as always, you are among the best fundamental analysis in the world. Thank you for always sharing your expertise, it helps us to be more confident on our investment decision based on your fundamental and techincal analysis and proper allocation. Thank you
The issue with Disney is a lot of their new writers are "woke" and writing material and making dubious casting decisions which upsets the older fan base on many of their franchises.
Not just their writers but majority of their employees from the casting team to directors, everyone that does not conform to their wokeness get ostracised
Propaganda being pushed by woke culture like it's the popular opinion.... In reality it's a small fraction that are represented by the woke... Example.... Bud light go woke go broke
So basically, there is a problem with the business, the stock is at a discount, and the stock could fix its problem relatively at a click of some buttons. Not too bad of a deal tbh
Imo after end game, the subsequent marvel movies had gone downhill. Overproduction, poor scripts and endless reshoots eating into the profits. The good old stories of how the underdog that becomes an avenger through endless hardwork and training no longer exist. The new movies, the main lead usually need some prep-talk and WILL themselves into becoming powerful at the end. Same for most of the new star wars movies.
I have watched other RU-vid videos from other analyst on whether now was a good time to invest in Disney stock. Their answer was no even though Disney stock is at a 9 year low. I found this chart comparing Disney finances from 9 years ago to today. It is eye opening financial comparison. Fiscal Year 2014 Last 12 months Revenues 48.8 billion 87.8 billion Growth Profit Margin 45.8% 32.7% Free Cash Flow 6.4 billion 2.84 billion Free Cash Flow per share $3.79 $1.55 Net Income 7.5 billion 2.2 billion Return on Equity 16.6% 2.72% Total Debt 14.7 billion 47.18 billion Based on the above chart, I would say that Disney's stock price is currently overvalued. One of these analyst estimated the current fair value of Disney stock to be $66.49. Iger is responsible for introducing many of the changes that have ruined much of Disney's image and their businesses and franchises. Their park revenue increases were mostly due to the reopening of the Disney parks in Shanghai and Hong Kong which had been closed due to China's Zero Covid policy. Don't expect that to get better as China's economy is going into freefall.
Adam, A great video as always and very objective analysis. Thank you! I agree that DIS got couple of key pillars like Moat, Valuation, etc to be positive about, but what about the management? The fundamentals to a good extent are driven by solid management strategy and execution. DIS has a CEO that hasn't delivered shareholder value for 15 years that he served in his 1st term.. An investment in the stock 10 yrs ago has yielded almost flat returns. I'd love your take on Estee Lauder as well.
Thanks. One question would be why invest in a company that might not capture its glory over investing more money into other better and solid businesses (such as MSFT, GOOGL, etc)?
Best series yet!, love the analysis but Disney's "Wokeness" concerns me greatly, despite the fact that's where society is heading... However how many customers will stand for this Wokeness? I wouldn't want to be caught dead, with any affiliation with there products. In God we trust...
I won't touch any woke company. Target, Disney etc have been Budlit! This isn't a passing fad either. This a permanent issue. When you mess with people's children with messed up philosophies it's not easily forgotten (ever).
Super content and analysis! Great work Adam. Thank you very much. I will add abit of DIS from this due to the margin of safety. Can you compare DIS vs Nintendo?
Thanks for taking the time to dive in on Disney’s fundamentals Adam. I’ve been building a position lately and have about 400 shares with a cost basis of $84. I will continue to add and hoping to go big on leaps if it flushes down to that $79 target
Whatever the root causes of the problems are, I'm betting they can be corrected. So I bought in sometime in the last month. I'm down a little, but patient at this point.
I think disney’s streaming division is going to perform really poorly for years to come especially from the actors and writers strike exposing them of unlawfully exploiting writers of their money. PS i watch most of their shows through pirates bay😅 they are losing money for sure.
@Adam Khoo, someone once said you should put your investments in your mouth once in a while. Try watching at least one Disney movie from the last 2yrs and you'll see why they are struggling
