28.86 USD
-0.14 (-0.48%)
28.86 USD
0 (0%)
NWS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 96 industry peers in the Media industry. While NWS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NWS is quite expensive at the moment. It does show 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.
In the past 5 years NWS has always been profitable.
NWS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NWS has a better Return On Assets (7.65%) than 86.46% of its industry peers.
With an excellent Return On Equity value of 13.48%, NWS belongs to the best of the industry, outperforming 80.21% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.28%, NWS is doing good in the industry, outperforming 60.42% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NWS is significantly below the industry average of 8.15%.
The last Return On Invested Capital (4.28%) for NWS is above the 3 year average (3.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.65% | ||
| ROE | 13.48% | ||
| ROIC | 4.28% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)3.11%
ROIC(5y)3.43%
1.3 Margins
NWS's Profit Margin of 18.07% is amongst the best of the industry. NWS outperforms 91.67% of its industry peers.
NWS's Profit Margin has improved in the last couple of years.
NWS's Operating Margin of 12.51% is fine compared to the rest of the industry. NWS outperforms 73.96% of its industry peers.
In the last couple of years the Operating Margin of NWS has grown nicely.
NWS has a better Gross Margin (73.56%) than 85.42% of its industry peers.
In the last couple of years the Gross Margin of NWS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.51% | ||
| PM (TTM) | 18.07% | ||
| GM | 73.56% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NWS is destroying value.
Compared to 1 year ago, NWS has less shares outstanding
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
NWS has an Altman-Z score of 2.16. 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 2.16, NWS is doing good in the industry, outperforming 73.96% of the companies in the same industry.
NWS has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as NWS would need 2.58 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.58, NWS is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
A Debt/Equity ratio of 0.22 indicates that NWS is not too dependend on debt financing.
NWS has a Debt to Equity ratio of 0.22. This is in the better half of the industry: NWS outperforms 64.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 2.16 |
ROIC/WACC0.54
WACC7.9%
2.3 Liquidity
A Current Ratio of 1.76 indicates that NWS should not have too much problems paying its short term obligations.
NWS's Current ratio of 1.76 is fine compared to the rest of the industry. NWS outperforms 70.83% of its industry peers.
A Quick Ratio of 1.63 indicates that NWS should not have too much problems paying its short term obligations.
NWS has a Quick ratio of 1.63. This is in the better half of the industry: NWS outperforms 69.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.33% 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 -36.13% in the last year.
The Revenue has been decreasing by -1.27% on average over the past years.
EPS 1Y (TTM)21.33%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%4.76%
Revenue 1Y (TTM)-36.13%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-15.59%
3.2 Future
NWS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.75% yearly.
NWS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.34% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
NWS is valuated quite expensively with a Price/Earnings ratio of 31.71.
NWS's Price/Earnings ratio is a bit cheaper when compared to the industry. NWS is cheaper than 62.50% of the companies in the same industry.
NWS is valuated rather expensively when we compare the Price/Earnings ratio to 25.65, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.25, NWS is valued on the expensive side.
NWS's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, NWS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.71 | ||
| Fwd PE | 24.25 |
4.2 Price Multiples
NWS's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as NWS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.51 | ||
| EV/EBITDA | 13.38 |
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.
NWS's earnings are expected to grow with 12.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.9
PEG (5Y)0.97
EPS Next 2Y14.98%
EPS Next 3Y12.68%
5. Dividend
5.1 Amount
NWS has a yearly dividend return of 0.81%, which is pretty low.
NWS's Dividend Yield is a higher than the industry average which is at 4.66.
With a Dividend Yield of 0.81, NWS pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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
16.79% of the earnings are spent on dividend by NWS. This is a low number and sustainable payout ratio.
NWS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.79%
EPS Next 2Y14.98%
EPS Next 3Y12.68%
28.86
-0.14 (-0.48%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners104.96%
Inst Owner Change14.57%
Ins Owners0.03%
Ins Owner Change-33331.1%
Market Cap16.28B
Revenue(TTM)6.49B
Net Income(TTM)1.17B
Analysts80
Price Target41.26 (42.97%)
Short Float %2.32%
Short Ratio6.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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)-1.14%
PT rev (3m)-4.88%
EPS NQ rev (1m)-7.64%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)0%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.71 | ||
| Fwd PE | 24.25 | ||
| P/S | 2.51 | ||
| P/FCF | 21.51 | ||
| P/OCF | 14.16 | ||
| P/B | 1.87 | ||
| P/tB | 6.82 | ||
| EV/EBITDA | 13.38 |
EPS(TTM)0.91
EY3.15%
EPS(NY)1.19
Fwd EY4.12%
FCF(TTM)1.34
FCFY4.65%
OCF(TTM)2.04
OCFY7.06%
SpS11.5
BVpS15.43
TBVpS4.23
PEG (NY)2.9
PEG (5Y)0.97
Graham Number17.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.65% | ||
| ROE | 13.48% | ||
| ROCE | 6.34% | ||
| ROIC | 4.28% | ||
| ROICexc | 5.17% | ||
| ROICexgc | 12.77% | ||
| OM | 12.51% | ||
| PM (TTM) | 18.07% | ||
| GM | 73.56% | ||
| FCFM | 11.66% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)3.11%
ROIC(5y)3.43%
ROICexc(3y)3.72%
ROICexc(5y)4.06%
ROICexgc(3y)9.79%
ROICexgc(5y)10.94%
ROCE(3y)4.62%
ROCE(5y)5.08%
ROICexgc growth 3Y-1.1%
ROICexgc 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 Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.58 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 101.55% | ||
| Cap/Sales | 6.05% | ||
| Interest Coverage | 10.28 | ||
| Cash Conversion | 95.91% | ||
| Profit Quality | 64.54% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 2.16 |
F-Score7
WACC7.9%
ROIC/WACC0.54
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)-36.13%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-15.59%
Revenue Next Year1.11%
Revenue Next 2Y2.29%
Revenue Next 3Y2.67%
Revenue Next 5Y3.34%
EBIT growth 1Y-3.68%
EBIT growth 3Y0.1%
EBIT growth 5Y20.59%
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 B / NWS FAQ
What is the ChartMill fundamental rating of NEWS CORP - CLASS B (NWS) stock?
ChartMill assigns a fundamental rating of 6 / 10 to NWS.
What is the valuation status of NEWS CORP - CLASS B (NWS) stock?
ChartMill assigns a valuation rating of 3 / 10 to NEWS CORP - CLASS B (NWS). This can be considered as Overvalued.
What is the profitability of NWS stock?
NEWS CORP - CLASS B (NWS) has a profitability rating of 8 / 10.
What is the valuation of NEWS CORP - CLASS B based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NEWS CORP - CLASS B (NWS) is 31.71 and the Price/Book (PB) ratio is 1.87.
Can you provide the financial health for NWS stock?
The financial health rating of NEWS CORP - CLASS B (NWS) is 6 / 10.