29.63 USD
-0.29 (-0.97%)
29.7094 USD
+0.08 (+0.27%)
Overall NWS gets a fundamental rating of 6 out of 10. We evaluated NWS against 95 industry peers in the Media industry. NWS gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
Each year in the past 5 years NWS had a positive operating cash flow.
1.2 Ratios
NWS has a better Return On Assets (7.65%) than 88.42% of its industry peers.
Looking at the Return On Equity, with a value of 13.48%, NWS belongs to the top of the industry, outperforming 81.05% of the companies in the same industry.
NWS's Return On Invested Capital of 4.28% is fine compared to the rest of the industry. NWS outperforms 63.16% of its industry peers.
NWS had an Average Return On Invested Capital over the past 3 years of 3.11%. This is below the industry average of 6.88%.
The last Return On Invested Capital (4.28%) for NWS is above the 3 year average (3.11%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 18.07%, NWS belongs to the best of the industry, outperforming 91.58% of the companies in the same industry.
NWS's Profit Margin has improved in the last couple of years.
NWS has a better Operating Margin (12.51%) than 74.74% of its industry peers.
NWS's Operating Margin has improved in the last couple of years.
NWS has a Gross Margin of 73.56%. This is amongst the best in the industry. NWS outperforms 86.32% of its industry peers.
In the last couple of years the Gross Margin of NWS has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NWS is destroying value.
Compared to 1 year ago, NWS has less shares outstanding
The number of shares outstanding for NWS has been reduced compared to 5 years ago.
NWS has a better debt/assets ratio than last year.
2.2 Solvency
NWS has an Altman-Z score of 2.19. 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.
NWS's Altman-Z score of 2.19 is fine compared to the rest of the industry. NWS outperforms 74.74% of its industry peers.
NWS has a debt to FCF ratio of 2.66. This is a good value and a sign of high solvency as NWS would need 2.66 years to pay back of all of its debts.
NWS has a Debt to FCF ratio of 2.66. This is amongst the best in the industry. NWS outperforms 81.05% of its industry peers.
NWS has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
NWS has a Debt to Equity ratio of 0.22. This is in the better half of the industry: NWS outperforms 66.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.53
WACC8.02%
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 70.53% of the companies in the same industry.
A Quick Ratio of 1.63 indicates that NWS should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.63, NWS is doing good in the industry, outperforming 69.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
NWS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.33%, which is quite impressive.
NWS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.55% yearly.
NWS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -36.13%.
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.
Based on estimates for the next years, NWS will show a small growth in Revenue. The Revenue will grow by 3.32% on average per year.
EPS Next Y8.08%
EPS Next 2Y14.08%
EPS Next 3Y13.13%
EPS Next 5Y9.37%
Revenue Next Year1.57%
Revenue Next 2Y2.43%
Revenue Next 3Y2.71%
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 32.56, which means the current valuation is very expensive for NWS.
62.11% of the companies in the same industry are more expensive than NWS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.51. NWS is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 25.30, which means the current valuation is very expensive for NWS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWS is on the same level as its industry peers.
NWS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.56 | ||
| Fwd PE | 25.3 |
4.2 Price Multiples
NWS's Enterprise Value to EBITDA is on the same level as the industry average.
NWS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.61 | ||
| EV/EBITDA | 12.85 |
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 13.13% in the coming years.
PEG (NY)4.03
PEG (5Y)1
EPS Next 2Y14.08%
EPS Next 3Y13.13%
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 1.22.
With a Dividend Yield of 0.76, NWS pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
The dividend of NWS has a limited annual growth rate of 3.92%.
NWS has been paying a dividend for at least 10 years, so it has 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)3.92%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
NWS pays out 16.79% of its income as dividend. This is a sustainable payout ratio.
NWS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.79%
EPS Next 2Y14.08%
EPS Next 3Y13.13%
29.63
-0.29 (-0.97%)
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 Cap16.64B
Revenue(TTM)6.49B
Net Income(TTM)1.17B
Analysts81.33
Price Target41.54 (40.2%)
Short Float %2.03%
Short Ratio8.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend0.33
Dividend Growth(5Y)3.92%
DP16.79%
Div Incr Years0
Div Non Decr Years9
Ex-DateN/A
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)0.68%
PT rev (3m)0.55%
EPS NQ rev (1m)2.58%
EPS NQ rev (3m)-4.21%
EPS NY rev (1m)-2.56%
EPS NY rev (3m)-2.56%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.56 | ||
| Fwd PE | 25.3 | ||
| P/S | 2.56 | ||
| P/FCF | 22.61 | ||
| P/OCF | 14.48 | ||
| P/B | 1.91 | ||
| P/tB | 6.97 | ||
| EV/EBITDA | 12.85 |
EPS(TTM)0.91
EY3.07%
EPS(NY)1.17
Fwd EY3.95%
FCF(TTM)1.31
FCFY4.42%
OCF(TTM)2.05
OCFY6.91%
SpS11.56
BVpS15.5
TBVpS4.25
PEG (NY)4.03
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 | 11.34% |
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 | 2.66 | ||
| Debt/EBITDA | 1.51 | ||
| Cap/Depr | 89.01% | ||
| Cap/Sales | 6.36% | ||
| Interest Coverage | 8.29 | ||
| Cash Conversion | 90.05% | ||
| Profit Quality | 62.75% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 2.19 |
F-Score7
WACC8.02%
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 Y8.08%
EPS Next 2Y14.08%
EPS Next 3Y13.13%
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 Year1.57%
Revenue Next 2Y2.43%
Revenue Next 3Y2.71%
Revenue Next 5Y3.32%
EBIT growth 1Y-4.36%
EBIT growth 3Y0.1%
EBIT growth 5Y20.59%
EBIT Next Year57.36%
EBIT Next 3Y22.21%
EBIT Next 5Y15.45%
FCF growth 1Y34.06%
FCF growth 3Y-5.26%
FCF growth 5Y16.28%
OCF growth 1Y7.58%
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 for 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 are the PE and PB ratios of NEWS CORP - CLASS B (NWS) stock?
The Price/Earnings (PE) ratio for NEWS CORP - CLASS B (NWS) is 32.56 and the Price/Book (PB) ratio is 1.91.
How sustainable is the dividend of NEWS CORP - CLASS B (NWS) stock?
The dividend rating of NEWS CORP - CLASS B (NWS) is 5 / 10 and the dividend payout ratio is 16.79%.