Business Overview and Segments
Disney, the absolute powerhouse of all things entertainment. They own so much that its hard to even fathom. Let’s get into it by breaking down each of its individual segments;
- Media Networks – this encompasses all the cable channels that Disney owns – Disney, ESPN, ABC, FX, History Channel, and National Geographic.
- Parks and Experiences – mainly their theme parks, resorts, and the Disney cruises.
- Consumer Goods – all the sales the company makes from selling merchandise products related to their characters; toys, games, clothing, stationary, and electronics.
- Studio – all the movies that Disney makes, but beware that they own many different studios – Disney, 21st Century Fox, Pixar, Star Wars, Marvel, and Touchstone.
- Direct-to-Consumer (DTC) and International – DTC refers to Disney’s new streaming service (Disney+), whilst International encompasses all the above-mentioned channels in countries outside the US.
Patent – Disney owns the rights to all its characters and productions, and it has used these very wisely by making; TV, theme parks, resorts, cruises, toys, and games, based on these characters. This has allowed Disney to survive and thrive for decades, and it is this moat that has allowed it to survive for so long, which in turn has allowed the magic of compounding to act out and allow the stock price to rise by 135 times since 1980 – so a $1,000 investment would now be worth $135,000.
Key Facts and Figures
| Risk of Bankruptcy | Low |
| Last Year’s Growth | 7% (Moderate) |
| ROIC (Company Quality) | 19% (High) |
| Free Cash Flow Margin (Company Strength) | 16% (High) |