WALT DISNEY

Analysis of Walt Disney share price

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If we had to state only one company on the stock market that reminds us of our childhood then it would probably be Walt Disney. It is in fact possible to trade this company’s shares online through the vast majority of trading platforms. To do so we recommend you read this useful information on the Walt Disney Company and discover its real time share price as well as a historical analysis of this share price.

Latest news

Target Corporation strengthens its partnership with Disney

06/09/2021 - 06h59

The Target Corporation group has announced the strengthening of its collaboration with its partner Disney. This will allow it to expand its catalogue of offers for the upcoming Christmas holiday

Elements that can influence the price of this asset:

Analysis N°1

The demand for on demand television and video throughout the world is currently experiencing strong growth which could greatly profit Walt Disney. In fact, the recent rise in the use of services linked to the internet has had the effect of also increasing the demand for online videos. Walt Disney has invested heavily in positioning itself among the leaders in this sector.

Analysis N°2

Another activity sector that is experiencing a significant rise is that of games, particularly online games. The Walt Disney Group had already anticipated this phenomenon and has already completed numerous investments in the games sector.

Analysis N°3

Firstly, and as with the majority of companies exercising activities in the media and video content sector, Walt Disney suffers from a major rise in piracy. This piracy notably has an impact on DVD sales and subscriptions for on demand video services.

Analysis N°4

Finally, although Walt Disney has managed to keep its place among the leaders in its principal activity sector it also needs to face increasingly strong and aggressive competition in the leisure sector.

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General presentation of Walt Disney

The Walt Disney Group is an American media and leisure group that exercises different types of activities that can be divided into different categories depending on the turnover generated in this way:

  • The operation of television and radio channels generates 41.2% of the group’s turnover with ABC Television, ESPN Radio Network, Radio Disney, Toon Disney Channel, Jetix Channels and SOAPnet. This also includes the production and distribution activities relating to TV programmes, video games production and the operation of related websites.
  • The operation of leisure sites generates 34.1% of the group’s turnover with no less than 11 theme parks and 22 hotels situated around the world. The Disney Group also exercises activities in the sale of cruises, travel agency activities, and creation and development of parks and other real estate assets.
  • The operation of animation studios and artistic production represents 16.8% of the turnover.
  • The sale of derived products generates 7.9% of the group’s turnover with games, games software, films and other items.

The Walt Disney Group currently exercises its activities throughout the world and employs over 200,000 people.

Analysis of Walt Disney share price
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The major competitors of Walt Disney

Let's take a look at some of the Walt Disney Group's major competitors to help you understand how news in this industry is likely to affect the stock price.

Warner Bros Entertainment Inc

This company is currently one of the largest production and distribution companies in the world for both film and television. It is a subsidiary of Warner Media which is based in New York. The company also owns several subsidiaries including Warner Bros television, Warner Bros Animation and others.

Universal Music Group

Another competitor to Disney is Universal, an American music label owned by the French company Vivendi since 2000. It is now completely independent of Universal Studios which is owned by NBCUniversal. Universal Music Group is also one of the three largest companies in the music industry, with over a third of the global sales market share. It is currently headquartered in Hilversum, the Netherlands, and has its operational headquarters in Santa Monica, USA.

DreamWorks Animation SKG

This US company specialises in the production of animated films and television series. In the past it was also a division of DreamWorks SKG.

Netflix 

Another competitor of Disney and more precisely of its video-on-demand service Disney+ is the Netflix group which is an American multinational company created in 1997 and which operates in the creative industries sector. It specialises in the distribution and exploitation of film and television works through a dedicated platform. Formerly specialising in commercial exploitation through the provision of online DVD rental and purchase services with home delivery, it later offered rentals via a monthly subscription. The group launched its subscription video-on-demand service in 2007 and has also since moved into the distribution of a wide range of films and TV series.

Amazon 

Finally, Disney's last competitor also in video-on-demand is the Amazon Group, which is basically an American online retail company based in Seattle. After its initial activity of selling books by mail order, the group then diversified into the sale of all kinds of articles and more recently into a streaming video service.


