NEWS CORP - CLASS A (NWSA) Stock Fundamental Analysis
NASDAQ:NWSA - Nasdaq - US65249B1098 - Common Stock - Currency: USD
Taking everything into account, NWSA scores 6 out of 10 in our fundamental rating. NWSA was compared to 97 industry peers in the Media industry. Both the health and profitability get an excellent rating, making NWSA a very profitable company, without any liquidiy or solvency issues. NWSA has a correct valuation and a medium growth rate.
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 4 of the past 5 years.
Each year in the past 5 years NWSA had a positive operating cash flow.
1.2 Ratios
NWSA has a Return On Assets of 2.94%. This is in the better half of the industry: NWSA outperforms 75.26% of its industry peers.
NWSA's Return On Equity of 5.94% is fine compared to the rest of the industry. NWSA outperforms 69.07% of its industry peers.
With a decent Return On Invested Capital value of 4.61%, NWSA is doing good in the industry, outperforming 63.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NWSA is below the industry average of 7.56%.
The 3 year average ROIC (3.62%) for NWSA is below the current ROIC(4.61%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 5.94% | ||
| ROIC | 4.61% |
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
With a decent Profit Margin value of 5.18%, NWSA is doing good in the industry, outperforming 76.29% of the companies in the same industry.
NWSA's Profit Margin has improved in the last couple of years.
NWSA has a Operating Margin of 10.08%. This is in the better half of the industry: NWSA outperforms 65.98% of its industry peers.
NWSA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 53.29%, NWSA is in the better half of the industry, outperforming 65.98% of the companies in the same industry.
NWSA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.08% | ||
| PM (TTM) | 5.18% | ||
| GM | 53.29% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NWSA 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 2.04 indicates that NWSA is not a great score, but indicates only limited risk for bankruptcy at the moment.
NWSA has a Altman-Z score of 2.04. This is in the better half of the industry: NWSA outperforms 69.07% of its industry peers.
The Debt to FCF ratio of NWSA is 2.43, which is a good value as it means it would take NWSA, 2.43 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.43, NWSA belongs to the top of the industry, outperforming 86.60% of the companies in the same industry.
NWSA has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.24, NWSA is in the better half of the industry, outperforming 69.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 2.04 |
ROIC/WACC0.57
WACC8.15%
2.3 Liquidity
NWSA has a Current Ratio of 1.68. 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 Current ratio of 1.68. This is in the better half of the industry: NWSA outperforms 64.95% of its industry peers.
A Quick Ratio of 1.60 indicates that NWSA should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.60, NWSA is doing good in the industry, outperforming 64.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
NWSA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.34%, which is quite impressive.
The Earnings Per Share has been growing by 8.76% on average over the past years. This is quite good.
NWSA shows a decrease in Revenue. In the last year, the revenue decreased by -5.43%.
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)31.34%
EPS 3Y1.47%
EPS 5Y8.76%
EPS Q2Q%54.55%
Revenue 1Y (TTM)-5.43%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%-17.09%
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 13.89% on average per year.
NWSA is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.43% yearly.
EPS Next Y30.05%
EPS Next 2Y22.81%
EPS Next 3Y19.8%
EPS Next 5Y13.89%
Revenue Next Year-14.25%
Revenue Next 2Y-6.52%
Revenue Next 3Y-3.26%
Revenue Next 5Y-0.43%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
NWSA is valuated quite expensively with a Price/Earnings ratio of 33.80.
NWSA's Price/Earnings ratio is a bit cheaper when compared to the industry. NWSA is cheaper than 61.86% of the companies in the same industry.
NWSA is valuated rather expensively when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 28.17, the valuation of NWSA can be described as expensive.
NWSA's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.89, NWSA is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.8 | ||
| Fwd PE | 28.17 |
4.2 Price Multiples
NWSA's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NWSA indicates a somewhat cheap valuation: NWSA is cheaper than 64.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.86 | ||
| EV/EBITDA | 11.3 |
4.3 Compensation for Growth
The 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 19.80% in the coming years.
