30.61 USD
-0.23 (-0.75%)
30.61 USD
0 (0%)
Taking everything into account, NWS scores 6 out of 10 in our fundamental rating. NWS was compared to 92 industry peers in the Media industry. NWS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
- 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 90.22% of its industry peers.
- With an excellent Return On Equity value of 13.48%, NWS belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
- With a decent Return On Invested Capital value of 4.28%, NWS is doing good in the industry, outperforming 64.13% of the companies in the same industry.
- NWS had an Average Return On Invested Capital over the past 3 years of 3.11%. This is below the industry average of 7.07%.
- The last Return On Invested Capital (4.28%) for NWS is above the 3 year average (3.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.65% | ||
| ROE | 13.48% | ||
| ROIC | 4.28% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)3.11%
ROIC(5y)3.43%
1.3 Margins
- NWS has a better Profit Margin (18.07%) than 93.48% 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 12.51%, NWS is in the better half of the industry, outperforming 76.09% of the companies in the same industry.
- NWS's Operating Margin has improved in the last couple of years.
- NWS has a Gross Margin of 73.56%. This is amongst the best in the industry. NWS outperforms 86.96% of its industry peers.
- In the last couple of years the Gross Margin of NWS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.51% | ||
| PM (TTM) | 18.07% | ||
| GM | 73.56% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NWS is destroying value.
- The number of shares outstanding for NWS has been reduced compared to 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
- NWS has an Altman-Z score of 2.24. 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's Altman-Z score of 2.24 is fine compared to the rest of the industry. NWS outperforms 75.00% of its industry peers.
- NWS has a debt to FCF ratio of 2.66. This is a good value and a sign of high solvency as NWS would need 2.66 years to pay back of all of its debts.
- The Debt to FCF ratio of NWS (2.66) is better than 81.52% of its industry peers.
- 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 of 0.22. This is in the better half of the industry: NWS outperforms 66.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.53
WACC8.1%
2.3 Liquidity
- NWS has a Current Ratio of 1.76. This is a normal value and indicates that NWS is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of NWS (1.76) is better than 70.65% 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's Quick ratio of 1.63 is fine compared to the rest of the industry. NWS outperforms 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 21.33% over the past year.
- Measured over the past years, NWS shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.55% on average per year.
- NWS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -36.13%.
- The Revenue has been decreasing by -1.27% on average over the past years.
EPS 1Y (TTM)21.33%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%4.76%
Revenue 1Y (TTM)-36.13%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-15.59%
3.2 Future
- The Earnings Per Share is expected to grow by 9.84% on average over the next years. This is quite good.
- The Revenue is expected to grow by 3.32% on average over the next years.
EPS Next Y8.08%
EPS Next 2Y14%
EPS Next 3Y13.13%
EPS Next 5Y9.84%
Revenue Next Year1.55%
Revenue Next 2Y2.47%
Revenue Next 3Y2.71%
Revenue Next 5Y3.32%
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 33.64, NWS can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of NWS indicates a somewhat cheap valuation: NWS is cheaper than 64.13% of the companies listed in the same industry.
- NWS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- NWS is valuated quite expensively with a Price/Forward Earnings ratio of 26.17.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NWS is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of NWS to the average of the S&P500 Index (25.83), we can say NWS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.64 | ||
| Fwd PE | 26.17 |
4.2 Price Multiples
- NWS's Enterprise Value to EBITDA is on the same level as the industry average.
- NWS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.35 | ||
| EV/EBITDA | 13.28 |
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.
- The excellent profitability rating of NWS may justify a higher PE ratio.
- NWS's earnings are expected to grow with 13.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.16
PEG (5Y)1.03
EPS Next 2Y14%
EPS Next 3Y13.13%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.75%, NWS is not a good candidate for dividend investing.
- NWS's Dividend Yield is a higher than the industry average which is at 1.22.
- Compared to an average S&P500 Dividend Yield of 1.82, 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 3.92%.
- 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)3.92%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
- NWS pays out 16.79% 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.
DP16.79%
EPS Next 2Y14%
EPS Next 3Y13.13%
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 6 / 10 to NWS.
What is the valuation status for 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 8 / 10.
What are the PE and PB ratios of NEWS CORP - CLASS B (NWS) stock?
The Price/Earnings (PE) ratio for NEWS CORP - CLASS B (NWS) is 33.64 and the Price/Book (PB) ratio is 1.97.
How sustainable is the dividend of NEWS CORP - CLASS B (NWS) stock?
The dividend rating of NEWS CORP - CLASS B (NWS) is 5 / 10 and the dividend payout ratio is 16.79%.