NEWS CORP - CLASS A (NWSA)
US65249B1098 - Common Stock
NWSA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 91 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
In the past year NWSA was profitable.
NWSA had a positive operating cash flow in the past year.
NWSA had positive earnings in 4 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 2.10%. This is in the better half of the industry: NWSA outperforms 67.78% of its industry peers.
The Return On Equity of NWSA (4.30%) is better than 70.00% of its industry peers.
NWSA has a Return On Invested Capital (3.75%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for NWSA is below the industry average of 6.91%.
The 3 year average ROIC (3.62%) for NWSA is below the current ROIC(3.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 4.3% | ||
| ROIC | 3.75% |
ROA(3y)2.03%
ROA(5y)-0.17%
ROE(3y)4.23%
ROE(5y)0%
ROIC(3y)3.62%
ROIC(5y)3.12%
1.3 Margins
NWSA's Profit Margin of 3.49% is fine compared to the rest of the industry. NWSA outperforms 65.56% of its industry peers.
NWSA's Profit Margin has improved in the last couple of years.
The Operating Margin of NWSA (8.29%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of NWSA has grown nicely.
Looking at the Gross Margin, with a value of 50.38%, NWSA is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
In the last couple of years the Gross Margin of NWSA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.29% | ||
| PM (TTM) | 3.49% | ||
| GM | 50.38% |
OM growth 3Y5.19%
OM growth 5Y5.3%
PM growth 3Y-9.23%
PM growth 5Y11.38%
GM growth 3Y1%
GM growth 5Y2.67%
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.
NWSA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NWSA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.82 indicates that NWSA is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.82, NWSA is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
The Debt to FCF ratio of NWSA is 3.87, which is a good value as it means it would take NWSA, 3.87 years of fcf income to pay off all of its debts.
NWSA has a Debt to FCF ratio of 3.87. This is amongst the best in the industry. NWSA outperforms 82.22% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that NWSA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.33, NWSA is in the better half of the industry, outperforming 64.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.45
WACC8.32%
2.3 Liquidity
A Current Ratio of 1.38 indicates that NWSA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.38, NWSA perfoms like the industry average, outperforming 47.78% of the companies in the same industry.
NWSA has a Quick Ratio of 1.26. 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 (1.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
NWSA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.51%, which is quite impressive.
NWSA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.76% yearly.
The Revenue has been growing slightly by 2.66% in the past year.
Measured over the past years, NWSA shows a small growth in Revenue. The Revenue has been growing by 0.02% on average per year.
EPS 1Y (TTM)41.51%
EPS 3Y1.47%
EPS 5Y8.76%
EPS Q2Q%31.25%
Revenue 1Y (TTM)2.66%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%1.64%
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 14.66% on average per year.
Based on estimates for the next years, NWSA will show a small growth in Revenue. The Revenue will grow by 3.58% on average per year.
EPS Next Y27.35%
EPS Next 2Y22.98%
EPS Next 3Y17.38%
EPS Next 5Y14.66%
Revenue Next Year3.96%
Revenue Next 2Y3.54%
Revenue Next 3Y3.15%
Revenue Next 5Y3.58%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 37.67 indicates a quite expensive valuation of NWSA.
The rest of the industry has a similar Price/Earnings ratio as NWSA.
The average S&P500 Price/Earnings ratio is at 27.54. NWSA is valued slightly more expensive when compared to this.
NWSA is valuated quite expensively with a Price/Forward Earnings ratio of 26.68.
NWSA's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.99, NWSA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.67 | ||
| Fwd PE | 26.68 |
4.2 Price Multiples
NWSA's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 21.42 | ||
| EV/EBITDA | 10.78 |
4.3 Compensation for Growth
NWSA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent 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 17.38% in the coming years.
PEG (NY)1.38
PEG (5Y)4.3
EPS Next 2Y22.98%
EPS Next 3Y17.38%
5. Dividend
5.1 Amount
NWSA has a yearly dividend return of 0.72%, which is pretty low.
Compared to an average industry Dividend Yield of 4.43, NWSA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.72, NWSA pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
The dividend of NWSA has a limited annual growth rate of 1.81%.
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)1.81%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
50.42% of the earnings are spent on dividend by NWSA. This is a bit on the high side, but may be sustainable.
