NEWS CORP - CLASS B (NWS) Fundamental Analysis & Valuation

NASDAQ:NWS • US65249B2088

Current stock price

28.51 USD
+0.19 (+0.67%)
At close:
28.66 USD
+0.15 (+0.53%)
After Hours:

This NWS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. NWS Profitability Analysis

1.1 Basic Checks

  • In the past year NWS was profitable.
  • NWS had a positive operating cash flow in the past year.
  • Each year in the past 5 years NWS has been profitable.
  • NWS had a positive operating cash flow in each of the past 5 years.
NWS Yearly Net Income VS EBIT VS OCF VS FCFNWS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B -1B -1.5B

1.2 Ratios

  • With an excellent Return On Assets value of 7.42%, NWS belongs to the best of the industry, outperforming 91.21% of the companies in the same industry.
  • With an excellent Return On Equity value of 13.09%, NWS belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
  • NWS has a better Return On Invested Capital (5.26%) than 71.43% of its industry peers.
  • NWS had an Average Return On Invested Capital over the past 3 years of 4.08%. This is below the industry average of 6.74%.
  • The 3 year average ROIC (4.08%) for NWS is below the current ROIC(5.26%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.42%
ROE 13.09%
ROIC 5.26%
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)4.08%
ROIC(5y)4.01%
NWS Yearly ROA, ROE, ROICNWS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10

1.3 Margins

  • With an excellent Profit Margin value of 13.35%, NWS belongs to the best of the industry, outperforming 94.51% of the companies in the same industry.
  • In the last couple of years the Profit Margin of NWS has grown nicely.
  • NWS has a Operating Margin of 11.75%. This is in the better half of the industry: NWS outperforms 73.63% of its industry peers.
  • In the last couple of years the Operating Margin of NWS has grown nicely.
  • Looking at the Gross Margin, with a value of 56.28%, NWS is in the better half of the industry, outperforming 70.33% of the companies in the same industry.
  • In the last couple of years the Gross Margin of NWS has grown nicely.
Industry RankSector Rank
OM 11.75%
PM (TTM) 13.35%
GM 56.28%
OM growth 3Y7.22%
OM growth 5Y22.14%
PM growth 3Y32.52%
PM growth 5YN/A
GM growth 3Y3.2%
GM growth 5Y4.45%
NWS Yearly Profit, Operating, Gross MarginsNWS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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7

2. NWS Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
  • NWS has a better debt/assets ratio than last year.
NWS Yearly Shares OutstandingNWS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
NWS Yearly Total Debt VS Total AssetsNWS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • NWS has an Altman-Z score of 2.29. 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 better Altman-Z score (2.29) than 76.92% of its industry peers.
  • NWS has a debt to FCF ratio of 3.02. This is a good value and a sign of high solvency as NWS would need 3.02 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 3.02, NWS belongs to the top of the industry, outperforming 83.52% 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.
  • NWS has a Debt to Equity ratio (0.22) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF 3.02
Altman-Z 2.29
ROIC/WACC0.65
WACC8.14%
NWS Yearly LT Debt VS Equity VS FCFNWS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • NWS has a Current Ratio of 1.81. 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 better Current ratio (1.81) than 70.33% of its industry peers.
  • NWS has a Quick Ratio of 1.69. 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 better Quick ratio (1.69) than 70.33% of its industry peers.
Industry RankSector Rank
Current Ratio 1.81
Quick Ratio 1.69
NWS Yearly Current Assets VS Current LiabilitesNWS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. NWS Growth Analysis

3.1 Past

  • NWS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.51%, which is quite good.
  • NWS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.55% yearly.
  • Looking at the last year, NWS shows a very negative growth in Revenue. The Revenue has decreased by -12.13% in the last year.
  • The Revenue has been decreasing by -1.27% on average over the past years.
EPS 1Y (TTM)19.51%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%21.21%
Revenue 1Y (TTM)-12.13%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%6.16%

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 8.39% yearly.
  • The Revenue is expected to grow by 3.24% on average over the next years.
EPS Next Y22.2%
EPS Next 2Y15.34%
EPS Next 3Y13.64%
EPS Next 5Y8.39%
Revenue Next Year2.46%
Revenue Next 2Y2.85%
Revenue Next 3Y3.26%
Revenue Next 5Y3.24%

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.
NWS Yearly Revenue VS EstimatesNWS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B 10B
NWS Yearly EPS VS EstimatesNWS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.2 0.4 0.6 0.8 1

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5

4. NWS Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 29.09 indicates a quite expensive valuation of NWS.
  • Based on the Price/Earnings ratio, NWS is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of NWS to the average of the S&P500 Index (25.35), we can say NWS is valued inline with the index average.
  • A Price/Forward Earnings ratio of 23.81 indicates a rather expensive valuation of 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 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.61, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 29.09
Fwd PE 23.81
NWS Price Earnings VS Forward Price EarningsNWS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, NWS is valued a bit cheaper than 60.44% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, NWS is valued a bit cheaper than 60.44% of the companies in the same industry.
Industry RankSector Rank
P/FCF 24.51
EV/EBITDA 10.55
NWS Per share dataNWS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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 an outstanding profitability rating, which may justify a higher PE ratio.
  • NWS's earnings are expected to grow with 13.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.31
PEG (5Y)0.89
EPS Next 2Y15.34%
EPS Next 3Y13.64%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. NWS Dividend Analysis

5.1 Amount

  • NWS has a yearly dividend return of 0.82%, which is pretty low.
  • Compared to an average industry Dividend Yield of 1.19, NWS pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, NWS's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.82%

