Walt Disney Operating Margin vs. Return On Asset

DISB34 Stock  BRL 46.19  0.46  1.01%   
Based on the key profitability measurements obtained from Walt Disney's financial statements, The Walt Disney may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Walt Disney's ability to earn profits and add value for shareholders.
For Walt Disney profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Walt Disney to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well The Walt Disney utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Walt Disney's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of The Walt Disney over time as well as its relative position and ranking within its peers.
  
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For information on how to trade Walt Stock refer to our How to Trade Walt Stock guide.
Please note, there is a significant difference between Walt Disney's value and its price as these two are different measures arrived at by different means. Investors typically determine if Walt Disney is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Walt Disney's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Walt Disney Return On Asset vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Walt Disney's current stock value. Our valuation model uses many indicators to compare Walt Disney value to that of its competitors to determine the firm's financial worth.
The Walt Disney is one of the top stocks in operating margin category among its peers. It also is one of the top stocks in return on asset category among its peers reporting about  0.26  of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for The Walt Disney is roughly  3.84 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Walt Disney by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Walt Disney's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Walt Return On Asset vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Walt Disney

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.08 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Walt Disney

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0207
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Walt Return On Asset Comparison

Walt Disney is currently under evaluation in return on asset category among its peers.

Walt Disney Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Walt Disney, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Walt Disney will eventually generate negative long term returns. The profitability progress is the general direction of Walt Disney's change in net profit over the period of time. It can combine multiple indicators of Walt Disney, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. The company was founded in 1923 and is based in Burbank, California. WALT DISNEY operates under Media - Diversified classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 201000 people.

Walt Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Walt Disney. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Walt Disney position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Walt Disney's important profitability drivers and their relationship over time.

Use Walt Disney in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Walt Disney position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Walt Disney will appreciate offsetting losses from the drop in the long position's value.

Walt Disney Pair Trading

The Walt Disney Pair Trading Analysis

The ability to find closely correlated positions to Walt Disney could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Walt Disney when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Walt Disney - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling The Walt Disney to buy it.
The correlation of Walt Disney is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Walt Disney moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Walt Disney moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Walt Disney can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Walt Disney position

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Copper Theme
Companies involved in production of copper. The Copper theme has 47 constituents at this time.
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Other Information on Investing in Walt Stock

To fully project Walt Disney's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Walt Disney at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Walt Disney's income statement, its balance sheet, and the statement of cash flows.
Potential Walt Disney investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Walt Disney investors may work on each financial statement separately, they are all related. The changes in Walt Disney's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Walt Disney's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.