NEWS CORP - CLASS B (NWS) Stock Fundamental Analysis
NASDAQ:NWS - Nasdaq - US65249B2088 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to NWS. NWS was compared to 97 industry peers in the Media industry. NWS gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
Of the past 5 years NWS 4 years were profitable.
NWS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.56%, NWS is in the better half of the industry, outperforming 74.23% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.08%, NWS is in the better half of the industry, outperforming 71.13% of the companies in the same industry.
The Return On Invested Capital of NWS (4.36%) is better than 61.86% 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 6.63%.
The last Return On Invested Capital (4.36%) for NWS is above the 3 year average (3.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 5.08% | ||
| ROIC | 4.36% |
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
NWS has a Profit Margin of 4.22%. This is in the better half of the industry: NWS outperforms 74.23% of its industry peers.
In the last couple of years the Profit Margin of NWS has grown nicely.
Looking at the Operating Margin, with a value of 9.10%, NWS is in the better half of the industry, outperforming 63.92% of the companies in the same industry.
NWS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 51.86%, NWS is in the better half of the industry, outperforming 64.95% of the companies in the same industry.
NWS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.1% | ||
| PM (TTM) | 4.22% | ||
| GM | 51.86% |
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.
The number of shares outstanding for NWS has been reduced compared to 1 year ago.
The number of shares outstanding for NWS has been reduced compared to 5 years ago.
The debt/assets ratio for NWS has been reduced compared to a year ago.
2.2 Solvency
NWS has an Altman-Z score of 2.19. 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.
NWS has a better Altman-Z score (2.19) than 73.20% of its industry peers.
NWS has a debt to FCF ratio of 2.64. This is a good value and a sign of high solvency as NWS would need 2.64 years to pay back of all of its debts.
The Debt to FCF ratio of NWS (2.64) is better than 85.57% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that NWS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.24, NWS is in the better half of the industry, outperforming 70.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.64 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.54
WACC8.05%
2.3 Liquidity
NWS has a Current Ratio of 1.73. 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 1.73 is fine compared to the rest of the industry. NWS outperforms 60.82% of its industry peers.
A Quick Ratio of 1.65 indicates that NWS should not have too much problems paying its short term obligations.
The Quick ratio of NWS (1.65) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
NWS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.15%, 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.
Looking at the last year, NWS shows a decrease in Revenue. The Revenue has decreased by -1.51% in the last year.
The Revenue has been growing slightly by 0.02% on average over the past years.
EPS 1Y (TTM)26.15%
EPS 3Y1.47%
EPS 5Y8.76%
EPS Q2Q%26.92%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%-13.96%
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 13.10% yearly.
Based on estimates for the next years, NWS will show a decrease in Revenue. The Revenue will decrease by -0.49% on average per year.
EPS Next Y30.85%
EPS Next 2Y24.38%
EPS Next 3Y20.34%
EPS Next 5Y13.1%
Revenue Next Year-13.28%
Revenue Next 2Y-6.59%
Revenue Next 3Y-3.33%
Revenue Next 5Y-0.49%
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
A Price/Earnings ratio of 38.28 indicates a quite expensive valuation of NWS.
Compared to the rest of the industry, the Price/Earnings ratio of NWS is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.88. NWS is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 28.99, which means the current valuation is very expensive for NWS.
61.86% of the companies in the same industry are more expensive than NWS, based on the Price/Forward Earnings ratio.
NWS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.28 | ||
| Fwd PE | 28.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NWS is on the same level as its industry peers.
NWS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.94 | ||
| EV/EBITDA | 12.01 |
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.
A more expensive valuation may be justified as NWS's earnings are expected to grow with 20.34% in the coming years.
PEG (NY)1.24
PEG (5Y)4.37
EPS Next 2Y24.38%
EPS Next 3Y20.34%
5. Dividend
5.1 Amount
NWS has a yearly dividend return of 0.75%, which is pretty low.
