(Summary) (Company) (Daily Chart)
27 July 2014
1yr Target $89.78
No. of Brokers 27
1yr Cap Gain 4.11%
1yr Tot Ret 5.11%
3yr RevGR 5.71%
3yr EarnGR 18.32%
3yr DivGR 28.59%
EPS (ttm) $3.90
19 July 2015
1yr Target $121.11
No. of Brokers 27
1yr Cap Gain 1.89%
1yr Tot Ret 3.00%
3yr RevGR 6.01%
3yr EarnGR 18.91%
3yr DivGR 28.73%
EPS (ttm) $4.65
The Walt Disney Company is a diversified entertainment company with operations in the following five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive.
1. MEDIA NETWORKS. The Media Networks segment includes broadcast and cable television networks, television production operations, television distribution, domestic television stations and radio networks and stations. These businesses generate revenue from fees that it charges to cable, satellite and telecommunications service providers and television stations affiliated with their domestic broadcast television network, from the sale to advertisers of time in programs for commercial announcements and from other sources such as the sale and distribution of television programming.
The company's cable networks include ESPN, the Disney Channels, ABC Family and the UTV/ Bindass networks in India. The cable networks group produces its own programs or acquires rights from third-parties to air programs on their networks. The cable networks derive the majority of their revenues from fees charged for the right to deliver programming to subscribers and certain networks (primarily ESPN and ABC Family) and the sale of time in network programs for commercial announcements. The company also sells programming developed by their cable networks worldwide in pay and syndication television markets and in physical (DVD and Blu-ray) and electronic formats.
The following are the networks owned by The Walt Disney Company:
ESPN (80% owned)
ESPN channels internationally
Disney Channels (100% owned)
ABC Family (100% owned)
A&E Television Networks (AETN) (50% owned0
Lifetime Movie Network (LMN)
The company's broadcasting business includes a domestic broadcast network, television production and distribution operations and eight owned domestic television stations. The Company also has a 33% interest in Hulu LLC (Hulu), a venture that distributes film and television content on the internet, and a 50% effective interest in Fusion, a news, pop culture and lifestyle television and digital network targeted at millennials.
The Company operates the ABC Television Network (ABC) which, as of September 27, 2014, had affiliation agreements with 240 local television stations reaching 99% of all U.S. television households. ABC broadcasts programs in primetime, daytime, late night, news and sports. ABC produces its own programs and also acquires programming rights from third parties as well as entities that are owned by or affiliated with the Company. ABC derives the majority of its revenues from the sale to advertisers of time in network programs for commercial announcements. ABC also receives fees for its broadcast feed from affiliated television stations.
ABC.com is the official website of ABC and provides access to full-length episodes of ABC shows online. The Watch ABC app provides subscribers access to the participating local ABC TV linear feed along with full-length episodes of ABC programming on mobile devices. ABCNews.com also provides in-depth news coverage online and VOD news reports from ABC News broadcasts and it has an agreement to provide news content to Yahoo! News.
The Company produces the majority of its original live-action television programming under the ABC Studios label. Program development focuses on half-hour comedies and one-hour dramas, primarily for primetime broadcasts. Primetime programming produced either for their networks or for third parties for the 2014/2015 television season includes the returning one-hour dramas: Castle, Criminal Minds, Marvel’s Agents of S.H.I.E.L.D., Grey’s Anatomy, Nashville, Once Upon a Time, Resurrection, Revenge and Scandal, and the returning half-hour comedy Cougar Town. New primetime series will include one-hour dramas, How to Get Away With Murder and Red Band Society, and half-hour comedies, Black-ish and Benched. Additionally, the drama series American Crime, Astronauts Wives Club, Marvel’s Agent Carter, Marvel’s Daredevil and Jessica Jones (produced for Netflix), Secrets and Lies and Whispers and the comedy Galavant are in production for mid-season or summer launch. The Company also produces the late night show, Jimmy Kimmel Live, a variety of primetime specials for network television and live-action syndicated programming.
Syndicated programming includes the daytime talk show Live! with Kelly and Michael and the game show, Who Wants to Be a Millionaire. The Company also produces news programming including World News Tonight, 20/20, Nightline, Good Morning America and This Week with George Stephanopoulos and programming for daytime such as General Hospital, The View and The Chew. The company distributes its productions worldwide in pay and syndication television markets, in DVD and Blu-ray formats and also online via Hulu and third-party services.
The Company owns eight television stations, six of which are located in the top-ten markets in the U.S. The television stations derive the majority of their revenues from the sale to advertisers of time in station programming for commercial announcements. The stations also receive retransmission fees for the right to deliver the stations’ programming to subscribers.
WABC New York, NY
KABC Los Angeles, CA
WLS Chicago, IL
WPVI Philadelphia, PA
KGO San Francisco, CA
KTRK Houston, TX
WTVD Raleigh-Durham, NC
KFSN Fresno, CA
Hulu is a joint venture owned one-third each by Fox Entertainment Group, NBCUniversal and the Company. Its principal business is to aggregate television and film entertainment for viewing on the internet. Hulu offers a free service and a subscription-based service, Hulu Plus. In October 2013, the Company and Univision jointly launched Fusion, a news, pop culture and lifestyle television and digital network targeted at millennials.
2. PARKS AND RESORTS. The Company owns and operates the Walt Disney World Resort in Florida, the Disneyland Resort in California, Aulani, a Disney Resort & Spa in Hawaii, the Disney Vacation Club, the Disney Cruise Line and Adventures by Disney. The Company manages and has effective ownership interests as of September 27, 2014 of 51% in Disneyland Paris, 48% in Hong Kong Disneyland Resort and 43% in Shanghai Disney Resort
3. STUDIO ENTERTAINMENT. The Studio Entertainment segment produces and acquires live-action and animated motion pictures, direct-to-video content, musical recordings and live stage plays. The businesses in the Studio Entertainment segment generate revenue from the distribution of films in the theatrical, home entertainment and television markets, the distribution of recorded music, stage play ticket sales and licensing revenues from live entertainment events. The Company distributes films primarily under the Walt Disney Pictures, Pixar, Marvel, Touchstone and Lucasfilm banners. The Company produces and distributes Indian movies through its UTV banner.
4. CONSUMER PRODUCTS AND INTERACTIVE. The Consumer Products segment engages with licensees, publishers and retailers throughout the world to design, develop, publish, promote and sell a wide variety of products based on the Company’s intellectual property through its Merchandise Licensing, Publishing and Retail businesses. In addition to using the Company’s film and television properties, Consumer Products also develops its own intellectual property, which can be used across the Company’s businesses. The Interactive segment creates and delivers branded entertainment and lifestyle content across interactive media platforms. Interactive’s primary operations include the production and global distribution of multi-platform games, the licensing of content for games and mobile devices, website management and design for other Company businesses and the development of branded online services.
There's rarely a good time to buy shares in this company because it's never on sale. But the good news is that if an investor every wants to sell his shares, he'll get top dollar for his shares. If you look at the long term chart of this company, it's obvious that it's been a great investment for almost anyone who owned the shares. I believe that Disney is just one of those companies I need own. I know the stock is overpriced. I know the dividend yield is very, very small. But a dividend growth rate of almost 30% is incredible and if held over a period of years, the dividend will eventually produce a phenomenal yield on cost.
I currently have a position in this company and I continually, although sporadically, buy shares at opportune times. I expect to continue to do this for years to come.