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 91 industry peers in the Media industry. While NWSA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NWSA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year NWSA was profitable.
NWSA had a positive operating cash flow in the past year.
Of the past 5 years NWSA 4 years were 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 2.10%. This is in the better half of the industry: NWSA outperforms 67.82% of its industry peers.
With a decent Return On Equity value of 4.30%, NWSA is doing good in the industry, outperforming 70.11% of the companies in the same industry.
With a Return On Invested Capital value of 3.75%, NWSA perfoms like the industry average, outperforming 55.17% 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 6.90%.
The last Return On Invested Capital (3.75%) for NWSA is above the 3 year average (3.62%), which is a sign of increasing profitability.
| 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
The Profit Margin of NWSA (3.49%) is better than 65.52% of its industry peers.
NWSA's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 8.29%, NWSA perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
In the last couple of years the Operating Margin of NWSA has grown nicely.
NWSA's Gross Margin of 50.38% is fine compared to the rest of the industry. NWSA outperforms 62.07% of its industry peers.
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.
The number of shares outstanding for NWSA has been reduced compared to 5 years ago.
NWSA has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.81, we must say that NWSA is in the distress zone and has some risk of bankruptcy.
NWSA has a Altman-Z score of 1.81. This is in the better half of the industry: NWSA outperforms 71.26% of its industry peers.
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's Debt to FCF ratio of 3.87 is amongst the best of the industry. NWSA outperforms 81.61% of its industry peers.
NWSA has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
NWSA has a better Debt to Equity ratio (0.33) than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.45
WACC8.26%
2.3 Liquidity
A Current Ratio of 1.38 indicates that NWSA should not have too much problems paying its short term obligations.
NWSA has a Current ratio (1.38) which is comparable to the rest of the industry.
A Quick Ratio of 1.26 indicates that NWSA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.26, NWSA is in line with its industry, outperforming 42.53% of the companies in the same industry.
| 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.
Measured over the past years, NWSA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.76% on average per year.
NWSA shows a small growth in Revenue. In the last year, the Revenue has grown by 2.66%.
The Revenue has been growing slightly by 0.02% on average over the past years.
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
The Earnings Per Share is expected to grow by 14.66% on average over the next years. This is quite good.
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 Year4.21%
Revenue Next 2Y3.76%
Revenue Next 3Y3.58%
Revenue Next 5Y3.58%
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.
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 37.49 indicates a quite expensive valuation of NWSA.
The rest of the industry has a similar Price/Earnings ratio as NWSA.
NWSA's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.46.
With a Price/Forward Earnings ratio of 26.56, NWSA can be considered very expensive at the moment.
NWSA's Price/Forward Earnings ratio is in line with the industry average.
NWSA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.49 | ||
| Fwd PE | 26.56 |
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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.32 | ||
| EV/EBITDA | 10.72 |
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.
NWSA's earnings are expected to grow with 17.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.37
PEG (5Y)4.28
EPS Next 2Y22.98%
EPS Next 3Y17.38%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, NWSA is not a good candidate for dividend investing.
NWSA's Dividend Yield is a higher than the industry average which is at 4.46.
Compared to an average S&P500 Dividend Yield of 2.27, NWSA's dividend is way lower than the S&P500 average.
| 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 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)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.
The dividend of NWSA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.42%
EPS Next 2Y22.98%
EPS Next 3Y17.38%
NEWS CORP - CLASS A
NASDAQ:NWSA (1/31/2025, 8:00:01 PM)
After market: 28.12 0 (0%)28.12
+0.04 (+0.14%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners101.93%
Inst Owner Change-0.21%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap15.99B
Analysts82.86
Price Target37.02 (31.65%)
Short Float %1.29%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend0.3
Dividend Growth(5Y)1.81%
DP50.42%
Div Incr Years0
Div Non Decr Years9
Ex-DateN/A
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)1.2%
PT rev (3m)7.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.59%
EPS NY rev (1m)0%
EPS NY rev (3m)2.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.49 | ||
| Fwd PE | 26.56 | ||
| P/S | 1.57 | ||
| P/FCF | 21.32 | ||
| P/OCF | 13.14 | ||
| P/B | 1.94 | ||
| P/tB | 23.83 | ||
| EV/EBITDA | 10.72 |
EPS(TTM)0.75
EY2.67%
EPS(NY)1.06
Fwd EY3.77%
FCF(TTM)1.32
FCFY4.69%
OCF(TTM)2.14
OCFY7.61%
SpS17.87
BVpS14.51
TBVpS1.18
PEG (NY)1.37
PEG (5Y)4.28
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 | 1.81 |
F-Score8
WACC8.26%
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 Year4.21%
Revenue Next 2Y3.76%
Revenue Next 3Y3.58%
Revenue Next 5Y3.58%
EBIT growth 1Y15.32%
EBIT growth 3Y7.85%
EBIT growth 5Y5.33%
EBIT Next Year108.7%
EBIT Next 3Y33.14%
EBIT Next 5Y27.31%
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%