NEWS CORP - CLASS B (NWS) Stock Fundamental Analysis
USA - NASDAQ:NWS - US65249B2088 - Common Stock
29.07 USD
-0.99 (-3.29%)
29.07 USD
0 (0%)
NWS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 95 industry peers in the Media industry. NWS scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, NWS is valued expensive at the moment.
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.
NWS had positive earnings in each of the past 5 years.
In the past 5 years NWS always reported a positive cash flow from operatings.
1.2 Ratios
NWS has a Return On Assets of 7.61%. This is amongst the best in the industry. NWS outperforms 87.37% of its industry peers.
NWS's Return On Equity of 13.45% is fine compared to the rest of the industry. NWS outperforms 80.00% of its industry peers.
With a decent Return On Invested Capital value of 5.09%, NWS is doing good in the industry, outperforming 62.11% 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 8.55%.
The 3 year average ROIC (4.08%) for NWS is below the current ROIC(5.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 13.45% | ||
| ROIC | 5.09% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)4.08%
ROIC(5y)4.01%
1.3 Margins
NWS has a Profit Margin of 13.21%. This is amongst the best in the industry. NWS outperforms 87.37% of its industry peers.
NWS's Profit Margin has improved in the last couple of years.
NWS's Operating Margin of 10.89% is fine compared to the rest of the industry. NWS outperforms 61.05% of its industry peers.
In the last couple of years the Operating Margin of NWS has grown nicely.
With a decent Gross Margin value of 54.70%, NWS is doing good in the industry, outperforming 63.16% of the companies in the same industry.
NWS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.89% | ||
| PM (TTM) | 13.21% | ||
| GM | 54.7% |
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.
Compared to 5 years ago, NWS has less shares outstanding
Compared to 1 year ago, NWS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.40 indicates that NWS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of NWS (2.40) is better than 75.79% of its industry peers.
NWS has a debt to FCF ratio of 2.70. This is a good value and a sign of high solvency as NWS would need 2.70 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.70, NWS is doing good in the industry, outperforming 78.95% 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 65.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.7 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.64
WACC7.97%
2.3 Liquidity
NWS has a Current Ratio of 1.84. 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 1.84 is fine compared to the rest of the industry. NWS outperforms 71.58% of its industry peers.
NWS has a Quick Ratio of 1.72. 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 1.72. This is in the better half of the industry: NWS outperforms 71.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
NWS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.57%, which is quite impressive.
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.
Looking at the last year, NWS shows a very negative growth in Revenue. The Revenue has decreased by -11.42% in the last year.
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)28.57%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%11.76%
Revenue 1Y (TTM)-11.42%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-18.16%
3.2 Future
NWS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.75% yearly.
NWS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.39% yearly.
EPS Next Y10.92%
EPS Next 2Y14.98%
EPS Next 3Y12.92%
EPS Next 5Y9.75%
Revenue Next Year1.06%
Revenue Next 2Y2.25%
Revenue Next 3Y2.52%
Revenue Next 5Y3.39%
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 32.30.
Compared to the rest of the industry, the Price/Earnings ratio of NWS is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.03, NWS is valued a bit more expensive.
NWS is valuated quite expensively with a Price/Forward Earnings ratio of 29.12.
NWS's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of NWS to the average of the S&P500 Index (22.27), we can say NWS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.3 | ||
| Fwd PE | 29.12 |
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 | 22.56 | ||
| EV/EBITDA | 11.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of NWS may justify a higher PE ratio.
NWS's earnings are expected to grow with 12.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.96
PEG (5Y)0.99
EPS Next 2Y14.98%
EPS Next 3Y12.92%
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 4.47.
Compared to an average S&P500 Dividend Yield of 2.38, 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 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
15.68% 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.
