Walt Disney Co (DIS) Stock Analysis

Analysis from 10-K filed 2025-11-13. Data as of Q4 2025.

Overall Grade: F (Concerning)

Walt Disney Co faces challenges in financial performance that warrant careful analysis.

Metric	Value	Context
ROIC	12.5%	Solid returns
FCF Margin	7.4%	Healthy cash flow
Debt/Equity	0.4x	Conservative leverage

Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.

Explore Walt Disney Co: Earnings History | Filing Intelligence | ROIC Analysis

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Profitability: Walt Disney Co earns 12.5% ROIC, Top 50% in Consumer Discretionary

Walt Disney Co's trailing-twelve-month ROIC of 12.5% ranks Top 50% in Consumer Discretionary companies (sector median: 8.8%), driven by NOPAT margin of 19.7% combined with asset turnover of 0.5x. Source: 10-K filed 2025-11-13.

Metric	DIS	Rating	Context
Return on Invested Capital (ROIC)	12.5%	Good	Above sector median of 8.8%
Return on Equity (ROE)	11.4%	Adequate	Moderate equity returns
Operating Margin	17.9%	Good	Efficient operations

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Cash Flow: Walt Disney Co generates $7.1B FCF at 7.4% margin, positive NaN/8 quarters

Walt Disney Co generated $7.1B in free cash flow (TTM), a 7.4% FCF margin, a margin that ranks Top 25% in Consumer Discretionary. Operating cash flow exceeds net income by 1.3x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-K filed 2025-11-13.

Metric	DIS	Rating	Context
Free Cash Flow Margin	7.4%	Adequate	Healthy cash generation
Free Cash Flow (TTM)	$7.1B	Good	Positive cash generation
OCF/Net Income	1.3x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Walt Disney Co at 0.4x leverage

Walt Disney Co's debt-to-equity ratio of 0.4x reflects moderate leverage. Total debt of $46.6B offset by $5.8B in cash. Source: 10-K filed 2025-11-13.

Metric	DIS	Rating	Context
Debt to Equity	0.4x	Good	Conservative capital structure
Net Cash Position	$-40.9B	Warning	Net debt position

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Valuation: Walt Disney Co trades at 16.7x earnings

Walt Disney Co trades at a P/E of 16.7x. Free cash flow yield of 3.5% reflects market expectations for growth.

Metric	DIS	Rating	Context
P/E Ratio	16.7x	Adequate	Reasonable valuation
EV/Sales	2.5x	Good	Attractive revenue multiple
FCF Yield	3.5%	Adequate	Lower cash yield

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Capital Allocation: Walt Disney Co returns 2.3% shareholder yield

Walt Disney Co's total shareholder yield is 2.3% (dividends + buybacks 2.3%). Source: 10-K filed 2025-11-13.

Metric	DIS	Rating	Context
Total Shareholder Yield	2.3%	Adequate	Dividend + buyback yield combined
Buyback Yield	2.3%	Adequate	Active share repurchases
Total Capital Returned (TTM)	$4.7B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	12.5%	Top 50%	1.4x above
Free Cash Flow Margin	7.4%	Top 25%	2.7x above
Operating Margin	17.9%	Top 10%	3.8x above
Return on Equity (ROE)	11.4%	Top 50%	1.1x above
P/E Ratio	16.7x	N/A	-

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Financial Scorecard

Metric	DIS	Rating	Sector Context
Return on Invested Capital (ROIC)	12.5%	Good	Top 50% of sector (median: 8.8%)
Free Cash Flow Margin	7.4%	Adequate	Top 25% of sector (median: 2.7%)
Debt to Equity Ratio	43.0%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	16.7x	Adequate	Fair value
Free Cash Flow Yield	3.5%	Adequate	Moderate yield

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Frequently Asked Questions

Q: What is Walt Disney Co's Return on Invested Capital (ROIC)?

Walt Disney Co (DIS) has a trailing twelve-month Return on Invested Capital (ROIC) of 12.5%. This compares above the sector median of 8.8%. An ROIC between 12-20% indicates solid capital allocation and sustainable competitive position.

Q: What is Walt Disney Co's Free Cash Flow Margin?

Walt Disney Co (DIS) has a free cash flow margin of 7.4%, generating $7.1 billion in free cash flow over the trailing twelve months. A FCF margin between 5-10% is typical for capital-intensive businesses.

Q: Is Walt Disney Co stock overvalued or undervalued?

Walt Disney Co (DIS) trades at a P/E ratio of 16.7x, which is above the sector median of N/A. The EV/Sales multiple is 2.5x. Free cash flow yield is 3.5%, which is in line with market averages.

Q: What is Walt Disney Co's revenue and earnings growth?

Walt Disney Co (DIS) grew revenue by 3.5% year-over-year. Earnings per share increased by 120.8% compared to the prior year. Modest growth indicates a mature business with stable demand.

Q: Is Walt Disney Co buying back stock?

Walt Disney Co (DIS) repurchased $4.7 billion of stock over the trailing twelve months. This represents a buyback yield of 2.3%.

Q: How does Walt Disney Co compare to competitors in Consumer Discretionary?

Compared to other companies in Consumer Discretionary, Walt Disney Co (DIS) shows: ROIC of 12.5% is above the sector median of 8.8% (Top 37%). FCF margin of 7.4% exceeds the sector median of 2.7% (Top 24% of sector). These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.

Q: What warning signs should I watch for with Walt Disney Co?

Walt Disney Co (DIS) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.

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Data Source: Data sourced from 10-K filed 2025-11-13. TTM metrics as of Q4 2025.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.