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NEWS CORP - CLASS A (NWSA) Stock Fundamental Analysis

NASDAQ:NWSA - Nasdaq - US65249B1098 - Common Stock - Currency: USD

29.37  -0.37 (-1.24%)

After market: 29.37 0 (0%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to NWSA. NWSA was compared to 97 industry peers in the Media industry. Both the health and profitability get an excellent rating, making NWSA a very profitable company, without any liquidiy or solvency issues. NWSA has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year NWSA was profitable.
In the past year NWSA had a positive cash flow from operations.
Of the past 5 years NWSA 4 years were profitable.
In the past 5 years NWSA always reported a positive cash flow from operatings.
NWSA Yearly Net Income VS EBIT VS OCF VS FCFNWSA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B -1B -1.5B

1.2 Ratios

NWSA has a better Return On Assets (2.94%) than 75.26% of its industry peers.
NWSA's Return On Equity of 5.94% is fine compared to the rest of the industry. NWSA outperforms 69.07% of its industry peers.
NWSA has a Return On Invested Capital of 4.61%. This is in the better half of the industry: NWSA outperforms 63.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NWSA is below the industry average of 7.56%.
The last Return On Invested Capital (4.61%) for NWSA is above the 3 year average (3.62%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.94%
ROE 5.94%
ROIC 4.61%
ROA(3y)2.03%
ROA(5y)-0.17%
ROE(3y)4.23%
ROE(5y)0%
ROIC(3y)3.62%
ROIC(5y)3.12%
NWSA Yearly ROA, ROE, ROICNWSA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 -10 -15

1.3 Margins

NWSA's Profit Margin of 5.18% is fine compared to the rest of the industry. NWSA outperforms 76.29% of its industry peers.
In the last couple of years the Profit Margin of NWSA has grown nicely.
NWSA has a better Operating Margin (10.08%) than 65.98% of its industry peers.
In the last couple of years the Operating Margin of NWSA has grown nicely.
Looking at the Gross Margin, with a value of 53.29%, NWSA is in the better half of 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 RankSector Rank
OM 10.08%
PM (TTM) 5.18%
GM 53.29%
OM growth 3Y5.19%
OM growth 5Y5.3%
PM growth 3Y-9.23%
PM growth 5Y11.38%
GM growth 3Y1%
GM growth 5Y2.67%
NWSA Yearly Profit, Operating, Gross MarginsNWSA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

7

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.
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.
NWSA Yearly Shares OutstandingNWSA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
NWSA Yearly Total Debt VS Total AssetsNWSA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

NWSA has an Altman-Z score of 2.02. 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.
The Altman-Z score of NWSA (2.02) is better than 69.07% of its industry peers.
The Debt to FCF ratio of NWSA is 2.43, which is a good value as it means it would take NWSA, 2.43 years of fcf income to pay off all of its debts.
NWSA's Debt to FCF ratio of 2.43 is amongst the best of the industry. NWSA outperforms 86.60% 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.
NWSA has a Debt to Equity ratio of 0.24. This is in the better half of the industry: NWSA outperforms 69.07% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 2.43
Altman-Z 2.02
ROIC/WACC0.57
WACC8.14%
NWSA Yearly LT Debt VS Equity VS FCFNWSA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.3 Liquidity

A Current Ratio of 1.68 indicates that NWSA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.68, NWSA is in the better half of the industry, outperforming 64.95% of the companies in the same industry.
NWSA has a Quick Ratio of 1.60. This is a normal value and indicates that NWSA is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.60, NWSA is doing good in the industry, outperforming 64.95% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.68
Quick Ratio 1.6
NWSA Yearly Current Assets VS Current LiabilitesNWSA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 31.34% over the past year.
NWSA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.76% yearly.
The Revenue has decreased by -5.43% in the past year.
NWSA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.02% yearly.
EPS 1Y (TTM)31.34%
EPS 3Y1.47%
EPS 5Y8.76%
EPS Q2Q%54.55%
Revenue 1Y (TTM)-5.43%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%-17.09%

3.2 Future

The Earnings Per Share is expected to grow by 13.89% on average over the next years. This is quite good.
Based on estimates for the next years, NWSA will show a decrease in Revenue. The Revenue will decrease by -0.43% on average per year.
EPS Next Y30.05%
EPS Next 2Y22.81%
EPS Next 3Y19.8%
EPS Next 5Y13.89%
Revenue Next Year-14.25%
Revenue Next 2Y-6.52%
Revenue Next 3Y-3.26%
Revenue Next 5Y-0.43%

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.
NWSA Yearly Revenue VS EstimatesNWSA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B 10B
NWSA Yearly EPS VS EstimatesNWSA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.5 1 1.5

4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 33.38, NWSA can be considered very expensive at the moment.
Based on the Price/Earnings ratio, NWSA is valued a bit cheaper than 61.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.29. NWSA is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 27.82, the valuation of NWSA can be described as expensive.
NWSA's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.74, NWSA is valued a bit more expensive.
Industry RankSector Rank
PE 33.38
Fwd PE 27.82
NWSA Price Earnings VS Forward Price EarningsNWSA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