DP15.68%
EPS Next 2Y14.98%
EPS Next 3Y12.92%
29.07
-0.99 (-3.29%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners104.96%
Inst Owner Change0.78%
Ins Owners0.03%
Ins Owner Change-33331.1%
Market Cap16.40B
Revenue(TTM)8.93B
Net Income(TTM)1.18B
Analysts80
Price Target44 (51.36%)
Short Float %2.06%
Short Ratio5.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend0.33
Dividend Growth(5Y)3.91%
DP15.68%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.87%
Min EPS beat(2)0.69%
Max EPS beat(2)19.05%
EPS beat(4)4
Avg EPS beat(4)12.55%
Min EPS beat(4)0.69%
Max EPS beat(4)27.28%
EPS beat(8)8
Avg EPS beat(8)19.81%
EPS beat(12)10
Avg EPS beat(12)20.8%
EPS beat(16)14
Avg EPS beat(16)51.29%
Revenue beat(2)0
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)-1.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-2.91%
Max Revenue beat(4)0.36%
Revenue beat(8)2
Avg Revenue beat(8)-1.09%
Revenue beat(12)3
Avg Revenue beat(12)-1.44%
Revenue beat(16)6
Avg Revenue beat(16)-0.76%
PT rev (1m)6.51%
PT rev (3m)3.71%
EPS NQ rev (1m)-1.77%
EPS NQ rev (3m)-14.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.79%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.3 | ||
| Fwd PE | 29.12 | ||
| P/S | 1.84 | ||
| P/FCF | 22.56 | ||
| P/OCF | 14.46 | ||
| P/B | 1.87 | ||
| P/tB | 6.64 | ||
| EV/EBITDA | 11.54 |
EPS(TTM)0.9
EY3.1%
EPS(NY)1
Fwd EY3.43%
FCF(TTM)1.29
FCFY4.43%
OCF(TTM)2.01
OCFY6.91%
SpS15.83
BVpS15.55
TBVpS4.38
PEG (NY)2.96
PEG (5Y)0.99
Graham Number17.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 13.45% | ||
| ROCE | 7.54% | ||
| ROIC | 5.09% | ||
| ROICexc | 6.26% | ||
| ROICexgc | 15.67% | ||
| OM | 10.89% | ||
| PM (TTM) | 13.21% | ||
| GM | 54.7% | ||
| FCFM | 8.14% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)4.08%
ROIC(5y)4.01%
ROICexc(3y)4.85%
ROICexc(5y)4.74%
ROICexgc(3y)12.95%
ROICexgc(5y)12.84%
ROCE(3y)6.05%
ROCE(5y)5.94%
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 Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.7 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 88.67% | ||
| Cap/Sales | 4.56% | ||
| Interest Coverage | 10.46 | ||
| Cash Conversion | 79.19% | ||
| Profit Quality | 61.61% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 2.4 |
F-Score7
WACC7.97%
ROIC/WACC0.64
Cap/Depr(3y)79.9%
Cap/Depr(5y)73.92%
Cap/Sales(3y)4.73%
Cap/Sales(5y)4.63%
Profit Quality(3y)246.06%
Profit Quality(5y)226.42%
High Growth Momentum
Growth
EPS 1Y (TTM)28.57%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%11.76%
EPS Next Y10.92%
EPS Next 2Y14.98%
EPS Next 3Y12.92%
EPS Next 5Y9.75%
Revenue 1Y (TTM)-11.42%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-18.16%
Revenue Next Year1.06%
Revenue Next 2Y2.25%
Revenue Next 3Y2.52%
Revenue Next 5Y3.39%
EBIT growth 1Y24.9%
EBIT growth 3Y0.1%
EBIT growth 5Y20.59%
EBIT Next Year58.17%
EBIT Next 3Y23.88%
EBIT Next 5Y18.48%
FCF growth 1Y-1.89%
FCF growth 3Y-5.26%
FCF growth 5Y16.28%
OCF growth 1Y3.28%
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 2 / 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 32.3 and the Price/Book (PB) ratio is 1.87.
Can you provide the financial health for NWS stock?
The financial health rating of NEWS CORP - CLASS B (NWS) is 6 / 10.