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 gets an excellent profitability rating and is at the same time showing great financial health properties. NWSA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
NWSA had positive earnings in the past year.
NWSA had a positive operating cash flow in the past year.
NWSA had positive earnings in 4 of the past 5 years.
Each year in the past 5 years NWSA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.94%, NWSA is in the better half of the industry, outperforming 75.26% of the companies in the same industry.
NWSA has a Return On Equity of 5.94%. This is in the better half of the industry: NWSA outperforms 69.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.61%, NWSA is in the better half of the industry, outperforming 63.92% 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 7.56%.
The last Return On Invested Capital (4.61%) for NWSA is above the 3 year average (3.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 5.94% | ||
| ROIC | 4.61% |
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 (5.18%) is better than 76.29% of its industry peers.
NWSA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.08%, NWSA is in the better half of the industry, outperforming 65.98% of the companies in the same industry.
NWSA's Operating Margin has improved in the last couple of years.
The Gross Margin of NWSA (53.29%) is better than 65.98% of its industry peers.
NWSA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.08% | ||
| PM (TTM) | 5.18% | ||
| GM | 53.29% |
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.
Compared to 1 year ago, NWSA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.03 indicates that NWSA is not a great score, but indicates only limited risk for bankruptcy at the moment.
NWSA's Altman-Z score of 2.03 is fine compared to the rest of the industry. NWSA outperforms 69.07% of its industry peers.
The Debt to FCF ratio of NWSA is 2.43, which is a good value as it means it would take NWSA, 2.43 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NWSA (2.43) is better 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 69.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.56
WACC8.22%
2.3 Liquidity
A Current Ratio of 1.68 indicates that NWSA should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.68, NWSA is doing good in the industry, outperforming 64.95% of the companies in the same industry.
A Quick Ratio of 1.60 indicates that NWSA should not have too much problems paying its short term obligations.
NWSA's Quick ratio of 1.60 is fine compared to the rest of the industry. NWSA outperforms 64.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.6 |
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.
NWSA shows a decrease in Revenue. In the last year, the revenue decreased by -5.43%.
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)-5.43%
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 13.89% yearly.
The Revenue is expected to decrease by -0.43% on average over the next years.
EPS Next Y30.66%
EPS Next 2Y22.39%
EPS Next 3Y17.21%
EPS Next 5Y13.89%
Revenue Next Year-14.06%
Revenue Next 2Y-6.48%
Revenue Next 3Y-3.24%
Revenue Next 5Y-0.43%
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
NWSA is valuated quite expensively with a Price/Earnings ratio of 33.78.
61.86% of the companies in the same industry are more expensive than NWSA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.52. NWSA is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 28.35, the valuation of NWSA can be described as expensive.
NWSA's Price/Forward Earnings ratio is in line with the industry average.
NWSA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.78 | ||
| Fwd PE | 28.35 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NWSA.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NWSA indicates a somewhat cheap valuation: NWSA is cheaper than 64.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.86 | ||
| EV/EBITDA | 11.22 |
4.3 Compensation for Growth
The 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 17.21% in the coming years.
PEG (NY)1.1
PEG (5Y)3.86
EPS Next 2Y22.39%
EPS Next 3Y17.21%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, NWSA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.61, NWSA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, NWSA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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 37.99% of its income as dividend. This is a sustainable payout ratio.
NWSA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.99%
EPS Next 2Y22.39%
EPS Next 3Y17.21%
29.73
+0.19 (+0.64%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners103.78%
Inst Owner Change-0.01%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap16.83B
Analysts81.25
Price Target36.81 (23.81%)
Short Float %2.26%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend0.3
Dividend Growth(5Y)1.81%
DP37.99%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.11%
Min EPS beat(2)3.18%
Max EPS beat(2)19.05%
EPS beat(4)4
Avg EPS beat(4)14.03%
Min EPS beat(4)3.18%
Max EPS beat(4)27.28%
EPS beat(8)8
Avg EPS beat(8)27.6%
EPS beat(12)10
Avg EPS beat(12)58.92%
EPS beat(16)14
Avg EPS beat(16)68.53%
Revenue beat(2)1
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-1.52%
Max Revenue beat(2)0.36%
Revenue beat(4)2
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-2.91%
Max Revenue beat(4)1.58%
Revenue beat(8)2
Avg Revenue beat(8)-1.39%
Revenue beat(12)4
Avg Revenue beat(12)-1.15%
Revenue beat(16)7
Avg Revenue beat(16)-0.11%
PT rev (1m)0%
PT rev (3m)-0.71%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)-7.71%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-3.58%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.78 | ||
| Fwd PE | 28.35 | ||
| P/S | 1.79 | ||
| P/FCF | 20.86 | ||
| P/OCF | 14.03 | ||
| P/B | 2.05 | ||
| P/tB | 8.26 | ||
| EV/EBITDA | 11.22 |
EPS(TTM)0.88
EY2.96%
EPS(NY)1.05
Fwd EY3.53%
FCF(TTM)1.43
FCFY4.79%
OCF(TTM)2.12
OCFY7.13%
SpS16.61
BVpS14.49
TBVpS3.6
PEG (NY)1.1
PEG (5Y)3.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 5.94% | ||
| ROCE | 7.58% | ||
| ROIC | 4.61% | ||
| ROICexc | 5.54% | ||
| ROICexgc | 13.59% | ||
| OM | 10.08% | ||
| PM (TTM) | 5.18% | ||
| GM | 53.29% | ||
| FCFM | 8.58% |
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-Score8
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.43 | ||
| Debt/EBITDA | 1.31 | ||
| Cap/Depr | 74.01% | ||
| Cap/Sales | 4.18% | ||
| Interest Coverage | 6.32 | ||
| Cash Conversion | 81.14% | ||
| Profit Quality | 165.71% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 2.03 |
F-Score8
WACC8.22%
ROIC/WACC0.56
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 Y30.66%
EPS Next 2Y22.39%
EPS Next 3Y17.21%
EPS Next 5Y13.89%
Revenue 1Y (TTM)-5.43%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%-17.09%
Revenue Next Year-14.06%
Revenue Next 2Y-6.48%
Revenue Next 3Y-3.24%
Revenue Next 5Y-0.43%
EBIT growth 1Y24.08%
EBIT growth 3Y7.85%
EBIT growth 5Y5.33%
EBIT Next Year79.72%
EBIT Next 3Y27.5%
EBIT Next 5Y18.99%
FCF growth 1Y74.68%
FCF growth 3Y-10.76%
FCF growth 5Y11.08%
OCF growth 1Y20.72%
OCF growth 3Y-3.9%
OCF growth 5Y3.42%