The Walt Disney Company is a leading diversified international family entertainment and media enterprise with four segments: media networks, parks and resorts, studio entertainment and consumer products.
Walt Disney is ranked by FTSE, as third company in North America and among five first companies in the world for entertainment and media sector for ESG (environmental, social and governance) rating. The company seems correctly valued with a price earnings ratio of 14.7x, according to Thomson Reuters’ consensus.
Technically, the share is in a bullish trend supported by the moving averages. In weekly data the share is testing important level of USD 43.56 hit in 2010. This price is also an historical highest level. For past few trading session the share is within a trading range between 42.7 and 44.4 USD. The breakout of upper bound of this range could give new impetus to stock, with a target price of USD 50. We suggest a stop loss at USD 41.4 in order to cover the position.
The Walt Disney Company is a media and entertainment group. Net sales (including intragroup) break down by activity as follows:
- operation of theme parks and hotel resorts (33.9%): operation, as of 01/10/2022, of 10 theme parks (35 hotels) located in the United States (Walt Disney World Resort, Disneyland Resort and Aulani; 6 theme parks and 23 hotels), France (Disneyland Paris; 2 theme parks and 7 hotels), Japan (Tokyo Disney Resort; 2 theme parks and 5 hotels), Hong Kong (Hong Kong Disneyland; 1 theme park and 3 hotels) and China (Shanghai Disney Resort; 1 theme park and 2 hotels). The group is also involved in cruise sales (Disney Cruise Line), travel organization (Disney Vacation Club and Adventures By Disney), design and development of parks and other real estate properties, and sale of consumer products (children's books, toys, game software, films, etc.);
- operation of TV and radio channels (33.4%): domestic channels (Disney Channels, ESPN, ESPN Radio, Freeform, FX Channels and National Geographic Channels) and international channels (Disney, ESPN, Fox, National Geographic and Star). The group is also developing film post-production and website operation businesses;
- video streaming (23.1%);
- audiovisual content production and distribution (9.6%): TV programs, animated films, TV series, music, live entertainment, etc.
Net sales are distributed geographically as follows: Americas (81.5%), Europe (10.4%) and Asia/Pacific (8.1%).