NEWS CORP - CLASS A (NWSA) Stock Fundamental Analysis
NASDAQ:NWSA - Nasdaq - US65249B1098 - Common Stock - Currency: USD
NWSA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 92 industry peers in the Media industry. NWSA has an excellent profitability rating, but there are some minor concerns on its financial health. NWSA has a correct valuation and a medium 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.
Of the past 5 years NWSA 4 years were profitable.
In the past 5 years NWSA always reported a positive cash flow from operatings.
1.2 Ratios
NWSA has a Return On Assets of 2.56%. This is in the better half of the industry: NWSA outperforms 76.09% of its industry peers.
NWSA has a Return On Equity of 5.08%. This is in the better half of the industry: NWSA outperforms 73.91% of its industry peers.
NWSA's Return On Invested Capital of 4.36% is in line compared to the rest of the industry. NWSA outperforms 59.78% of its industry peers.
NWSA had an Average Return On Invested Capital over the past 3 years of 3.62%. This is below the industry average of 6.86%.
The last Return On Invested Capital (4.36%) for NWSA is above the 3 year average (3.62%), which is a sign of increasing profitability.
| 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 better Profit Margin (4.22%) than 71.74% of its industry peers.
In the last couple of years the Profit Margin of NWSA has grown nicely.
The Operating Margin of NWSA (9.10%) is better than 63.04% of its industry peers.
NWSA's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 51.86%, NWSA is doing good in the industry, outperforming 65.22% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
NWSA has a better debt/assets ratio than last year.
2.2 Solvency
NWSA has an Altman-Z score of 2.05. 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 (2.05) than 76.09% 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's Debt to FCF ratio of 2.64 is amongst the best of the industry. NWSA outperforms 85.87% 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.
The Debt to Equity ratio of NWSA (0.24) is better than 71.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.64 | ||
| Altman-Z | 2.05 |
ROIC/WACC0.55
WACC8%
2.3 Liquidity
A Current Ratio of 1.73 indicates that NWSA should not have too much problems paying its short term obligations.
NWSA's Current ratio of 1.73 is in line compared to the rest of the industry. NWSA outperforms 59.78% of its industry peers.
NWSA has a Quick Ratio of 1.65. This is a normal value and indicates that NWSA is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NWSA (1.65) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
NWSA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.15%, which is quite impressive.
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.
NWSA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.02% yearly.
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
The Earnings Per Share is expected to grow by 14.66% 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 3.31% on average per year.
EPS Next Y38.14%
EPS Next 2Y24.87%
EPS Next 3Y19.72%
EPS Next 5Y14.66%
Revenue Next Year-12.42%
Revenue Next 2Y-6.48%
Revenue Next 3Y-3.48%
Revenue Next 5Y3.31%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 34.32, which means the current valuation is very expensive for NWSA.
NWSA's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of NWSA to the average of the S&P500 Index (29.71), we can say NWSA is valued inline with the index average.
The Price/Forward Earnings ratio is 25.78, which means the current valuation is very expensive for NWSA.
The rest of the industry has a similar Price/Forward Earnings ratio as NWSA.
NWSA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.32 | ||
| Fwd PE | 25.78 |
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 | 21.46 | ||
| EV/EBITDA | 10.74 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 19.72% in the coming years.
PEG (NY)0.9
PEG (5Y)3.92
EPS Next 2Y24.87%
EPS Next 3Y19.72%
5. Dividend
5.1 Amount
With a yearly dividend of 0.71%, NWSA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.48, NWSA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, NWSA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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.
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 2Y24.87%
EPS Next 3Y19.72%
28.14
+0.08 (+0.29%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners102.44%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap15.97B
Analysts83.75
Price Target36.74 (30.56%)
Short Float %1.68%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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)2.43%
PT rev (3m)3.88%
EPS NQ rev (1m)9.86%
EPS NQ rev (3m)6.12%
EPS NY rev (1m)11.5%
EPS NY rev (3m)8.47%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)-20.4%
Revenue NY rev (1m)-15.96%
Revenue NY rev (3m)-15.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.32 | ||
| Fwd PE | 25.78 | ||
| P/S | 1.63 | ||
| P/FCF | 21.46 | ||
| P/OCF | 13.75 | ||
| P/B | 1.96 | ||
| P/tB | 8.02 | ||
| EV/EBITDA | 10.74 |
EPS(TTM)0.82
EY2.91%
EPS(NY)1.09
Fwd EY3.88%
FCF(TTM)1.31
FCFY4.66%
OCF(TTM)2.05
OCFY7.27%
SpS17.3
BVpS14.36
TBVpS3.51
PEG (NY)0.9
PEG (5Y)3.92
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 | 2.05 |
F-Score9
WACC8%
ROIC/WACC0.55
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 Y38.14%
EPS Next 2Y24.87%
EPS Next 3Y19.72%
EPS Next 5Y14.66%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%-13.96%
Revenue Next Year-12.42%
Revenue Next 2Y-6.48%
Revenue Next 3Y-3.48%
Revenue Next 5Y3.31%
EBIT growth 1Y12.33%
EBIT growth 3Y7.85%
EBIT growth 5Y5.33%
EBIT Next Year83.36%
EBIT Next 3Y27.4%
EBIT Next 5Y27.31%
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%