25.41 USD
+0.18 (+0.71%)
25.41 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to NWSA. NWSA was compared to 96 industry peers in the Media industry. NWSA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NWSA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
NWSA had positive earnings in the past year.
NWSA had a positive operating cash flow in the past year.
NWSA had positive earnings in each of the past 5 years.
In the past 5 years NWSA always reported a positive cash flow from operatings.
1.2 Ratios
NWSA has a Return On Assets of 7.65%. This is amongst the best in the industry. NWSA outperforms 87.50% of its industry peers.
Looking at the Return On Equity, with a value of 13.48%, NWSA belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
NWSA has a better Return On Invested Capital (4.28%) than 61.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NWSA is significantly below the industry average of 8.15%.
The 3 year average ROIC (3.11%) for NWSA is below the current ROIC(4.28%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 18.07%, NWSA belongs to the best of the industry, outperforming 92.71% of the companies in the same industry.
NWSA's Profit Margin has improved in the last couple of years.
NWSA has a better Operating Margin (12.51%) than 75.00% of its industry peers.
In the last couple of years the Operating Margin of NWSA has grown nicely.
With an excellent Gross Margin value of 73.56%, NWSA belongs to the best of the industry, outperforming 86.46% of the companies in the same industry.
NWSA's Gross Margin has improved in the last couple of years.
| 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), NWSA is destroying value.
Compared to 1 year ago, NWSA has less shares outstanding
The number of shares outstanding for NWSA has been reduced compared to 5 years ago.
NWSA has a better debt/assets ratio than last year.
2.2 Solvency
NWSA has an Altman-Z score of 1.98. This is not the best score and indicates that NWSA is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 1.98, NWSA is doing good in the industry, outperforming 70.83% of the companies in the same industry.
NWSA has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as NWSA would need 2.58 years to pay back of all of its debts.
The Debt to FCF ratio of NWSA (2.58) is better than 80.21% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that NWSA is not too dependend on debt financing.
The Debt to Equity ratio of NWSA (0.22) is better than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 1.98 |
ROIC/WACC0.55
WACC7.79%
2.3 Liquidity
A Current Ratio of 1.76 indicates that NWSA should not have too much problems paying its short term obligations.
NWSA has a better Current ratio (1.76) than 71.88% of its industry peers.
NWSA has a Quick Ratio of 1.63. This is a normal value and indicates that NWSA is financially healthy and should not expect problems in meeting its short term obligations.
NWSA has a Quick ratio of 1.63. This is in the better half of the industry: NWSA outperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
NWSA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.33%, which is quite impressive.
Measured over the past years, NWSA shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.55% on average per year.
NWSA 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
NWSA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.75% yearly.
Based on estimates for the next years, NWSA will show a small growth in Revenue. The Revenue will grow by 3.34% on average per year.
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.
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
With a Price/Earnings ratio of 27.92, NWSA can be considered very expensive at the moment.
Based on the Price/Earnings ratio, NWSA is valued a bit cheaper than the industry average as 64.58% of the companies are valued more expensively.
NWSA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.35, which indicates a rather expensive current valuation of NWSA.
The rest of the industry has a similar Price/Forward Earnings ratio as NWSA.
NWSA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.92 | ||
| Fwd PE | 21.35 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NWSA.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NWSA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.94 | ||
| EV/EBITDA | 11.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NWSA does not grow enough to justify the current Price/Earnings ratio.
NWSA has an outstanding profitability rating, which may justify a higher PE ratio.
NWSA's earnings are expected to grow with 12.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.56
PEG (5Y)0.86
EPS Next 2Y14.98%
EPS Next 3Y12.68%
5. Dividend
5.1 Amount
With a yearly dividend of 0.81%, NWSA is not a good candidate for dividend investing.
NWSA's Dividend Yield is a higher than the industry average which is at 4.66.
Compared to an average S&P500 Dividend Yield of 2.41, NWSA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
5.2 History
The dividend of NWSA has a limited annual growth rate of 3.91%.
NWSA has been paying a dividend for at least 10 years, so it has a reliable track record.
NWSA has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 NWSA. This is a low number and sustainable payout ratio.
NWSA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.79%
EPS Next 2Y14.98%
EPS Next 3Y12.68%
25.41
+0.18 (+0.71%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners104.96%
Inst Owner Change6.16%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap14.34B
Revenue(TTM)6.49B
Net Income(TTM)1.17B
Analysts80
Price Target36.5 (43.64%)
Short Float %2.98%
Short Ratio2.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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)-3.41%
PT rev (3m)-2.76%
EPS NQ rev (1m)-7.64%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)0%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.92 | ||
| Fwd PE | 21.35 | ||
| P/S | 2.21 | ||
| P/FCF | 18.94 | ||
| P/OCF | 12.47 | ||
| P/B | 1.65 | ||
| P/tB | 6.01 | ||
| EV/EBITDA | 11.67 |
EPS(TTM)0.91
EY3.58%
EPS(NY)1.19
Fwd EY4.68%
FCF(TTM)1.34
FCFY5.28%
OCF(TTM)2.04
OCFY8.02%
SpS11.5
BVpS15.43
TBVpS4.23
PEG (NY)2.56
PEG (5Y)0.86
Graham Number17.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.65% | ||
| ROE | 13.48% | ||
| ROCE | 6.34% | ||
| ROIC | 4.28% | ||
| ROICexc | 5.17% | ||
| ROICexgc | 12.77% | ||
| OM | 12.51% | ||
| PM (TTM) | 18.07% | ||
| GM | 73.56% | ||
| FCFM | 11.66% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)3.11%
ROIC(5y)3.43%
ROICexc(3y)3.72%
ROICexc(5y)4.06%
ROICexgc(3y)9.79%
ROICexgc(5y)10.94%
ROCE(3y)4.62%
ROCE(5y)5.08%
ROICexgc growth 3Y-1.1%
ROICexgc 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 Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.58 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 101.55% | ||
| Cap/Sales | 6.05% | ||
| Interest Coverage | 10.28 | ||
| Cash Conversion | 95.91% | ||
| Profit Quality | 64.54% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 1.98 |
F-Score7
WACC7.79%
ROIC/WACC0.55
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)-36.13%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-15.59%
Revenue Next Year1.11%
Revenue Next 2Y2.29%
Revenue Next 3Y2.67%
Revenue Next 5Y3.34%
EBIT growth 1Y-3.68%
EBIT growth 3Y0.1%
EBIT growth 5Y20.59%
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 A / NWSA FAQ
What is the fundamental rating for NWSA stock?
ChartMill assigns a fundamental rating of 6 / 10 to NWSA.
What is the valuation status for NWSA stock?
ChartMill assigns a valuation rating of 4 / 10 to NEWS CORP - CLASS A (NWSA). This can be considered as Fairly Valued.
How profitable is NEWS CORP - CLASS A (NWSA) stock?
NEWS CORP - CLASS A (NWSA) has a profitability rating of 8 / 10.
What is the valuation of NEWS CORP - CLASS A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NEWS CORP - CLASS A (NWSA) is 27.92 and the Price/Book (PB) ratio is 1.65.
What is the earnings growth outlook for NEWS CORP - CLASS A?
The Earnings per Share (EPS) of NEWS CORP - CLASS A (NWSA) is expected to grow by 10.92% in the next year.