Will Disney’s Magical Ride Continue?

February 06, 2013

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E = Equity to Debt Ratio Is Strong

The debt-to-equity ratio for Disney is strong and not cause for concern. The balance sheet is in negative territory, but cash flow is excellent.

	Debt-To-Equity	Cash	Long-Term Debt
DIS	0.34	$3.39 Billion	$14.60 Billion
NWS	0.61	$12.01 Billion	$16.46 Billion
TWX	0.66	$3.19 Billion	$19.88 Billion

T = Technicals on the Stock Chart Are Strong

Disney has outperformed the S&P 500 for every time frame listed below. Disney has also outperformed News Corp. (NASDAQ:NWS) and Time Warner Inc. (NYSE:TWX) year-to-date. Disney currently yields 1.40 percent whereas Time Warner yields 2.00 percent and News Corp yields 0.60 percent.

	1 Month	Year-To-Date	1 Year	3 Year
DIS	7.05%	12.21%	40.21%	97.40%
NWS	5.88%	9.07%	42.78%	93.11%
TWX	1.20%	4.45%	35.09%	100.90%

At $55.77, Disney is currently trading above all its averages.

50-Day SMA	50.83
100-Day SMA	50.86
200-Day SMA	48.98

E = Earnings and Revenue Have Been Impressive

Earnings and revenue have showed consistent improvements on an annual basis since 2009.

	2007	2008	2009	2010	2011
Revenue ($)in billions	904.46M	1.03	1.14	1.30	1.70
Diluted EPS ($)	0.76	0.56	1.10	1.14	1.53

We already know what happened this quarter. Now let’s take a look at previous quarters as well.

	9/2011	12/2011	3/2012	6/2012	9/2012
Revenue ($)in Billions	10.42	10.78	9.63	11.09	10.78
Diluted EPS ($)	0.57	0.80	0.63	1.02	0.68

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