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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NWSA has a decent growth rate and is not valued too expensively.
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.
Of the past 5 years NWSA 4 years were profitable.
Each year in the past 5 years NWSA had a positive operating cash flow.
1.2 Ratios
NWSA has a Return On Assets of 2.56%. This is in the better half of the industry: NWSA outperforms 74.23% of its industry peers.
Looking at the Return On Equity, with a value of 5.08%, NWSA is in the better half of the industry, outperforming 71.13% of the companies in the same industry.
NWSA has a better Return On Invested Capital (4.36%) than 61.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NWSA is below the industry average of 7.03%.
The 3 year average ROIC (3.62%) for NWSA is below the current ROIC(4.36%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 5.08% | ||
| ROIC | 4.36% |
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 has a Profit Margin of 4.22%. This is in the better half of the industry: NWSA outperforms 74.23% of its industry peers.
NWSA's Profit Margin has improved in the last couple of years.
NWSA has a better Operating Margin (9.10%) than 63.92% of its industry peers.
In the last couple of years the Operating Margin of NWSA has grown nicely.
With a decent Gross Margin value of 51.86%, NWSA is doing good in 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 | 9.1% | ||
| PM (TTM) | 4.22% | ||
| GM | 51.86% |
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.
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 1.93 indicates that NWSA is not a great score, but indicates only limited risk for bankruptcy at the moment.
NWSA's Altman-Z score of 1.93 is fine compared to the rest of the industry. NWSA outperforms 73.20% of its industry peers.
The Debt to FCF ratio of NWSA is 2.64, which is a good value as it means it would take NWSA, 2.64 years of fcf income to pay off all of its debts.
NWSA has a better Debt to FCF ratio (2.64) than 85.57% 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.
Looking at the Debt to Equity ratio, with a value of 0.24, NWSA is in the better half of the industry, outperforming 70.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.64 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.54
WACC8.12%
2.3 Liquidity
A Current Ratio of 1.73 indicates that NWSA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.73, NWSA is in the better half of the industry, outperforming 60.82% of the companies in the same industry.
A Quick Ratio of 1.65 indicates that NWSA should not have too much problems paying its short term obligations.
NWSA's Quick ratio of 1.65 is in line compared to the rest of the industry. NWSA outperforms 59.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.15% over the past year.
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.
The Revenue has decreased by -1.51% in the past year.
The Revenue has been growing slightly by 0.02% on average over the past years.
EPS 1Y (TTM)26.15%
EPS 3Y1.47%
EPS 5Y8.76%
EPS Q2Q%26.92%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%-13.96%
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 13.10% on average per year.
The Revenue is expected to decrease by -0.49% on average over the next years.
EPS Next Y30.85%
EPS Next 2Y24.38%
EPS Next 3Y20.34%
EPS Next 5Y13.1%
Revenue Next Year-13.28%
Revenue Next 2Y-6.59%
Revenue Next 3Y-3.33%
Revenue Next 5Y-0.49%
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
With a Price/Earnings ratio of 31.93, NWSA can be considered very expensive at the moment.
Based on the Price/Earnings ratio, NWSA is valued a bit cheaper than the industry average as 60.82% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.33, NWSA is valued at the same level.
Based on the Price/Forward Earnings ratio of 24.18, the valuation of NWSA can be described as rather expensive.
63.92% of the companies in the same industry are more expensive than NWSA, based on the Price/Forward Earnings ratio.
NWSA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.93 | ||
| Fwd PE | 24.18 |
4.2 Price Multiples
NWSA's Enterprise Value to EBITDA is on the same level as the industry average.
NWSA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.97 | ||
| EV/EBITDA | 9.72 |
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 20.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)3.64
EPS Next 2Y24.38%
EPS Next 3Y20.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.77%, NWSA is not a good candidate for dividend investing.
NWSA's Dividend Yield is a higher than the industry average which is at 5.05.
With a Dividend Yield of 0.77, NWSA pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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
43.24% 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.
DP43.24%
EPS Next 2Y24.38%
EPS Next 3Y20.34%
26.18
+0.83 (+3.27%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners102.44%
Inst Owner Change-0.18%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap14.85B
Analysts82.5
Price Target37.07 (41.6%)
Short Float %1.67%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend0.3
Dividend Growth(5Y)1.81%
DP43.24%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.23%
Min EPS beat(2)3.18%
Max EPS beat(2)27.28%
EPS beat(4)4
Avg EPS beat(4)10.38%
Min EPS beat(4)3.18%
Max EPS beat(4)27.28%
EPS beat(8)8
Avg EPS beat(8)34.78%
EPS beat(12)10
Avg EPS beat(12)58.01%
EPS beat(16)14
Avg EPS beat(16)71.9%
Revenue beat(2)1
Avg Revenue beat(2)-1.27%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)0.36%
Revenue beat(4)2
Avg Revenue beat(4)-1.03%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)1.58%
Revenue beat(8)3
Avg Revenue beat(8)-1.05%
Revenue beat(12)4
Avg Revenue beat(12)-1.22%
Revenue beat(16)8
Avg Revenue beat(16)0.24%
PT rev (1m)0.91%
PT rev (3m)0.15%
EPS NQ rev (1m)-10.26%
EPS NQ rev (3m)-4.76%
EPS NY rev (1m)-5.27%
EPS NY rev (3m)2.75%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-20.56%
Revenue NY rev (1m)-0.61%
Revenue NY rev (3m)-16.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.93 | ||
| Fwd PE | 24.18 | ||
| P/S | 1.51 | ||
| P/FCF | 19.97 | ||
| P/OCF | 12.79 | ||
| P/B | 1.82 | ||
| P/tB | 7.46 | ||
| EV/EBITDA | 9.72 |
EPS(TTM)0.82
EY3.13%
EPS(NY)1.08
Fwd EY4.14%
FCF(TTM)1.31
FCFY5.01%
OCF(TTM)2.05
OCFY7.82%
SpS17.3
BVpS14.36
TBVpS3.51
PEG (NY)1.03
PEG (5Y)3.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 5.08% | ||
| ROCE | 7.18% | ||
| ROIC | 4.36% | ||
| ROICexc | 5.08% | ||
| ROICexgc | 12% | ||
| OM | 9.1% | ||
| PM (TTM) | 4.22% | ||
| GM | 51.86% | ||
| FCFM | 7.58% |
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-Score9
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.64 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 68.47% | ||
| Cap/Sales | 4.25% | ||
| Interest Coverage | 5.88 | ||
| Cash Conversion | 77.3% | ||
| Profit Quality | 179.71% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 1.93 |
F-Score9
WACC8.12%
ROIC/WACC0.54
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)26.15%
EPS 3Y1.47%
EPS 5Y8.76%
EPS Q2Q%26.92%
EPS Next Y30.85%
EPS Next 2Y24.38%
EPS Next 3Y20.34%
EPS Next 5Y13.1%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%-13.96%
Revenue Next Year-13.28%
Revenue Next 2Y-6.59%
Revenue Next 3Y-3.33%
Revenue Next 5Y-0.49%
EBIT growth 1Y12.33%
EBIT growth 3Y7.85%
EBIT growth 5Y5.33%
EBIT Next Year79.48%
EBIT Next 3Y27.15%
EBIT Next 5Y19.52%
FCF growth 1Y28.5%
FCF growth 3Y-10.76%
FCF growth 5Y11.08%
OCF growth 1Y7%
OCF growth 3Y-3.9%
OCF growth 5Y3.42%