Morningstar Rating

Stock Research and Analysis

by Neil Macker, 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 firm’s portfolio of franchises 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 lowered its film production slate, 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.
The number of animated feature films produced by competing studios is rapidly increasing, hurting both DreamWorks' market share and its ability to attract and retain creative talent.
DreamWorks' growth depends on the continued success of its television business, a highly competitive space. Read more 

Management

DreamWorks' stewardship of shareholder capital is Standard. Jeffrey Katzenberg is DreamWorks Animation's CEO and is a board member. Before co-founding DreamWorks SKG LLC with Steven Spielberg and David Geffen in 1994, Katzenberg ran Walt Disney Studio   Read more 

Profile

DreamWorks is an animation production studio that owns a number of successful franchises, including "Shrek," "Madagascar," "How to Train Your Dragon," and "Kung Fu Panda.  Read more 

Friday Five: Companies in Transition at Midyear 
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