NEWS CORP - CLASS B (NWS) Stock Fundamental Analysis
NASDAQ:NWS - Nasdaq - US65249B2088 - Common Stock
Overall NWS gets a fundamental rating of 6 out of 10. We evaluated NWS against 92 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.
In the past year NWS had a positive cash flow from operations.
Of the past 5 years NWS 4 years were profitable.
In the past 5 years NWS always reported a positive cash flow from operatings.
1.2 Ratios
NWS has a better Return On Assets (2.10%) than 66.67% of its industry peers.
NWS has a Return On Equity of 4.30%. This is in the better half of the industry: NWS outperforms 68.97% of its industry peers.
NWS has a Return On Invested Capital (3.75%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for NWS is below the industry average of 6.90%.
The 3 year average ROIC (3.62%) for NWS is below the current ROIC(3.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 4.3% | ||
| ROIC | 3.75% |
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's Profit Margin of 3.49% is fine compared to the rest of the industry. NWS outperforms 64.37% of its industry peers.
NWS's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 8.29%, NWS perfoms like the industry average, outperforming 54.02% of the companies in the same industry.
In the last couple of years the Operating Margin of NWS has grown nicely.
The Gross Margin of NWS (50.38%) is better than 60.92% of its industry peers.
NWS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.29% | ||
| PM (TTM) | 3.49% | ||
| GM | 50.38% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NWS is destroying value.
NWS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, NWS has less shares outstanding
NWS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.92 indicates that NWS is not a great score, but indicates only limited risk for bankruptcy at the moment.
NWS's Altman-Z score of 1.92 is fine compared to the rest of the industry. NWS outperforms 73.56% of its industry peers.
NWS has a debt to FCF ratio of 3.87. This is a good value and a sign of high solvency as NWS would need 3.87 years to pay back of all of its debts.
The Debt to FCF ratio of NWS (3.87) is better than 80.46% of its industry peers.
NWS has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
NWS's Debt to Equity ratio of 0.33 is fine compared to the rest of the industry. NWS outperforms 64.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.45
WACC8.41%
2.3 Liquidity
A Current Ratio of 1.38 indicates that NWS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.38, NWS is in line with its industry, outperforming 47.13% of the companies in the same industry.
A Quick Ratio of 1.26 indicates that NWS should not have too much problems paying its short term obligations.
NWS has a Quick ratio (1.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
NWS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.51%, which is quite impressive.
The Earnings Per Share has been growing by 8.76% on average over the past years. This is quite good.
NWS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.66%.
The Revenue has been growing slightly by 0.02% on average over the past years.
EPS 1Y (TTM)41.51%
EPS 3Y1.47%
EPS 5Y8.76%
EPS Q2Q%31.25%
Revenue 1Y (TTM)2.66%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%1.64%
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.
The Revenue is expected to grow by 3.58% on average over the next years.
EPS Next Y27.35%
EPS Next 2Y22.98%
EPS Next 3Y17.38%
EPS Next 5Y14.66%
Revenue Next Year4.19%
Revenue Next 2Y3.81%
Revenue Next 3Y3.58%
Revenue Next 5Y3.58%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 41.25, which means the current valuation is very expensive for NWS.
Compared to the rest of the industry, the Price/Earnings ratio of NWS is on the same level as its industry peers.
NWS is valuated rather expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 29.22, the valuation of NWS can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as NWS.
NWS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.25 | ||
| Fwd PE | 29.22 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NWS.
NWS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.46 | ||
| EV/EBITDA | 11.73 |
4.3 Compensation for Growth
NWS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent 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 17.38% in the coming years.
PEG (NY)1.51
PEG (5Y)4.71
EPS Next 2Y22.98%
EPS Next 3Y17.38%
5. Dividend
5.1 Amount
With a yearly dividend of 0.73%, NWS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.46, NWS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, NWS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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.
As NWS did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)1.81%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
NWS pays out 50.42% 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.
DP50.42%
EPS Next 2Y22.98%
EPS Next 3Y17.38%
NEWS CORP - CLASS B
NASDAQ:NWS (1/21/2025, 8:17:58 PM)
After market: 30.94 0 (0%)30.94
+0.54 (+1.78%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners101.93%
Inst Owner Change-0.19%
Ins Owners0.07%
Ins Owner Change0%
Market Cap17.59B
Analysts82.86
Price Target40.79 (31.84%)
Short Float %0.96%
Short Ratio5.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend0.3
Dividend Growth(5Y)1.81%
DP50.42%
Div Incr Years0
Div Non Decr Years9
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.95%
Min EPS beat(2)6.61%
Max EPS beat(2)27.28%
EPS beat(4)4
Avg EPS beat(4)18.13%
Min EPS beat(4)4.45%
Max EPS beat(4)34.16%
EPS beat(8)7
Avg EPS beat(8)31.11%
EPS beat(12)10
Avg EPS beat(12)61.11%
EPS beat(16)14
Avg EPS beat(16)85.21%
Revenue beat(2)1
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)1.58%
Revenue beat(4)1
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)1.58%
Revenue beat(8)2
Avg Revenue beat(8)-1.47%
Revenue beat(12)4
Avg Revenue beat(12)-1.13%
Revenue beat(16)8
Avg Revenue beat(16)0.58%
PT rev (1m)1.99%
PT rev (3m)13.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.59%
EPS NY rev (1m)0%
EPS NY rev (3m)2.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.25 | ||
| Fwd PE | 29.22 | ||
| P/S | 1.73 | ||
| P/FCF | 23.46 | ||
| P/OCF | 14.46 | ||
| P/B | 2.13 | ||
| P/tB | 26.22 | ||
| EV/EBITDA | 11.73 |
EPS(TTM)0.75
EY2.42%
EPS(NY)1.06
Fwd EY3.42%
FCF(TTM)1.32
FCFY4.26%
OCF(TTM)2.14
OCFY6.92%
SpS17.87
BVpS14.51
TBVpS1.18
PEG (NY)1.51
PEG (5Y)4.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 4.3% | ||
| ROCE | 6.17% | ||
| ROIC | 3.75% | ||
| ROICexc | 4.31% | ||
| ROICexgc | 11.92% | ||
| OM | 8.29% | ||
| PM (TTM) | 3.49% | ||
| GM | 50.38% | ||
| FCFM | 7.38% |
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-Score8
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.87 | ||
| Debt/EBITDA | 1.7 | ||
| Cap/Depr | 62.1% | ||
| Cap/Sales | 4.6% | ||
| Interest Coverage | 4.76 | ||
| Cash Conversion | 76.3% | ||
| Profit Quality | 211.27% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 1.92 |
F-Score8
WACC8.41%
ROIC/WACC0.45
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)41.51%
EPS 3Y1.47%
EPS 5Y8.76%
EPS Q2Q%31.25%
EPS Next Y27.35%
EPS Next 2Y22.98%
EPS Next 3Y17.38%
EPS Next 5Y14.66%
Revenue 1Y (TTM)2.66%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%1.64%
Revenue Next Year4.19%
Revenue Next 2Y3.81%
Revenue Next 3Y3.58%
Revenue Next 5Y3.58%
EBIT growth 1Y15.32%
EBIT growth 3Y7.85%
EBIT growth 5Y5.33%
EBIT Next Year108.7%
EBIT Next 3Y33.14%
EBIT Next 5Y27.31%
FCF growth 1Y-0.66%
FCF growth 3Y-10.76%
FCF growth 5Y11.08%
OCF growth 1Y-3.03%
OCF growth 3Y-3.9%
OCF growth 5Y3.42%