NEWS CORP - CLASS A (NWSA)
US65249B1098 - Common Stock
Taking everything into account, NWSA scores 6 out of 10 in our fundamental rating. NWSA was compared to 91 industry peers in the Media industry. NWSA has an excellent profitability rating, but there are some minor concerns on its financial health. NWSA is valied quite expensively at the moment, while it does show a decent growth rate.
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 4 of the past 5 years.
In the past 5 years NWSA always reported a positive cash flow from operatings.
1.2 Ratios
NWSA's Return On Assets of 2.10% is fine compared to the rest of the industry. NWSA outperforms 68.13% of its industry peers.
NWSA has a better Return On Equity (4.30%) than 70.33% of its industry peers.
The Return On Invested Capital of NWSA (3.75%) is comparable to the rest of the industry.
NWSA had an Average Return On Invested Capital over the past 3 years of 3.62%. This is below the industry average of 6.97%.
The 3 year average ROIC (3.62%) for NWSA is below the current ROIC(3.75%), indicating increased profibility in the last year.
| 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 65.93% of its industry peers.
NWSA's Profit Margin has improved in the last couple of years.
NWSA has a Operating Margin of 8.29%. This is comparable to the rest of the industry: NWSA outperforms 57.14% of its industry peers.
In the last couple of years the Operating Margin of NWSA has grown nicely.
The Gross Margin of NWSA (50.38%) is better than 63.74% of its industry peers.
NWSA's Gross Margin has improved in the last couple of years.
| 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
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.
Compared to 5 years ago, NWSA has less shares outstanding
Compared to 1 year ago, NWSA has an improved debt to assets ratio.
2.2 Solvency
NWSA has an Altman-Z score of 1.87. 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's Altman-Z score of 1.87 is fine compared to the rest of the industry. NWSA outperforms 68.13% of its industry peers.
NWSA has a debt to FCF ratio of 3.87. This is a good value and a sign of high solvency as NWSA would need 3.87 years to pay back of all of its debts.
NWSA's Debt to FCF ratio of 3.87 is amongst the best of the industry. NWSA outperforms 83.52% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that NWSA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.33, NWSA is in the better half of the industry, outperforming 62.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.46
WACC8.2%
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 in line with its industry peers.
A Quick Ratio of 1.26 indicates that NWSA should not have too much problems paying its short term obligations.
The Quick ratio of NWSA (1.26) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.51% 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.
Looking at the last year, NWSA shows a small growth in Revenue. The Revenue has grown by 2.66% in the last year.
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
Based on estimates for the next years, NWSA will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.87% on average per year.
Based on estimates for the next years, NWSA will show a small growth in Revenue. The Revenue will grow by 2.26% on average per year.
EPS Next Y25.2%
EPS Next 2Y24.49%
EPS Next 3Y19.85%
EPS Next 5Y18.87%
Revenue Next Year4.22%
Revenue Next 2Y3.88%
Revenue Next 3Y3.65%
Revenue Next 5Y2.26%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 39.32, the valuation of NWSA can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as NWSA.
When comparing the Price/Earnings ratio of NWSA to the average of the S&P500 Index (29.29), we can say NWSA is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 27.18, the valuation of NWSA can be described as expensive.
NWSA's Price/Forward Earnings ratio is in line with the industry average.
NWSA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.32 | ||
| Fwd PE | 27.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NWSA is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as NWSA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.36 | ||
| EV/EBITDA | 11.22 |
4.3 Compensation for Growth
NWSA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NWSA has a very decent profitability rating, which may justify a higher PE ratio.
NWSA's earnings are expected to grow with 19.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.56
PEG (5Y)4.49
EPS Next 2Y24.49%
EPS Next 3Y19.85%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, NWSA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.12, NWSA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.19, NWSA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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 Years8
5.3 Sustainability
NWSA pays out 50.42% of its income as dividend. 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 2Y24.49%
EPS Next 3Y19.85%
NEWS CORP - CLASS A
NASDAQ:NWSA (11/22/2024, 8:00:02 PM)
After market: 29.6 +0.11 (+0.37%)29.49
-0.05 (-0.17%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.32 | ||
| Fwd PE | 27.18 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.56
PEG (5Y)4.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 4.3% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.29% | ||
| PM (TTM) | 3.49% | ||
| GM | 50.38% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)41.51%
EPS 3Y1.47%
EPS 5Y
EPS Q2Q%
EPS Next Y25.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.66%
Revenue growth 3Y2.53%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y