NEWS CORP - CLASS A (NWSA) Stock Fundamental Analysis
NASDAQ:NWSA - Nasdaq - US65249B1098 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to NWSA. NWSA was compared to 97 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year NWSA was profitable.
In the past year NWSA had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 2.94%, NWSA is in the better half of the industry, outperforming 75.26% of the companies in the same industry.
The Return On Equity of NWSA (5.94%) is better than 69.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.61%, NWSA is in the better half of the industry, outperforming 63.92% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NWSA is below the industry average of 7.58%.
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
The Profit Margin of NWSA (5.18%) is better than 76.29% of its industry peers.
NWSA's Profit Margin has improved in the last couple of years.
The Operating Margin of NWSA (10.08%) is better than 65.98% of its industry peers.
NWSA's Operating Margin has improved in the last couple of years.
The Gross Margin of NWSA (53.29%) is better than 65.98% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NWSA is destroying value.
The number of shares outstanding for NWSA has been reduced compared to 1 year ago.
The number of shares outstanding for NWSA has been reduced compared to 5 years ago.
Compared to 1 year ago, NWSA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.05 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 2.05. This is in the better half of the industry: NWSA outperforms 69.07% of its industry peers.
NWSA has a debt to FCF ratio of 2.43. This is a good value and a sign of high solvency as NWSA would need 2.43 years to pay back of all of its debts.
NWSA has a better Debt to FCF ratio (2.43) than 86.60% of its industry peers.
NWSA has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
NWSA has a Debt to Equity ratio of 0.24. This is in the better half of the industry: NWSA outperforms 69.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 2.05 |
ROIC/WACC0.56
WACC8.26%
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's Current ratio of 1.68 is fine compared to the rest 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.
Looking at the Quick ratio, with a value of 1.60, NWSA is in the better half of 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
The Earnings Per Share has grown by an impressive 31.34% over the past year.
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 decreased by -5.43% in the past year.
The Revenue has been growing slightly by 0.02% on average over the past years.
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.
Based on estimates for the next years, NWSA will show a decrease in Revenue. The Revenue will decrease by -0.43% on average per year.
EPS Next Y30.66%
EPS Next 2Y22.39%
EPS Next 3Y17.21%
EPS Next 5Y13.89%
Revenue Next Year-14.06%
Revenue Next 2Y-6.48%
Revenue Next 3Y-3.24%
Revenue Next 5Y-0.43%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 33.93, which means the current valuation is very expensive for NWSA.
Compared to the rest of the industry, the Price/Earnings ratio of NWSA indicates a somewhat cheap valuation: NWSA is cheaper than 61.86% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NWSA to the average of the S&P500 Index (27.50), we can say NWSA is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 28.48, the valuation of NWSA can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as NWSA.
The average S&P500 Price/Forward Earnings ratio is at 36.44. NWSA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.93 | ||
| Fwd PE | 28.48 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NWSA.
Based on the Price/Free Cash Flow ratio, NWSA is valued a bit cheaper than 64.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.95 | ||
| EV/EBITDA | 11.46 |
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.
NWSA's earnings are expected to grow with 17.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.11
PEG (5Y)3.87
EPS Next 2Y22.39%
EPS Next 3Y17.21%
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 4.61.
Compared to an average S&P500 Dividend Yield of 2.35, NWSA's dividend is way lower than the S&P500 average.
| 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 been paying a dividend for at least 10 years, so it has 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 2Y22.39%
EPS Next 3Y17.21%
29.86
-0.31 (-1.03%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners103.78%
Inst Owner Change-0.01%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap16.90B
Analysts81.25
Price Target36.81 (23.28%)
Short Float %1.98%
Short Ratio2.26
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%
PT rev (3m)-0.71%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)-7.71%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-3.58%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.93 | ||
| Fwd PE | 28.48 | ||
| P/S | 1.8 | ||
| P/FCF | 20.95 | ||
| P/OCF | 14.09 | ||
| P/B | 2.06 | ||
| P/tB | 8.3 | ||
| EV/EBITDA | 11.46 |
EPS(TTM)0.88
EY2.95%
EPS(NY)1.05
Fwd EY3.51%
FCF(TTM)1.43
FCFY4.77%
OCF(TTM)2.12
OCFY7.1%
SpS16.61
BVpS14.49
TBVpS3.6
PEG (NY)1.11
PEG (5Y)3.87
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 | 2.05 |
F-Score8
WACC8.26%
ROIC/WACC0.56
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 Y30.66%
EPS Next 2Y22.39%
EPS Next 3Y17.21%
EPS Next 5Y13.89%
Revenue 1Y (TTM)-5.43%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%-17.09%
Revenue Next Year-14.06%
Revenue Next 2Y-6.48%
Revenue Next 3Y-3.24%
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%