NEWS CORP - CLASS A (NWSA) Stock Fundamental Analysis
USA - NASDAQ:NWSA - US65249B1098 - Common Stock
26.15 USD
-0.12 (-0.46%)
26.13 USD
-0.02 (-0.08%)
Overall NWSA gets a fundamental rating of 5 out of 10. We evaluated NWSA against 96 industry peers in the Media industry. NWSA scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, NWSA is valued expensive at the moment.
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.
NWSA had positive earnings in each of the past 5 years.
NWSA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.65%, NWSA belongs to the best of the industry, outperforming 87.37% of the companies in the same industry.
The Return On Equity of NWSA (13.48%) is better than 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.57%, NWSA is in line with its industry, outperforming 56.84% of the companies in the same industry.
NWSA had an Average Return On Invested Capital over the past 3 years of 1.50%. This is significantly below the industry average of 8.32%.
The 3 year average ROIC (1.50%) for NWSA is below the current ROIC(3.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.65% | ||
| ROE | 13.48% | ||
| ROIC | 3.57% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)1.5%
ROIC(5y)2.46%
1.3 Margins
NWSA has a Profit Margin of 26.77%. This is amongst the best in the industry. NWSA outperforms 95.79% of its industry peers.
With an excellent Operating Margin value of 15.47%, NWSA belongs to the best of the industry, outperforming 81.05% of the companies in the same industry.
Looking at the Gross Margin, with a value of 108.97%, NWSA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.47% | ||
| PM (TTM) | 26.77% | ||
| GM | 108.97% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for NWSA has been reduced compared to 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.
2.2 Solvency
An Altman-Z score of 1.86 indicates that NWSA is not a great score, but indicates only limited risk for bankruptcy at the moment.
NWSA has a Altman-Z score of 1.86. This is in the better half of the industry: NWSA outperforms 69.47% of its industry peers.
The Debt to FCF ratio of NWSA is 2.58, which is a good value as it means it would take NWSA, 2.58 years of fcf income to pay off all of its debts.
NWSA has a better Debt to FCF ratio (2.58) than 80.00% 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 65.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 1.86 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
NWSA has a Current Ratio of 1.76. This is a normal value and indicates that NWSA is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NWSA (1.76) is better than 71.58% of its industry peers.
NWSA has a Quick Ratio of 1.63. This is a normal value and indicates that NWSA is financially healthy and should not expect problems in meeting its short term obligations.
NWSA has a Quick ratio of 1.63. This is in the better half of the industry: NWSA outperforms 70.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
NWSA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.33%, which is quite impressive.
The Earnings Per Share has been growing by 32.55% on average over the past years. This is a very strong growth
NWSA shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -56.88%.
EPS 1Y (TTM)21.33%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%4.76%
Revenue 1Y (TTM)-56.88%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-15.59%
3.2 Future
NWSA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.75% yearly.
The Revenue is expected to grow by 3.34% on average over the next years.
EPS Next Y10.92%
EPS Next 2Y14.98%
EPS Next 3Y12.68%
EPS Next 5Y9.75%
Revenue Next Year1.11%
Revenue Next 2Y2.29%
Revenue Next 3Y2.67%
Revenue Next 5Y3.34%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.74, which means the current valuation is very expensive for NWSA.
Compared to the rest of the industry, the Price/Earnings ratio of NWSA is on the same level as its industry peers.
NWSA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
NWSA is valuated rather expensively with a Price/Forward Earnings ratio of 21.98.
NWSA's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of NWSA to the average of the S&P500 Index (34.59), we can say NWSA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.74 | ||
| Fwd PE | 21.98 |
4.2 Price Multiples
NWSA's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as NWSA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.49 | ||
| EV/EBITDA | 13.6 |
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 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 12.68% in the coming years.
PEG (NY)2.63
PEG (5Y)0.88
EPS Next 2Y14.98%
EPS Next 3Y12.68%
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, NWSA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.42, NWSA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.76, NWSA pays less dividend than the S&P500 average, which is at 2.44.
| 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 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)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 3Y12.68%
26.15
-0.12 (-0.46%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners104.96%
Inst Owner Change6.11%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap14.76B
Revenue(TTM)4.38B
Net Income(TTM)1.17B
Analysts80
Price Target37.66 (44.02%)
Short Float %2.99%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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)-0.34%
PT rev (3m)2.32%
EPS NQ rev (1m)-0.64%
EPS NQ rev (3m)3.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.79%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.74 | ||
| Fwd PE | 21.98 | ||
| P/S | 3.37 | ||
| P/FCF | 19.49 | ||
| P/OCF | 12.83 | ||
| P/B | 1.7 | ||
| P/tB | 6.18 | ||
| EV/EBITDA | 13.6 |
EPS(TTM)0.91
EY3.48%
EPS(NY)1.19
Fwd EY4.55%
FCF(TTM)1.34
FCFY5.13%
OCF(TTM)2.04
OCFY7.79%
SpS7.77
BVpS15.43
TBVpS4.23
PEG (NY)2.63
PEG (5Y)0.88
Graham Number17.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.65% | ||
| ROE | 13.48% | ||
| ROCE | 5.29% | ||
| ROIC | 3.57% | ||
| ROICexc | 4.3% | ||
| ROICexgc | 10.6% | ||
| OM | 15.47% | ||
| PM (TTM) | 26.77% | ||
| GM | 108.97% | ||
| FCFM | 17.28% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)1.5%
ROIC(5y)2.46%
ROICexc(3y)1.74%
ROICexc(5y)2.87%
ROICexgc(3y)4.83%
ROICexgc(5y)7.97%
ROCE(3y)2.23%
ROCE(5y)3.65%
ROICexgc growth 3Y-66.89%
ROICexgc growth 5Y-37.28%
ROICexc growth 3Y-65.07%
ROICexc growth 5Y-37.97%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.58 | ||
| Debt/EBITDA | 1.84 | ||
| Cap/Depr | 101.55% | ||
| Cap/Sales | 8.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 107.98% | ||
| Profit Quality | 64.54% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 1.86 |
F-Score7
WACCN/A
ROIC/WACCN/A
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 3Y12.68%
EPS Next 5Y9.75%
Revenue 1Y (TTM)-56.88%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-15.59%
Revenue Next Year1.11%
Revenue Next 2Y2.29%
Revenue Next 3Y2.67%
Revenue Next 5Y3.34%
EBIT growth 1Y-19.57%
EBIT growth 3Y-66.48%
EBIT growth 5Y-37.45%
EBIT Next Year58.17%
EBIT Next 3Y23.66%
EBIT Next 5Y15.43%
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 5 / 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 7 / 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 28.74 and the Price/Book (PB) ratio is 1.7.
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.