NEWS CORP - CLASS B (NWS)
US65249B2088 - Common Stock
NWS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 92 industry peers in the Media industry. While NWS has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, NWS is valued expensive at the moment.
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.
NWS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NWS has a better Return On Assets (2.10%) than 67.03% of its industry peers.
NWS has a better Return On Equity (4.30%) than 69.23% of its industry peers.
NWS's Return On Invested Capital of 3.75% is in line compared to the rest of the industry. NWS outperforms 57.14% of its industry peers.
NWS had an Average Return On Invested Capital over the past 3 years of 3.62%. This is below the industry average of 7.61%.
The last Return On Invested Capital (3.75%) for NWS is above the 3 year average (3.62%), which is a sign of increasing profitability.
| 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
The Profit Margin of NWS (3.49%) is better than 63.74% of its industry peers.
In the last couple of years the Profit Margin of NWS has grown nicely.
Looking at the Operating Margin, with a value of 8.29%, NWS is in line with its industry, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Operating Margin of NWS has grown nicely.
With a decent Gross Margin value of 50.38%, NWS is doing good in the industry, outperforming 62.64% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
Compared to 1 year ago, NWS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.97 indicates that NWS is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 1.97, NWS is doing good in the industry, outperforming 68.13% of the companies in the same industry.
The Debt to FCF ratio of NWS is 3.87, which is a good value as it means it would take NWS, 3.87 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.87, NWS belongs to the best of the industry, outperforming 81.32% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that NWS is not too dependend on debt financing.
NWS has a Debt to Equity ratio of 0.33. This is in the better half of the industry: NWS outperforms 62.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.45
WACC8.26%
2.3 Liquidity
A Current Ratio of 1.38 indicates that NWS should not have too much problems paying its short term obligations.
NWS's Current ratio of 1.38 is in line compared to the rest of the industry. NWS outperforms 47.25% of its industry peers.
NWS has a Quick Ratio of 1.26. 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 Quick ratio (1.26) which is comparable to the rest of the industry.
| 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.
NWS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.76% yearly.
The Revenue has been growing slightly by 2.66% in the past year.
Measured over the past years, NWS shows a small growth in Revenue. The Revenue has been growing by 0.02% on average per year.
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
The Earnings Per Share is expected to grow by 18.87% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.26% on average over the next years.
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
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
A Price/Earnings ratio of 42.81 indicates a quite expensive valuation of NWS.
NWS's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.96, NWS is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 29.60, the valuation of NWS can be described as expensive.
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 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.81 | ||
| Fwd PE | 29.6 |
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 | 24.38 | ||
| EV/EBITDA | 12.17 |
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.
NWS's earnings are expected to grow with 19.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.7
PEG (5Y)4.89
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 3.98.
With a Dividend Yield of 0.69, NWS pays less dividend than the S&P500 average, which is at 2.23.
| 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
50.42% of the earnings are spent on dividend by NWS. 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 2Y24.49%
EPS Next 3Y19.85%
NEWS CORP - CLASS B
NASDAQ:NWS (11/21/2024, 8:00:02 PM)
After market: 32.11 0 (0%)32.11
+0.42 (+1.33%)
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 Cap18.28B
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)
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Min EPS beat(4)
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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 | 42.81 | ||
| Fwd PE | 29.6 | ||
| 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)1.7
PEG (5Y)4.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 4.3% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.29% | ||
| PM (TTM) | 3.49% | ||
| GM | 50.38% | ||
| 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 | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.26 | ||
| 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)2.66%
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