NEWS CORP - CLASS B (NWS) Stock Fundamental Analysis
NASDAQ:NWS - US65249B2088 - Common Stock
32.27 USD
+0.71 (+2.25%)
32.27 USD
0 (0%)
Taking everything into account, NWS scores 6 out of 10 in our fundamental rating. NWS was compared to 99 industry peers in the Media industry. Both the health and profitability get an excellent rating, making NWS a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, NWS is valued expensive at the moment. This makes NWS very considerable for quality investing!
1. Profitability
1.1 Basic Checks
NWS had positive earnings in the past year.
NWS had a positive operating cash flow in the past year.
NWS had positive earnings in each of the past 5 years.
Each year in the past 5 years NWS had a positive operating cash flow.
1.2 Ratios
NWS has a Return On Assets of 7.61%. This is amongst the best in the industry. NWS outperforms 87.88% of its industry peers.
NWS has a Return On Equity of 13.45%. This is amongst the best in the industry. NWS outperforms 80.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.09%, NWS is in the better half of the industry, outperforming 62.63% 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 8.87%.
The 3 year average ROIC (4.08%) for NWS is below the current ROIC(5.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 13.45% | ||
| ROIC | 5.09% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)4.08%
ROIC(5y)4.01%
1.3 Margins
NWS has a Profit Margin of 13.21%. This is amongst the best in the industry. NWS outperforms 83.84% of its industry peers.
NWS's Profit Margin has improved in the last couple of years.
NWS's Operating Margin of 10.89% is fine compared to the rest of the industry. NWS outperforms 61.62% of its industry peers.
In the last couple of years the Operating Margin of NWS has grown nicely.
The Gross Margin of NWS (54.70%) is better than 62.63% of its industry peers.
In the last couple of years the Gross Margin of NWS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.89% | ||
| PM (TTM) | 13.21% | ||
| GM | 54.7% |
OM growth 3Y7.22%
OM growth 5Y22.14%
PM growth 3Y32.52%
PM growth 5YN/A
GM growth 3Y3.2%
GM growth 5Y4.45%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NWS is destroying value.
The number of shares outstanding for NWS has been reduced compared to 1 year ago.
NWS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NWS has an improved debt to assets ratio.
2.2 Solvency
NWS has an Altman-Z score of 2.48. This is not the best score and indicates that NWS is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.48, NWS is doing good in the industry, outperforming 74.75% of the companies in the same industry.
The Debt to FCF ratio of NWS is 2.70, which is a good value as it means it would take NWS, 2.70 years of fcf income to pay off all of its debts.
NWS has a Debt to FCF ratio of 2.70. This is amongst the best in the industry. NWS outperforms 80.81% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that NWS is not too dependend on debt financing.
NWS's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. NWS outperforms 62.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.7 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.64
WACC7.98%
2.3 Liquidity
NWS has a Current Ratio of 1.84. This is a normal value and indicates that NWS is financially healthy and should not expect problems in meeting its short term obligations.
NWS's Current ratio of 1.84 is fine compared to the rest of the industry. NWS outperforms 69.70% of its industry peers.
NWS has a Quick Ratio of 1.72. This is a normal value and indicates that NWS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NWS (1.72) is better than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.57% over the past year.
The Earnings Per Share has been growing by 32.55% on average over the past years. This is a very strong growth
Looking at the last year, NWS shows a very negative growth in Revenue. The Revenue has decreased by -11.42% in the last year.
Measured over the past years, NWS shows a decrease in Revenue. The Revenue has been decreasing by -1.27% on average per year.
EPS 1Y (TTM)28.57%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%11.76%
Revenue 1Y (TTM)-11.42%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-18.16%
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 10.37% on average per year.
The Revenue is expected to grow by 3.39% on average over the next years.
EPS Next Y10.33%
EPS Next 2Y15.77%
EPS Next 3Y11.86%
EPS Next 5Y10.37%
Revenue Next Year1.25%
Revenue Next 2Y2.48%
Revenue Next 3Y2.71%
Revenue Next 5Y3.39%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
Based on the Price/Earnings ratio of 35.86, the valuation of NWS can be described as expensive.
60.61% of the companies in the same industry are more expensive than NWS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.03. NWS is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 32.50 indicates a quite expensive valuation of NWS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWS is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of NWS to the average of the S&P500 Index (22.54), we can say NWS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.86 | ||
| Fwd PE | 32.5 |
4.2 Price Multiples
NWS's Enterprise Value to EBITDA is on the same level as the industry average.
NWS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.08 | ||
| EV/EBITDA | 12.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NWS does not grow enough to justify the current Price/Earnings ratio.
