29.66 USD
+0.1 (+0.34%)
29.66 USD
0 (0%)
Taking everything into account, NWS scores 6 out of 10 in our fundamental rating. NWS was compared to 94 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
In the past year NWS was profitable.
NWS had a positive operating cash flow in the past year.
In the past 5 years NWS has always been profitable.
NWS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.65%, NWS belongs to the top of the industry, outperforming 87.23% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.48%, NWS is in the better half of the industry, outperforming 79.79% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.28%, NWS is in the better half of the industry, outperforming 60.64% 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 8.07%.
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 has a Profit Margin of 18.07%. This is amongst the best in the industry. NWS outperforms 92.55% of its industry peers.
NWS's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 12.51%, NWS is doing good in the industry, outperforming 74.47% of the companies in the same industry.
In the last couple of years the Operating Margin of NWS has grown nicely.
NWS's Gross Margin of 73.56% is amongst the best of the industry. NWS outperforms 85.11% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NWS is destroying value.
NWS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for NWS has been reduced compared to 5 years ago.
The debt/assets ratio for NWS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.19 indicates that NWS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.19, NWS is in the better half of the industry, outperforming 71.28% of the companies in the same industry.
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.
The Debt to FCF ratio of NWS (2.58) is better than 78.72% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that NWS is not too dependend on debt financing.
The Debt to Equity ratio of NWS (0.22) is better than 63.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.53
WACC8.03%
2.3 Liquidity
A Current Ratio of 1.76 indicates that NWS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.76, NWS is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
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.
NWS has a Quick ratio of 1.63. This is in the better half of the industry: NWS outperforms 69.15% 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
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
The Earnings Per Share is expected to grow by 9.37% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.32% on average over the next years.
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
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
The Price/Earnings ratio is 32.59, which means the current valuation is very expensive for NWS.
NWS's Price/Earnings ratio is a bit cheaper when compared to the industry. NWS is cheaper than 60.64% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, NWS is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 25.51, the valuation of NWS can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWS is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of NWS to the average of the S&P500 Index (23.78), we can say NWS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.59 | ||
| Fwd PE | 25.51 |
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.
NWS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22 | ||
| EV/EBITDA | 13.64 |
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)3.88
PEG (5Y)1
EPS Next 2Y13.67%
EPS Next 3Y12.51%
5. Dividend
5.1 Amount
NWS has a yearly dividend return of 0.77%, which is pretty low.
NWS's Dividend Yield is a higher than the industry average which is at 1.54.
Compared to an average S&P500 Dividend Yield of 1.96, NWS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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.
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.
The dividend of NWS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP16.79%
EPS Next 2Y13.67%
EPS Next 3Y12.51%
29.66
+0.1 (+0.34%)
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 Cap16.65B
Revenue(TTM)6.49B
Net Income(TTM)1.17B
Analysts81.33
Price Target41.33 (39.35%)
Short Float %2.22%
Short Ratio8.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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)-6.07%
PT rev (3m)-4.72%
EPS NQ rev (1m)-3.59%
EPS NQ rev (3m)-4.66%
EPS NY rev (1m)-2.28%
EPS NY rev (3m)-1.76%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.59 | ||
| Fwd PE | 25.51 | ||
| P/S | 2.57 | ||
| P/FCF | 22 | ||
| P/OCF | 14.48 | ||
| P/B | 1.91 | ||
| P/tB | 6.98 | ||
| EV/EBITDA | 13.64 |
EPS(TTM)0.91
EY3.07%
EPS(NY)1.16
Fwd EY3.92%
FCF(TTM)1.35
FCFY4.55%
OCF(TTM)2.05
OCFY6.91%
SpS11.56
BVpS15.5
TBVpS4.25
PEG (NY)3.88
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 | 2.19 |
F-Score7
WACC8.03%
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 32.59 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.