NEWS CORP - CLASS B (NWS)
US65249B2088 - Common Stock
Taking everything into account, NWS scores 5 out of 10 in our fundamental rating. NWS was compared to 97 industry peers in the Media industry. Both the profitability and the financial health of NWS get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, NWS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year NWS was profitable.
In the past year NWS had a positive cash flow from operations.
NWS had positive earnings in 4 of the past 5 years.
Each year in the past 5 years NWS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NWS (1.37%) is better than 61.05% of its industry peers.
NWS has a Return On Equity (2.79%) which is comparable to the rest of the industry.
The Return On Invested Capital of NWS (4.30%) is better than 62.11% of its industry peers.
NWS had an Average Return On Invested Capital over the past 3 years of 4.19%. This is below the industry average of 7.68%.
The last Return On Invested Capital (4.30%) for NWS is above the 3 year average (4.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | 2.79% | ||
| ROIC | 4.3% |
ROA(3y)2.16%
ROA(5y)-0.29%
ROE(3y)4.48%
ROE(5y)-0.32%
ROIC(3y)4.19%
ROIC(5y)3.73%
1.3 Margins
NWS's Profit Margin of 2.29% is in line compared to the rest of the industry. NWS outperforms 58.95% of its industry peers.
NWS's Operating Margin of 7.98% is in line compared to the rest of the industry. NWS outperforms 58.95% of its industry peers.
In the last couple of years the Operating Margin of NWS has remained more or less at the same level.
NWS has a better Gross Margin (48.71%) than 61.05% of its industry peers.
In the last couple of years the Gross Margin of NWS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.98% | ||
| PM (TTM) | 2.29% | ||
| GM | 48.71% |
OM growth 3Y19.86%
OM growth 5Y1.13%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.46%
GM growth 5Y1.26%
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
NWS has less shares outstanding than it did 5 years ago.
NWS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.68, we must say that NWS is in the distress zone and has some risk of bankruptcy.
NWS's Altman-Z score of 1.68 is fine compared to the rest of the industry. NWS outperforms 64.21% of its industry peers.
The Debt to FCF ratio of NWS is 4.24, which is a neutral value as it means it would take NWS, 4.24 years of fcf income to pay off all of its debts.
NWS has a Debt to FCF ratio of 4.24. This is in the better half of the industry: NWS outperforms 80.00% of its industry peers.
NWS has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
NWS's Debt to Equity ratio of 0.36 is fine compared to the rest of the industry. NWS outperforms 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 4.24 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.53
WACC8.13%
2.3 Liquidity
NWS has a Current Ratio of 1.44. 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 (1.44) is comparable to the rest of the industry.
A Quick Ratio of 1.33 indicates that NWS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.33, NWS is doing worse than 65.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
NWS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.72%.
The Earnings Per Share has been growing slightly by 1.72% on average over the past years.
NWS shows a decrease in Revenue. In the last year, the revenue decreased by -1.97%.
NWS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.83% yearly.
EPS 1Y (TTM)-17.72%
EPS 3Y30.59%
EPS 5Y1.72%
EPS growth Q2Q85.71%
Revenue 1Y (TTM)-1.97%
Revenue growth 3Y3.12%
Revenue growth 5Y1.83%
Revenue growth Q2Q2.58%
3.2 Future
NWS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.68% yearly.
The Revenue is expected to grow by 1.84% on average over the next years.
EPS Next Y53.68%
EPS Next 2Y36.43%
EPS Next 3Y30.86%
EPS Next 5Y23.68%
Revenue Next Year1.33%
Revenue Next 2Y2.55%
Revenue Next 3Y2.73%
Revenue Next 5Y1.84%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 38.86, which means the current valuation is very expensive for NWS.
The rest of the industry has a similar Price/Earnings ratio as NWS.
NWS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.28.
NWS is valuated quite expensively with a Price/Forward Earnings ratio of 27.69.
NWS's Price/Forward Earnings is on the same level as the industry average.
NWS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.86 | ||
| Fwd PE | 27.69 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NWS.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NWS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.09 | ||
| EV/EBITDA | 10.27 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as NWS's earnings are expected to grow with 30.86% in the coming years.
PEG (NY)0.72
PEG (5Y)22.62
EPS Next 2Y36.43%
EPS Next 3Y30.86%
5. Dividend
5.1 Amount
NWS has a yearly dividend return of 0.83%, which is pretty low.
NWS's Dividend Yield is a higher than the industry average which is at 4.22.
Compared to an average S&P500 Dividend Yield of 2.41, NWS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
The dividend of NWS has a limited annual growth rate of 2.11%.
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)2.11%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
NWS pays out 74.56% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NWS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP74.56%
EPS Next 2Y36.43%
EPS Next 3Y30.86%
NEWS CORP - CLASS B
NASDAQ:NWS (5/3/2024, 7:09:42 PM)
After market: 25.26 0 (0%)25.26
+0.48 (+1.94%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.86 | ||
| Fwd PE | 27.69 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.72
PEG (5Y)22.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | 2.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.98% | ||
| PM (TTM) | 2.29% | ||
| GM | 48.71% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-17.72%
EPS 3Y30.59%
EPS 5Y
EPS growth Q2Q
EPS Next Y53.68%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.97%
Revenue growth 3Y3.12%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y