Compared to an average industry Dividend Yield of 4.97, NWS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.75, NWS pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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
NWS pays out 43.24% of its income as dividend. This is a bit on the high side, but may be sustainable.
NWS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP43.24%
EPS Next 2Y24.38%
EPS Next 3Y20.34%
NASDAQ:NWS (5/1/2025, 10:48:43 AM)
31.39
-0.03 (-0.1%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners102.44%
Inst Owner Change0.76%
Ins Owners0.03%
Ins Owner Change0%
Market Cap17.81B
Analysts82.5
Price Target42.75 (36.19%)
Short Float %1.63%
Short Ratio7.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend0.3
Dividend Growth(5Y)1.81%
DP43.24%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.23%
Min EPS beat(2)3.18%
Max EPS beat(2)27.28%
EPS beat(4)4
Avg EPS beat(4)10.38%
Min EPS beat(4)3.18%
Max EPS beat(4)27.28%
EPS beat(8)8
Avg EPS beat(8)34.78%
EPS beat(12)10
Avg EPS beat(12)58.01%
EPS beat(16)14
Avg EPS beat(16)71.9%
Revenue beat(2)1
Avg Revenue beat(2)-1.27%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)0.36%
Revenue beat(4)2
Avg Revenue beat(4)-1.03%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)1.58%
Revenue beat(8)3
Avg Revenue beat(8)-1.05%
Revenue beat(12)4
Avg Revenue beat(12)-1.22%
Revenue beat(16)8
Avg Revenue beat(16)0.24%
PT rev (1m)3.16%
PT rev (3m)4.8%
EPS NQ rev (1m)-10.26%
EPS NQ rev (3m)-4.76%
EPS NY rev (1m)-3.44%
EPS NY rev (3m)2.75%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-20.56%
Revenue NY rev (1m)-0.61%
Revenue NY rev (3m)-16.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.28 | ||
| Fwd PE | 28.99 | ||
| P/S | 1.81 | ||
| P/FCF | 23.94 | ||
| P/OCF | 15.34 | ||
| P/B | 2.19 | ||
| P/tB | 8.95 | ||
| EV/EBITDA | 12.01 |
EPS(TTM)0.82
EY2.61%
EPS(NY)1.08
Fwd EY3.45%
FCF(TTM)1.31
FCFY4.18%
OCF(TTM)2.05
OCFY6.52%
SpS17.3
BVpS14.36
TBVpS3.51
PEG (NY)1.24
PEG (5Y)4.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 5.08% | ||
| ROCE | 7.18% | ||
| ROIC | 4.36% | ||
| ROICexc | 5.08% | ||
| ROICexgc | 12% | ||
| OM | 9.1% | ||
| PM (TTM) | 4.22% | ||
| GM | 51.86% | ||
| FCFM | 7.58% |
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-Score9
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.64 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 68.47% | ||
| Cap/Sales | 4.25% | ||
| Interest Coverage | 5.88 | ||
| Cash Conversion | 77.3% | ||
| Profit Quality | 179.71% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 2.19 |
F-Score9
WACC8.05%
ROIC/WACC0.54
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)26.15%
EPS 3Y1.47%
EPS 5Y8.76%
EPS Q2Q%26.92%
EPS Next Y30.85%
EPS Next 2Y24.38%
EPS Next 3Y20.34%
EPS Next 5Y13.1%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%-13.96%
Revenue Next Year-13.28%
Revenue Next 2Y-6.59%
Revenue Next 3Y-3.33%
Revenue Next 5Y-0.49%
EBIT growth 1Y12.33%
EBIT growth 3Y7.85%
EBIT growth 5Y5.33%
EBIT Next Year79.48%
EBIT Next 3Y27.15%
EBIT Next 5Y19.52%
FCF growth 1Y28.5%
FCF growth 3Y-10.76%
FCF growth 5Y11.08%
OCF growth 1Y7%
OCF growth 3Y-3.9%
OCF growth 5Y3.42%