NEWS CORP - CLASS A (NWSA) Stock Fundamental Analysis
USA - NASDAQ:NWSA - US65249B1098 - Common Stock
26.32 USD
-0.08 (-0.3%)
26.29 USD
-0.03 (-0.11%)
We assign a fundamental rating of 6 out of 10 to NWSA. NWSA was compared to 94 industry peers in the Media industry. NWSA has an excellent profitability rating, but there are some minor concerns on its financial health. NWSA is quite expensive at the moment. It does show a decent 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.
In the past 5 years NWSA has always been profitable.
NWSA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NWSA has a Return On Assets of 7.61%. This is amongst the best in the industry. NWSA outperforms 89.47% of its industry peers.
NWSA has a better Return On Equity (13.45%) than 82.11% of its industry peers.
NWSA has a Return On Invested Capital of 5.09%. This is in the better half of the industry: NWSA outperforms 63.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NWSA is below the industry average of 8.50%.
The 3 year average ROIC (4.08%) for NWSA is below the current ROIC(5.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 13.45% | ||
| ROIC | 5.09% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)4.08%
ROIC(5y)4.01%
1.3 Margins
NWSA's Profit Margin of 13.21% is amongst the best of the industry. NWSA outperforms 86.32% of its industry peers.
NWSA's Profit Margin has improved in the last couple of years.
The Operating Margin of NWSA (10.89%) is better than 63.16% of its industry peers.
In the last couple of years the Operating Margin of NWSA has grown nicely.
NWSA's Gross Margin of 54.70% is fine compared to the rest of the industry. NWSA outperforms 64.21% of its industry peers.
NWSA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.89% | ||
| PM (TTM) | 13.21% | ||
| GM | 54.7% |
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.
NWSA has less shares outstanding than it did 1 year ago.
NWSA has less shares outstanding than it did 5 years ago.
NWSA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.21 indicates that NWSA is not a great score, but indicates only limited risk for bankruptcy at the moment.
NWSA has a better Altman-Z score (2.21) than 71.58% of its industry peers.
NWSA has a debt to FCF ratio of 2.70. This is a good value and a sign of high solvency as NWSA would need 2.70 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.70, NWSA is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
A Debt/Equity ratio of 0.22 indicates that NWSA is not too dependend on debt financing.
NWSA has a better Debt to Equity ratio (0.22) than 66.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.7 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.65
WACC7.8%
2.3 Liquidity
A Current Ratio of 1.84 indicates that NWSA should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.84, NWSA is doing good in the industry, outperforming 72.63% of the companies in the same industry.
A Quick Ratio of 1.72 indicates that NWSA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.72, NWSA is in the better half of the industry, outperforming 72.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.57% over the past year.
NWSA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.55% yearly.
Looking at the last year, NWSA shows a very negative growth in Revenue. The Revenue has decreased by -11.42% in the last year.
NWSA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.27% yearly.
EPS 1Y (TTM)28.57%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%11.76%
Revenue 1Y (TTM)-11.42%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-18.16%
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 9.75% on average per year.
The Revenue is expected to grow by 3.39% on average over the next years.
EPS Next Y10.92%
EPS Next 2Y14.98%
EPS Next 3Y12.92%
EPS Next 5Y9.75%
Revenue Next Year1.06%
Revenue Next 2Y2.25%
Revenue Next 3Y2.52%
Revenue Next 5Y3.39%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.24, the valuation of NWSA can be described as expensive.
64.21% of the companies in the same industry are more expensive than NWSA, based on the Price/Earnings ratio.
NWSA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.89.
NWSA is valuated quite expensively with a Price/Forward Earnings ratio of 26.37.
NWSA's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.99. NWSA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.24 | ||
| Fwd PE | 26.37 |
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 | 20.43 | ||
| EV/EBITDA | 10.06 |
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.
The excellent profitability rating of NWSA may justify a higher PE ratio.
NWSA's earnings are expected to grow with 12.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.68
PEG (5Y)0.9
EPS Next 2Y14.98%
EPS Next 3Y12.92%
5. Dividend
5.1 Amount
NWSA has a yearly dividend return of 0.76%, which is pretty low.
