The Walt Disney Company (DIS) Fundamental Checkup
The Walt Disney Company fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of July 31, 2026.
By TGMCharts Research · Data as of · Updated
The Walt Disney Company presents a complex operational profile where positive long-term growth trends, including a five-year revenue CAGR of 9.41% and a five-year EPS CAGR of 0.49%, are balanced against a five-year free cash flow CAGR of 20.79% and a return on invested capital of 8.11%.
This fundamental assessment weighs multi-year operational expansion, cash generation, capital returns, and balance sheet constraints. Liquidity and leverage measures, specifically a current ratio of 0.71x and a debt-to-equity ratio of 0.41x, serve as critical guardrails for the broader investment thesis.
- The Walt Disney Company has market cap of $167.08B and closed at $96.19 on July 31, 2026.
- Five-year revenue CAGR is 9.41% and five-year EPS CAGR is 0.49%.
- Five-year free-cash-flow CAGR is 20.79%.
- Net margin is 11.54% and ROIC is 8.11%.
- Current ratio is 0.71x and debt-to-equity is 0.41x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
Operational Growth and Capital Efficiency Under Review
Evaluating The Walt Disney Company requires a systematic review of whether its top-line expansion, cash generation, capital efficiency, and balance sheet structure present a unified fundamental profile. With the stock closing at $96.19 on July 31, 2026, this analysis anchors its market valuation to historical operational performance rather than short-term price movements.
The core operational trajectory is established by a five-year revenue compound annual growth rate of 9.41% and a five-year earnings per share compound annual growth rate of 0.49%. To determine the quality of this expansion, we contrast these metrics against a five-year free cash flow compound annual growth rate of 20.79%, ensuring that reported profitability is backed by actual cash inflows.
Current compounder snapshot · DIS
Live supporting context; not part of the article's frozen 2026-07-31 evidence snapshot.
- Score
- 22/100
- 10Y CAGR
- 6.1%
- Median YoY
- 5.3%
- YoY volatility
- σ 16.7pp· uneven
- Quarters ≥ 20%
- 9 of 40
- Negative quarters
- 10
- Valuation vs own 10Y history
- P/S 1.8x · 10Y median 2.7x · 4th percentile · as of Jul 31, 2026
How this score is computed
- Quarters at or above 20%: 9 of 40 → 9 of 40 pts
- Steadiness (typical swing 16.7pp) → 13.1 of 25 pts
- Pace (median 5.3% YoY) → 0 of 20 pts
- Latest quarter (6.5% YoY) → 0 of 15 pts
- Score: 22 of 100
Annual revenue · last 11 fiscal years
Quarterly YoY revenue growth vs the 20% line
P/S multiple vs its 10Y median
Media and Entertainment Operational Profile
As a major constituent of the Communication Services sector, the company must be analyzed through its core business metrics. This operational snapshot integrates market capitalization, valuation multiples, growth rates, and leverage indicators to establish a comprehensive baseline before examining individual financial statements and historical trends.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
DIS revenue
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered.
Five-year revenue CAGR: 9.41%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 9.41% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
Assessing Top-Line Expansion and Per-Share Conversion
A key test of operational health is whether top-line expansion successfully translates into bottom-line results for shareholders. The company has achieved a five-year revenue CAGR of 9.41%, demonstrating steady top-line demand. However, the conversion to net income is more modest, as evidenced by a five-year EPS CAGR of 0.49%.
This gap between revenue and earnings per share growth indicates that rising operational costs or structural shifts have absorbed a portion of the top-line gains. To understand the sustainability of this earnings trajectory, we must evaluate the underlying cash generation trends in the subsequent section.
DIS EPS
EPS history shows how much of the business growth has reached shareholders.
Five-year EPS CAGR: 0.49%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 0.49% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
Analyzing the Cash Generation Profile
Free cash flow provides an essential reality check on accrual-based accounting profits. Over the long term, the company has demonstrated robust cash conversion, with a five-year free cash flow CAGR of 20.79% outstripping its long-term earnings growth. This suggests strong underlying cash generation over a multi-year horizon.
However, a key point of divergence has emerged in recent periods: while trailing twelve-month net income has been rising, trailing free cash flow has actually been rising alongside it over the five-year period, though shorter-term cash trends require close monitoring. Sustained cash generation is necessary to support ongoing capital expenditures and debt service obligations.
DIS free cash flow
Free cash flow checks whether earnings are converting into owner cash.
Five-year free-cash-flow CAGR: 20.79%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of 20.79% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
Evaluating Operating Efficiency and Return Profiles
Operational durability is heavily dependent on the profitability margins and returns on capital that a business can sustain. The company currently operates with a net margin of 11.54%, reflecting the high-cost nature of its production and distribution models. This margin level dictates the buffer the company has against potential demand downturns or cost inflation.
Simultaneously, the return on invested capital stands at 8.11%. This return profile indicates the efficiency with which the organization deploys its capital into new projects. When ROIC remains modest, even positive revenue growth can struggle to generate substantial economic value above the cost of capital.
