26.12 USD
+0.17 (+0.66%)
26.22 USD
+0.1 (+0.38%)
Taking everything into account, NWSA scores 6 out of 10 in our fundamental rating. NWSA was compared to 94 industry peers in the Media industry. NWSA scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, NWSA is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
NWSA had positive earnings in the past year.
In the past year NWSA had a positive cash flow from operations.
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 better Return On Assets (7.65%) than 88.30% of its industry peers.
With an excellent Return On Equity value of 13.48%, NWSA belongs to the best of the industry, outperforming 80.85% of the companies in the same industry.
NWSA has a Return On Invested Capital of 4.28%. This is in the better half of the industry: NWSA outperforms 61.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NWSA is below the industry average of 8.04%.
The last Return On Invested Capital (4.28%) for NWSA 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
NWSA has a better Profit Margin (18.07%) than 93.62% of its industry peers.
NWSA's Profit Margin has improved in the last couple of years.
NWSA has a better Operating Margin (12.51%) than 75.53% of its industry peers.
In the last couple of years the Operating Margin of NWSA has grown nicely.
NWSA has a better Gross Margin (73.56%) than 86.17% of its industry peers.
In the last couple of years the Gross Margin of NWSA 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), NWSA is destroying value.
NWSA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, NWSA has less shares outstanding
The debt/assets ratio for NWSA has been reduced compared to a year ago.
2.2 Solvency
NWSA has an Altman-Z score of 2.01. 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 2.01, NWSA is doing good in the industry, outperforming 69.15% of the companies in the same industry.
The Debt to FCF ratio of NWSA is 2.58, which is a good value as it means it would take NWSA, 2.58 years of fcf income to pay off all of its debts.
NWSA has a Debt to FCF ratio of 2.58. This is in the better half of the industry: NWSA outperforms 79.79% of its industry peers.
NWSA has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NWSA (0.22) is better than 64.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.54
WACC7.93%
2.3 Liquidity
NWSA has a Current Ratio of 1.76. This is a normal value and indicates that NWSA is financially healthy and should not expect problems in meeting its short term obligations.
NWSA's Current ratio of 1.76 is fine compared to the rest of the industry. NWSA outperforms 71.28% 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.
With a decent Quick ratio value of 1.63, NWSA is doing good in the industry, outperforming 70.21% of the companies in the same industry.
| 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.
NWSA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.55% yearly.
NWSA shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -36.13%.
Measured over the past years, NWSA shows a decrease in Revenue. The Revenue has been decreasing by -1.27% on average per year.
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 9.37% 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 Y8.39%
EPS Next 2Y13.67%
EPS Next 3Y12.51%
EPS Next 5Y9.37%
Revenue Next Year1.53%
Revenue Next 2Y2.38%
Revenue Next 3Y2.66%
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.
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
NWSA is valuated quite expensively with a Price/Earnings ratio of 28.70.
Based on the Price/Earnings ratio, NWSA is valued a bit cheaper than 63.83% of the companies in the same industry.
When comparing the Price/Earnings ratio of NWSA to the average of the S&P500 Index (26.59), we can say NWSA is valued inline with the index average.
A Price/Forward Earnings ratio of 22.46 indicates a rather expensive valuation of NWSA.
The rest of the industry has a similar Price/Forward Earnings ratio as NWSA.
When comparing the Price/Forward Earnings ratio of NWSA to the average of the S&P500 Index (23.80), we can say NWSA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.7 | ||
| Fwd PE | 22.46 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NWSA.
NWSA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.37 | ||
| EV/EBITDA | 12.03 |
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 excellent profitability rating of NWSA may justify a higher PE ratio.
A more expensive valuation may be justified as NWSA's earnings are expected to grow with 12.51% in the coming years.
PEG (NY)3.42
PEG (5Y)0.88
EPS Next 2Y13.67%
EPS Next 3Y12.51%
5. Dividend
5.1 Amount
NWSA has a yearly dividend return of 0.78%, which is pretty low.
NWSA's Dividend Yield is a higher than the industry average which is at 4.49.
Compared to an average S&P500 Dividend Yield of 2.31, NWSA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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
NWSA pays out 16.79% of its income as dividend. This is a sustainable payout ratio.
The dividend of NWSA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP16.79%
EPS Next 2Y13.67%
EPS Next 3Y12.51%
26.12
+0.17 (+0.66%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners107.56%
Inst Owner Change6.17%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap14.67B
Revenue(TTM)6.49B
Net Income(TTM)1.17B
Analysts81.33
Price Target36.37 (39.24%)
Short Float %2.8%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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)-3.44%
PT rev (3m)-3.77%
EPS NQ rev (1m)-3.59%
EPS NQ rev (3m)-4.66%
EPS NY rev (1m)-2.28%
EPS NY rev (3m)-1.76%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.7 | ||
| Fwd PE | 22.46 | ||
| P/S | 2.26 | ||
| P/FCF | 19.37 | ||
| P/OCF | 12.75 | ||
| P/B | 1.69 | ||
| P/tB | 6.14 | ||
| EV/EBITDA | 12.03 |
EPS(TTM)0.91
EY3.48%
EPS(NY)1.16
Fwd EY4.45%
FCF(TTM)1.35
FCFY5.16%
OCF(TTM)2.05
OCFY7.84%
SpS11.56
BVpS15.5
TBVpS4.25
PEG (NY)3.42
PEG (5Y)0.88
Graham Number17.82
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 | 2.01 |
F-Score7
WACC7.93%
ROIC/WACC0.54
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 Y8.39%
EPS Next 2Y13.67%
EPS Next 3Y12.51%
EPS Next 5Y9.37%
Revenue 1Y (TTM)-36.13%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-15.59%
Revenue Next Year1.53%
Revenue Next 2Y2.38%
Revenue Next 3Y2.66%
Revenue Next 5Y3.32%
EBIT growth 1Y-3.68%
EBIT growth 3Y0.1%
EBIT growth 5Y20.59%
EBIT Next Year57.36%
EBIT Next 3Y22.21%
EBIT Next 5Y15.45%
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 3 / 10 to NEWS CORP - CLASS A (NWSA). This can be considered as Overvalued.
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 28.7 and the Price/Book (PB) ratio is 1.69.
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 8.39% in the next year.