Disney will break the global box record recording in 2019 with its strongest ever movie showdown – Walt Disney Company (NYSE: DIS)
In previous articles, I have maintained the position that Disney's future should be determined by studio and park segments, at a time when the fears grew over its declining media network, ESPN subscribers as an example. Please review the article in 201[ads1]6, entitled "Disney's planned film and theme parks will increase shareholders' return" or "The Beast Awakens" in 2017.
One week ago, the 8th of November, The Walt Disney Company ( DIS) published its annual report and far exceeded my expectations even when I took into account the company's stagnant 2017.
Disney's finance and film results
Disney's studio holding segment had a massive 19% growth in revenue, growing from $ 8.379 billion to $ 9.987 billion, while operating profit increased even greater by 27%.
The company explains that the results were due to some releases that performed incredibly well, Star Wars: The Last Jedi, Black Panther, Avengers: Infinity War and Avengers Incredibles 2.
Like last year, I've gathered the data I could figure out by Boxofficemojo to present it to you.
Disney continues to show impressive returns without loss of film this year if Marry Poppins delivers. Last year, two films, The Finest Hours and Queen of Katwe, failed to roar more than their respective budgets.
Disney's 2019 Movie Lineup & Estimates
This is where things get interesting! Many of you may have seen that Disney has started publishing fans for some of their movies scheduled for next year and I have to admit that I'm super excited!
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Avengers: Endgame
Aladdin
Toy Story 4
The Lion King
WHHHAAATTTTT !! Tell me you're not excited, I would not believe you! This does not include such as Frozen 2 or Star Wars Episode 9, which has no official followers published yet.
If we use my estimates below, which I consider to be conservative based on previous titles, Disney will break the global cash office and achieve a worldwide gross of $ 10 billion in sales! This will easily exceed Disney's own record of $ 7.6 billion in 2016.
Movie Title | Release Date | Budget | Gross | Gain% | ||||
Captain Marvel | 3/8/2019 | N / A | $ 1.5B- $ 2B | N / A | ||||
Dumbo | 3/29/2019 | N / A | $ 1B | N / A | N / A | $ 1.5- $ 2B | Not Available | |
Aladdin | 5/24/2019 | N / A | N / A | A [19659000] $ 1B | N / A | |||
Toy Story 4 | 6/21/2019 | Not Available | $ 1B- $ 1.5B | Not Available | ||||
The Lion King | 7/19/2019 | N / A | $ 1B | N / A | ||||
Artemis Fowl | 8/9/2019 | N / A | N / A [19659008] N / A | |||||
Frozen 2 | 11/22/2019 | N / A | $ 1.5- $ 2B | Not Available [19659] 017] Star Wars: Episode IX (9) [19659008] 12/20/2019 | N / A | $ 1.5- $ 2B | Not Available |
Disney's Current Rating
DIS data from YCharts
Comparing Disney's PE ratio to S & P 500's current PE ratio of 20, you invest not only a discount on the market, but you want the most probably surpass it.
The Stock Exchange has been moving since 2015, and you have had many opportunities to buy shares in the $ 95-100 series, as I had suggested on several occasions.
All data compiled from My previous articles using Disney's annual reports
Disney's compound annual growth rate is incredible and the company is trading less than fair value if we give it a 15 PE multiple which represents a $ 125.40 stock price.
Now if you are a dividend investor, you can not find today's 1.56% dividend appealing and I do not blame you. Disney increased the return 2% ago by 4.8%, and this was very low compared with previous years most likely due to the Fox acquisition.
Disney is shooting on all cylinders, and I've only covered 1 segment of its total business that accounts for only 16.80% of total revenue. In future articles I look at the company's media networks and parks and resorts separately.
Whether you are planning to buy Disney now or decide to clear the market and wait for the next crash, the company's growth rate is simply too high
Enclosure: I / we have no positions in any of the above-mentioned shares , and no plans to start any posts within the next 72 hours. I wrote this article myself and it expresses my own opinions. I do not receive compensation for that (other than from Seeking Alpha). I have no business relations with a company whose stock is mentioned in this article.