NEWS CORP - CLASS B (NWS) Stock Fundamental Analysis
NASDAQ:NWS - Nasdaq - US65249B2088 - Common Stock - Currency: USD
Taking everything into account, NWS scores 6 out of 10 in our fundamental rating. NWS was compared to 98 industry peers in the Media industry. NWS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NWS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NWS was profitable.
NWS had a positive operating cash flow in the past year.
NWS had positive earnings in 4 of the past 5 years.
NWS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NWS (2.94%) is better than 76.53% of its industry peers.
NWS has a better Return On Equity (5.94%) than 68.37% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.61%, NWS is in the better half of the industry, outperforming 63.27% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NWS is below the industry average of 7.63%.
The 3 year average ROIC (3.62%) for NWS is below the current ROIC(4.61%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 5.18%, NWS is in the better half of the industry, outperforming 75.51% of the companies in the same industry.
In the last couple of years the Profit Margin of NWS has grown nicely.
NWS's Operating Margin of 10.08% is fine compared to the rest of the industry. NWS outperforms 65.31% of its industry peers.
In the last couple of years the Operating Margin of NWS has grown nicely.
With a decent Gross Margin value of 53.29%, NWS is doing good in the industry, outperforming 65.31% of the companies in the same industry.
NWS'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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NWS is destroying value.
Compared to 1 year ago, NWS has less shares outstanding
Compared to 5 years ago, NWS has less shares outstanding
Compared to 1 year ago, NWS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.12 indicates that NWS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of NWS (2.12) is better than 70.41% of its industry peers.
NWS has a debt to FCF ratio of 2.43. This is a good value and a sign of high solvency as NWS would need 2.43 years to pay back of all of its debts.
NWS has a better Debt to FCF ratio (2.43) than 85.71% of its industry peers.
NWS has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
NWS's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. NWS outperforms 68.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.56
WACC8.25%
2.3 Liquidity
NWS has a Current Ratio of 1.68. This is a normal value and indicates that NWS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NWS (1.68) is better than 64.29% of its industry peers.
A Quick Ratio of 1.60 indicates that NWS should not have too much problems paying its short term obligations.
NWS has a better Quick ratio (1.60) than 64.29% of its industry peers.
| 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.
NWS 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.
NWS 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
Based on estimates for the next years, NWS will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.66% on average per year.
NWS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.42% yearly.
EPS Next Y30.85%
EPS Next 2Y24.67%
EPS Next 3Y20.54%
EPS Next 5Y14.66%
Revenue Next Year-13.58%
Revenue Next 2Y-6.5%
Revenue Next 3Y-3.24%
Revenue Next 5Y-0.42%
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.
The Revenue 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 35.99, which means the current valuation is very expensive for NWS.
61.22% of the companies in the same industry are more expensive than NWS, based on the Price/Earnings ratio.
NWS is valuated rather expensively when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 29.11, the valuation of NWS can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as NWS.
The average S&P500 Price/Forward Earnings ratio is at 22.39. NWS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.99 | ||
| Fwd PE | 29.11 |
4.2 Price Multiples
NWS's Enterprise Value to EBITDA ratio is in line with the industry average.
NWS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NWS is cheaper than 61.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.22 | ||
| EV/EBITDA | 12.1 |
4.3 Compensation for Growth
NWS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NWS has a very decent profitability rating, which may justify a higher PE ratio.
NWS's earnings are expected to grow with 20.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.17
PEG (5Y)4.11
EPS Next 2Y24.67%
EPS Next 3Y20.54%
5. Dividend
5.1 Amount
NWS has a yearly dividend return of 0.72%, which is pretty low.
Compared to an average industry Dividend Yield of 5.08, NWS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.72, NWS pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
The dividend of NWS has a limited annual growth rate of 1.81%.
NWS has paid a dividend for at least 10 years, which is a reliable track record.
As NWS 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 NWS. This is a low number and sustainable payout ratio.
The dividend of NWS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.99%
EPS Next 2Y24.67%
EPS Next 3Y20.54%
31.67
-0.16 (-0.5%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners102.44%
Inst Owner Change-1.45%
Ins Owners0.03%
Ins Owner Change0%
Market Cap17.93B
Analysts82.5
Price Target42.65 (34.67%)
Short Float %1.68%
Short Ratio8.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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)-0.22%
PT rev (3m)2.93%
EPS NQ rev (1m)-6.54%
EPS NQ rev (3m)-13.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.27%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.99 | ||
| Fwd PE | 29.11 | ||
| P/S | 1.91 | ||
| P/FCF | 22.22 | ||
| P/OCF | 14.94 | ||
| P/B | 2.19 | ||
| P/tB | 8.8 | ||
| EV/EBITDA | 12.1 |
EPS(TTM)0.88
EY2.78%
EPS(NY)1.09
Fwd EY3.44%
FCF(TTM)1.43
FCFY4.5%
OCF(TTM)2.12
OCFY6.69%
SpS16.61
BVpS14.49
TBVpS3.6
PEG (NY)1.17
PEG (5Y)4.11
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 | 2.12 |
F-Score8
WACC8.25%
ROIC/WACC0.56
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 Y30.85%
EPS Next 2Y24.67%
EPS Next 3Y20.54%
EPS Next 5Y14.66%
Revenue 1Y (TTM)-5.43%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%-17.09%
Revenue Next Year-13.58%
Revenue Next 2Y-6.5%
Revenue Next 3Y-3.24%
Revenue Next 5Y-0.42%
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%