DIS net margin
Net margin is the operating-quality check behind the growth record.
Net margin (TTM): 11.54%. The bars below are annual fiscal years.
Net margin of 11.54% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
DIS ROIC Chart
ROIC tests whether the business earns enough on reinvested capital to deserve attention.
Latest ROIC: 8.11%.
ROIC of 8.11% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Liquidity and Leverage Constraints
The balance sheet provides the operational boundaries within which the company must execute its strategy. Currently, the current ratio of 0.71x points to a tight short-term liquidity position, meaning current liabilities exceed current assets. This requires careful working capital management to meet immediate obligations.
On a long-term basis, the debt-to-equity ratio of 0.41x reflects a moderate leverage profile. While this level of debt does not present immediate solvency concerns, the combination of tight short-term liquidity and long-term obligations limits financial flexibility for aggressive expansion or large-scale capital returns.
DIS debt-to-equity Chart
Debt-to-equity keeps the checkup honest about balance-sheet flexibility.
Latest debt-to-equity ratio: 0.41x.
Debt-to-equity of 0.41x and current ratio of 0.71x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
Market Multiples and Valuation Framework
The market currently prices the business at a trailing price-to-earnings multiple of 15.37x, which corresponds to an earnings yield of 6.51%. This multiple represents the valuation premium or discount that investors place on the company's current earnings stream relative to alternative investments.
This valuation must be weighed against the historical growth rates and return profiles discussed earlier. A moderate P/E multiple suggests the market is pricing in a balanced outlook, demanding that the company maintain its current profitability and cash conversion standards to defend its current share price.
DIS Price Chart
Latest close: $96.19 as of July 31, 2026.
The close at $96.19 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
Weighing the Bull and Bear Arguments
The constructive view of the company relies on its steady long-term expansion, highlighted by a five-year revenue CAGR of 9.41% and a five-year free cash flow CAGR of 20.79%. Proponents argue that if the net margin of 11.54% can be maintained or expanded, the business is well-positioned to improve its overall return on invested capital.
Conversely, the bearish counterpoint is centered on the recent divergence where trailing free cash flow is rising over the long term but faces short-term volatility, alongside a tight liquidity profile indicated by a current ratio of 0.71x. If capital returns do not improve from the current ROIC of 8.11%, the company may struggle to justify its current valuation multiple.
Bull and bear case
Fundamental support
- Five-year revenue CAGR of 9.41% and five-year EPS CAGR of 0.49% support the business case.
- Net margin of 11.54% and ROIC of 8.11% are the quality checks behind the thesis.
Fundamental pressure
- Free-cash-flow CAGR of 20.79% can weaken the read if it falls away from EPS growth.
- Debt-to-equity of 0.41x and current ratio of 0.71x are the balance-sheet checks that can change the view.
Synthesis and Future Monitoring Points
In summary, the operational data presents a stable but constrained fundamental outlook. While long-term revenue and earnings growth remain positive, the company's modest return on invested capital and tight short-term liquidity require disciplined execution. The current share price is roughly in line with the analyst DCF (FMP) reference, indicating that the market has largely priced in these balanced factors.
Future reassessments of this thesis will depend on whether upcoming quarterly reports show an acceleration in free cash flow generation, an improvement in the current ratio, or a meaningful expansion of the net margin. Any significant deterioration in these metrics would warrant a more cautious fundamental view.
FAQ
What is the fundamental read on DIS?
The Walt Disney Company is judged through revenue growth of 9.41%, EPS growth of 0.49%, free-cash-flow growth of 20.79%, net margin of 11.54%, and ROIC of 8.11%.
Which DIS fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this DIS checkup refresh?
Its figures are as of July 31, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
- Revenue growth trajectory relative to the historical five-year CAGR of 9.41%.
- Free cash flow expansion relative to the five-year EPS CAGR of 0.49%.
- Capital allocation efficiency and balance sheet leverage, monitored via the ROIC of 8.11% and debt-to-equity ratio of 0.41x.
The bottom line
The Walt Disney Company fundamental research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Read next: Is The Walt Disney Company (DIS) Fairly Valued?Valuation on The Walt Disney Company — from the same data-checked research desk.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-05-06 · period 2026-03-28 · SEC EDGAR source
- “Product revenues for the quarter increased 5%, or $0.1 billion, to $2.5 billion due to growth at our parks and experiences businesses.”
- “Costs and expenses Cost of services for the quarter increased 8%, or $1.0 billion, to $14.4 billion, which included an approximate 3 percentage point increase from the Fubo Transaction and, to a lesser extent, NFL Transaction.”
- “Selling, general, administrative and other costs increased 2%, or $0.1 billion, to $4.1 billion due to higher marketing costs.”
- “Depreciation and amortization increased 6%, or $0.1 billion, to $1.4 billion driven by higher depreciation at Experiences and Entertainment, partially offset by lower amortization of intangible assets.”
Source pages
Exhibit sources
Research trail
Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.