Morningstar Rating

Stock Research and Analysis

by Peter Wahlstrom, CFA

Bulls Say

DreamWorks' refocus on potential blockbusters while diversifying to TV platforms will maximize the company's opportunity to both build a large library of film-related assets and reach a broader audience.
The "Shrek" franchise is very valuable and will give the firm a steady stream of cash flow for years to come.
Cofounder and CEO Jeffrey Katzenberg has years of industry experience. Katzenberg ran Disney's animated film studio before leaving to form DreamWorks. Read more 

Bears Say

DreamWorks will slow its film development slightly, so there is a high amount of scrutiny on each film, which can lead to material fluctuations in the stock price after the weekend a movie is released.
Production of animated feature films by competing companies is increasing rapidly, which could put a strain on DreamWorks' market share and the firm's ability to attract and retain creative talent.
If the movie industry cannot implement a healthy economic model home-video market to replace DVD sales, DreamWorks' profitability could continue to decrease. Read more 

Management

DreamWorks' stewardship of shareholder capital is standard. Jeffrey Katzenberg is DreamWorks Animation's CEO and sits on its board. Before co-founding DreamWorks LLC with Steven Spielberg, David Geffen, and Paul Allen in 1994, Katzenberg ran Disney's   Read more 

Profile

DreamWorks Animation creates family entertainment, including animated feature films, television specials and series, live entertainment properties and related consumer products,  Read more 

Undervalued Shares for a Top-Shelf Insurer 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.