Disney Stock Slumps Despite Analysts' Rosy Forecasts
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Walt Disney's (DIS) stock price has declined 5.4% over the past 3 months despite mixed financials.
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Walt Disney's return on equity (ROE) is only 2.7%, below the industry average of 12%, indicating inefficient use of shareholder capital.
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Walt Disney's net income has declined 38% over the past 5 years while the industry net income grew 13%, showing poor earnings growth.
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The low ROE and earnings decline indicate issues with capital allocation and business performance despite Walt Disney reinvesting most profits.
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Analysts forecast a huge improvement in Walt Disney's earnings growth, but it is uncertain whether this is based on industry trends or company fundamentals.