Some of the things we found:
Walt Disney (NYSE:DIS) entered calendar 2020 with media networks and theme parks comprising most of its annual revenue. But during the pandemic, Disney’s parks, experiences, and products segment reported more than $3 billion in operating losses, which is quite a blow for a segment that contributed $6.7 billion in operating profit in fiscal 2019.
All said, Disney’s stock chart over the last year looks like the Big Thunder Mountain ride at Disney World, but the worst appears to be over. One analyst believes that Disney’s streaming services, including Hulu, ESPN+, and Disney+, will exceed Netflix (NASDAQ:NFLX) in total subscribers by 2023. If that happens, Disney’s share price could have much more upside over the next five years, after delivering a decent 21% return on investment over the last 12 months.
Disney shares currently fetch an expensive-looking price tag of 96 times forward earnings estimates. But traditional measures of value, such as the price-to-earnings ratio, don’t mean much with Disney’s profits under pressure.
Over the last four quarters, Disney lost $2.8 billion across the entire business. In addition to the losses from theme parks, canceled sport events have pressured advertising at Disney’s media networks, and investments to support the content pipeline at Disney+ mean the service won’t swing a profit until fiscal 2024, based on management’s guidance.