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 97 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 quite expensive at the moment. It does show a decent growth rate.
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 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 74.23% of its industry peers.
NWS has a better Return On Equity (5.94%) than 68.04% of its industry peers.
The Return On Invested Capital of NWS (4.61%) is better than 62.89% of its industry peers.
NWS had an Average Return On Invested Capital over the past 3 years of 3.62%. This is below the industry average of 7.59%.
The last Return On Invested Capital (4.61%) for NWS 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
With a decent Profit Margin value of 5.18%, NWS is doing good in the industry, outperforming 75.26% of the companies in the same industry.
NWS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.08%, NWS is in the better half of the industry, outperforming 64.95% of the companies in the same industry.
In the last couple of years the Operating Margin of NWS has grown nicely.
NWS's Gross Margin of 53.29% is fine compared to the rest of the industry. NWS outperforms 64.95% of its industry peers.
In the last couple of years the Gross Margin of NWS has grown nicely.
| 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), NWS is destroying value.
NWS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, NWS has less shares outstanding
The debt/assets ratio for NWS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.19 indicates that NWS is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.19, NWS is doing good in the industry, outperforming 70.10% of the companies in the same industry.
The Debt to FCF ratio of NWS is 2.43, which is a good value as it means it would take NWS, 2.43 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.43, NWS belongs to the best of the industry, outperforming 85.57% of the companies in the same industry.
NWS has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.24, NWS is doing good in the industry, outperforming 68.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.56
WACC8.22%
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 63.92% 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 63.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
NWS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.34%, which is quite impressive.
NWS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.76% yearly.
NWS shows a decrease in Revenue. In the last year, the revenue decreased by -5.43%.
Measured over the past years, NWS shows a small growth in Revenue. The Revenue has been growing by 0.02% on average per year.
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 13.89% on average per year.
NWS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.43% yearly.
EPS Next Y30.66%
EPS Next 2Y22.39%
EPS Next 3Y17.21%
EPS Next 5Y13.89%
Revenue Next Year-14.06%
Revenue Next 2Y-6.48%
Revenue Next 3Y-3.24%
Revenue Next 5Y-0.43%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 38.09 indicates a quite expensive valuation of NWS.
NWS's Price/Earnings ratio is a bit cheaper when compared to the industry. NWS is cheaper than 61.86% of the companies in the same industry.
When comparing the Price/Earnings ratio of NWS to the average of the S&P500 Index (27.61), we can say NWS is valued slightly more expensively.
A Price/Forward Earnings ratio of 31.97 indicates a quite expensive valuation of NWS.
NWS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 37.13. NWS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.09 | ||
| Fwd PE | 31.97 |
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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.51 | ||
| EV/EBITDA | 12.74 |
4.3 Compensation for Growth
The 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 17.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.24
PEG (5Y)4.35
EPS Next 2Y22.39%
EPS Next 3Y17.21%
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 4.69, NWS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.68, NWS pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
The dividend of NWS has a limited annual growth rate of 1.81%.
NWS has been paying a dividend for at least 10 years, so it has a reliable track record.
NWS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 2Y22.39%
EPS Next 3Y17.21%
33.52
-0.05 (-0.15%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners103.78%
Inst Owner Change-0.09%
Ins Owners0.03%
Ins Owner Change0%
Market Cap18.98B
Analysts81.25
Price Target42.43 (26.58%)
Short Float %1.53%
Short Ratio8.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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)0.11%
PT rev (3m)-0.74%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)-7.71%
EPS NY rev (1m)0.47%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.09 | ||
| Fwd PE | 31.97 | ||
| P/S | 2.02 | ||
| P/FCF | 23.51 | ||
| P/OCF | 15.81 | ||
| P/B | 2.31 | ||
| P/tB | 9.32 | ||
| EV/EBITDA | 12.74 |
EPS(TTM)0.88
EY2.63%
EPS(NY)1.05
Fwd EY3.13%
FCF(TTM)1.43
FCFY4.25%
OCF(TTM)2.12
OCFY6.32%
SpS16.61
BVpS14.49
TBVpS3.6
PEG (NY)1.24
PEG (5Y)4.35
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 | 2.19 |
F-Score8
WACC8.22%
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 Y30.66%
EPS Next 2Y22.39%
EPS Next 3Y17.21%
EPS Next 5Y13.89%
Revenue 1Y (TTM)-5.43%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%-17.09%
Revenue Next Year-14.06%
Revenue Next 2Y-6.48%
Revenue Next 3Y-3.24%
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%