Many investors view success as outperforming the market over the long term. However, investing in individual companies can sometimes lead to disappointment. This has recently been the case for shareholders of The Walt Disney Company (NYSE:DIS). Over the past three years, Disney’s share price has plummeted by 49%, drastically lagging behind the market’s average return of around 15%. To add salt to the wound, the share price has dropped another 15% in the last 90 days alone.

Analyzing the fundamentals over this timeframe, we find a mixed bag of results. Knowing the stock has struggled, it’s important to dive deeper into metrics like earnings per share (EPS) and revenue performance. Despite moving from a loss to profitability over the past five years—a typically positive indicator—the share price still declined. Interestingly, Disney’s revenue grew by 13% during the same period, suggesting that the share price drop isn’t revenue-related. With a modest yield of just 1.0%, dividends are unlikely to be the main attraction for investors either.

In the last three months, there has been significant insider buying, which is often a good sign. However, looking at earnings and revenue trends gives an even clearer picture. Our recommendation is to review detailed reports showing consensus forecasts. These insights can help you understand what the broader market expects from Disney in the coming months and years.

From a short-term perspective, Disney managed a total shareholder return (TSR) of 4.0% over the last twelve months. Though this is a positive return, it pales in comparison to the broader market. Encouragingly, the company’s yearly loss has decreased to about 6% over the past five years, which might hint at stabilization. Understanding Disney’s long-term performance is crucial, but investors should also consider various factors such as emerging risks and insider trading activities.

Ultimately, deciphering whether Disney is undervalued or offers hidden potential requires a detailed analysis. Investors should remain informed about the latest updates and be aware of the potential risks highlighted in our investment guide. For those who like to invest alongside management, exploring other companies with insider buying could present new opportunities.

What are your thoughts on Disney’s recent performance? Share your insights and join the conversation.

Source: Simply Wall St