NEWS CORP - CLASS B (NWS) Stock Fundamental Analysis
USA - NASDAQ:NWS - US65249B2088 - Common Stock
32.46 USD
-2.09 (-6.05%)
32.33 USD
-0.13 (-0.4%)
Overall NWS gets a fundamental rating of 6 out of 10. We evaluated NWS against 98 industry peers in the Media industry. NWS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NWS is valied quite expensively at the moment, while 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
In the past year NWS was profitable.
In the past year NWS had a positive cash flow from operations.
NWS had positive earnings in each of the past 5 years.
In the past 5 years NWS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of NWS (7.61%) is better than 87.76% of its industry peers.
With an excellent Return On Equity value of 13.45%, NWS belongs to the best of the industry, outperforming 80.61% of the companies in the same industry.
NWS has a better Return On Invested Capital (5.09%) than 62.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NWS is below the industry average of 8.86%.
The last Return On Invested Capital (5.09%) for NWS is above the 3 year average (4.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 13.45% | ||
| ROIC | 5.09% |
ROA(3y)3.36%
ROA(5y)3.13%
ROE(3y)6.19%
ROE(5y)6.03%
ROIC(3y)4.08%
ROIC(5y)4.01%
1.3 Margins
NWS has a Profit Margin of 13.21%. This is amongst the best in the industry. NWS outperforms 83.67% 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 10.89%, NWS is in the better half of the industry, outperforming 61.22% of the companies in the same industry.
In the last couple of years the Operating Margin of NWS has grown nicely.
Looking at the Gross Margin, with a value of 54.70%, NWS is in the better half of the industry, outperforming 62.24% of the companies in the same industry.
NWS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.89% | ||
| PM (TTM) | 13.21% | ||
| GM | 54.7% |
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
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 2.52. 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 Altman-Z score of 2.52. This is in the better half of the industry: NWS outperforms 76.53% of its industry peers.
The Debt to FCF ratio of NWS is 2.70, which is a good value as it means it would take NWS, 2.70 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NWS (2.70) is better than 80.61% of its industry peers.
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 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.7 | ||
| Altman-Z | 2.52 |
ROIC/WACC0.63
WACC8.06%
2.3 Liquidity
NWS has a Current Ratio of 1.84. This is a normal value and indicates that NWS is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.84, NWS is doing good in the industry, outperforming 69.39% of the companies in the same industry.
A Quick Ratio of 1.72 indicates that NWS should not have too much problems paying its short term obligations.
The Quick ratio of NWS (1.72) is better than 69.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.57% 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
The Revenue for NWS has decreased by -11.42% in the past year. This is quite bad
The Revenue has been decreasing by -1.27% on average over the past years.
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
Based on estimates for the next years, NWS will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.37% on average per year.
The Revenue is expected to grow by 3.39% on average over the next years.
EPS Next Y10.92%
EPS Next 2Y15.19%
EPS Next 3Y12.86%
EPS Next 5Y10.37%
Revenue Next Year1.15%
Revenue Next 2Y2.33%
Revenue Next 3Y2.54%
Revenue Next 5Y3.39%
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
Based on the Price/Earnings ratio of 36.07, the valuation of NWS can be described as expensive.
Based on the Price/Earnings ratio, NWS is valued a bit cheaper than 60.20% of the companies in the same industry.
NWS is valuated rather expensively when we compare the Price/Earnings ratio to 27.79, which is the current average of the S&P500 Index.
NWS is valuated quite expensively with a Price/Forward Earnings ratio of 32.52.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWS is on the same level as its industry peers.
NWS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.07 | ||
| Fwd PE | 32.52 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NWS.
NWS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.23 | ||
| EV/EBITDA | 12.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NWS has an outstanding profitability rating, which may justify a higher PE ratio.
NWS's earnings are expected to grow with 12.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.3
PEG (5Y)1.11
EPS Next 2Y15.19%
EPS Next 3Y12.86%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, NWS is not a good candidate for dividend investing.
NWS's Dividend Yield is a higher than the industry average which is at 4.60.
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 | 0.66% |
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.
NWS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)3.91%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
15.68% of the earnings are spent on dividend by NWS. This is a low number and sustainable payout ratio.
The dividend of NWS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP15.68%
EPS Next 2Y15.19%
EPS Next 3Y12.86%
32.46
-2.09 (-6.05%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners104.96%
Inst Owner Change-4.54%
Ins Owners0.03%
Ins Owner Change-33331.1%
Market Cap18.34B
Analysts80
Price Target41.31 (27.26%)
Short Float %1.8%
Short Ratio5.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend0.33
Dividend Growth(5Y)3.91%
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)-4.77%
PT rev (3m)-2.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.92%
EPS NY rev (1m)0.54%
EPS NY rev (3m)-5.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.07 | ||
| Fwd PE | 32.52 | ||
| P/S | 2.05 | ||
| P/FCF | 25.23 | ||
| P/OCF | 16.17 | ||
| P/B | 2.09 | ||
| P/tB | 7.42 | ||
| EV/EBITDA | 12.5 |
EPS(TTM)0.9
EY2.77%
EPS(NY)1
Fwd EY3.08%
FCF(TTM)1.29
FCFY3.96%
OCF(TTM)2.01
OCFY6.18%
SpS15.81
BVpS15.53
TBVpS4.37
PEG (NY)3.3
PEG (5Y)1.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 13.45% | ||
| ROCE | 7.54% | ||
| ROIC | 5.09% | ||
| ROICexc | 6.26% | ||
| ROICexgc | 15.67% | ||
| OM | 10.89% | ||
| 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)4.08%
ROIC(5y)4.01%
ROICexc(3y)4.85%
ROICexc(5y)4.74%
ROICexgc(3y)12.95%
ROICexgc(5y)12.84%
ROCE(3y)6.05%
ROCE(5y)5.94%
ROICexcg growth 3Y-1.1%
ROICexcg 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 Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.7 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 88.67% | ||
| Cap/Sales | 4.56% | ||
| Interest Coverage | 10.46 | ||
| Cash Conversion | 79.19% | ||
| Profit Quality | 61.61% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 2.52 |
F-Score7
WACC8.06%
ROIC/WACC0.63
Cap/Depr(3y)79.9%
Cap/Depr(5y)73.92%
Cap/Sales(3y)4.73%
Cap/Sales(5y)4.63%
Profit Quality(3y)246.06%
Profit Quality(5y)226.42%
High Growth Momentum
Growth
EPS 1Y (TTM)28.57%
EPS 3Y-9.14%
EPS 5Y32.55%
EPS Q2Q%11.76%
EPS Next Y10.92%
EPS Next 2Y15.19%
EPS Next 3Y12.86%
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 Year1.15%
Revenue Next 2Y2.33%
Revenue Next 3Y2.54%
Revenue Next 5Y3.39%
EBIT growth 1Y24.9%
EBIT growth 3Y0.1%
EBIT growth 5Y20.59%
EBIT Next Year58.17%
EBIT Next 3Y23.28%
EBIT Next 5Y18.48%
FCF growth 1Y-1.89%
FCF growth 3Y-5.26%
FCF growth 5Y16.28%
OCF growth 1Y3.28%
OCF growth 3Y-5.74%
OCF growth 5Y7.77%