NEWS CORP - CLASS B (NWS) Stock Fundamental Analysis
USA - NASDAQ:NWS - US65249B2088 - Common Stock
29.55 USD
+0.27 (+0.92%)
29.44 USD
-0.11 (-0.37%)
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. 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.
In the past year NWS had a positive cash flow from operations.
In the past 5 years NWS has always been profitable.
In the past 5 years NWS always reported a positive cash flow from operatings.
1.2 Ratios
NWS's Return On Assets of 7.61% is amongst the best of the industry. NWS outperforms 88.42% of its industry peers.
NWS's Return On Equity of 13.45% is amongst the best of the industry. NWS outperforms 81.05% of its industry peers.
The Return On Invested Capital of NWS (5.09%) is better than 62.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NWS is below the industry average of 8.50%.
The last Return On Invested Capital (5.09%) for NWS is above the 3 year average (4.08%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 13.21%, NWS belongs to the best of the industry, outperforming 85.26% of the companies in the same industry.
In the last couple of years the Profit Margin of NWS has grown nicely.
The Operating Margin of NWS (10.89%) is better than 62.11% of its industry peers.
NWS's Operating Margin has improved in the last couple of years.
NWS has a better Gross Margin (54.70%) than 63.16% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NWS is destroying value.
Compared to 1 year ago, NWS has less shares outstanding
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
NWS has an Altman-Z score of 2.37. 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 (2.37) is better than 74.74% of its industry peers.
The Debt to FCF ratio of NWS is 2.70, which is a good value as it means it would take NWS, 2.70 years of fcf income to pay off all of its debts.
NWS has a better Debt to FCF ratio (2.70) than 78.95% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that NWS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.22, NWS is in the better half of the industry, outperforming 64.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.7 | ||
| Altman-Z | 2.37 |
ROIC/WACC0.64
WACC7.91%
2.3 Liquidity
A Current Ratio of 1.84 indicates that NWS should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.84, NWS is doing good in the industry, outperforming 70.53% of the companies in the same industry.
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.
With a decent Quick ratio value of 1.72, NWS is doing good in the industry, outperforming 70.53% of the companies in the same industry.
| 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.
NWS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.27% yearly.
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
Based on estimates for the next years, NWS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.75% on average per year.
The Revenue is expected to grow by 3.39% on average over the next years.
EPS Next Y10.92%
EPS Next 2Y15.19%
EPS Next 3Y12.62%
EPS Next 5Y9.75%
Revenue Next Year1.11%
Revenue Next 2Y2.28%
Revenue Next 3Y2.71%
Revenue Next 5Y3.39%
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
Based on the Price/Earnings ratio of 32.83, the valuation of NWS can be described as expensive.
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 27.34, NWS is valued a bit more expensive.
The Price/Forward Earnings ratio is 29.60, which means the current valuation is very expensive for NWS.
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 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.83 | ||
| Fwd PE | 29.6 |
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 | 22.96 | ||
| EV/EBITDA | 11.35 |
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.
A more expensive valuation may be justified as NWS's earnings are expected to grow with 12.62% in the coming years.
PEG (NY)3.01
PEG (5Y)1.01
EPS Next 2Y15.19%
EPS Next 3Y12.62%
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 4.36.
Compared to an average S&P500 Dividend Yield of 2.44, 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.
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
15.68% 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.
DP15.68%
EPS Next 2Y15.19%
EPS Next 3Y12.62%
29.55
+0.27 (+0.92%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners104.96%
Inst Owner Change0.71%
Ins Owners0.03%
Ins Owner Change-33331.1%
Market Cap16.69B
Analysts80
Price Target41.74 (41.25%)
Short Float %1.8%
Short Ratio5.6
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)-3.79%
PT rev (3m)-1.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.92%
EPS NY rev (1m)0.54%
EPS NY rev (3m)-4.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.83 | ||
| Fwd PE | 29.6 | ||
| P/S | 1.87 | ||
| P/FCF | 22.96 | ||
| P/OCF | 14.72 | ||
| P/B | 1.9 | ||
| P/tB | 6.76 | ||
| EV/EBITDA | 11.35 |
EPS(TTM)0.9
EY3.05%
EPS(NY)1
Fwd EY3.38%
FCF(TTM)1.29
FCFY4.35%
OCF(TTM)2.01
OCFY6.79%
SpS15.81
BVpS15.53
TBVpS4.37
PEG (NY)3.01
PEG (5Y)1.01
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%
ROICexcg growth 3Y-1.1%
ROICexcg 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 | 2.37 |
F-Score7
WACC7.91%
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 2Y15.19%
EPS Next 3Y12.62%
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 Year1.11%
Revenue Next 2Y2.28%
Revenue Next 3Y2.71%
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%