25.68 USD
+0.1 (+0.39%)
25.67 USD
-0.01 (-0.04%)
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. 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 each of the past 5 years.
Each year in the past 5 years NWSA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NWSA (7.65%) is better than 87.76% of its industry peers.
With an excellent Return On Equity value of 13.48%, NWSA belongs to the best of the industry, outperforming 80.61% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.28%, NWSA is in the better half of the industry, outperforming 62.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NWSA is significantly below the industry average of 8.15%.
The last Return On Invested Capital (4.28%) for NWSA is above the 3 year average (3.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.65% | ||
| ROE | 13.48% | ||
| ROIC | 4.28% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)3.11%
ROIC(5y)3.43%
1.3 Margins
NWSA's Profit Margin of 18.07% is amongst the best of the industry. NWSA outperforms 92.86% of its industry peers.
NWSA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.51%, NWSA is in the better half of the industry, outperforming 74.49% of the companies in the same industry.
In the last couple of years the Operating Margin of NWSA has grown nicely.
The Gross Margin of NWSA (73.56%) is better than 86.73% of its industry peers.
NWSA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.51% | ||
| PM (TTM) | 18.07% | ||
| GM | 73.56% |
OM growth 3Y7.22%
OM growth 5Y22.14%
PM growth 3Y32.52%
PM growth 5YN/A
GM growth 3Y3.2%
GM growth 5Y4.45%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NWSA is destroying value.
Compared to 1 year ago, NWSA has less shares outstanding
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
NWSA has an Altman-Z score of 1.99. This is not the best score and indicates that NWSA is in the grey zone with still only limited risk for bankruptcy at the moment.
NWSA has a better Altman-Z score (1.99) than 71.43% of its industry peers.
NWSA has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as NWSA would need 2.58 years to pay back of all of its debts.
NWSA has a better Debt to FCF ratio (2.58) than 80.61% of its industry peers.
NWSA has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
NWSA has a better Debt to Equity ratio (0.22) than 66.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.55
WACC7.78%
2.3 Liquidity
A Current Ratio of 1.76 indicates that NWSA should not have too much problems paying its short term obligations.
NWSA has a better Current ratio (1.76) than 72.45% of its industry peers.
A Quick Ratio of 1.63 indicates that NWSA should not have too much problems paying its short term obligations.
NWSA has a Quick ratio of 1.63. This is in the better half of the industry: NWSA outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.33% over the past year.
The Earnings Per Share has been growing by 32.55% on average over the past years. This is a very strong growth
The Revenue for NWSA has decreased by -36.13% in the past year. This is quite bad
Measured over the past years, NWSA shows a decrease in Revenue. The Revenue has been decreasing by -1.27% on average per year.
EPS 1Y (TTM)21.33%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%4.76%
Revenue 1Y (TTM)-36.13%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-15.59%
3.2 Future
The Earnings Per Share is expected to grow by 9.37% 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 3.32% on average per year.
EPS Next Y10.92%
EPS Next 2Y14.98%
EPS Next 3Y11.87%
EPS Next 5Y9.37%
Revenue Next Year1.11%
Revenue Next 2Y2.29%
Revenue Next 3Y2.82%
Revenue Next 5Y3.32%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
NWSA is valuated quite expensively with a Price/Earnings ratio of 28.22.
64.29% of the companies in the same industry are more expensive than NWSA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NWSA to the average of the S&P500 Index (26.31), we can say NWSA is valued inline with the index average.
A Price/Forward Earnings ratio of 21.58 indicates a rather expensive valuation of NWSA.
NWSA's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of NWSA to the average of the S&P500 Index (36.59), we can say NWSA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.22 | ||
| Fwd PE | 21.58 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NWSA.
The rest of the industry has a similar Price/Free Cash Flow ratio as NWSA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.05 | ||
| EV/EBITDA | 11.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NWSA does not grow enough to justify the current Price/Earnings ratio.
NWSA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.58
PEG (5Y)0.87
EPS Next 2Y14.98%
EPS Next 3Y11.87%
5. Dividend
5.1 Amount
NWSA has a yearly dividend return of 0.78%, which is pretty low.
Compared to an average industry Dividend Yield of 4.53, NWSA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, NWSA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
The dividend of NWSA has a limited annual growth rate of 3.91%.
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)3.91%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
NWSA pays out 16.79% of its income as dividend. This is a sustainable payout ratio.
