29.79 USD
+0.02 (+0.07%)
29.79 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to NWS. NWS was compared to 95 industry peers in the Media industry. NWS scores excellent on profitability, but there are some minor concerns on its financial health. NWS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NWS had positive earnings in the past year.
In the past year NWS had a positive cash flow from operations.
In the past 5 years NWS has always been profitable.
Each year in the past 5 years NWS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.65%, NWS belongs to the best of the industry, outperforming 88.42% of the companies in the same industry.
NWS has a better Return On Equity (13.48%) than 81.05% of its industry peers.
NWS has a Return On Invested Capital of 4.28%. This is in the better half of the industry: NWS outperforms 62.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NWS is below the industry average of 7.16%.
The 3 year average ROIC (3.11%) for NWS is below the current ROIC(4.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.65% | ||
| ROE | 13.48% | ||
| ROIC | 4.28% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)3.11%
ROIC(5y)3.43%
1.3 Margins
The Profit Margin of NWS (18.07%) is better than 92.63% of its industry peers.
In the last couple of years the Profit Margin of NWS has grown nicely.
NWS has a better Operating Margin (12.51%) than 75.79% of its industry peers.
NWS's Operating Margin has improved in the last couple of years.
NWS has a better Gross Margin (73.56%) than 85.26% of its industry peers.
NWS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.51% | ||
| PM (TTM) | 18.07% | ||
| GM | 73.56% |
OM growth 3Y7.22%
OM growth 5Y22.14%
PM growth 3Y32.52%
PM growth 5YN/A
GM growth 3Y3.2%
GM growth 5Y4.45%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NWS is destroying value.
The number of shares outstanding for NWS has been reduced compared to 1 year ago.
NWS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NWS has been reduced compared to a year ago.
2.2 Solvency
NWS has an Altman-Z score of 2.20. This is not the best score and indicates that NWS is in the grey zone with still only limited risk for bankruptcy at the moment.
NWS has a better Altman-Z score (2.20) than 73.68% of its industry peers.
The Debt to FCF ratio of NWS is 2.58, which is a good value as it means it would take NWS, 2.58 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.58, NWS is doing good in the industry, outperforming 80.00% of the companies in the same industry.
NWS has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.22, NWS is doing good in the industry, outperforming 64.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.53
WACC8.01%
2.3 Liquidity
NWS has a Current Ratio of 1.76. This is a normal value and indicates that NWS is financially healthy and should not expect problems in meeting its short term obligations.
NWS's Current ratio of 1.76 is fine compared to the rest of the industry. NWS outperforms 69.47% of its industry peers.
NWS has a Quick Ratio of 1.63. This is a normal value and indicates that NWS is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.63, NWS is doing good in the industry, outperforming 69.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
NWS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.33%, which is quite impressive.
The Earnings Per Share has been growing by 32.55% on average over the past years. This is a very strong growth
NWS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -36.13%.
NWS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.27% yearly.
EPS 1Y (TTM)21.33%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%4.76%
Revenue 1Y (TTM)-36.13%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-15.59%
3.2 Future
The Earnings Per Share is expected to grow by 9.37% on average over the next years. This is quite good.
Based on estimates for the next years, NWS will show a small growth in Revenue. The Revenue will grow by 3.32% on average per year.
EPS Next Y8.39%
EPS Next 2Y13.67%
EPS Next 3Y12.51%
EPS Next 5Y9.37%
Revenue Next Year1.53%
Revenue Next 2Y2.38%
Revenue Next 3Y2.66%
Revenue Next 5Y3.32%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
NWS is valuated quite expensively with a Price/Earnings ratio of 32.74.
The rest of the industry has a similar Price/Earnings ratio as NWS.
NWS is valuated rather expensively when we compare the Price/Earnings ratio to 26.38, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 25.62, the valuation of NWS can be described as expensive.
NWS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.83. NWS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.74 | ||
| Fwd PE | 25.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NWS is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as NWS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.1 | ||
| EV/EBITDA | 13.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NWS has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NWS's earnings are expected to grow with 12.51% in the coming years.
PEG (NY)3.9
PEG (5Y)1.01
EPS Next 2Y13.67%
EPS Next 3Y12.51%
5. Dividend
5.1 Amount
NWS has a yearly dividend return of 0.76%, which is pretty low.
NWS's Dividend Yield is a higher than the industry average which is at 1.20.
Compared to an average S&P500 Dividend Yield of 1.87, NWS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
The dividend of NWS has a limited annual growth rate of 3.91%.
NWS has been paying a dividend for at least 10 years, so it has a reliable track record.
As NWS did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)3.91%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
16.79% of the earnings are spent on dividend by NWS. This is a low number and sustainable payout ratio.
