Walt Disney Co Scores 74% Under P/E/Growth Investor Model

Walt Disney Co (DIS) achieves a 74% rating in a growth analysis. The report highlights its strong balance sheet, despite challenges in P/E ratio.

Date: 01-03-2025

AI Rating: 6

Analysis of Walt Disney Co

The report assesses Walt Disney Co (DIS) under the P/E/Growth Investor model inspired by Peter Lynch, rating it 74%. A higher score is indicative of stronger interest and potential for investment. Here are the main findings:

P/E/Growth Ratio: FAIL. This indicates that DIS's current price relative to its earnings growth does not meet the expectations of the model, which could deter investors looking for growth at a reasonable price.
Sales and P/E Ratio: PASS. The stock meets the criteria set for its sales and P/E ratio, showing that overall, the valuation may still attract some investors.
EPS Growth Rate: PASS. Strong EPS growth reflects the company's ability to generate profits, which is a positive indicator for investors.
Total Debt/Equity Ratio: PASS. A favorable ratio suggests that the company is managing debt well, signaling financial stability.
Free Cash Flow: NEUTRAL. The report indicates no particular strength or weakness in the free cash flow, which could suggest it’s currently maintaining its cash position without significant growth or declines.
Net Cash Position: NEUTRAL. Similarly, a neutral position here suggests that there are no immediate concerns, but also no outstanding strengths in Disney's cash reserves.

Overall, the mixed results mean that while there are some strengths in EPS growth and debt management, the failure in the P/E/Growth Ratio may limit investor confidence, affecting stock prices negatively. Investors might remain cautious about entering or adding to positions in DIS until they see improvement in this key metric.

Stocks: DIS