NEWS CORP - CLASS B (NWS) Stock Fundamental Analysis
USA - NASDAQ:NWS - US65249B2088 - Common Stock
30.74 USD
-0.43 (-1.38%)
NWS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 94 industry peers in the Media industry. While NWS has a great profitability rating, there are some minor concerns on its financial health. 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.
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
NWS has a better Return On Assets (7.61%) than 88.30% of its industry peers.
Looking at the Return On Equity, with a value of 13.45%, NWS belongs to the top of the industry, outperforming 80.85% of the companies in the same industry.
NWS has a better Return On Invested Capital (5.09%) than 61.70% of its industry peers.
NWS had an Average Return On Invested Capital over the past 3 years of 4.08%. This is below the industry average of 8.50%.
The 3 year average ROIC (4.08%) for NWS is below the current ROIC(5.09%), indicating increased profibility in the last year.
| 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 85.11% of its industry peers.
In the last couple of years the Profit Margin of NWS has grown nicely.
NWS has a Operating Margin of 10.89%. This is in the better half of the industry: NWS outperforms 61.70% of its industry peers.
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 62.77% 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
Compared to 5 years ago, NWS has less shares outstanding
Compared to 1 year ago, NWS has an improved debt to assets ratio.
2.2 Solvency
NWS has an Altman-Z score of 2.45. 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.
Looking at the Altman-Z score, with a value of 2.45, NWS is in the better half of the industry, outperforming 78.72% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 2.70, NWS is in the better half of the industry, outperforming 78.72% of the companies in the same industry.
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 64.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.7 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.64
WACC7.91%
2.3 Liquidity
A Current Ratio of 1.84 indicates that NWS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.84, NWS is in the better half of the industry, outperforming 71.28% 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.
With a decent Quick ratio value of 1.72, NWS is doing good in the industry, outperforming 71.28% of the companies in the same industry.
| 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.
Measured over the past years, NWS shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.55% on average per year.
The Revenue for NWS has decreased by -11.42% in the past year. This is quite bad
NWS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.27% yearly.
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 9.75% on average over the next years. This is quite good.
NWS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.39% yearly.
EPS Next Y10.92%
EPS Next 2Y14.98%
EPS Next 3Y12.92%
EPS Next 5Y9.75%
Revenue Next Year1.06%
Revenue Next 2Y2.25%
Revenue Next 3Y2.52%
Revenue Next 5Y3.39%
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 decreasing.
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 34.16, the valuation of NWS can be described as expensive.
Based on the Price/Earnings ratio, NWS is valued a bit cheaper than the industry average as 60.64% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.00, NWS is valued a bit more expensive.
The Price/Forward Earnings ratio is 30.79, which means the current valuation is very expensive for NWS.
NWS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of NWS to the average of the S&P500 Index (22.87), we can say NWS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.16 | ||
| Fwd PE | 30.79 |
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 | 23.86 | ||
| EV/EBITDA | 11.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of NWS may justify a higher PE ratio.
A more expensive valuation may be justified as NWS's earnings are expected to grow with 12.92% in the coming years.
PEG (NY)3.13
PEG (5Y)1.05
EPS Next 2Y14.98%
EPS Next 3Y12.92%
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, NWS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.39, NWS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.76, NWS pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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
NWS pays out 15.68% 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.
DP15.68%
EPS Next 2Y14.98%
EPS Next 3Y12.92%
NASDAQ:NWS (10/29/2025, 11:55:53 AM)
30.74
-0.43 (-1.38%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners104.96%
Inst Owner Change0.9%
Ins Owners0.03%
Ins Owner Change-33331.1%
Market Cap17.35B
Revenue(TTM)8.93B
Net Income(TTM)1.18B
Analysts80
Price Target41.74 (35.78%)
Short Float %2.06%
Short Ratio5.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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)1.03%
PT rev (3m)-1.63%
EPS NQ rev (1m)-1.77%
EPS NQ rev (3m)-14.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.79%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.16 | ||
| Fwd PE | 30.79 | ||
| P/S | 1.94 | ||
| P/FCF | 23.86 | ||
| P/OCF | 15.3 | ||
| P/B | 1.98 | ||
| P/tB | 7.02 | ||
| EV/EBITDA | 11.97 |
EPS(TTM)0.9
EY2.93%
EPS(NY)1
Fwd EY3.25%
FCF(TTM)1.29
FCFY4.19%
OCF(TTM)2.01
OCFY6.54%
SpS15.83
BVpS15.55
TBVpS4.38
PEG (NY)3.13
PEG (5Y)1.05
Graham Number17.75
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%
ROICexgc growth 3Y-1.1%
ROICexgc 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 | 2.45 |
F-Score7
WACC7.91%
ROIC/WACC0.64
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 2Y14.98%
EPS Next 3Y12.92%
EPS Next 5Y9.75%
Revenue 1Y (TTM)-11.42%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-18.16%
Revenue Next Year1.06%
Revenue Next 2Y2.25%
Revenue Next 3Y2.52%
Revenue Next 5Y3.39%
EBIT growth 1Y24.9%
EBIT growth 3Y0.1%
EBIT growth 5Y20.59%
EBIT Next Year58.17%
EBIT Next 3Y23.88%
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%
NEWS CORP - CLASS B / NWS FAQ
What is the ChartMill fundamental rating of NEWS CORP - CLASS B (NWS) stock?
ChartMill assigns a fundamental rating of 6 / 10 to NWS.
What is the valuation status of NEWS CORP - CLASS B (NWS) stock?
ChartMill assigns a valuation rating of 3 / 10 to NEWS CORP - CLASS B (NWS). This can be considered as Overvalued.
What is the profitability of NWS stock?
NEWS CORP - CLASS B (NWS) has a profitability rating of 8 / 10.
What is the valuation of NEWS CORP - CLASS B based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NEWS CORP - CLASS B (NWS) is 34.16 and the Price/Book (PB) ratio is 1.98.
Can you provide the financial health for NWS stock?
The financial health rating of NEWS CORP - CLASS B (NWS) is 6 / 10.