NEWS CORP - CLASS B (NWS) Stock Fundamental Analysis
NASDAQ:NWS - Nasdaq - US65249B2088 - Common Stock - Currency: USD
Taking everything into account, NWS scores 6 out of 10 in our fundamental rating. NWS was compared to 93 industry peers in the Media industry. NWS has an excellent profitability rating, 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.
In the past year NWS had a positive cash flow from operations.
NWS had positive earnings in 4 of the past 5 years.
In the past 5 years NWS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of NWS (2.56%) is better than 72.41% of its industry peers.
With a decent Return On Equity value of 5.08%, NWS is doing good in the industry, outperforming 68.97% of the companies in the same industry.
The Return On Invested Capital of NWS (4.36%) is comparable to the rest of the industry.
NWS had an Average Return On Invested Capital over the past 3 years of 3.62%. This is below the industry average of 7.01%.
The 3 year average ROIC (3.62%) for NWS is below the current ROIC(4.36%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 5.08% | ||
| ROIC | 4.36% |
ROA(3y)2.03%
ROA(5y)-0.17%
ROE(3y)4.23%
ROE(5y)0%
ROIC(3y)3.62%
ROIC(5y)3.12%
1.3 Margins
NWS has a Profit Margin of 4.22%. This is in the better half of the industry: NWS outperforms 67.82% of its industry peers.
In the last couple of years the Profit Margin of NWS has grown nicely.
NWS has a Operating Margin (9.10%) which is comparable to the rest of the industry.
NWS's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 51.86%, NWS is doing good in the industry, outperforming 62.07% of the companies in the same industry.
NWS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.1% | ||
| PM (TTM) | 4.22% | ||
| GM | 51.86% |
OM growth 3Y5.19%
OM growth 5Y5.3%
PM growth 3Y-9.23%
PM growth 5Y11.38%
GM growth 3Y1%
GM growth 5Y2.67%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
Compared to 1 year ago, NWS has an improved debt to assets ratio.
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 74.71% of its industry peers.
The Debt to FCF ratio of NWS is 2.64, which is a good value as it means it would take NWS, 2.64 years of fcf income to pay off all of its debts.
NWS has a better Debt to FCF ratio (2.64) than 83.91% of its industry peers.
NWS has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
NWS has a better Debt to Equity ratio (0.24) than 67.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.64 | ||
| Altman-Z | 2.26 |
ROIC/WACC0.52
WACC8.34%
2.3 Liquidity
NWS has a Current Ratio of 1.73. 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 1.73 is in line compared to the rest of the industry. NWS outperforms 55.17% of its industry peers.
NWS has a Quick Ratio of 1.65. 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 Quick ratio value of 1.65, NWS perfoms like the industry average, outperforming 54.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
NWS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.15%, which is quite impressive.
NWS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.76% yearly.
The Revenue has decreased by -1.51% in the past year.
Measured over the past years, NWS shows a small growth in Revenue. The Revenue has been growing by 0.02% on average per year.
EPS 1Y (TTM)26.15%
EPS 3Y1.47%
EPS 5Y8.76%
EPS Q2Q%26.92%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%-13.96%
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 14.66% on average per year.
Based on estimates for the next years, NWS will show a small growth in Revenue. The Revenue will grow by 3.31% on average per year.
EPS Next Y38.14%
EPS Next 2Y24.87%
EPS Next 3Y19.72%
EPS Next 5Y14.66%
Revenue Next Year-10.91%
Revenue Next 2Y-6.65%
Revenue Next 3Y-3.55%
Revenue Next 5Y3.31%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
A Price/Earnings ratio of 39.39 indicates a quite expensive valuation of NWS.
NWS's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of NWS to the average of the S&P500 Index (29.63), we can say NWS is valued slightly more expensively.
With a Price/Forward Earnings ratio of 29.60, NWS can be considered very expensive at the moment.
NWS's Price/Forward Earnings is on the same level as the industry average.
NWS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.39 | ||
| Fwd PE | 29.6 |
4.2 Price Multiples
NWS's Enterprise Value to EBITDA ratio is in line with the industry average.
NWS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.63 | ||
| EV/EBITDA | 12.59 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NWS has a very decent 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 19.72% in the coming years.
PEG (NY)1.03
PEG (5Y)4.5
EPS Next 2Y24.87%
EPS Next 3Y19.72%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, NWS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.48, NWS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, NWS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
The dividend of NWS has a limited annual growth rate of 1.81%.
