NEWS CORP - CLASS B (NWS)
US65249B2088 - Common Stock
Overall NWS gets a fundamental rating of 5 out of 10. We evaluated NWS against 92 industry peers in the Media industry. Both the profitability and the financial health of NWS get a neutral evaluation. Nothing too spectacular is happening here. 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.
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
With a decent Return On Assets value of 1.59%, NWS is doing good in the industry, outperforming 64.84% of the companies in the same industry.
NWS has a Return On Equity of 3.28%. This is in the better half of the industry: NWS outperforms 62.64% of its industry peers.
NWS's Return On Invested Capital of 3.47% is in line compared to the rest of the industry. NWS outperforms 50.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NWS is below the industry average of 7.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 3.28% | ||
| ROIC | 3.47% |
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 better Profit Margin (2.64%) than 64.84% of its industry peers.
NWS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.72%, NWS is in line with its industry, outperforming 54.95% of the companies in the same industry.
In the last couple of years the Operating Margin of NWS has grown nicely.
NWS has a better Gross Margin (49.90%) than 61.54% of its industry peers.
NWS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.72% | ||
| PM (TTM) | 2.64% | ||
| GM | 49.9% |
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.
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.
Compared to 1 year ago, NWS has an improved debt to assets ratio.
2.2 Solvency
NWS has an Altman-Z score of 1.94. 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 has a Altman-Z score of 1.94. This is in the better half of the industry: NWS outperforms 67.03% of its industry peers.
NWS has a debt to FCF ratio of 4.83. This is a neutral value as NWS would need 4.83 years to pay back of all of its debts.
The Debt to FCF ratio of NWS (4.83) is better than 75.82% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that NWS is not too dependend on debt financing.
NWS's Debt to Equity ratio of 0.35 is fine compared to the rest of the industry. NWS outperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.42
WACC8.25%
2.3 Liquidity
NWS has a Current Ratio of 1.43. 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 Current ratio of 1.43. This is comparable to the rest of the industry: NWS outperforms 43.96% of its industry peers.
NWS has a Quick Ratio of 1.33. 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 worse Quick ratio (1.33) than 62.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.33 |
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.
Measured over the past years, NWS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.76% on average per year.
The Revenue has been growing slightly by 2.09% in the past year.
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)2.09%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%1.64%
3.2 Future
The Earnings Per Share is expected to grow by 18.87% 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 2.26% on average per year.
EPS Next Y25.2%
EPS Next 2Y24.49%
EPS Next 3Y19.85%
EPS Next 5Y18.87%
Revenue Next Year4.22%
Revenue Next 2Y3.88%
Revenue Next 3Y3.65%
Revenue Next 5Y2.26%
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 accelerating.
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 41.76, the valuation of NWS can be described as expensive.
NWS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.94. NWS is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 28.87, NWS can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as NWS.
NWS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.76 | ||
| Fwd PE | 28.87 |
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.
NWS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.62 | ||
| EV/EBITDA | 12.41 |
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 19.85% in the coming years.
PEG (NY)1.66
PEG (5Y)4.77
EPS Next 2Y24.49%
EPS Next 3Y19.85%
5. Dividend
5.1 Amount
NWS has a yearly dividend return of 0.69%, which is pretty low.
NWS's Dividend Yield is a higher than the industry average which is at 3.95.
Compared to an average S&P500 Dividend Yield of 2.23, NWS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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
64.66% of the earnings are spent on dividend by NWS. This is not a sustainable payout ratio.
NWS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP64.66%
EPS Next 2Y24.49%
EPS Next 3Y19.85%
NEWS CORP - CLASS B
NASDAQ:NWS (11/7/2024, 8:00:02 PM)
After market: 32 +0.68 (+2.17%)31.32
+0.34 (+1.1%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap17.83B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.76 | ||
| Fwd PE | 28.87 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.66
PEG (5Y)4.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 3.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.72% | ||
| PM (TTM) | 2.64% | ||
| GM | 49.9% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)41.51%
EPS 3Y1.47%
EPS 5Y
EPS Q2Q%
EPS Next Y25.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.09%
Revenue growth 3Y2.53%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y