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. While showing a medium growth rate, NWS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
NWS had positive earnings in the past year.
In the past year NWS had a positive cash flow from operations.
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
NWS has a better Return On Assets (2.94%) than 74.23% of its industry peers.
NWS has a Return On Equity of 5.94%. This is in the better half of the industry: NWS outperforms 68.04% of its industry peers.
With a decent Return On Invested Capital value of 4.61%, NWS is doing good in the industry, outperforming 62.89% of the companies in the same industry.
NWS had an Average Return On Invested Capital over the past 3 years of 3.62%. This is below the industry average of 7.56%.
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.
In the last couple of years the Profit Margin of NWS has grown nicely.
The Operating Margin of NWS (10.08%) is better than 64.95% of its industry peers.
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.
NWS's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, NWS has less shares outstanding
The number of shares outstanding for NWS has been reduced compared to 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 2.22. 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.
The Altman-Z score of NWS (2.22) is better than 72.16% of its industry peers.
NWS has a debt to FCF ratio of 2.43. This is a good value and a sign of high solvency as NWS would need 2.43 years to pay back of all of its debts.
The Debt to FCF ratio of NWS (2.43) is better than 85.57% of its industry peers.
NWS has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.24, NWS is in the better half of 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 | 2.22 |
ROIC/WACC0.56
WACC8.25%
2.3 Liquidity
A Current Ratio of 1.68 indicates that NWS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.68, NWS is in the better half of the industry, outperforming 63.92% of the companies in the same industry.
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
The Earnings Per Share has grown by an impressive 31.34% over the past year.
Measured over the past years, NWS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.76% on average per year.
Looking at the last year, NWS shows a decrease in Revenue. The Revenue has decreased by -5.43% in the last year.
The Revenue has been growing slightly by 0.02% on average over the past years.
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
NWS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.89% yearly.
The Revenue is expected to decrease by -0.43% on average over the next years.
EPS Next Y30.05%
EPS Next 2Y22.81%
EPS Next 3Y19.8%
EPS Next 5Y13.89%
Revenue Next Year-14.25%
Revenue Next 2Y-6.52%
Revenue Next 3Y-3.26%
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
NWS is valuated quite expensively with a Price/Earnings ratio of 39.08.
NWS's Price/Earnings ratio is a bit cheaper when compared to the industry. NWS is cheaper than 60.82% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. NWS is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 32.58, NWS can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as NWS.
When comparing the Price/Forward Earnings ratio of NWS to the average of the S&P500 Index (21.90), we can say NWS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.08 | ||
| Fwd PE | 32.58 |
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 | 24.12 | ||
| EV/EBITDA | 13.08 |
4.3 Compensation for Growth
NWS's 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 19.80% in the coming years.
PEG (NY)1.3
PEG (5Y)4.46
EPS Next 2Y22.81%
EPS Next 3Y19.8%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, NWS is not a good candidate for dividend investing.
NWS's Dividend Yield is a higher than the industry average which is at 4.79.
Compared to an average S&P500 Dividend Yield of 2.42, 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 1.81%.
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)1.81%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
NWS pays out 37.99% of its income as dividend. This is a sustainable payout ratio.
NWS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.99%
EPS Next 2Y22.81%
EPS Next 3Y19.8%
34.39
+0.03 (+0.09%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners103.78%
Inst Owner Change-1.45%
Ins Owners0.03%
Ins Owner Change0%
Market Cap19.47B
Analysts82.5
Price Target42.39 (23.26%)
Short Float %1.63%
Short Ratio9.39
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)-0.87%
PT rev (3m)0.03%
EPS NQ rev (1m)-4.76%
EPS NQ rev (3m)-13.04%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)-4.03%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-1.43%
Revenue NY rev (3m)-1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.08 | ||
| Fwd PE | 32.58 | ||
| P/S | 2.07 | ||
| P/FCF | 24.12 | ||
| P/OCF | 16.22 | ||
| P/B | 2.37 | ||
| P/tB | 9.56 | ||
| EV/EBITDA | 13.08 |
EPS(TTM)0.88
EY2.56%
EPS(NY)1.06
Fwd EY3.07%
FCF(TTM)1.43
FCFY4.15%
OCF(TTM)2.12
OCFY6.16%
SpS16.61
BVpS14.49
TBVpS3.6
PEG (NY)1.3
PEG (5Y)4.46
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 | 2.22 |
F-Score8
WACC8.25%
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 Y30.05%
EPS Next 2Y22.81%
EPS Next 3Y19.8%
EPS Next 5Y13.89%
Revenue 1Y (TTM)-5.43%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%-17.09%
Revenue Next Year-14.25%
Revenue Next 2Y-6.52%
Revenue Next 3Y-3.26%
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%