The Walt Disney Company (DIS) - Buy

Investment Thesis 1: Strategic Brand Portfolio and IP  Disney’s brand portfolio has provided the company with a competitive moat that is difficult to mimic Disney is the registered owner of 3019 patents and 2287 trademarks Disney possesses most of their patents in the US (2255) with China coming second (166) IP is leveraged through their Media Network, Studio Entertainment, Direct-to-Consumer and International Platforms segments 18 brands in media networks, 10 brands in P&E, 14 brands in Studio Entertainment and 3 brands in DTC Investment Thesis 2: Growth through Streaming  Disney’s three main streaming pillars, Disney+, Hulu, and ESPN+ have been growing steadily YoY producing steady cash flow Disney projects that Disney+ will reach 123.4 M subscribers, Hulu will reach 115.6 M subscribers, and ESPN+ will reach 12 M subscribers (2024) Disney’s continued growth in the streaming space will be supported by their recent restructure to focus on their direct-to-consumer business Disney+ launched in LATAM on November 24th Q4 20 Disney+ 73.7 M subscribers vs 65.5 M estimate Investment Thesis 3: Diversified Revenue Streams Media Networks has provided steady cash flow for Disney over the past three years reaching an all-time high of $28,393 B at the end of 2020 Direct-to-Consumer has experienced the most growth out of any segment reaching $16,967 B at the end of 2020 Parks and Experiences suffered a steep loss from $26,255B to $16,502 due to Covid-19 which is expected to recover in 2021 Revenue from Studio Entertainment loss some ground in 2020 to $9,636 B due to studio delays

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The Walt Disney Company (DIS) - Buy

Apr 27, 2021

bullish

general Analysis

[1 min Read]

Investment Thesis 1: Strategic Brand Portfolio and IP

  • Disney's brand portfolio has provided the company with a competitive moat that is difficult to mimic
  • Disney is the registered owner of 3019 patents and 2287 trademarks
  • Disney possesses most of their patents in the US (2255) with China coming second (166)
  • IP is leveraged through their Media Network, Studio Entertainment, Direct-to-Consumer and International Platforms segments
  • 18 brands in media networks, 10 brands in P&E, 14 brands in Studio Entertainment and 3 brands in DTC

Investment Thesis 2: Growth through Streaming

  • Disney's three main streaming pillars, Disney+, Hulu, and ESPN+ have been growing steadily YoY producing steady cash flow
  • Disney projects that Disney+ will reach 123.4 M subscribers, Hulu will reach 115.6 M subscribers, and ESPN+ will reach 12 M subscribers (2024)
  • Disney's continued growth in the streaming space will be supported by their recent restructure to focus on their direct-to-consumer business
  • Disney+ launched in LATAM on November 24th
  • Q4 20 Disney+ 73.7 M subscribers vs 65.5 M estimate

Investment Thesis 3: Diversified Revenue Streams

  • Media Networks has provided steady cash flow for Disney over the past three years reaching an all-time high of $28,393 B at the end of 2020
  • Direct-to-Consumer has experienced the most growth out of any segment reaching $16,967 B at the end of 2020
  • Parks and Experiences suffered a steep loss from $26,255B to $16,502 due to Covid-19 which is expected to recover in 2021
  • Revenue from Studio Entertainment loss some ground in 2020 to $9,636 B due to studio delays

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DIS

The Walt Disney Company

96.00

-0.14
-0.15%

Return

-48.09%
Change % Since Posting
-88.93
Change Since Posting
184.93
Price When Posted

Metrics

221.95
Target Price
8/ 10
Confidence
6-12 Months
Timeframe
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