NEWS CORP - CLASS A (NWSA) Stock Fundamental Analysis
USA - NASDAQ:NWSA - US65249B1098 - Common Stock
26.72 USD
+1.64 (+6.54%)
26.72 USD
0 (0%)
NWSA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 95 industry peers in the Media industry. NWSA gets an excellent profitability rating and is at the same time showing great financial health properties. NWSA is not valued too expensively and it also shows a decent growth rate. With these ratings, NWSA could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year NWSA was profitable.
NWSA had a positive operating cash flow in the past year.
In the past 5 years NWSA has always been profitable.
Each year in the past 5 years NWSA had a positive operating cash flow.
1.2 Ratios
NWSA's Return On Assets of 7.61% is amongst the best of the industry. NWSA outperforms 88.54% of its industry peers.
NWSA's Return On Equity of 13.45% is amongst the best of the industry. NWSA outperforms 81.25% of its industry peers.
The Return On Invested Capital of NWSA (5.09%) is better than 63.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NWSA is below the industry average of 8.55%.
The last Return On Invested Capital (5.09%) for NWSA is above the 3 year average (4.08%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 13.21%, NWSA belongs to the best of the industry, outperforming 88.54% of the companies in the same industry.
NWSA's Profit Margin has improved in the last couple of years.
The Operating Margin of NWSA (10.89%) is better than 62.50% of its industry peers.
NWSA's Operating Margin has improved in the last couple of years.
The Gross Margin of NWSA (54.70%) is better than 64.58% of its industry peers.
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
NWSA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 2.23. 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 2.23, NWSA is doing good in the industry, outperforming 72.92% of the companies in the same industry.
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.
NWSA's Debt to FCF ratio of 2.70 is amongst the best of the industry. NWSA outperforms 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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.7 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.65
WACC7.89%
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 72.92% of the companies in the same industry.
A Quick Ratio of 1.72 indicates that NWSA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.72, NWSA is in the better half of the industry, outperforming 72.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.33% over the past year.
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 small growth in Revenue. In the last year, the Revenue has grown by 2.42%.
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)2.42%
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
A Price/Earnings ratio of 29.36 indicates a quite expensive valuation of NWSA.
Compared to the rest of the industry, the Price/Earnings ratio of NWSA indicates a somewhat cheap valuation: NWSA is cheaper than 60.42% of the companies listed in the same industry.
NWSA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.06.
The Price/Forward Earnings ratio is 22.46, which indicates a rather expensive current valuation of NWSA.
The rest of the industry has a similar Price/Forward Earnings ratio as NWSA.
NWSA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.36 | ||
| Fwd PE | 22.46 |
4.2 Price Multiples
NWSA's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as NWSA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.74 | ||
| EV/EBITDA | 10.22 |
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)2.69
PEG (5Y)0.9
EPS Next 2Y14.98%
EPS Next 3Y12.68%
5. Dividend
5.1 Amount
NWSA has a yearly dividend return of 0.80%, which is pretty low.
Compared to an average industry Dividend Yield of 4.40, NWSA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.80, NWSA pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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
15.68% 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.
DP15.68%
EPS Next 2Y14.98%
EPS Next 3Y12.68%
26.72
+1.64 (+6.54%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners104.96%
Inst Owner Change-0.58%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap15.08B
Revenue(TTM)8.45B
Net Income(TTM)1.18B
Analysts80
Price Target37.66 (40.94%)
Short Float %2.99%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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)-0.34%
PT rev (3m)2.32%
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 | 29.36 | ||
| Fwd PE | 22.46 | ||
| P/S | 1.69 | ||
| P/FCF | 20.74 | ||
| P/OCF | 13.3 | ||
| P/B | 1.72 | ||
| P/tB | 6.1 | ||
| EV/EBITDA | 10.22 |
EPS(TTM)0.91
EY3.41%
EPS(NY)1.19
Fwd EY4.45%
FCF(TTM)1.29
FCFY4.82%
OCF(TTM)2.01
OCFY7.52%
SpS15.83
BVpS15.55
TBVpS4.38
PEG (NY)2.69
PEG (5Y)0.9
Graham Number17.84
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%
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 Turnover0.58
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 | 2.23 |
F-Score7
WACC7.89%
ROIC/WACC0.65
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)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)2.42%
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 1Y24.9%
EBIT growth 3Y0.1%
EBIT growth 5Y20.59%
EBIT Next Year58.17%
EBIT Next 3Y23.66%
EBIT Next 5Y15.43%
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%
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 29.36 and the Price/Book (PB) ratio is 1.72.
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.