NEWS CORP - CLASS A (NWSA) Stock Fundamental Analysis
NASDAQ:NWSA - Nasdaq - US65249B1098 - Common Stock - Currency: USD
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.
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.
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 Rank | Sector 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%
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.57
WACC8.14%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.6 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.38 | ||
| Fwd PE | 27.82 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.6 | ||
| EV/EBITDA | 11.15 |
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. 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 Rank | Sector 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
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%
29.37
-0.37 (-1.24%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend0.3
Dividend Growth(5Y)1.81%
DP37.99%
Div Incr Years0
Div Non Decr Years9
Ex-Date
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%