31.01 USD
-0.09 (-0.29%)
31.01 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to NWS. NWS was compared to 92 industry peers in the Media industry. NWS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NWS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year NWS was profitable.
- NWS had a positive operating cash flow in the past year.
- NWS had positive earnings in each of the past 5 years.
- Each year in the past 5 years NWS had a positive operating cash flow.
1.2 Ratios
- NWS's Return On Assets of 7.65% is amongst the best of the industry. NWS outperforms 90.22% of its industry peers.
- With an excellent Return On Equity value of 13.48%, NWS belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
- NWS has a better Return On Invested Capital (4.28%) than 64.13% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NWS is below the industry average of 7.07%.
- The last Return On Invested Capital (4.28%) for NWS is above the 3 year average (3.11%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 18.07%. This is amongst the best in the industry. NWS outperforms 93.48% of its industry peers.
- In the last couple of years the Profit Margin of NWS has grown nicely.
- With a decent Operating Margin value of 12.51%, NWS is doing good in the industry, outperforming 76.09% of the companies in the same industry.
- In the last couple of years the Operating Margin of NWS has grown nicely.
- With an excellent Gross Margin value of 73.56%, NWS belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
- 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
- NWS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- NWS has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, NWS has less shares outstanding
- The debt/assets ratio for NWS has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.26 indicates that NWS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of NWS (2.26) is better than 76.09% of its industry peers.
- NWS has a debt to FCF ratio of 2.66. This is a good value and a sign of high solvency as NWS would need 2.66 years to pay back of all of its debts.
- NWS has a Debt to FCF ratio of 2.66. This is amongst the best in the industry. NWS outperforms 81.52% 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.
- The Debt to Equity ratio of NWS (0.22) is better than 66.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 2.26 |
ROIC/WACC0.53
WACC8.11%
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.
- With a decent Current ratio value of 1.76, NWS is doing good in the industry, outperforming 70.65% of the companies in the same industry.
- A Quick Ratio of 1.63 indicates that NWS should not have too much problems paying its short term obligations.
- NWS has a better Quick ratio (1.63) than 69.57% 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.
- Measured over the past years, NWS shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.55% on average per year.
- The Revenue for NWS has decreased by -36.13% in the past year. This is quite bad
- Measured over the past years, NWS shows a decrease in Revenue. The Revenue has been decreasing by -1.27% on average per year.
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 9.84% on average per year.
- 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 Y8.08%
EPS Next 2Y14%
EPS Next 3Y13.13%
EPS Next 5Y9.84%
Revenue Next Year1.55%
Revenue Next 2Y2.47%
Revenue Next 3Y2.71%
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.
- 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
- Based on the Price/Earnings ratio of 34.08, the valuation of NWS can be described as expensive.
- NWS's Price/Earnings ratio is a bit cheaper when compared to the industry. NWS is cheaper than 63.04% of the companies in the same industry.
- NWS is valuated rather expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 26.51 indicates a quite expensive valuation of NWS.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NWS is on the same level as its industry peers.
- NWS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.08 | ||
| Fwd PE | 26.51 |
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 | 23.66 | ||
| EV/EBITDA | 13.46 |
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.
- 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 13.13% in the coming years.
PEG (NY)4.22
PEG (5Y)1.05
EPS Next 2Y14%
EPS Next 3Y13.13%
5. Dividend
5.1 Amount
- NWS has a yearly dividend return of 0.75%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.22, NWS pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, NWS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
- The dividend of NWS has a limited annual growth rate of 3.92%.
- NWS has been paying a dividend for at least 10 years, so it has 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)3.92%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
- NWS pays out 16.79% of its income as dividend. This is a sustainable payout ratio.
- The dividend of NWS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP16.79%
EPS Next 2Y14%
EPS Next 3Y13.13%
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 for 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 are the PE and PB ratios of NEWS CORP - CLASS B (NWS) stock?
The Price/Earnings (PE) ratio for NEWS CORP - CLASS B (NWS) is 34.08 and the Price/Book (PB) ratio is 2.
How sustainable is the dividend of NEWS CORP - CLASS B (NWS) stock?
The dividend rating of NEWS CORP - CLASS B (NWS) is 5 / 10 and the dividend payout ratio is 16.79%.