NWSA's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, NWSA is valued a bit cheaper than the industry average as 64.95% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 20.6
EV/EBITDA 11.15
NWSA Per share dataNWSA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

The 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.
A more expensive valuation may be justified as NWSA's earnings are expected to grow with 19.80% in the coming years.
PEG (NY)1.11
PEG (5Y)3.81
EPS Next 2Y22.81%
EPS Next 3Y19.8%

5

5. Dividend

5.1 Amount

With a yearly dividend of 0.67%, NWSA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.62, NWSA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, NWSA's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.67%

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
NWSA Yearly Dividends per shareNWSA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.05 0.1 0.15

5.3 Sustainability

37.99% of the earnings are spent on dividend by NWSA. This is a low number and sustainable payout ratio.
NWSA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.99%
EPS Next 2Y22.81%
EPS Next 3Y19.8%
NWSA Yearly Income VS Free CF VS DividendNWSA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M -1B -1.5B
NWSA Dividend Payout.NWSA Dividend Payout, showing the Payout Ratio.NWSA Dividend Payout.PayoutRetained Earnings

NEWS CORP - CLASS A

NASDAQ:NWSA (7/7/2025, 8:00:02 PM)

After market: 29.37 0 (0%)

29.37

-0.37 (-1.24%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-06 2025-08-06/amc
Inst Owners103.78%
Inst Owner Change-0.01%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap16.63B
Analysts81.25
Price Target36.81 (25.33%)
Short Float %2.26%
Short Ratio2.51
Dividend
Industry RankSector Rank
Dividend Yield 0.67%
Yearly Dividend0.3
Dividend Growth(5Y)1.81%
DP37.99%
Div Incr Years0
Div Non Decr Years9
Ex-Date03-12 2025-03-12 (0.1)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.11%
Min EPS beat(2)3.18%
Max EPS beat(2)19.05%
EPS beat(4)4
Avg EPS beat(4)14.03%
Min EPS beat(4)3.18%
Max EPS beat(4)27.28%
EPS beat(8)8
Avg EPS beat(8)27.6%
EPS beat(12)10
Avg EPS beat(12)58.92%
EPS beat(16)14
Avg EPS beat(16)68.53%
Revenue beat(2)1
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-1.52%
Max Revenue beat(2)0.36%
Revenue beat(4)2
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-2.91%
Max Revenue beat(4)1.58%
Revenue beat(8)2
Avg Revenue beat(8)-1.39%
Revenue beat(12)4
Avg Revenue beat(12)-1.15%
Revenue beat(16)7
Avg Revenue beat(16)-0.11%
PT rev (1m)-0.37%
PT rev (3m)-0.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.04%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)-4.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)-1.56%
Valuation
Industry RankSector Rank
PE 33.38
Fwd PE 27.82
P/S 1.77
P/FCF 20.6
P/OCF 13.86
P/B 2.03
P/tB 8.16
EV/EBITDA 11.15
EPS(TTM)0.88
EY3%
EPS(NY)1.06
Fwd EY3.59%
FCF(TTM)1.43
FCFY4.85%
OCF(TTM)2.12
OCFY7.22%
SpS16.61
BVpS14.49
TBVpS3.6
PEG (NY)1.11
PEG (5Y)3.81
Profitability
Industry RankSector Rank
ROA 2.94%
ROE 5.94%
ROCE 7.58%
ROIC 4.61%
ROICexc 5.54%
ROICexgc 13.59%
OM 10.08%
PM (TTM) 5.18%
GM 53.29%
FCFM 8.58%
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-Score8
Asset Turnover0.57
Health
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 2.43
Debt/EBITDA 1.31
Cap/Depr 74.01%
Cap/Sales 4.18%
Interest Coverage 6.32
Cash Conversion 81.14%
Profit Quality 165.71%
Current Ratio 1.68
Quick Ratio 1.6
Altman-Z 2.02
F-Score8
WACC8.14%
ROIC/WACC0.57
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)31.34%
EPS 3Y1.47%
EPS 5Y8.76%
EPS Q2Q%54.55%
EPS Next Y30.05%
EPS Next 2Y22.81%
EPS Next 3Y19.8%
EPS Next 5Y13.89%
Revenue 1Y (TTM)-5.43%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%-17.09%
Revenue Next Year-14.25%
Revenue Next 2Y-6.52%
Revenue Next 3Y-3.26%
Revenue Next 5Y-0.43%
EBIT growth 1Y24.08%
EBIT growth 3Y7.85%
EBIT growth 5Y5.33%
EBIT Next Year79.72%
EBIT Next 3Y27.5%
EBIT Next 5Y18.99%
FCF growth 1Y74.68%
FCF growth 3Y-10.76%
FCF growth 5Y11.08%
OCF growth 1Y20.72%
OCF growth 3Y-3.9%
OCF growth 5Y3.42%