NEWS CORP - CLASS A (NWSA) Stock Fundamental Analysis
USA - NASDAQ:NWSA - US65249B1098 - Common Stock
30.23 USD
+0.5 (+1.68%)
30.16 USD
-0.07 (-0.23%)
Taking everything into account, NWSA scores 6 out of 10 in our fundamental rating. NWSA was compared to 99 industry peers in the Media industry. NWSA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NWSA is valied quite expensively at the moment, while it does show a decent growth rate. This makes NWSA very considerable for quality investing!
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.
In the past 5 years NWSA has always been profitable.
In the past 5 years NWSA always reported a positive cash flow from operatings.
1.2 Ratios
NWSA has a Return On Assets of 7.61%. This is amongst the best in the industry. NWSA outperforms 88.89% of its industry peers.
Looking at the Return On Equity, with a value of 13.45%, NWSA belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
NWSA has a better Return On Invested Capital (5.09%) than 63.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NWSA is below the industry average of 8.87%.
The 3 year average ROIC (4.08%) for NWSA is below the current ROIC(5.09%), indicating increased profibility in the last year.
| 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
The Profit Margin of NWSA (13.21%) is better than 84.85% of its industry peers.
In the last couple of years the Profit Margin of NWSA has grown nicely.
The Operating Margin of NWSA (10.89%) is better than 62.63% of its industry peers.
In the last couple of years the Operating Margin of NWSA has grown nicely.
Looking at the Gross Margin, with a value of 54.70%, NWSA is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
NWSA'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
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
Compared to 5 years ago, NWSA has less shares outstanding
NWSA has a better debt/assets ratio than last year.
2.2 Solvency
NWSA has an Altman-Z score of 2.41. 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.
NWSA has a better Altman-Z score (2.41) than 72.73% of its industry peers.
NWSA has a debt to FCF ratio of 2.70. This is a good value and a sign of high solvency as NWSA would need 2.70 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.70, NWSA belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
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 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.7 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.64
WACC7.92%
2.3 Liquidity
A Current Ratio of 1.84 indicates that NWSA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.84, NWSA is in the better half of the industry, outperforming 70.71% of the companies in the same industry.
NWSA has a Quick Ratio of 1.72. This is a normal value and indicates that NWSA is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NWSA (1.72) is better than 70.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
NWSA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.57%, which is quite impressive.
The Earnings Per Share has been growing by 32.55% on average over the past years. This is a very strong growth
NWSA shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.42%.
NWSA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.27% yearly.
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
Based on estimates for the next years, NWSA will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.37% on average per year.
NWSA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.39% yearly.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 33.59 indicates a quite expensive valuation of NWSA.
Based on the Price/Earnings ratio, NWSA is valued a bit cheaper than 61.62% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. NWSA is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 30.44, NWSA can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as NWSA.
NWSA is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.59 | ||
| Fwd PE | 30.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NWSA is on the same level as its industry peers.
NWSA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.49 | ||
| EV/EBITDA | 11.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NWSA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.25
PEG (5Y)1.03
EPS Next 2Y15.77%
EPS Next 3Y11.86%
5. Dividend
5.1 Amount
NWSA has a yearly dividend return of 0.68%, which is pretty low.
Compared to an average industry Dividend Yield of 4.58, NWSA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.68, NWSA pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
The dividend of NWSA has a limited annual growth rate of 3.91%.
NWSA has paid a dividend for at least 10 years, which is 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 15.68% of its income as dividend. This is a sustainable payout ratio.
NWSA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.68%
EPS Next 2Y15.77%
EPS Next 3Y11.86%
30.23
+0.5 (+1.68%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners103.92%
Inst Owner Change-2.7%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap17.08B
Analysts80
Price Target37.79 (25.01%)
Short Float %1.97%
Short Ratio2.2
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)2.67%
PT rev (3m)2.67%
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 | 33.59 | ||
| Fwd PE | 30.44 | ||
| P/S | 1.91 | ||
| P/FCF | 23.49 | ||
| P/OCF | 15.06 | ||
| P/B | 1.95 | ||
| P/tB | 6.91 | ||
| EV/EBITDA | 11.62 |
EPS(TTM)0.9
EY2.98%
EPS(NY)0.99
Fwd EY3.28%
FCF(TTM)1.29
FCFY4.26%
OCF(TTM)2.01
OCFY6.64%
SpS15.81
BVpS15.53
TBVpS4.37
PEG (NY)3.25
PEG (5Y)1.03
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 | 2.41 |
F-Score7
WACC7.92%
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%