NWSA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.79%
EPS Next 2Y14.98%
EPS Next 3Y11.87%
25.68
+0.1 (+0.39%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners104.96%
Inst Owner Change6.16%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap14.42B
Revenue(TTM)6.49B
Net Income(TTM)1.17B
Analysts80
Price Target36.5 (42.13%)
Short Float %2.98%
Short Ratio2.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
Yearly Dividend0.33
Dividend Growth(5Y)3.91%
DP16.79%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.83%
Min EPS beat(2)0.69%
Max EPS beat(2)16.97%
EPS beat(4)4
Avg EPS beat(4)9.97%
Min EPS beat(4)0.69%
Max EPS beat(4)19.05%
EPS beat(8)8
Avg EPS beat(8)14.05%
EPS beat(12)11
Avg EPS beat(12)24.07%
EPS beat(16)14
Avg EPS beat(16)48.33%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)0.36%
Revenue beat(8)2
Avg Revenue beat(8)-1.01%
Revenue beat(12)3
Avg Revenue beat(12)-1.22%
Revenue beat(16)5
Avg Revenue beat(16)-1.03%
PT rev (1m)-3.41%
PT rev (3m)-2.76%
EPS NQ rev (1m)-7.06%
EPS NQ rev (3m)-7.06%
EPS NY rev (1m)0%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.22 | ||
| Fwd PE | 21.58 | ||
| P/S | 2.22 | ||
| P/FCF | 19.05 | ||
| P/OCF | 12.54 | ||
| P/B | 1.66 | ||
| P/tB | 6.04 | ||
| EV/EBITDA | 11.82 |
EPS(TTM)0.91
EY3.54%
EPS(NY)1.19
Fwd EY4.63%
FCF(TTM)1.35
FCFY5.25%
OCF(TTM)2.05
OCFY7.98%
SpS11.56
BVpS15.5
TBVpS4.25
PEG (NY)2.58
PEG (5Y)0.87
Graham Number17.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.65% | ||
| ROE | 13.48% | ||
| ROCE | 6.34% | ||
| ROIC | 4.28% | ||
| ROICexc | 5.17% | ||
| ROICexgc | 12.77% | ||
| OM | 12.51% | ||
| PM (TTM) | 18.07% | ||
| GM | 73.56% | ||
| FCFM | 11.66% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)3.11%
ROIC(5y)3.43%
ROICexc(3y)3.72%
ROICexc(5y)4.06%
ROICexgc(3y)9.79%
ROICexgc(5y)10.94%
ROCE(3y)4.62%
ROCE(5y)5.08%
ROICexgc growth 3Y-1.1%
ROICexgc growth 5Y20.92%
ROICexc growth 3Y4.33%
ROICexc growth 5Y19.59%
OM growth 3Y7.22%
OM growth 5Y22.14%
PM growth 3Y32.52%
PM growth 5YN/A
GM growth 3Y3.2%
GM growth 5Y4.45%
F-Score7
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.58 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 101.55% | ||
| Cap/Sales | 6.05% | ||
| Interest Coverage | 10.28 | ||
| Cash Conversion | 95.91% | ||
| Profit Quality | 64.54% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 1.99 |
F-Score7
WACC7.78%
ROIC/WACC0.55
Cap/Depr(3y)79.9%
Cap/Depr(5y)73.92%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)246.06%
Profit Quality(5y)226.42%
High Growth Momentum
Growth
EPS 1Y (TTM)21.33%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%4.76%
EPS Next Y10.92%
EPS Next 2Y14.98%
EPS Next 3Y11.87%
EPS Next 5Y9.37%
Revenue 1Y (TTM)-36.13%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-15.59%
Revenue Next Year1.11%
Revenue Next 2Y2.29%
Revenue Next 3Y2.82%
Revenue Next 5Y3.32%
EBIT growth 1Y-3.68%
EBIT growth 3Y0.1%
EBIT growth 5Y20.59%
EBIT Next Year58.17%
EBIT Next 3Y23.48%
EBIT Next 5Y15.45%
FCF growth 1Y37.89%
FCF growth 3Y-5.26%
FCF growth 5Y16.28%
OCF growth 1Y7.68%
OCF growth 3Y-5.74%
OCF growth 5Y7.77%
NEWS CORP - CLASS A / NWSA FAQ
What is the fundamental rating for NWSA stock?
ChartMill assigns a fundamental rating of 6 / 10 to NWSA.
What is the valuation status for NWSA stock?
ChartMill assigns a valuation rating of 4 / 10 to NEWS CORP - CLASS A (NWSA). This can be considered as Fairly Valued.
How profitable is NEWS CORP - CLASS A (NWSA) stock?
NEWS CORP - CLASS A (NWSA) has a profitability rating of 8 / 10.
What is the valuation of NEWS CORP - CLASS A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NEWS CORP - CLASS A (NWSA) is 28.22 and the Price/Book (PB) ratio is 1.66.
What is the earnings growth outlook for NEWS CORP - CLASS A?
The Earnings per Share (EPS) of NEWS CORP - CLASS A (NWSA) is expected to grow by 10.92% in the next year.