NEWS CORP - CLASS A (NWSA) Stock Fundamental Analysis
NASDAQ:NWSA - Nasdaq - US65249B1098 - Common Stock - Currency: USD
Taking everything into account, NWSA scores 6 out of 10 in our fundamental rating. NWSA was compared to 96 industry peers in the Media industry. NWSA gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
Of the past 5 years NWSA 4 years were profitable.
Each year in the past 5 years NWSA had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.56%, NWSA is doing good in the industry, outperforming 76.04% of the companies in the same industry.
The Return On Equity of NWSA (5.08%) is better than 70.83% of its industry peers.
NWSA's Return On Invested Capital of 4.36% is fine compared to the rest of the industry. NWSA outperforms 62.50% of its industry peers.
NWSA had an Average Return On Invested Capital over the past 3 years of 3.62%. This is below the industry average of 6.73%.
The 3 year average ROIC (3.62%) for NWSA is below the current ROIC(4.36%), indicating increased profibility in the last year.
| 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
NWSA's Profit Margin of 4.22% is fine compared to the rest of the industry. NWSA outperforms 77.08% of its industry peers.
In the last couple of years the Profit Margin of NWSA has grown nicely.
NWSA's Operating Margin of 9.10% is fine compared to the rest of the industry. NWSA outperforms 64.58% of its industry peers.
NWSA's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 51.86%, NWSA is doing good in the industry, outperforming 65.63% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NWSA is destroying value.
Compared to 1 year ago, NWSA has less shares outstanding
NWSA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NWSA has an improved debt to assets ratio.
2.2 Solvency
NWSA has an Altman-Z score of 2.04. This is not the best score and indicates that NWSA is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of NWSA (2.04) is better than 71.88% 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.
The Debt to FCF ratio of NWSA (2.64) is better than 86.46% 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.
NWSA's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. NWSA outperforms 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.64 | ||
| Altman-Z | 2.04 |
ROIC/WACC0.53
WACC8.29%
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 67.71% 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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.34% over the past year.
The Earnings Per Share has been growing by 8.76% on average over the past years. This is quite good.
The Revenue has been growing slightly by 2.09% in the past year.
Measured over the past years, NWSA shows a small growth in Revenue. The Revenue has been growing by 0.02% on average per year.
EPS 1Y (TTM)31.34%
EPS 3Y1.47%
EPS 5Y8.76%
EPS Q2Q%54.55%
Revenue 1Y (TTM)2.09%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%-17.09%
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.
The Revenue is expected to decrease by -0.49% on average over the next years.
EPS Next Y30.85%
EPS Next 2Y24.67%
EPS Next 3Y20.54%
EPS Next 5Y13.1%
Revenue Next Year-13.01%
Revenue Next 2Y-6.59%
Revenue Next 3Y-3.33%
Revenue Next 5Y-0.49%
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 accelerating.
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
With a Price/Earnings ratio of 31.42, NWSA can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of NWSA indicates a somewhat cheap valuation: NWSA is cheaper than 61.46% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, NWSA is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 25.41, the valuation of NWSA can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWSA is on the same level as its industry peers.
NWSA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.42 | ||
| Fwd PE | 25.41 |
4.2 Price Multiples
NWSA's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NWSA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.09 | ||
| EV/EBITDA | 10.7 |
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.
A more expensive valuation may be justified as NWSA's earnings are expected to grow with 20.54% in the coming years.
PEG (NY)1.02
PEG (5Y)3.59
EPS Next 2Y24.67%
EPS Next 3Y20.54%
5. Dividend
5.1 Amount
With a yearly dividend of 0.71%, NWSA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.91, NWSA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, NWSA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
The dividend of NWSA has a limited annual growth rate of 1.81%.
NWSA has paid a dividend for at least 10 years, which is a reliable track record.
As NWSA 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
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 2Y24.67%
EPS Next 3Y20.54%
27.65
-0.29 (-1.04%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners102.44%
Inst Owner Change1.33%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap15.69B
Analysts82.5
Price Target36.95 (33.63%)
Short Float %2.14%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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)-0.34%
PT rev (3m)3.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.85%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)-2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.42 | ||
| Fwd PE | 25.41 | ||
| P/S | 1.6 | ||
| P/FCF | 21.09 | ||
| P/OCF | 13.51 | ||
| P/B | 1.93 | ||
| P/tB | 7.88 | ||
| EV/EBITDA | 10.7 |
EPS(TTM)0.88
EY3.18%
EPS(NY)1.09
Fwd EY3.93%
FCF(TTM)1.31
FCFY4.74%
OCF(TTM)2.05
OCFY7.4%
SpS17.3
BVpS14.36
TBVpS3.51
PEG (NY)1.02
PEG (5Y)3.59
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 | 2.04 |
F-Score9
WACC8.29%
ROIC/WACC0.53
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 Y30.85%
EPS Next 2Y24.67%
EPS Next 3Y20.54%
EPS Next 5Y13.1%
Revenue 1Y (TTM)2.09%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%-17.09%
Revenue Next Year-13.01%
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%