NEWS CORP - CLASS B (NWS) Stock Fundamental Analysis
NASDAQ:NWS - US65249B2088 - Common Stock
35.08 USD
+0.61 (+1.77%)
NWS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 98 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. With these ratings, NWS could be worth investigating further for quality investing!.
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.
In the past 5 years NWS has always been profitable.
Each year in the past 5 years NWS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.61%, NWS belongs to the top of the industry, outperforming 88.78% of the companies in the same industry.
NWS has a better Return On Equity (13.45%) than 81.63% of its industry peers.
NWS's Return On Invested Capital of 5.11% is fine compared to the rest of the industry. NWS outperforms 63.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NWS is below the industry average of 7.61%.
The last Return On Invested Capital (5.11%) for NWS is above the 3 year average (4.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 13.45% | ||
| ROIC | 5.11% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)4.31%
ROIC(5y)4.15%
1.3 Margins
With an excellent Profit Margin value of 13.21%, NWS belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of NWS has grown nicely.
NWS's Operating Margin of 10.95% is fine compared to the rest of the industry. NWS outperforms 67.35% of its industry peers.
NWS's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 54.70%, NWS is doing good in the industry, outperforming 65.31% of the companies in the same industry.
In the last couple of years the Gross Margin of NWS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.95% | ||
| PM (TTM) | 13.21% | ||
| GM | 54.7% |
OM growth 3Y11.1%
OM growth 5Y24.78%
PM growth 3Y32.52%
PM growth 5YN/A
GM growth 3Y2.96%
GM growth 5Y4.3%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
The debt/assets ratio for NWS has been reduced compared to a year ago.
2.2 Solvency
NWS has an Altman-Z score of 2.63. 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 (2.63) is better than 77.55% of its industry peers.
NWS has a debt to FCF ratio of 2.70. This is a good value and a sign of high solvency as NWS would need 2.70 years to pay back of all of its debts.
The Debt to FCF ratio of NWS (2.70) is better than 83.67% of its industry peers.
NWS has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NWS (0.22) is better than 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.7 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.62
WACC8.31%
2.3 Liquidity
A Current Ratio of 1.84 indicates that NWS should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.84, NWS is doing good in the industry, outperforming 66.33% of the companies in the same industry.
NWS has a Quick Ratio of 1.72. This is a normal value and indicates that NWS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NWS (1.72) is better than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
NWS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.57%, which is quite impressive.
The Earnings Per Share has been growing by 32.55% on average over the past years. This is a very strong growth
NWS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.42%.
Measured over the past years, NWS shows a decrease in Revenue. The Revenue has been decreasing by -1.27% on average per year.
EPS 1Y (TTM)28.57%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%11.76%
Revenue 1Y (TTM)-11.42%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-18.16%
3.2 Future
The Earnings Per Share is expected to grow by 10.37% on average over the next years. This is quite good.
Based on estimates for the next years, NWS will show a small growth in Revenue. The Revenue will grow by 3.35% on average per year.
EPS Next Y16.51%
EPS Next 2Y11.91%
EPS Next 3Y12.09%
EPS Next 5Y10.37%
Revenue Next Year1.76%
Revenue Next 2Y2.67%
Revenue Next 3Y2.84%
Revenue Next 5Y3.35%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 38.98, NWS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of NWS is on the same level as its industry peers.
NWS is valuated rather expensively when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 33.46, NWS can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as NWS.
NWS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 34.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.98 | ||
| Fwd PE | 33.46 |
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.
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 | 27.32 | ||
| EV/EBITDA | 13.26 |
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.
A more expensive valuation may be justified as NWS's earnings are expected to grow with 12.09% in the coming years.
PEG (NY)2.36
PEG (5Y)1.2
EPS Next 2Y11.91%
EPS Next 3Y12.09%
5. Dividend
5.1 Amount
NWS has a yearly dividend return of 0.67%, which is pretty low.
NWS's Dividend Yield is a higher than the industry average which is at 4.86.
Compared to an average S&P500 Dividend Yield of 2.36, NWS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
The dividend of NWS has a limited annual growth rate of 3.90%.
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)3.9%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
NWS pays out 15.68% of its income as dividend. This is a sustainable payout ratio.
