NEWS CORP - CLASS B (NWS) Stock Fundamental Analysis
USA - NASDAQ:NWS - US65249B2088 - Common Stock
30.22 USD
-0.1 (-0.33%)
30.22 USD
0 (0%)
NWS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 95 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 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.
NWS had a positive operating cash flow in the past year.
NWS had positive earnings in each of the past 5 years.
Each year in the past 5 years NWS had a positive operating cash flow.
1.2 Ratios
NWS has a Return On Assets of 7.65%. This is amongst the best in the industry. NWS outperforms 87.37% of its industry peers.
With a decent Return On Equity value of 13.48%, NWS is doing good in the industry, outperforming 80.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.57%, NWS is in line with its industry, outperforming 57.89% of the companies in the same industry.
NWS had an Average Return On Invested Capital over the past 3 years of 1.50%. This is significantly below the industry average of 8.51%.
The last Return On Invested Capital (3.57%) for NWS is above the 3 year average (1.50%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.65% | ||
| ROE | 13.48% | ||
| ROIC | 3.57% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)1.5%
ROIC(5y)2.46%
1.3 Margins
NWS has a Profit Margin of 26.77%. This is amongst the best in the industry. NWS outperforms 95.79% of its industry peers.
The Operating Margin of NWS (15.47%) is better than 80.00% of its industry peers.
Looking at the Gross Margin, with a value of 108.97%, NWS belongs to the top of the industry, outperforming 98.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.47% | ||
| PM (TTM) | 26.77% | ||
| GM | 108.97% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
NWS has less shares outstanding than it did 1 year ago.
NWS has less shares outstanding than it did 5 years ago.
NWS has a better debt/assets ratio than last year.
2.2 Solvency
NWS has an Altman-Z score of 2.07. 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.
Looking at the Altman-Z score, with a value of 2.07, NWS is in the better half of the industry, outperforming 72.63% of the companies in the same industry.
NWS has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as NWS would need 2.58 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.58, NWS is doing good in the industry, outperforming 78.95% 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.
With a decent Debt to Equity ratio value of 0.22, NWS is doing good in the industry, outperforming 65.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 2.07 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.76 indicates that NWS should not have too much problems paying its short term obligations.
NWS's Current ratio of 1.76 is fine compared to the rest of the industry. NWS outperforms 71.58% of its industry peers.
NWS has a Quick Ratio of 1.63. 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 (1.63) than 69.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
NWS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.33%, which is quite impressive.
NWS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.55% yearly.
NWS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -56.88%.
EPS 1Y (TTM)21.33%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%4.76%
Revenue 1Y (TTM)-56.88%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-15.59%
3.2 Future
Based on estimates for the next years, NWS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.75% on average per year.
The Revenue is expected to grow by 3.34% on average over the next years.
EPS Next Y10.92%
EPS Next 2Y14.98%
EPS Next 3Y12.68%
EPS Next 5Y9.75%
Revenue Next Year1.11%
Revenue Next 2Y2.29%
Revenue Next 3Y2.67%
Revenue Next 5Y3.34%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NWS is valuated quite expensively with a Price/Earnings ratio of 33.21.
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 26.28, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 25.40, the valuation of NWS can be described as expensive.
NWS's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.61, NWS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.21 | ||
| Fwd PE | 25.4 |
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 | 22.53 | ||
| EV/EBITDA | 15.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 12.68% in the coming years.
PEG (NY)3.04
PEG (5Y)1.02
EPS Next 2Y14.98%
EPS Next 3Y12.68%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, NWS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.35, NWS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, NWS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
The dividend of NWS has a limited annual growth rate of 3.91%.
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)3.91%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
16.79% of the earnings are spent on dividend by NWS. This is a low number and sustainable payout ratio.
