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Tickers in this Article: DIS, CMCSA, CBS, GE, NWS, SIX
Give Disney (NYSE: DIS) credit. One way or another, the company will get eyeballs on its content. In addition to owning one of the four major broadcast networks (ABC) and the preeminent sports network (ESPN), the media and entertainment giant operates other cable channels, runs a host of resorts and parks, and constantly pushes new content out through movies and products. In other words, unless somebody lives in North Korea or a mineshaft, they will see Disney and probably see it often. (For more, see Walt Disney's Valuable Content.)

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A Goofy Quarter
Disney may be ubiquitous, but that does not mean that growth comes easy. Revenue was down 1% in the company's fiscal fourth quarter. Reported network revenue was down 7%, and park/resort revenue was down 1%, while entertainment and products were up 6% and 13%, respectively. To give Disney a bit more credit, though, it is important to remember that results can be lumpy - overall second-half revenue was up a more encouraging 7%.

What made this quarter "goofy" was a host of charges and adjustments; normal in the course of business for a company like Disney (where writing down the value of content is a cost of doing business), but nevertheless confusing to some investors who do not live and breathe accounting arcana. To that end, adjusted segment operating income was up 1%, with the network and park/resort business lagging and entertainment and products doing well.

The Road Ahead
All in all, things appear to be getting better at the House of the Mouse. Ad revenue is improving in the TV business (and was exceptionally strong at ESPN), and park attendance is picking up. Comcast (Nasdaq: CMCSA) has yet to turn the Versus network into a serious threat to ESPN, and Disney continues to pay up for programming rights. While ABC trails CBS (NYSE: CBS) by a meaningful margin, it is the No.2 broadcast network, and neither GE's (NYSE: GE) NBC (soon to also be owned by Comcast) or News Corp's (NYSE: NWS) FOX can do much of anything about that in the near term.

On the resort front, a revival at Six Flags (NYSE: SIX) could be a minor threat, but Six Flags parks are generally more of a weekend destination as opposed to a long-term, plan-ahead family "event" like a Disney park. Elsewhere, the movie business will probably always be erratic, but Disney's time-tested formula of producing blockbusters and then exploiting every last available dollar with a series of profitable direct-to-DVD sequels will likely continue unabated. (For more, see Cheerful Trends From Walt Disney.)

The Bottom Line
Perhaps because Disney is so well-known and its brands so highly regarded, the stock is rarely ever a bargain. That still holds true today. Although the stock is not all that expensive, no combination of valuation ratio analysis, discounted cash flow forecasting or LACFY (liability-adjusted cash flow yield) makes the stock look like a bargain at today's prices.

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