NEWS CORP - CLASS A (NWSA) Stock Fundamental Analysis
NASDAQ:NWSA - Nasdaq - US65249B1098 - Common Stock - Currency: USD
Overall NWSA gets a fundamental rating of 6 out of 10. We evaluated NWSA against 97 industry peers in the Media industry. NWSA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NWSA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NWSA was profitable.
In the past year NWSA had a positive cash flow from operations.
NWSA had positive earnings in 4 of the past 5 years.
In the past 5 years NWSA always reported a positive cash flow from operatings.
1.2 Ratios
NWSA has a Return On Assets of 2.56%. This is in the better half of the industry: NWSA outperforms 75.26% of its industry peers.
NWSA's Return On Equity of 5.08% is fine compared to the rest of the industry. NWSA outperforms 72.16% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.36%, NWSA is in the better half of the industry, outperforming 62.89% of the companies in the same industry.
NWSA 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 NWSA 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
The Profit Margin of NWSA (4.22%) is better than 75.26% of its industry peers.
In the last couple of years the Profit Margin of NWSA has grown nicely.
With a decent Operating Margin value of 9.10%, NWSA is doing good in the industry, outperforming 64.95% of the companies in the same industry.
In the last couple of years the Operating Margin of NWSA has grown nicely.
The Gross Margin of NWSA (51.86%) is better than 65.98% of its industry peers.
In the last couple of years the Gross Margin of NWSA has grown nicely.
| 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
NWSA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NWSA has less shares outstanding
NWSA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NWSA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.01 indicates that NWSA is not a great score, but indicates only limited risk for bankruptcy at the moment.
NWSA's Altman-Z score of 2.01 is fine compared to the rest of the industry. NWSA outperforms 72.16% of its industry peers.
NWSA has a debt to FCF ratio of 2.64. This is a good value and a sign of high solvency as NWSA would need 2.64 years to pay back of all of its debts.
NWSA has a better Debt to FCF ratio (2.64) than 86.60% of its industry peers.
NWSA has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NWSA (0.24) is better than 71.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.64 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.55
WACC7.95%
2.3 Liquidity
A Current Ratio of 1.73 indicates that NWSA should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.73, NWSA is doing good in the industry, outperforming 61.86% of the companies in the same industry.
A Quick Ratio of 1.65 indicates that NWSA should not have too much problems paying its short term obligations.
NWSA's Quick ratio of 1.65 is fine compared to the rest of the industry. NWSA outperforms 60.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
NWSA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.15%, which is quite impressive.
The Earnings Per Share has been growing by 8.76% on average over the past years. This is quite good.
The Revenue has decreased by -1.51% in the past year.
NWSA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.02% yearly.
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
NWSA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.10% yearly.
NWSA is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.49% yearly.
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
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
Based on the Price/Earnings ratio of 33.00, the valuation of NWSA can be described as expensive.
Based on the Price/Earnings ratio, NWSA is valued a bit cheaper than 60.82% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.75, NWSA is valued at the same level.
NWSA is valuated rather expensively with a Price/Forward Earnings ratio of 24.99.
Based on the Price/Forward Earnings ratio, NWSA is valued a bit cheaper than the industry average as 61.86% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.49. NWSA is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33 | ||
| Fwd PE | 24.99 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NWSA.
The rest of the industry has a similar Price/Free Cash Flow ratio as NWSA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.64 | ||
| EV/EBITDA | 10.37 |
4.3 Compensation for Growth
NWSA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NWSA has a very decent profitability rating, which may justify a higher PE ratio.
NWSA's earnings are expected to grow with 20.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.07
PEG (5Y)3.77
EPS Next 2Y24.38%
EPS Next 3Y20.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, NWSA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.96, NWSA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.75, NWSA pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
The dividend of NWSA has a limited annual growth rate of 1.81%.
NWSA has been paying a dividend for at least 10 years, so it has a reliable track record.
NWSA has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)1.81%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
NWSA pays out 43.24% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of NWSA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.24%
EPS Next 2Y24.38%
EPS Next 3Y20.34%
27.06
-0.06 (-0.22%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners102.44%
Inst Owner Change-0.34%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap15.35B
Analysts82.5
Price Target36.95 (36.55%)
Short Float %2.17%
Short Ratio2.2
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)0.57%
PT rev (3m)-0.19%
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 | 33 | ||
| Fwd PE | 24.99 | ||
| P/S | 1.56 | ||
| P/FCF | 20.64 | ||
| P/OCF | 13.22 | ||
| P/B | 1.88 | ||
| P/tB | 7.71 | ||
| EV/EBITDA | 10.37 |
EPS(TTM)0.82
EY3.03%
EPS(NY)1.08
Fwd EY4%
FCF(TTM)1.31
FCFY4.85%
OCF(TTM)2.05
OCFY7.56%
SpS17.3
BVpS14.36
TBVpS3.51
PEG (NY)1.07
PEG (5Y)3.77
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 | 2.01 |
F-Score9
WACC7.95%
ROIC/WACC0.55
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%