Walt Disney CompanyDIS

Morningstar Rating

Stock Research and Analysis

by Michael Corty, CFA

Walt Disney owns a collection of valuable assets, but its media networks, which generate more than half of the company's operating profit, have become the backbone of this conglomerate.

ESPN contributes about 75% of network sales. ESPN dominates domestic Read more

Bulls Say

Although making movies is a hit-or-miss business, Disney's large library of filmed content reduces this volatility and generates loads of cash flow.

Disney has room to expand globally, especially in its park and resort business. There are initial plans in place for a Disneyland to be built in Shanghai in 2014; this new property could draw traffic from the growing mainland China market.

We think Pixar is a valuable asset for Disney. In addition to the animated films and character franchises, Disney benefits from the creative talents of John Lasseter, who has taken a larger role within the overall Disney family. For example, Lasseter is involved in the creative process of all Disney animated films and is taking a leadership role in the development of a major Cars-branded ride at Disneyland. Read more

Bears Say

Technology and piracy are making the media environment more challenging. Disney will have to be very smart and creative to expand its business in the face of such challenges.

The company's extensive tourism-related assets make it vulnerable to economic downturns and concerns about terrorism.

ESPN has hit roadblocks in expanding its dominance of sports programming outside the U.S. While it has a presence in several foreign markets, the company has struggled to garner anywhere close to the market share it enjoys in the U.S. Read more

Strategy

Disney's strategy is to extend the competitive advantages enjoyed by each of its business units. The company invests in the strength of its brands and the quality of its products, leverages technology Read more

Management

Bob Iger has served as CEO since October 2005. He has shown a willingness to experiment with new technology while reinforcing Disney's commitment to high-quality content. Iger knew animation was the heart and soul of company, so he quickly patched up Read more

Profile

Disney owns the rights to some of the most famous characters ever created, including Mickey Mouse and Winnie the Pooh. These characters and others are featured in several Read more

First Name

Last Name

Email Address

Zip Code

Create Password

Verify Password

(6-15 characters; case sensitive)

What is your occupation or job title?

Select...

Your registration indicates agreement to the terms of use.

Week Ahead Market Report: 2/8/2010
Watch more