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. NWS scores excellent on profitability, but there are some minor concerns on its financial health. NWS is valied quite expensively at the moment, while 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
The Return On Assets of NWS (2.10%) is better than 67.03% of its industry peers.
Looking at the Return On Equity, with a value of 4.30%, NWS is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
The Return On Invested Capital of NWS (3.75%) is comparable to the rest of the industry.
NWS had an Average Return On Invested Capital over the past 3 years of 3.62%. This is below the industry average of 6.95%.
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
NWS's Profit Margin of 3.49% is fine compared to the rest of the industry. NWS outperforms 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 8.29%, NWS is in line with its industry, outperforming 56.04% 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 (50.38%) than 62.64% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NWS is destroying value.
Compared to 1 year ago, NWS has less shares outstanding
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 1.91 indicates that NWS is not a great score, but indicates only limited risk for bankruptcy at the moment.
NWS's Altman-Z score of 1.91 is fine compared to the rest of the industry. NWS outperforms 71.43% of its industry peers.
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.
The Debt to FCF ratio of NWS (3.87) is better than 81.32% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that NWS is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.33, NWS is doing good in the industry, outperforming 62.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.45
WACC8.37%
2.3 Liquidity
NWS has a Current Ratio of 1.38. This is a normal value and indicates that NWS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.38, NWS perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
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.
With a Quick ratio value of 1.26, NWS perfoms like the industry average, outperforming 40.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.51% over the past year.
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.
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
The Earnings Per Share is expected to grow by 14.66% on average over the next years. This is quite good.
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 Year3.96%
Revenue Next 2Y3.54%
Revenue Next 3Y3.15%
Revenue Next 5Y3.58%
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 40.93, the valuation of NWS can be described as expensive.
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 27.73, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 29.00, the valuation of NWS can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as NWS.
The average S&P500 Price/Forward Earnings ratio is at 22.83. NWS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.93 | ||
| Fwd PE | 29 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NWS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.28 | ||
| EV/EBITDA | 11.65 |
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)1.5
PEG (5Y)4.67
EPS Next 2Y22.98%
EPS Next 3Y17.38%
5. Dividend
5.1 Amount
NWS has a yearly dividend return of 0.72%, which is pretty low.
NWS's Dividend Yield is a higher than the industry average which is at 4.38.
With a Dividend Yield of 0.72, NWS pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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 (12/20/2024, 8:00:01 PM)
After market: 30.703 +0 (+0.01%)30.7
+0.24 (+0.79%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners101.93%
Inst Owner Change0.18%
Ins Owners0.07%
Ins Owner Change0%
Market Cap17.46B
Analysts82.86
Price Target39.99 (30.26%)
Short Float %0.97%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Dividend Growth(5Y)1.81%
DP50.42%
Div Incr Years0
Div Non Decr Years9
Ex-Date
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)9.89%
PT rev (3m)12.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.59%
EPS NY rev (1m)1.72%
EPS NY rev (3m)2.64%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.93 | ||
| Fwd PE | 29 | ||
| P/S | 1.72 | ||
| P/FCF | 23.28 | ||
| P/OCF | 14.35 | ||
| P/B | 2.12 | ||
| P/tB | 26.02 | ||
| EV/EBITDA | 11.65 |
EPS(TTM)0.75
EY2.44%
EPS(NY)1.06
Fwd EY3.45%
FCF(TTM)1.32
FCFY4.3%
OCF(TTM)2.14
OCFY6.97%
SpS17.87
BVpS14.51
TBVpS1.18
PEG (NY)1.5
PEG (5Y)4.67
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 | 1.91 |
F-Score8
WACC8.37%
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 Year3.96%
Revenue Next 2Y3.54%
Revenue Next 3Y3.15%
Revenue Next 5Y3.58%
EBIT growth 1Y15.32%
EBIT growth 3Y7.85%
EBIT growth 5Y5.33%
EBIT Next Year111.37%
EBIT Next 3Y34.22%
EBIT Next 5Y25.27%
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%