NEWS CORP - CLASS A (NWSA) Stock Fundamental Analysis
NASDAQ:NWSA - US65249B1098 - Common Stock
30.5 USD
+0.76 (+2.56%)
30.42 USD
-0.08 (-0.26%)
Overall NWSA gets a fundamental rating of 6 out of 10. We evaluated NWSA against 100 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 valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make NWSA a good candidate for quality investing.
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.
Each year in the past 5 years NWSA has been profitable.
In the past 5 years NWSA always reported a positive cash flow from operatings.
1.2 Ratios
NWSA has a Return On Assets of 7.61%. This is amongst the best in the industry. NWSA outperforms 90.00% of its industry peers.
NWSA's Return On Equity of 13.45% is amongst the best of the industry. NWSA outperforms 83.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.09%, NWSA is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
NWSA had an Average Return On Invested Capital over the past 3 years of 4.08%. This is below the industry average of 7.51%.
The last Return On Invested Capital (5.09%) for NWSA 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
NWSA has a better Profit Margin (13.21%) than 87.00% of its industry peers.
In the last couple of years the Profit Margin of NWSA has grown nicely.
NWSA has a Operating Margin of 10.89%. This is in the better half of the industry: NWSA outperforms 62.00% of its industry peers.
NWSA's Operating Margin has improved in the last couple of years.
NWSA has a better Gross Margin (54.70%) than 67.00% of its industry peers.
NWSA'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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NWSA is destroying value.
The number of shares outstanding for NWSA has been reduced compared to 1 year ago.
Compared to 5 years ago, NWSA has less shares outstanding
NWSA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.42 indicates that NWSA is not a great score, but indicates only limited risk for bankruptcy at the moment.
NWSA has a Altman-Z score of 2.42. This is in the better half of the industry: NWSA outperforms 75.00% of its industry peers.
NWSA has a debt to FCF ratio of 2.70. This is a good value and a sign of high solvency as NWSA would need 2.70 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.70, NWSA belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
A Debt/Equity ratio of 0.22 indicates that NWSA is not too dependend on debt financing.
NWSA has a better Debt to Equity ratio (0.22) than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.7 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.63
WACC8.12%
2.3 Liquidity
A Current Ratio of 1.84 indicates that NWSA should not have too much problems paying its short term obligations.
The Current ratio of NWSA (1.84) is better than 68.00% of its industry peers.
NWSA has a Quick Ratio of 1.72. This is a normal value and indicates that NWSA is financially healthy and should not expect problems in meeting its short term obligations.
NWSA's Quick ratio of 1.72 is fine compared to the rest of the industry. NWSA outperforms 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
NWSA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.57%, which is quite impressive.
The Earnings Per Share has been growing by 32.55% on average over the past years. This is a very strong growth
NWSA shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.42%.
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
The Earnings Per Share is expected to grow by 10.37% on average over the next years. This is quite good.
NWSA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.39% yearly.
EPS Next Y10.33%
EPS Next 2Y15.77%
EPS Next 3Y13.36%
EPS Next 5Y10.37%
Revenue Next Year1.25%
Revenue Next 2Y2.48%
Revenue Next 3Y2.8%
Revenue Next 5Y3.39%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 33.89, NWSA can be considered very expensive at the moment.
Based on the Price/Earnings ratio, NWSA is valued a bit cheaper than the industry average as 62.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.24. NWSA is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 30.72, NWSA can be considered very expensive at the moment.
NWSA's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of NWSA to the average of the S&P500 Index (22.81), we can say NWSA is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.89 | ||
| Fwd PE | 30.72 |
4.2 Price Multiples
NWSA's Enterprise Value to EBITDA ratio is in line with the industry average.
NWSA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.7 | ||
| EV/EBITDA | 11.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NWSA has an outstanding profitability rating, which may justify a higher PE ratio.
NWSA's earnings are expected to grow with 13.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.28
PEG (5Y)1.04
EPS Next 2Y15.77%
EPS Next 3Y13.36%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, NWSA is not a good candidate for dividend investing.
NWSA's Dividend Yield is a higher than the industry average which is at 4.93.
Compared to an average S&P500 Dividend Yield of 2.34, 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 3.91%.
NWSA has paid a dividend for at least 10 years, which is 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)3.91%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
15.68% of the earnings are spent on dividend by NWSA. This is a low number and sustainable payout ratio.
NWSA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.68%
EPS Next 2Y15.77%
EPS Next 3Y13.36%
30.5
+0.76 (+2.56%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners103.92%
Inst Owner Change-2.7%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap17.23B
Analysts81.25
Price Target37.54 (23.08%)
Short Float %1.87%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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)1.97%
PT rev (3m)1.6%
EPS NQ rev (1m)-16.69%
EPS NQ rev (3m)-19.78%
EPS NY rev (1m)-5.3%
EPS NY rev (3m)-8.73%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)-1.74%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.89 | ||
| Fwd PE | 30.72 | ||
| P/S | 1.93 | ||
| P/FCF | 23.7 | ||
| P/OCF | 15.2 | ||
| P/B | 1.96 | ||
| P/tB | 6.97 | ||
| EV/EBITDA | 11.73 |
EPS(TTM)0.9
EY2.95%
EPS(NY)0.99
Fwd EY3.26%
FCF(TTM)1.29
FCFY4.22%
OCF(TTM)2.01
OCFY6.58%
SpS15.81
BVpS15.53
TBVpS4.37
PEG (NY)3.28
PEG (5Y)1.04
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 | 2.42 |
F-Score7
WACC8.12%
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 Y10.33%
EPS Next 2Y15.77%
EPS Next 3Y13.36%
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 Year1.25%
Revenue Next 2Y2.48%
Revenue Next 3Y2.8%
Revenue Next 5Y3.39%
EBIT growth 1Y24.9%
EBIT growth 3Y0.1%
EBIT growth 5Y20.59%
EBIT Next Year59.89%
EBIT Next 3Y24.25%
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%