PEG (NY)1.12
PEG (5Y)3.86
EPS Next 2Y22.81%
EPS Next 3Y19.8%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, NWSA is not a good candidate for dividend investing.
NWSA's Dividend Yield is a higher than the industry average which is at 4.62.
With a Dividend Yield of 0.67, NWSA pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
The dividend of NWSA has a limited annual growth rate of 1.81%.
NWSA has paid a dividend for at least 10 years, which is a reliable track record.
As NWSA did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)1.81%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
37.99% of the earnings are spent on dividend by NWSA. This is a low number and sustainable payout ratio.
The dividend of NWSA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.99%
EPS Next 2Y22.81%
EPS Next 3Y19.8%
29.74
+0.13 (+0.44%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners103.78%
Inst Owner Change-60.56%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap16.84B
Analysts81.25
Price Target36.81 (23.77%)
Short Float %2.26%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend0.3
Dividend Growth(5Y)1.81%
DP37.99%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.11%
Min EPS beat(2)3.18%
Max EPS beat(2)19.05%
EPS beat(4)4
Avg EPS beat(4)14.03%
Min EPS beat(4)3.18%
Max EPS beat(4)27.28%
EPS beat(8)8
Avg EPS beat(8)27.6%
EPS beat(12)10
Avg EPS beat(12)58.92%
EPS beat(16)14
Avg EPS beat(16)68.53%
Revenue beat(2)1
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-1.52%
Max Revenue beat(2)0.36%
Revenue beat(4)2
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-2.91%
Max Revenue beat(4)1.58%
Revenue beat(8)2
Avg Revenue beat(8)-1.39%
Revenue beat(12)4
Avg Revenue beat(12)-1.15%
Revenue beat(16)7
Avg Revenue beat(16)-0.11%
PT rev (1m)-0.37%
PT rev (3m)-0.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.04%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)-4.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)-1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.8 | ||
| Fwd PE | 28.17 | ||
| P/S | 1.79 | ||
| P/FCF | 20.86 | ||
| P/OCF | 14.03 | ||
| P/B | 2.05 | ||
| P/tB | 8.27 | ||
| EV/EBITDA | 11.3 |
EPS(TTM)0.88
EY2.96%
EPS(NY)1.06
Fwd EY3.55%
FCF(TTM)1.43
FCFY4.79%
OCF(TTM)2.12
OCFY7.13%
SpS16.61
BVpS14.49
TBVpS3.6
PEG (NY)1.12
PEG (5Y)3.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 5.94% | ||
| ROCE | 7.58% | ||
| ROIC | 4.61% | ||
| ROICexc | 5.54% | ||
| ROICexgc | 13.59% | ||
| OM | 10.08% | ||
| PM (TTM) | 5.18% | ||
| GM | 53.29% | ||
| FCFM | 8.58% |
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 Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.43 | ||
| Debt/EBITDA | 1.31 | ||
| Cap/Depr | 74.01% | ||
| Cap/Sales | 4.18% | ||
| Interest Coverage | 6.32 | ||
| Cash Conversion | 81.14% | ||
| Profit Quality | 165.71% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 2.04 |
F-Score8
WACC8.15%
ROIC/WACC0.57
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)31.34%
EPS 3Y1.47%
EPS 5Y8.76%
EPS Q2Q%54.55%
EPS Next Y30.05%
EPS Next 2Y22.81%
EPS Next 3Y19.8%
EPS Next 5Y13.89%
Revenue 1Y (TTM)-5.43%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%-17.09%
Revenue Next Year-14.25%
Revenue Next 2Y-6.52%
Revenue Next 3Y-3.26%
Revenue Next 5Y-0.43%
EBIT growth 1Y24.08%
EBIT growth 3Y7.85%
EBIT growth 5Y5.33%
EBIT Next Year79.72%
EBIT Next 3Y27.5%
EBIT Next 5Y18.99%
FCF growth 1Y74.68%
FCF growth 3Y-10.76%
FCF growth 5Y11.08%
OCF growth 1Y20.72%
OCF growth 3Y-3.9%
OCF growth 5Y3.42%