NWS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.79%
EPS Next 2Y14.98%
EPS Next 3Y12.68%
30.22
-0.1 (-0.33%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners104.96%
Inst Owner Change3.08%
Ins Owners0.03%
Ins Owner Change-33331.1%
Market Cap17.05B
Revenue(TTM)4.38B
Net Income(TTM)1.17B
Analysts80
Price Target42.7 (41.3%)
Short Float %2.06%
Short Ratio5.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend0.33
Dividend Growth(5Y)3.91%
DP16.79%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.83%
Min EPS beat(2)0.69%
Max EPS beat(2)16.97%
EPS beat(4)4
Avg EPS beat(4)9.97%
Min EPS beat(4)0.69%
Max EPS beat(4)19.05%
EPS beat(8)8
Avg EPS beat(8)14.05%
EPS beat(12)11
Avg EPS beat(12)24.07%
EPS beat(16)14
Avg EPS beat(16)48.33%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)0.36%
Revenue beat(8)2
Avg Revenue beat(8)-1.01%
Revenue beat(12)3
Avg Revenue beat(12)-1.22%
Revenue beat(16)5
Avg Revenue beat(16)-1.03%
PT rev (1m)5.43%
PT rev (3m)4.99%
EPS NQ rev (1m)-2.26%
EPS NQ rev (3m)-14.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.79%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.21 | ||
| Fwd PE | 25.4 | ||
| P/S | 3.89 | ||
| P/FCF | 22.53 | ||
| P/OCF | 14.83 | ||
| P/B | 1.96 | ||
| P/tB | 7.14 | ||
| EV/EBITDA | 15.81 |
EPS(TTM)0.91
EY3.01%
EPS(NY)1.19
Fwd EY3.94%
FCF(TTM)1.34
FCFY4.44%
OCF(TTM)2.04
OCFY6.74%
SpS7.77
BVpS15.43
TBVpS4.23
PEG (NY)3.04
PEG (5Y)1.02
Graham Number17.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.65% | ||
| ROE | 13.48% | ||
| ROCE | 5.29% | ||
| ROIC | 3.57% | ||
| ROICexc | 4.3% | ||
| ROICexgc | 10.6% | ||
| OM | 15.47% | ||
| PM (TTM) | 26.77% | ||
| GM | 108.97% | ||
| FCFM | 17.28% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)1.5%
ROIC(5y)2.46%
ROICexc(3y)1.74%
ROICexc(5y)2.87%
ROICexgc(3y)4.83%
ROICexgc(5y)7.97%
ROCE(3y)2.23%
ROCE(5y)3.65%
ROICexgc growth 3Y-66.89%
ROICexgc growth 5Y-37.28%
ROICexc growth 3Y-65.07%
ROICexc growth 5Y-37.97%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.58 | ||
| Debt/EBITDA | 1.84 | ||
| Cap/Depr | 101.55% | ||
| Cap/Sales | 8.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 107.98% | ||
| Profit Quality | 64.54% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 2.07 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)79.9%
Cap/Depr(5y)73.92%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)246.06%
Profit Quality(5y)226.42%
High Growth Momentum
Growth
EPS 1Y (TTM)21.33%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%4.76%
EPS Next Y10.92%
EPS Next 2Y14.98%
EPS Next 3Y12.68%
EPS Next 5Y9.75%
Revenue 1Y (TTM)-56.88%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-15.59%
Revenue Next Year1.11%
Revenue Next 2Y2.29%
Revenue Next 3Y2.67%
Revenue Next 5Y3.34%
EBIT growth 1Y-19.57%
EBIT growth 3Y-66.48%
EBIT growth 5Y-37.45%
EBIT Next Year58.17%
EBIT Next 3Y23.66%
EBIT Next 5Y15.43%
FCF growth 1Y37.89%
FCF growth 3Y-5.26%
FCF growth 5Y16.28%
OCF growth 1Y7.68%
OCF growth 3Y-5.74%
OCF growth 5Y7.77%
NEWS CORP - CLASS B / NWS FAQ
What is the ChartMill fundamental rating of NEWS CORP - CLASS B (NWS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to NWS.
What is the valuation status of NEWS CORP - CLASS B (NWS) stock?
ChartMill assigns a valuation rating of 3 / 10 to NEWS CORP - CLASS B (NWS). This can be considered as Overvalued.
What is the profitability of NWS stock?
NEWS CORP - CLASS B (NWS) has a profitability rating of 6 / 10.
What is the valuation of NEWS CORP - CLASS B based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NEWS CORP - CLASS B (NWS) is 33.21 and the Price/Book (PB) ratio is 1.96.
Can you provide the financial health for NWS stock?
The financial health rating of NEWS CORP - CLASS B (NWS) is 6 / 10.