NWS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.79%
EPS Next 2Y13.67%
EPS Next 3Y12.51%
29.79
+0.02 (+0.07%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners107.56%
Inst Owner Change14.57%
Ins Owners0.03%
Ins Owner Change-33331.1%
Market Cap16.73B
Revenue(TTM)6.49B
Net Income(TTM)1.17B
Analysts81.33
Price Target41.33 (38.74%)
Short Float %2.07%
Short Ratio8.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend0.33
Dividend Growth(5Y)3.91%
DP16.79%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.83%
Min EPS beat(2)0.69%
Max EPS beat(2)16.97%
EPS beat(4)4
Avg EPS beat(4)9.97%
Min EPS beat(4)0.69%
Max EPS beat(4)19.05%
EPS beat(8)8
Avg EPS beat(8)14.05%
EPS beat(12)11
Avg EPS beat(12)24.07%
EPS beat(16)14
Avg EPS beat(16)48.33%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)0.36%
Revenue beat(8)2
Avg Revenue beat(8)-1.01%
Revenue beat(12)3
Avg Revenue beat(12)-1.22%
Revenue beat(16)5
Avg Revenue beat(16)-1.03%
PT rev (1m)-3.19%
PT rev (3m)0.05%
EPS NQ rev (1m)3.23%
EPS NQ rev (3m)-4.21%
EPS NY rev (1m)-2.28%
EPS NY rev (3m)-1.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.74 | ||
| Fwd PE | 25.62 | ||
| P/S | 2.58 | ||
| P/FCF | 22.1 | ||
| P/OCF | 14.55 | ||
| P/B | 1.92 | ||
| P/tB | 7.01 | ||
| EV/EBITDA | 13.75 |
EPS(TTM)0.91
EY3.05%
EPS(NY)1.16
Fwd EY3.9%
FCF(TTM)1.35
FCFY4.53%
OCF(TTM)2.05
OCFY6.87%
SpS11.56
BVpS15.5
TBVpS4.25
PEG (NY)3.9
PEG (5Y)1.01
Graham Number17.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.65% | ||
| ROE | 13.48% | ||
| ROCE | 6.34% | ||
| ROIC | 4.28% | ||
| ROICexc | 5.17% | ||
| ROICexgc | 12.77% | ||
| OM | 12.51% | ||
| PM (TTM) | 18.07% | ||
| GM | 73.56% | ||
| FCFM | 11.66% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)3.11%
ROIC(5y)3.43%
ROICexc(3y)3.72%
ROICexc(5y)4.06%
ROICexgc(3y)9.79%
ROICexgc(5y)10.94%
ROCE(3y)4.62%
ROCE(5y)5.08%
ROICexgc growth 3Y-1.1%
ROICexgc growth 5Y20.92%
ROICexc growth 3Y4.33%
ROICexc growth 5Y19.59%
OM growth 3Y7.22%
OM growth 5Y22.14%
PM growth 3Y32.52%
PM growth 5YN/A
GM growth 3Y3.2%
GM growth 5Y4.45%
F-Score7
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.58 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 101.55% | ||
| Cap/Sales | 6.05% | ||
| Interest Coverage | 10.28 | ||
| Cash Conversion | 95.91% | ||
| Profit Quality | 64.54% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 2.2 |
F-Score7
WACC8.01%
ROIC/WACC0.53
Cap/Depr(3y)79.9%
Cap/Depr(5y)73.92%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)246.06%
Profit Quality(5y)226.42%
High Growth Momentum
Growth
EPS 1Y (TTM)21.33%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%4.76%
EPS Next Y8.39%
EPS Next 2Y13.67%
EPS Next 3Y12.51%
EPS Next 5Y9.37%
Revenue 1Y (TTM)-36.13%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-15.59%
Revenue Next Year1.53%
Revenue Next 2Y2.38%
Revenue Next 3Y2.66%
Revenue Next 5Y3.32%
EBIT growth 1Y-3.68%
EBIT growth 3Y0.1%
EBIT growth 5Y20.59%
EBIT Next Year57.36%
EBIT Next 3Y22.21%
EBIT Next 5Y15.45%
FCF growth 1Y37.89%
FCF growth 3Y-5.26%
FCF growth 5Y16.28%
OCF growth 1Y7.68%
OCF growth 3Y-5.74%
OCF growth 5Y7.77%
NEWS CORP - CLASS B / NWS FAQ
What is the ChartMill fundamental rating of NEWS CORP - CLASS B (NWS) stock?
ChartMill assigns a fundamental rating of 6 / 10 to NWS.
What is the valuation status of NEWS CORP - CLASS B (NWS) stock?
ChartMill assigns a valuation rating of 3 / 10 to NEWS CORP - CLASS B (NWS). This can be considered as Overvalued.
What is the profitability of NWS stock?
NEWS CORP - CLASS B (NWS) has a profitability rating of 8 / 10.
What is the valuation of NEWS CORP - CLASS B based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NEWS CORP - CLASS B (NWS) is 32.74 and the Price/Book (PB) ratio is 1.92.
Can you provide the financial health for NWS stock?
The financial health rating of NEWS CORP - CLASS B (NWS) is 6 / 10.