NWSA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50.42%
EPS Next 2Y22.98%
EPS Next 3Y17.38%
NEWS CORP - CLASS A
NASDAQ:NWSA (12/24/2024, 7:29:04 PM)
After market: 28.25 0 (0%)28.25
+0.2 (+0.71%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners101.93%
Inst Owner Change0.04%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap16.07B
Analysts82.86
Price Target36.58 (29.49%)
Short Float %1.44%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Dividend Growth(5Y)1.81%
DP50.42%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.95%
Min EPS beat(2)6.61%
Max EPS beat(2)27.28%
EPS beat(4)4
Avg EPS beat(4)18.13%
Min EPS beat(4)4.45%
Max EPS beat(4)34.16%
EPS beat(8)7
Avg EPS beat(8)31.11%
EPS beat(12)10
Avg EPS beat(12)61.11%
EPS beat(16)14
Avg EPS beat(16)85.21%
Revenue beat(2)1
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)1.58%
Revenue beat(4)1
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)1.58%
Revenue beat(8)2
Avg Revenue beat(8)-1.47%
Revenue beat(12)4
Avg Revenue beat(12)-1.13%
Revenue beat(16)8
Avg Revenue beat(16)0.58%
PT rev (1m)6.5%
PT rev (3m)7.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.59%
EPS NY rev (1m)1.72%
EPS NY rev (3m)2.64%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.67 | ||
| Fwd PE | 26.68 | ||
| P/S | 1.58 | ||
| P/FCF | 21.42 | ||
| P/OCF | 13.2 | ||
| P/B | 1.95 | ||
| P/tB | 23.94 | ||
| EV/EBITDA | 10.78 |
EPS(TTM)0.75
EY2.65%
EPS(NY)1.06
Fwd EY3.75%
FCF(TTM)1.32
FCFY4.67%
OCF(TTM)2.14
OCFY7.58%
SpS17.87
BVpS14.51
TBVpS1.18
PEG (NY)1.38
PEG (5Y)4.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 4.3% | ||
| ROCE | 6.17% | ||
| ROIC | 3.75% | ||
| ROICexc | 4.31% | ||
| ROICexgc | 11.92% | ||
| OM | 8.29% | ||
| PM (TTM) | 3.49% | ||
| GM | 50.38% | ||
| FCFM | 7.38% |
ROA(3y)2.03%
ROA(5y)-0.17%
ROE(3y)4.23%
ROE(5y)0%
ROIC(3y)3.62%
ROIC(5y)3.12%
ROICexc(3y)4.19%
ROICexc(5y)3.63%
ROICexgc(3y)11.93%
ROICexgc(5y)9.92%
ROCE(3y)5.95%
ROCE(5y)5.14%
ROICexcg growth 3Y10.45%
ROICexcg growth 5Y-0.35%
ROICexc growth 3Y6.7%
ROICexc growth 5Y3.57%
OM growth 3Y5.19%
OM growth 5Y5.3%
PM growth 3Y-9.23%
PM growth 5Y11.38%
GM growth 3Y1%
GM growth 5Y2.67%
F-Score8
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.87 | ||
| Debt/EBITDA | 1.7 | ||
| Cap/Depr | 62.1% | ||
| Cap/Sales | 4.6% | ||
| Interest Coverage | 4.76 | ||
| Cash Conversion | 76.3% | ||
| Profit Quality | 211.27% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 1.82 |
F-Score8
WACC8.32%
ROIC/WACC0.45
Cap/Depr(3y)70%
Cap/Depr(5y)67.07%
Cap/Sales(3y)4.92%
Cap/Sales(5y)4.76%
Profit Quality(3y)253.85%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)41.51%
EPS 3Y1.47%
EPS 5Y8.76%
EPS Q2Q%31.25%
EPS Next Y27.35%
EPS Next 2Y22.98%
EPS Next 3Y17.38%
EPS Next 5Y14.66%
Revenue 1Y (TTM)2.66%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%1.64%
Revenue Next Year3.96%
Revenue Next 2Y3.54%
Revenue Next 3Y3.15%
Revenue Next 5Y3.58%
EBIT growth 1Y15.32%
EBIT growth 3Y7.85%
EBIT growth 5Y5.33%
EBIT Next Year111.37%
EBIT Next 3Y34.22%
EBIT Next 5Y25.27%
FCF growth 1Y-0.66%
FCF growth 3Y-10.76%
FCF growth 5Y11.08%
OCF growth 1Y-3.03%
OCF growth 3Y-3.9%
OCF growth 5Y3.42%