NWSA's Dividend Yield is a higher than the industry average which is at 4.39.
With a Dividend Yield of 0.76, NWSA pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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
15.68% 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.
DP15.68%
EPS Next 2Y14.98%
EPS Next 3Y12.92%
26.32
-0.08 (-0.3%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners104.96%
Inst Owner Change-0.08%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap14.85B
Revenue(TTM)8.93B
Net Income(TTM)1.18B
Analysts80
Price Target37.79 (43.58%)
Short Float %2.33%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend0.33
Dividend Growth(5Y)3.91%
DP15.68%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.87%
Min EPS beat(2)0.69%
Max EPS beat(2)19.05%
EPS beat(4)4
Avg EPS beat(4)12.55%
Min EPS beat(4)0.69%
Max EPS beat(4)27.28%
EPS beat(8)8
Avg EPS beat(8)19.81%
EPS beat(12)10
Avg EPS beat(12)20.8%
EPS beat(16)14
Avg EPS beat(16)51.29%
Revenue beat(2)0
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)-1.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-2.91%
Max Revenue beat(4)0.36%
Revenue beat(8)2
Avg Revenue beat(8)-1.09%
Revenue beat(12)3
Avg Revenue beat(12)-1.44%
Revenue beat(16)6
Avg Revenue beat(16)-0.76%
PT rev (1m)0%
PT rev (3m)2.67%
EPS NQ rev (1m)-1.77%
EPS NQ rev (3m)-14.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.79%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.24 | ||
| Fwd PE | 26.37 | ||
| P/S | 1.66 | ||
| P/FCF | 20.43 | ||
| P/OCF | 13.1 | ||
| P/B | 1.69 | ||
| P/tB | 6.01 | ||
| EV/EBITDA | 10.06 |
EPS(TTM)0.9
EY3.42%
EPS(NY)1
Fwd EY3.79%
FCF(TTM)1.29
FCFY4.9%
OCF(TTM)2.01
OCFY7.64%
SpS15.83
BVpS15.55
TBVpS4.38
PEG (NY)2.68
PEG (5Y)0.9
Graham Number17.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 13.45% | ||
| ROCE | 7.54% | ||
| ROIC | 5.09% | ||
| ROICexc | 6.26% | ||
| ROICexgc | 15.67% | ||
| OM | 10.89% | ||
| PM (TTM) | 13.21% | ||
| GM | 54.7% | ||
| FCFM | 8.14% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)4.08%
ROIC(5y)4.01%
ROICexc(3y)4.85%
ROICexc(5y)4.74%
ROICexgc(3y)12.95%
ROICexgc(5y)12.84%
ROCE(3y)6.05%
ROCE(5y)5.94%
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 Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.7 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 88.67% | ||
| Cap/Sales | 4.56% | ||
| Interest Coverage | 10.46 | ||
| Cash Conversion | 79.19% | ||
| Profit Quality | 61.61% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 2.21 |
F-Score7
WACC7.8%
ROIC/WACC0.65
Cap/Depr(3y)79.9%
Cap/Depr(5y)73.92%
Cap/Sales(3y)4.73%
Cap/Sales(5y)4.63%
Profit Quality(3y)246.06%
Profit Quality(5y)226.42%
High Growth Momentum
Growth
EPS 1Y (TTM)28.57%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%11.76%
EPS Next Y10.92%
EPS Next 2Y14.98%
EPS Next 3Y12.92%
EPS Next 5Y9.75%
Revenue 1Y (TTM)-11.42%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-18.16%
Revenue Next Year1.06%
Revenue Next 2Y2.25%
Revenue Next 3Y2.52%
Revenue Next 5Y3.39%
EBIT growth 1Y24.9%
EBIT growth 3Y0.1%
EBIT growth 5Y20.59%
EBIT Next Year58.17%
EBIT Next 3Y23.88%
EBIT Next 5Y18.48%
FCF growth 1Y-1.89%
FCF growth 3Y-5.26%
FCF growth 5Y16.28%
OCF growth 1Y3.28%
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 3 / 10 to NEWS CORP - CLASS A (NWSA). This can be considered as Overvalued.
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 29.24 and the Price/Book (PB) ratio is 1.69.
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.