Disney Analysis

3601 words - 15 pages

Walt Disney Company (DIS) Stock Analysis

Research Analysis Recommendation Paper

Prepared for:
Thomas Scholz- Applied Portfolio Management Instructor

Prepared by:
Team Active-Alpha:
Jacob Danowski
Maureen Jossart
Justin Ziaja

Summary
Our recommendation for a buy and hold security that will continue to show growth and capital gains is The Walt Disney Company, commonly known as Disney. Disney operates in the Consumer Services sector and the Diversified Entertainment Industry. Their stock is classified as a Large Classic Growth security. Key fundamental and summary financial data will be presented later in our report. We believe that this is a recommended buy due to ...view middle of the document...

Like any company, their goals are to maximize earnings and cash flow in order to allocate this capital toward growth within the company and for its shareholders. The company’s main competitive theory is constructed of five main aspects. They are strategic alliances, vertical integration, creative content, corporate diversifications, and international agency.
Disney is the world’s largest entertainment conglomerate which operates through five primary business units and fifteen subsidiaries. These divisions are listed as The Walt Disney Studios, which includes the company’s film, recording label, and theatrical divisions. Disney Media Networks includes the company’s television properties. Walt Disney Parks and Resorts that features theme parks, cruise lines, and other travel related assets. Disney Interactive includes Disney’s internet, mobile, social media, virtual worlds, and computer game operations. Disney Consumer Products produces toys, clothing, and other merchandise based upon Disney owned properties.
Disney’s subsidiaries include original and best known Walt Disney Pictures, Walt Disney Animation Studios, Walt Disney Theatrical, and The Walt Disney Company India. The subsidiaries that are currently classified as newer acquisitions include Pixar, Marvel Entertainment, Lucas film, The Muppets Studio, Disney-ABC Television Group, and Radio Disney. Subsidiaries that are not fully owned and operated by Disney include ESPN Inc. (80%), A&E Networks (50%), Hulu (32%), UTV Software Communications, and Maker Studios.

Board of Directors and Management Team
Disney’s leadership team manages the world’s largest media company and are the true creative thinkers that have the vision behind some of the most respected and treasured products from consumers around the world. The company is led firstly through the Board of Directors followed by the Management team.
The Walt Disney Company board of directors is a strong, balanced blend of global industry leaders whose knowledge and experience strategically guide and support the company to deliver long term value. The Board consists of ten members. The Chairman and Chief Executive Officer is Robert A. Iger. He started this position in 2005 and before then he was the President and COO from 2000-2005 which totals 15 years within the Disney Corporation. Other members of the board are as follows, including the year of inception. Susan Arnold (2007), John S. Chen (2004), Jack Dorsey (2013), Fred H. Langhammer (2005), Aylwin B. Lewis (2004), Monica C. Lozano (2000), Robert W. Matschullat (2002), Sheryl Sandberg (2010), and Orin C. Smith (2006). The Board of Directors average experience serving within the Disney Corporation is 9.9 years. This average indicates a low turnover rate which is a positive sign for shareholders. This is an indicator that current shareholders trust the direction of the corporation for positive decision making for the future, which is attractive for investors...

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