The Walt Disney Company

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

The Walt Disney Company (NYSE: DIS) is a worldwide entertainment company. The Company’s segments include Disney Media and Entertainment Distribution (DMED), and Disney Parks, Experiences and Products (DPEP).

Kalkine’s Diversified Opportunities Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Stock Performance:

• The stock has corrected by 13% in the last three months as well as by 20.58% in past six months.
• The stock is leaning towards its lower band of its 52-week range of USD 126.48 and 52-week low price of USD 84.07. Post the announcement of Q2FY23 results the stock has corrected by 15.07% with the current price at a current important support of USD 75-USD 85.
• The price is currently trading below both its long-term (200-day) SMA and its short-term (50-day) SMA , with the current RSI of 38.93.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Key Metrics:

Over the past five years, DIS has managed to consistently grow its revenues and gross profit, showing an upward trend. Moreover, the company has maintained a decent gross margin ratio of over 30% during this period. The consistent uptrend in DIS's revenues and gross profit suggests that the company has implemented effective strategies to drive growth and increase profitability. Additionally, maintaining a high gross margin ratio indicates that DIS has been able to efficiently manage its production costs and generate substantial profits from its sales. These financial achievements demonstrate DIS's ability to navigate the market successfully and maintain a strong financial position over the past five years.

1.4 Top 10 shareholders:

The top 10 shareholders together form ~24.40% of the total shareholding, signifying diverse shareholding. The Vanguard Group, Inc., and BlackRock Institutional Trust Company, N.A. are the biggest shareholders, holding the maximum stake in the company at ~8.06% and ~4.15 %, respectively.

Section 2: Business Updates and Corporate Business Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

2.2 Insights of Q2FY23:

Section 3: Key Risks

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance:

• The stock has corrected by 13% in the last three months as well as by 20.58% in past six months.
• The stock is leaning towards its lower band of its 52-week range of USD 126.48 and 52-week low price of USD 84.07. Post the announcement of Q2FY23 results the stock has corrected by 15.07% with the current price at a current important support of USD 75-USD 85.
• The price is currently trading below both its long-term (200-day) SMA and its short-term (50-day) SMA , with the current RSI of 38.93.

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 26, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.

Disclaimer

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