NWS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.47
PEG (5Y)1.1
EPS Next 2Y15.77%
EPS Next 3Y11.86%
5. Dividend
5.1 Amount
NWS has a yearly dividend return of 0.68%, which is pretty low.
Compared to an average industry Dividend Yield of 4.68, NWS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, NWS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
The dividend of NWS has a limited annual growth rate of 3.91%.
NWS has been paying a dividend for at least 10 years, so it has 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)3.91%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
15.68% 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.
DP15.68%
EPS Next 2Y15.77%
EPS Next 3Y11.86%
32.27
+0.71 (+2.25%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners103.92%
Inst Owner Change-4.53%
Ins Owners0.03%
Ins Owner Change1.76%
Market Cap18.23B
Analysts80
Price Target43.38 (34.43%)
Short Float %1.84%
Short Ratio9.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend0.33
Dividend Growth(5Y)3.91%
DP15.68%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.87%
Min EPS beat(2)0.69%
Max EPS beat(2)19.05%
EPS beat(4)4
Avg EPS beat(4)12.55%
Min EPS beat(4)0.69%
Max EPS beat(4)27.28%
EPS beat(8)8
Avg EPS beat(8)19.81%
EPS beat(12)10
Avg EPS beat(12)20.8%
EPS beat(16)14
Avg EPS beat(16)51.29%
Revenue beat(2)0
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)-1.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-2.91%
Max Revenue beat(4)0.36%
Revenue beat(8)2
Avg Revenue beat(8)-1.09%
Revenue beat(12)3
Avg Revenue beat(12)-1.44%
Revenue beat(16)6
Avg Revenue beat(16)-0.76%
PT rev (1m)3.51%
PT rev (3m)1.71%
EPS NQ rev (1m)-12.92%
EPS NQ rev (3m)-16.15%
EPS NY rev (1m)-5.3%
EPS NY rev (3m)-8.73%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.86 | ||
| Fwd PE | 32.5 | ||
| P/S | 2.04 | ||
| P/FCF | 25.08 | ||
| P/OCF | 16.08 | ||
| P/B | 2.08 | ||
| P/tB | 7.38 | ||
| EV/EBITDA | 12.14 |
EPS(TTM)0.9
EY2.79%
EPS(NY)0.99
Fwd EY3.08%
FCF(TTM)1.29
FCFY3.99%
OCF(TTM)2.01
OCFY6.22%
SpS15.81
BVpS15.53
TBVpS4.37
PEG (NY)3.47
PEG (5Y)1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 13.45% | ||
| ROCE | 7.54% | ||
| ROIC | 5.09% | ||
| ROICexc | 6.26% | ||
| ROICexgc | 15.67% | ||
| OM | 10.89% | ||
| PM (TTM) | 13.21% | ||
| GM | 54.7% | ||
| FCFM | 8.14% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)4.08%
ROIC(5y)4.01%
ROICexc(3y)4.85%
ROICexc(5y)4.74%
ROICexgc(3y)12.95%
ROICexgc(5y)12.84%
ROCE(3y)6.05%
ROCE(5y)5.94%
ROICexcg growth 3Y-1.1%
ROICexcg growth 5Y20.92%
ROICexc growth 3Y4.33%
ROICexc growth 5Y19.59%
OM growth 3Y7.22%
OM growth 5Y22.14%
PM growth 3Y32.52%
PM growth 5YN/A
GM growth 3Y3.2%
GM growth 5Y4.45%
F-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.7 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 88.67% | ||
| Cap/Sales | 4.56% | ||
| Interest Coverage | 10.46 | ||
| Cash Conversion | 79.19% | ||
| Profit Quality | 61.61% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 2.48 |
F-Score7
WACC7.98%
ROIC/WACC0.64
Cap/Depr(3y)79.9%
Cap/Depr(5y)73.92%
Cap/Sales(3y)4.73%
Cap/Sales(5y)4.63%
Profit Quality(3y)246.06%
Profit Quality(5y)226.42%
High Growth Momentum
Growth
EPS 1Y (TTM)28.57%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%11.76%
EPS Next Y10.33%
EPS Next 2Y15.77%
EPS Next 3Y11.86%
EPS Next 5Y10.37%
Revenue 1Y (TTM)-11.42%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-18.16%
Revenue Next Year1.25%
Revenue Next 2Y2.48%
Revenue Next 3Y2.71%
Revenue Next 5Y3.39%
EBIT growth 1Y24.9%
EBIT growth 3Y0.1%
EBIT growth 5Y20.59%
EBIT Next Year59.89%
EBIT Next 3Y23.88%
EBIT Next 5Y18.48%
FCF growth 1Y-1.89%
FCF growth 3Y-5.26%
FCF growth 5Y16.28%
OCF growth 1Y3.28%
OCF growth 3Y-5.74%
OCF growth 5Y7.77%