharply from a weak prior base
DIS Stock Risks: Walt Disney Co Investment Risks
- Severe cash flow deterioration with -$2.3B free cash flow and -8.8% FCF margin despite positive operating income signals capital intensity issues or working capital problems
- Weak liquidity metrics (0.67x current ratio, 0.61x quick ratio) below healthy thresholds of 1.0x+ raise concerns about short-term obligations coverage
- Net income declining 7.6% YoY while revenue grows 3.4% YoY indicates margin compression and operational leverage deterioration
- Very low ROE of 2.2% and ROA of 1.2% suggest inefficient capital deployment relative to asset base
- Free cash flow was negative at -$2.28B, signaling weak near-term cash conversion
- Current ratio of 0.67x and quick ratio of 0.61x indicate tight short-term liquidity
- ROE of 2.2% and ROA of 1.2% suggest the asset base is not yet generating strong returns
Key Metrics to Watch
- Free cash flow trend - critical to understand whether -$2.3B is temporary or structural
- Operating cash flow sustainability and capital expenditure requirements for streaming/content
- Net margin recovery - need to identify cause of income decline despite revenue growth
- Current ratio improvement - liquidity must strengthen to above 1.0x for comfort
- Return on equity expansion - currently 2.2% is significantly below cost of capital
- Operating cash flow and free cash flow improvement
- Net margin and return on equity trajectory
Walt Disney Co (DIS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
DIS Profit Margin, ROE & Profitability Analysis
DIS vs Services Sector: How Walt Disney Co Compares
How Walt Disney Co compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Walt Disney Co Stock Overvalued? DIS Valuation Analysis 2026
Based on fundamental analysis, Walt Disney Co has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Walt Disney Co Balance Sheet: DIS Debt, Cash & Liquidity
DIS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Walt Disney Co's revenue has grown significantly by 36% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.29 reflects profitable operations.
DIS Revenue Growth, EPS Growth & YoY Performance
DIS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $24.7B | $2.4B | $1.34 |
| Q3 2025 | $23.2B | $2.6B | $1.43 |
| Q2 2025 | $22.1B | -$20.0M | $-0.01 |
| Q1 2025 | $23.5B | $1.9B | $1.04 |
| Q3 2024 | $22.3B | -$460.0M | $-0.25 |
| Q2 2024 | $21.8B | -$20.0M | $-0.01 |
| Q1 2024 | $23.5B | $1.3B | $0.70 |
| Q3 2023 | $21.5B | -$460.0M | $-0.25 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Walt Disney Co Dividends, Buybacks & Capital Allocation
DIS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Walt Disney Co (CIK: 0001744489)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775167334.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775167325.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775167317.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775167307.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775167299.xml | View → |
❓ Frequently Asked Questions about DIS
What is the AI rating for DIS?
Walt Disney Co (DIS) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DIS's key strengths?
Claude: Strong operating margin of 17.7% demonstrates pricing power and operational efficiency. Manageable debt-to-equity ratio of 0.33x with solid 10.4x interest coverage provides financial flexibility. ChatGPT: Solid operating margin of 17.7% indicates the core business remains profitable. Debt load looks manageable with 0.33x debt-to-equity and 10.4x interest coverage.
What are the risks of investing in DIS?
Claude: Severe cash flow deterioration with -$2.3B free cash flow and -8.8% FCF margin despite positive operating income signals capital intensity issues or working capital problems. Weak liquidity metrics (0.67x current ratio, 0.61x quick ratio) below healthy thresholds of 1.0x+ raise concerns about short-term obligations coverage. ChatGPT: Free cash flow was negative at -$2.28B, signaling weak near-term cash conversion. Current ratio of 0.67x and quick ratio of 0.61x indicate tight short-term liquidity.
What is DIS's revenue and growth?
Walt Disney Co reported revenue of $26.0B.
Does DIS pay dividends?
Walt Disney Co pays dividends, with $1,803.0M distributed to shareholders in the trailing twelve months.
Where can I find DIS SEC filings?
Official SEC filings for Walt Disney Co (CIK: 0001744489) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DIS's EPS?
Walt Disney Co has a diluted EPS of $1.34.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DIS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Walt Disney Co has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DIS stock overvalued or undervalued?
Valuation metrics for DIS: ROE of 2.2% (sector avg: 16%), net margin of 9.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy DIS stock in 2026?
Our dual AI analysis gives Walt Disney Co a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DIS's free cash flow?
Walt Disney Co's operating cash flow is $735.0M, with capital expenditures of $3.0B. FCF margin is -8.8%.
How does DIS compare to other Services stocks?
Vs Services sector averages: Net margin 9.2% (avg: 10%), ROE 2.2% (avg: 16%), current ratio 0.67 (avg: 1.5).