Disney Beneish M Score

Stocks . USA . 
Stock . Walt Disney
DIS Stock  USD 92.16  1.16  1.27%   
This module uses fundamental data of Disney to approximate the value of its Beneish M Score. Disney M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Disney Piotroski F Score and Disney Altman Z Score analysis.
  
Disney Total Debt is comparatively stable at the moment as compared to the past year. Disney reported Total Debt of 25.29 Billion in 2022. Debt Non Current is likely to gain to about 25.1 B in 2023, whereas Debt Current is likely to drop slightly above 5.8 B in 2023. Disney Interest Coverage is comparatively stable at the moment as compared to the past year. Disney reported Interest Coverage of 35.78 in 2022. Calculated Tax Rate is likely to gain to 34.78 in 2023, whereas PPandE Turnover is likely to drop 1.94 in 2023.
At this time, it appears that Walt Disney is an unlikely manipulator. The earnings manipulation may begin if Disney's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Disney executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Disney's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.29
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.05Focus
Asset Quality1.1Focus
Expense Coverage1.1Focus
Gross Margin Strengs0.93Focus
Accruals Factor1.1Focus
Depreciation Resistance0.9Focus
Net Sales Growth1.14Focus
Financial Leverage Condition0.96Focus

Disney Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Disney's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense10.3 B8.2 B
Significantly Up
Slightly volatile
Revenues62.9 B55.1 B
Fairly Up
Slightly volatile
Trade and Non Trade Receivables10.4 B8.6 B
Fairly Up
Slightly volatile
Property Plant and Equipment Net31.1 B28.4 B
Significantly Up
Slightly volatile
Operating Income11.2 B13.8 B
Significantly Down
Slightly volatile
Net Cash Flow from Operations10.5 B12.3 B
Fairly Down
Slightly volatile
Liabilities Non Current41.9 B31.2 B
Significantly Up
Slightly volatile
Current Liabilities22.2 B19.6 B
Moderately Up
Slightly volatile
Total Liabilities64.2 B50.8 B
Significantly Up
Slightly volatile
Investments Non Current3.6 B3.2 B
Significantly Up
Slightly volatile
Investments3.6 B3.2 B
Significantly Up
Slightly volatile
Gross Margin0.420.45
Significantly Down
Slightly volatile
Depreciation Amortization and Accretion3.4 B2.8 B
Fairly Up
Slightly volatile
Debt Non Current25.1 B19.1 B
Significantly Up
Slightly volatile
Debt Current5.8 B6.2 B
Notably Down
Slightly volatile
Total Debt31 B25.3 B
Fairly Up
Slightly volatile
Assets Non Current104.3 B79.9 B
Significantly Up
Slightly volatile
Current Assets20.8 B15.9 B
Significantly Up
Slightly volatile
Total Assets125 B95.8 B
Significantly Up
Slightly volatile

Walt Disney Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Disney's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Disney in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Disney's degree of accounting gimmicks and manipulations.
Click cells to compare fundamentals

About Disney Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

14.16 Billion

Disney Operating Expenses is comparatively stable at the moment as compared to the past year. Disney reported Operating Expenses of 11.06 Billion in 2022

Disney ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Disney's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Disney's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Disney Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Walt Disney's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Disney using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Walt Disney based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. The Walt Disney Company was founded in 1923 and is based in Burbank, California. Disney operates under Entertainment And Broadcasting classification in the United States and is traded on New York Stock Exchange.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Disney without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

Did you try this?

Run Insider Screener Now

   

Insider Screener

Find insiders across different sectors to evaluate their impact on performance
All  Next Launch Module

Pair Trading with Disney

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 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 Disney will appreciate offsetting losses from the drop in the long position's value.

Moving together with Disney Stock

+0.61IQIQIYI Inc Buyout TrendPairCorr
+0.61SESea Fiscal Quarter End 30th of June 2023 PairCorr

Moving against Disney Stock

-0.56LYVLive Nation Entertainment Fiscal Quarter End 30th of June 2023 PairCorr
-0.43RUMRumble Inc Symbol ChangePairCorr
The ability to find closely correlated positions to 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 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 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 Walt Disney to buy it.
The correlation of Disney is a statistical measure of how it moves in relation to other equities. 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 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 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
Check out Disney Piotroski F Score and Disney Altman Z Score analysis. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

Complementary Tools for Disney Stock analysis

When running Disney's price analysis, check to measure Disney's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Disney is operating at the current time. Most of Disney's value examination focuses on studying past and present price action to predict the probability of Disney's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Disney's price. Additionally, you may evaluate how the addition of Disney to your portfolios can decrease your overall portfolio volatility.
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Is Disney's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Disney. If investors know Disney will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Disney listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.675
Earnings Share
2.32
Revenue Per Share
47.648
Quarterly Revenue Growth
0.133
Return On Assets
0.0228
The market value of Walt Disney is measured differently than its book value, which is the value of Disney that is recorded on the company's balance sheet. Investors also form their own opinion of Disney's value that differs from its market value or its book value, called intrinsic value, which is Disney's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Disney's market value can be influenced by many factors that don't directly affect Disney's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Altman
Z Score
Details
Piotroski
F Score
Details
Beneish
M Score
Details
Financial
Analysis
Details
Buy or Sell
Advice
Details
Earnings
Projections
Details
Please note, there is a significant difference between Disney's value and its price as these two are different measures arrived at by different means. Investors typically determine if Disney is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, 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.


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2023 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY