29.59 USD
+0.46 (+1.58%)
29.59 USD
0 (0%)
Taking everything into account, NWS scores 6 out of 10 in our fundamental rating. NWS was compared to 98 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.
NWS had a positive operating cash flow in the past year.
Each year in the past 5 years NWS has been profitable.
In the past 5 years NWS always reported a positive cash flow from operatings.
1.2 Ratios
NWS has a better Return On Assets (7.65%) than 86.73% of its industry peers.
NWS has a Return On Equity of 13.48%. This is in the better half of the industry: NWS outperforms 79.59% of its industry peers.
With a decent Return On Invested Capital value of 4.28%, NWS is doing good in the industry, outperforming 61.22% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NWS is below the industry average of 7.98%.
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
NWS's Profit Margin of 18.07% is amongst the best of the industry. NWS outperforms 91.84% of its industry peers.
NWS's Profit Margin has improved in the last couple of years.
NWS's Operating Margin of 12.51% is fine compared to the rest of the industry. NWS outperforms 73.47% of its industry peers.
In the last couple of years the Operating Margin of NWS has grown nicely.
NWS has a better Gross Margin (73.56%) than 85.71% 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.
Compared to 1 year ago, NWS has less shares outstanding
NWS has less shares outstanding than it did 5 years ago.
NWS has a better debt/assets ratio than last year.
2.2 Solvency
NWS has an Altman-Z score of 2.17. 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.
The Altman-Z score of NWS (2.17) is better than 72.45% of its industry peers.
NWS has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as NWS would need 2.58 years to pay back of all of its debts.
NWS has a better Debt to FCF ratio (2.58) than 79.59% of its industry peers.
NWS has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
NWS has a Debt to Equity ratio of 0.22. This is in the better half of the industry: NWS outperforms 65.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.54
WACC7.99%
2.3 Liquidity
A Current Ratio of 1.76 indicates that NWS should not have too much problems paying its short term obligations.
NWS has a Current ratio of 1.76. This is in the better half of the industry: NWS outperforms 71.43% of its industry peers.
A Quick Ratio of 1.63 indicates that NWS should not have too much problems paying its short term obligations.
NWS has a Quick ratio of 1.63. This is in the better half of the industry: NWS outperforms 70.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.33% over the past year.
The Earnings Per Share has been growing by 32.55% on average over the past years. This is a very strong growth
Looking at the last year, NWS shows a very negative growth in Revenue. The Revenue has decreased by -36.13% in the last year.
The Revenue has been decreasing by -1.27% on average over the past years.
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
Based on estimates for the next years, NWS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.37% on average per year.
The Revenue is expected to grow by 3.32% on average over the next years.
EPS Next Y10.92%
EPS Next 2Y14.98%
EPS Next 3Y11.87%
EPS Next 5Y9.37%
Revenue Next Year1.11%
Revenue Next 2Y2.29%
Revenue Next 3Y2.82%
Revenue Next 5Y3.32%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NWS is valuated quite expensively with a Price/Earnings ratio of 32.52.
Based on the Price/Earnings ratio, NWS is valued a bit cheaper than 62.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, NWS is valued a bit more expensive.
With a Price/Forward Earnings ratio of 24.87, NWS is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWS is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 36.10. NWS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.52 | ||
| Fwd PE | 24.87 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NWS.
The rest of the industry has a similar Price/Free Cash Flow ratio as NWS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.95 | ||
| EV/EBITDA | 13.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NWS does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of NWS may justify a higher PE ratio.
PEG (NY)2.98
PEG (5Y)1
EPS Next 2Y14.98%
EPS Next 3Y11.87%
5. Dividend
5.1 Amount
With a yearly dividend of 0.78%, NWS is not a good candidate for dividend investing.
NWS's Dividend Yield is a higher than the industry average which is at 4.50.
With a Dividend Yield of 0.78, NWS pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
The dividend of NWS has a limited annual growth rate of 3.91%.
NWS has paid a dividend for at least 10 years, which is a reliable track record.
NWS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 2Y14.98%
EPS Next 3Y11.87%
29.59
+0.46 (+1.58%)
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 Cap16.62B
Revenue(TTM)6.49B
Net Income(TTM)1.17B
Analysts81.33
Price Target41.33 (39.68%)
Short Float %2.22%
Short Ratio8.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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)-1.14%
PT rev (3m)-4.88%
EPS NQ rev (1m)-7.06%
EPS NQ rev (3m)-7.06%
EPS NY rev (1m)0%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.52 | ||
| Fwd PE | 24.87 | ||
| P/S | 2.56 | ||
| P/FCF | 21.95 | ||
| P/OCF | 14.45 | ||
| P/B | 1.91 | ||
| P/tB | 6.96 | ||
| EV/EBITDA | 13.44 |
EPS(TTM)0.91
EY3.08%
EPS(NY)1.19
Fwd EY4.02%
FCF(TTM)1.35
FCFY4.56%
OCF(TTM)2.05
OCFY6.92%
SpS11.56
BVpS15.5
TBVpS4.25
PEG (NY)2.98
PEG (5Y)1
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 | 2.17 |
F-Score7
WACC7.99%
ROIC/WACC0.54
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 Y10.92%
EPS Next 2Y14.98%
EPS Next 3Y11.87%
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 Year1.11%
Revenue Next 2Y2.29%
Revenue Next 3Y2.82%
Revenue Next 5Y3.32%
EBIT growth 1Y-3.68%
EBIT growth 3Y0.1%
EBIT growth 5Y20.59%
EBIT Next Year58.17%
EBIT Next 3Y23.48%
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 32.52 and the Price/Book (PB) ratio is 1.91.
Can you provide the financial health for NWS stock?
The financial health rating of NEWS CORP - CLASS B (NWS) is 6 / 10.