5.2 History

  • The dividend of NWS has a limited annual growth rate of 3.91%.
  • NWS has been paying a dividend for at least 10 years, so it has 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
NWS Yearly Dividends per shareNWS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.05 0.1 0.15

5.3 Sustainability

  • NWS pays out 17.12% 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.
DP17.12%
EPS Next 2Y15.34%
EPS Next 3Y13.64%
NWS Yearly Income VS Free CF VS DividendNWS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B -1B -1.5B
NWS Dividend Payout.NWS Dividend Payout, showing the Payout Ratio.NWS Dividend Payout.PayoutRetained Earnings

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NWS Fundamentals: All Metrics, Ratios and Statistics

NEWS CORP - CLASS B

NASDAQ:NWS (3/31/2026, 8:00:01 PM)

After market: 28.66 +0.15 (+0.53%)

28.51

+0.19 (+0.67%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)02-05
Earnings (Next)05-06
Inst Owners106.65%
Inst Owner Change-0.52%
Ins Owners0.03%
Ins Owner Change3.71%
Market Cap15.83B
Revenue(TTM)8.62B
Net Income(TTM)1.15B
Analysts84
Price Target38.68 (35.67%)
Short Float %1.97%
Short Ratio4.61
Dividend
Industry RankSector Rank
Dividend Yield 0.82%
Yearly Dividend0.33
Dividend Growth(5Y)3.91%
DP17.12%
Div Incr Years0
Div Non Decr Years9
Ex-Date03-11
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.58%
Min EPS beat(2)14.2%
Max EPS beat(2)16.97%
EPS beat(4)4
Avg EPS beat(4)12.73%
Min EPS beat(4)0.69%
Max EPS beat(4)19.05%
EPS beat(8)8
Avg EPS beat(8)11.55%
EPS beat(12)12
Avg EPS beat(12)27.43%
EPS beat(16)14
Avg EPS beat(16)46.69%
Revenue beat(2)1
Avg Revenue beat(2)0.47%
Min Revenue beat(2)0%
Max Revenue beat(2)0.94%
Revenue beat(4)1
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)0.94%
Revenue beat(8)3
Avg Revenue beat(8)-0.8%
Revenue beat(12)4
Avg Revenue beat(12)-0.89%
Revenue beat(16)5
Avg Revenue beat(16)-1.06%
PT rev (1m)0%
PT rev (3m)-6.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.5%
EPS NY rev (1m)13.06%
EPS NY rev (3m)13.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.88%
Valuation
Industry RankSector Rank
PE 29.09
Fwd PE 23.81
P/S 1.84
P/FCF 24.51
P/OCF 14.72
P/B 1.8
P/tB 6.59
EV/EBITDA 10.55
EPS(TTM)0.98
EY3.44%
EPS(NY)1.2
Fwd EY4.2%
FCF(TTM)1.16
FCFY4.08%
OCF(TTM)1.94
OCFY6.8%
SpS15.53
BVpS15.83
TBVpS4.32
PEG (NY)1.31
PEG (5Y)0.89
Graham Number18.68
Profitability
Industry RankSector Rank
ROA 7.42%
ROE 13.09%
ROCE 7.8%
ROIC 5.26%
ROICexc 6.25%
ROICexgc 15.04%
OM 11.75%
PM (TTM) 13.35%
GM 56.28%
FCFM 7.49%
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-Score6
Asset Turnover0.56
Health
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF 3.02
Debt/EBITDA 1.3
Cap/Depr 91.68%
Cap/Sales 4.99%
Interest Coverage 10.23
Cash Conversion 72.6%
Profit Quality 56.13%
Current Ratio 1.81
Quick Ratio 1.69
Altman-Z 2.29
F-Score6
WACC8.14%
ROIC/WACC0.65
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)19.51%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%21.21%
EPS Next Y22.2%
EPS Next 2Y15.34%
EPS Next 3Y13.64%
EPS Next 5Y8.39%
Revenue 1Y (TTM)-12.13%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%6.16%
Revenue Next Year2.46%
Revenue Next 2Y2.85%
Revenue Next 3Y3.26%
Revenue Next 5Y3.24%
EBIT growth 1Y12.68%
EBIT growth 3Y0.1%
EBIT growth 5Y20.59%
EBIT Next Year61%
EBIT Next 3Y23.61%
EBIT Next 5Y12.7%
FCF growth 1Y-10.03%
FCF growth 3Y-5.26%
FCF growth 5Y16.28%
OCF growth 1Y-12.94%
OCF growth 3Y-5.74%
OCF growth 5Y7.77%

NEWS CORP - CLASS B / NWS Fundamental Analysis FAQ

What is the ChartMill fundamental rating of NEWS CORP - CLASS B (NWS) stock?

ChartMill assigns a fundamental rating of 6 / 10 to NWS.


Can you provide the valuation status for NEWS CORP - CLASS B?

ChartMill assigns a valuation rating of 5 / 10 to NEWS CORP - CLASS B (NWS). This can be considered as Fairly Valued.


How profitable is NEWS CORP - CLASS B (NWS) stock?

NEWS CORP - CLASS B (NWS) has a profitability rating of 8 / 10.


How financially healthy is NEWS CORP - CLASS B?

The financial health rating of NEWS CORP - CLASS B (NWS) is 7 / 10.


Is the dividend of NEWS CORP - CLASS B sustainable?

The dividend rating of NEWS CORP - CLASS B (NWS) is 5 / 10 and the dividend payout ratio is 17.12%.