The major partners of Walt Disney

To conclude this article here are the major current partners of the Walt Disney Company worldwide:

TF1

In 2014 the French group TF1 entered into partnership with Walt Disney France for the rights to upcoming Marvel studio productions and The Star Wars saga films.

Nintendo

In 2015 the Nintendo video games company signed a significant partnership agreement with the Walt Disney Group aimed at developing video games and films around the emblematic characters of the two companies including Mario and Mickey.

Netflix

In 2017 the Netflix Group obtained a strategic alliance with Walt Disney by offering its subscribers access to the group’s productions including the great Disney films as well as productions by Pixel, Marvel and Lucasfilm.

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The factors in favour of a rise in the Walt Disney share price:

One of the greatest strengths of the Walt Disney Group is of course its wide covering of cable network channels. In fact, the company is at the head of a cable network that covers a wide zone and notably operates the following channels: ABC, Disney Channel Worldwide and ESPN as well as a sport and leisure company that is broadcast in no less than 60 different countries worldwide. In total, there are more than a hundred different television channels broadcast by Walt Disney in 34 different languages and 163 countries worldwide. This represents around 123 million subscribers on an international level. Due to this huge network and its influence the Walt Disney Group possesses a real advantage against its competition. The margin generated by this large number of subscribers is also comfortable and enables the group to generate high revenue each year. Of course, this revenue from subscribers is in addition to that generated by the sale of advertising space.

The Walt Disney Group can also benefit from a significant control of strong brands that enables it to take advantageous positions on the market. It is in fact at the head of some of the best media brands on the market such as Marvel, Pixar, ESPN, Touchstone and Lucasfilm. All these brands have the particularity of being renowned for their high quality and popularity.

Finally, and from a purely financial point of view, we should underline the advantages offered by the profits and margins achieved by the Walt Disney Company which have been experiencing full growth for a number of years. This is highly reassuring to investors and shareholders of this asset.

The factors in favour of a drop in the Walt Disney share price:

Here we would highlight the strong dependence of Walt Disney from a geographical point of view on one particular area and region. Despite the efforts and attempts made by the group to develop its activities throughout the world the market where it continues to achieve the majority of its profit remains that of North America. This geographical zone mainly concerns the United States and, to a lesser extent Canada, which alone generates nearly 77% of the revenue of the company. Of course, this strong geographical dependence incurs a certain exposure to the economical risks of this zone and diverse changes in regulations that could negatively influence the future profitability of the Walt Disney Company.

Finally, another significant weak point we should not forget of the Walt Disney Group is the unfunded pension plans. Although the major figures are accounted for as annual net profits it is also important to take into account the passive net value with which they are associated and which currently accounts for nearly three billion dollars in unpaid pensions. The repayment of this debt could severely lower the profitability level of this group.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

What are the important dates when Walt Disney was created?

If you are interested in the history of the Walt Disney group, you should know some key dates. First of all, it was in 1923 that the Disney Brothers Studios company was created. A few years later, in 1929, the company was renamed and was now called Walt Disney Productions. It was finally in February 1986 that the group took on the name we know today, namely The Walt Disney Company.

What major acquisitions has Walt Disney made?

The Walt Dinsey group has made several major acquisitions in its history, notably in 1993 Miramax Films for $ 80 million, in 1996 Capital Cities for $ 19 billion in 2001, Fox Family WorldWide and Saban Entertainment for $ 5.3 billion, in 2006 Pixar for 7.4 billion dollars, in 2009 Marvel for 4.3 billion dollars, in 2012 LucasFilm for 4.05 billion dollars and in 2017 21th Fox, whose transaction will not be finalized, however.

What is the annual turnover of the Walt Disney group?

For many years, the turnover published by the Walt Disney group has been increasing, which in particular allows its stock market action to evolve positively on the market. Thus, the latest balance sheet for the 2019 financial year is no exception to the rule with a turnover of 69.6 billion US dollars. The group's net income also increased with $ 14.8 billion in profit.

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