The dividend of NWS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP15.68%
EPS Next 2Y11.91%
EPS Next 3Y12.09%
NASDAQ:NWS (8/22/2025, 12:30:03 PM)
35.08
+0.61 (+1.77%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners103.92%
Inst Owner Change-4.58%
Ins Owners0.03%
Ins Owner Change0%
Market Cap19.86B
Analysts81.25
Price Target41.91 (19.47%)
Short Float %1.66%
Short Ratio8.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend0.33
Dividend Growth(5Y)3.9%
DP15.68%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.87%
Min EPS beat(2)0.69%
Max EPS beat(2)19.05%
EPS beat(4)4
Avg EPS beat(4)12.55%
Min EPS beat(4)0.69%
Max EPS beat(4)27.28%
EPS beat(8)8
Avg EPS beat(8)19.81%
EPS beat(12)10
Avg EPS beat(12)20.8%
EPS beat(16)14
Avg EPS beat(16)51.29%
Revenue beat(2)0
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)-1.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-2.91%
Max Revenue beat(4)0.36%
Revenue beat(8)2
Avg Revenue beat(8)-1.09%
Revenue beat(12)3
Avg Revenue beat(12)-1.44%
Revenue beat(16)6
Avg Revenue beat(16)-0.76%
PT rev (1m)-1.12%
PT rev (3m)-1.97%
EPS NQ rev (1m)-11.54%
EPS NQ rev (3m)-14.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.63%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.98 | ||
| Fwd PE | 33.46 | ||
| P/S | 2.22 | ||
| P/FCF | 27.32 | ||
| P/OCF | 17.51 | ||
| P/B | 2.26 | ||
| P/tB | 8.04 | ||
| EV/EBITDA | 13.26 |
EPS(TTM)0.9
EY2.57%
EPS(NY)1.05
Fwd EY2.99%
FCF(TTM)1.28
FCFY3.66%
OCF(TTM)2
OCFY5.71%
SpS15.78
BVpS15.5
TBVpS4.36
PEG (NY)2.36
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 13.45% | ||
| ROCE | 7.58% | ||
| ROIC | 5.11% | ||
| ROICexc | 6.28% | ||
| ROICexgc | 15.67% | ||
| OM | 10.95% | ||
| PM (TTM) | 13.21% | ||
| GM | 54.7% | ||
| FCFM | 8.14% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)4.31%
ROIC(5y)4.15%
ROICexc(3y)5.13%
ROICexc(5y)4.9%
ROICexgc(3y)13.63%
ROICexgc(5y)13.25%
ROCE(3y)6.38%
ROCE(5y)6.14%
ROICexcg growth 3Y2.27%
ROICexcg growth 5Y23.38%
ROICexc growth 3Y8.03%
ROICexc growth 5Y22.11%
OM growth 3Y11.1%
OM growth 5Y24.78%
PM growth 3Y32.52%
PM growth 5YN/A
GM growth 3Y2.96%
GM growth 5Y4.3%
F-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.7 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 88.67% | ||
| Cap/Sales | 4.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.91% | ||
| Profit Quality | 61.61% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 2.63 |
F-Score7
WACC8.31%
ROIC/WACC0.62
Cap/Depr(3y)75.38%
Cap/Depr(5y)71.2%
Cap/Sales(3y)4.93%
Cap/Sales(5y)4.75%
Profit Quality(3y)228.64%
Profit Quality(5y)215.96%
High Growth Momentum
Growth
EPS 1Y (TTM)28.57%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%11.76%
EPS Next Y16.51%
EPS Next 2Y11.91%
EPS Next 3Y12.09%
EPS Next 5Y10.37%
Revenue 1Y (TTM)-11.42%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-18.16%
Revenue Next Year1.76%
Revenue Next 2Y2.67%
Revenue Next 3Y2.84%
Revenue Next 5Y3.35%
EBIT growth 1Y25.55%
EBIT growth 3Y3.73%
EBIT growth 5Y23.2%
EBIT Next Year59.89%
EBIT Next 3Y24.25%
EBIT Next 5Y18.48%
FCF growth 1Y20.76%
FCF growth 3Y-5.26%
FCF growth 5Y16.28%
OCF growth 1Y3.28%
OCF growth 3Y-5.74%
OCF growth 5Y7.77%