NEWS CORP - CLASS B (NWS) Stock Fundamental Analysis
USA - NASDAQ:NWS - US65249B2088 - Common Stock
32.27 USD
0 (0%)
32.6 USD
+0.33 (+1.02%)
We assign a fundamental rating of 6 out of 10 to NWS. NWS was compared to 99 industry peers in the Media industry. Both the health and profitability get an excellent rating, making NWS a very profitable company, without any liquidiy or solvency issues. NWS is quite expensive at the moment. It does show a decent growth rate. With these ratings, NWS could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
NWS had positive earnings in the past year.
In the past year NWS had a positive cash flow from operations.
Each year in the past 5 years NWS has been profitable.
Each year in the past 5 years NWS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.61%, NWS belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
NWS has a better Return On Equity (13.45%) than 80.81% of its industry peers.
NWS has a Return On Invested Capital of 5.09%. This is in the better half of the industry: NWS outperforms 62.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NWS is below the industry average of 8.87%.
The last Return On Invested Capital (5.09%) for NWS is above the 3 year average (4.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 13.45% | ||
| ROIC | 5.09% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)4.08%
ROIC(5y)4.01%
1.3 Margins
NWS has a better Profit Margin (13.21%) than 83.84% 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 10.89%, NWS is in the better half of the industry, outperforming 61.62% of the companies in the same industry.
In the last couple of years the Operating Margin of NWS has grown nicely.
The Gross Margin of NWS (54.70%) is better than 62.63% of its industry peers.
NWS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.89% | ||
| PM (TTM) | 13.21% | ||
| GM | 54.7% |
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
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.
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
An Altman-Z score of 2.51 indicates that NWS is not a great score, but indicates only limited risk for bankruptcy at the moment.
NWS has a Altman-Z score of 2.51. This is in the better half of the industry: NWS outperforms 75.76% of its industry peers.
NWS has a debt to FCF ratio of 2.70. This is a good value and a sign of high solvency as NWS would need 2.70 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.70, NWS belongs to the top of the industry, outperforming 80.81% 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's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. NWS outperforms 62.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.7 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.64
WACC7.98%
2.3 Liquidity
A Current Ratio of 1.84 indicates that NWS should not have too much problems paying its short term obligations.
NWS has a Current ratio of 1.84. This is in the better half of the industry: NWS outperforms 69.70% of its industry peers.
NWS has a Quick Ratio of 1.72. This is a normal value and indicates that NWS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NWS (1.72) is better than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.57% over the past year.
NWS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.55% yearly.
The Revenue for NWS has decreased by -11.42% in the past year. This is quite bad
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)28.57%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%11.76%
Revenue 1Y (TTM)-11.42%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-18.16%
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 10.37% yearly.
The Revenue is expected to grow by 3.39% on average over the next years.
EPS Next Y10.33%
EPS Next 2Y15.77%
EPS Next 3Y11.86%
EPS Next 5Y10.37%
Revenue Next Year1.15%
Revenue Next 2Y2.33%
Revenue Next 3Y2.54%
Revenue Next 5Y3.39%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
A Price/Earnings ratio of 35.86 indicates a quite expensive valuation of NWS.
NWS's Price/Earnings ratio is a bit cheaper when compared to the industry. NWS is cheaper than 60.61% of the companies in the same industry.
NWS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 32.50, which means the current valuation is very expensive for NWS.
The rest of the industry has a similar Price/Forward Earnings ratio as NWS.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, NWS is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.86 | ||
| Fwd PE | 32.5 |
4.2 Price Multiples
NWS's Enterprise Value to EBITDA ratio is in line with the industry average.
NWS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.08 | ||
| EV/EBITDA | 12.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NWS does not grow enough to justify the current Price/Earnings ratio.
NWS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.47
PEG (5Y)1.1
EPS Next 2Y15.77%
EPS Next 3Y11.86%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, NWS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.70, NWS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, NWS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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.
As NWS did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)3.91%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
NWS pays out 15.68% of its income as dividend. This is a sustainable payout ratio.
The dividend of NWS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP15.68%
EPS Next 2Y15.77%
EPS Next 3Y11.86%
32.27
0 (0%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners103.92%
Inst Owner Change-4.53%
Ins Owners0.03%
Ins Owner Change1.76%
Market Cap18.23B
Analysts80
Price Target41.31 (28.01%)
Short Float %1.84%
Short Ratio9.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend0.33
Dividend Growth(5Y)3.91%
DP15.68%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.87%
Min EPS beat(2)0.69%
Max EPS beat(2)19.05%
EPS beat(4)4
Avg EPS beat(4)12.55%
Min EPS beat(4)0.69%
Max EPS beat(4)27.28%
EPS beat(8)8
Avg EPS beat(8)19.81%
EPS beat(12)10
Avg EPS beat(12)20.8%
EPS beat(16)14
Avg EPS beat(16)51.29%
Revenue beat(2)0
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)-1.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-2.91%
Max Revenue beat(4)0.36%
Revenue beat(8)2
Avg Revenue beat(8)-1.09%
Revenue beat(12)3
Avg Revenue beat(12)-1.44%
Revenue beat(16)6
Avg Revenue beat(16)-0.76%
PT rev (1m)-1.43%
PT rev (3m)-3.14%
EPS NQ rev (1m)-1.57%
EPS NQ rev (3m)-12.92%
EPS NY rev (1m)-5.3%
EPS NY rev (3m)-8.73%
Revenue NQ rev (1m)-0.51%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)-0.81%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.86 | ||
| Fwd PE | 32.5 | ||
| P/S | 2.04 | ||
| P/FCF | 25.08 | ||
| P/OCF | 16.08 | ||
| P/B | 2.08 | ||
| P/tB | 7.38 | ||
| EV/EBITDA | 12.42 |
EPS(TTM)0.9
EY2.79%
EPS(NY)0.99
Fwd EY3.08%
FCF(TTM)1.29
FCFY3.99%
OCF(TTM)2.01
OCFY6.22%
SpS15.81
BVpS15.53
TBVpS4.37
PEG (NY)3.47
PEG (5Y)1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 13.45% | ||
| ROCE | 7.54% | ||
| ROIC | 5.09% | ||
| ROICexc | 6.26% | ||
| ROICexgc | 15.67% | ||
| OM | 10.89% | ||
| PM (TTM) | 13.21% | ||
| GM | 54.7% | ||
| FCFM | 8.14% |
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%
ROICexcg growth 3Y-1.1%
ROICexcg 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 Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.7 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 88.67% | ||
| Cap/Sales | 4.56% | ||
| Interest Coverage | 10.46 | ||
| Cash Conversion | 79.19% | ||
| Profit Quality | 61.61% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 2.51 |
F-Score7
WACC7.98%
ROIC/WACC0.64
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)28.57%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%11.76%
EPS Next Y10.33%
EPS Next 2Y15.77%
EPS Next 3Y11.86%
EPS Next 5Y10.37%
Revenue 1Y (TTM)-11.42%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-18.16%
Revenue Next Year1.15%
Revenue Next 2Y2.33%
Revenue Next 3Y2.54%
Revenue Next 5Y3.39%
EBIT growth 1Y24.9%
EBIT growth 3Y0.1%
EBIT growth 5Y20.59%
EBIT Next Year59.89%
EBIT Next 3Y23.88%
EBIT Next 5Y18.48%
FCF growth 1Y-1.89%
FCF growth 3Y-5.26%
FCF growth 5Y16.28%
OCF growth 1Y3.28%
OCF growth 3Y-5.74%
OCF growth 5Y7.77%