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)1.81%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
NWS pays out 43.24% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of NWS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.24%
EPS Next 2Y24.87%
EPS Next 3Y19.72%
32.3
-0.64 (-1.94%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners101.93%
Inst Owner Change-1.2%
Ins Owners0.07%
Ins Owner Change-0.01%
Market Cap18.33B
Analysts83.75
Price Target40.08 (24.09%)
Short Float %1.18%
Short Ratio6.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend0.3
Dividend Growth(5Y)1.81%
DP43.24%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.23%
Min EPS beat(2)3.18%
Max EPS beat(2)27.28%
EPS beat(4)4
Avg EPS beat(4)10.38%
Min EPS beat(4)3.18%
Max EPS beat(4)27.28%
EPS beat(8)8
Avg EPS beat(8)34.78%
EPS beat(12)10
Avg EPS beat(12)58.01%
EPS beat(16)14
Avg EPS beat(16)71.9%
Revenue beat(2)1
Avg Revenue beat(2)-1.27%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)0.36%
Revenue beat(4)2
Avg Revenue beat(4)-1.03%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)1.58%
Revenue beat(8)3
Avg Revenue beat(8)-1.05%
Revenue beat(12)4
Avg Revenue beat(12)-1.22%
Revenue beat(16)8
Avg Revenue beat(16)0.24%
PT rev (1m)-1.74%
PT rev (3m)10.13%
EPS NQ rev (1m)10.54%
EPS NQ rev (3m)21.72%
EPS NY rev (1m)8.47%
EPS NY rev (3m)10.34%
Revenue NQ rev (1m)-20.05%
Revenue NQ rev (3m)-22.99%
Revenue NY rev (1m)-14.49%
Revenue NY rev (3m)-14.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.39 | ||
| Fwd PE | 29.6 | ||
| P/S | 1.87 | ||
| P/FCF | 24.63 | ||
| P/OCF | 15.79 | ||
| P/B | 2.25 | ||
| P/tB | 9.2 | ||
| EV/EBITDA | 12.59 |
EPS(TTM)0.82
EY2.54%
EPS(NY)1.09
Fwd EY3.38%
FCF(TTM)1.31
FCFY4.06%
OCF(TTM)2.05
OCFY6.33%
SpS17.3
BVpS14.36
TBVpS3.51
PEG (NY)1.03
PEG (5Y)4.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 5.08% | ||
| ROCE | 7.18% | ||
| ROIC | 4.36% | ||
| ROICexc | 5.08% | ||
| ROICexgc | 12% | ||
| OM | 9.1% | ||
| PM (TTM) | 4.22% | ||
| GM | 51.86% | ||
| FCFM | 7.58% |
ROA(3y)2.03%
ROA(5y)-0.17%
ROE(3y)4.23%
ROE(5y)0%
ROIC(3y)3.62%
ROIC(5y)3.12%
ROICexc(3y)4.19%
ROICexc(5y)3.63%
ROICexgc(3y)11.93%
ROICexgc(5y)9.92%
ROCE(3y)5.95%
ROCE(5y)5.14%
ROICexcg growth 3Y10.45%
ROICexcg growth 5Y-0.35%
ROICexc growth 3Y6.7%
ROICexc growth 5Y3.57%
OM growth 3Y5.19%
OM growth 5Y5.3%
PM growth 3Y-9.23%
PM growth 5Y11.38%
GM growth 3Y1%
GM growth 5Y2.67%
F-Score9
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.64 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 68.47% | ||
| Cap/Sales | 4.25% | ||
| Interest Coverage | 5.88 | ||
| Cash Conversion | 77.3% | ||
| Profit Quality | 179.71% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 2.26 |
F-Score9
WACC8.34%
ROIC/WACC0.52
Cap/Depr(3y)70%
Cap/Depr(5y)67.07%
Cap/Sales(3y)4.92%
Cap/Sales(5y)4.76%
Profit Quality(3y)253.85%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.15%
EPS 3Y1.47%
EPS 5Y8.76%
EPS Q2Q%26.92%
EPS Next Y38.14%
EPS Next 2Y24.87%
EPS Next 3Y19.72%
EPS Next 5Y14.66%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%-13.96%
Revenue Next Year-10.91%
Revenue Next 2Y-6.65%
Revenue Next 3Y-3.55%
Revenue Next 5Y3.31%
EBIT growth 1Y12.33%
EBIT growth 3Y7.85%
EBIT growth 5Y5.33%
EBIT Next Year83.36%
EBIT Next 3Y27.4%
EBIT Next 5Y27.31%
FCF growth 1Y28.5%
FCF growth 3Y-10.76%
FCF growth 5Y11.08%
OCF growth 1Y7%
OCF growth 3Y-3.9%
OCF growth 5Y3.42%