NEWS CORP - CLASS A (NWSA)
US65249B1098 - Common Stock
Taking everything into account, NWSA scores 5 out of 10 in our fundamental rating. NWSA was compared to 96 industry peers in the Media industry. NWSA has an average financial health and profitability rating. NWSA is valied quite expensively at the moment, while it does show 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 1.37%. This is in the better half of the industry: NWSA outperforms 62.11% of its industry peers.
The Return On Equity of NWSA (2.79%) is comparable to the rest of the industry.
The Return On Invested Capital of NWSA (4.30%) is better than 63.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NWSA is below the industry average of 7.68%.
The 3 year average ROIC (4.19%) for NWSA is below the current ROIC(4.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | 2.79% | ||
| ROIC | 4.3% |
ROA(3y)2.16%
ROA(5y)-0.29%
ROE(3y)4.48%
ROE(5y)-0.32%
ROIC(3y)4.19%
ROIC(5y)3.73%
1.3 Margins
The Profit Margin of NWSA (2.29%) is comparable to the rest of the industry.
Looking at the Operating Margin, with a value of 7.98%, NWSA is in line with its industry, outperforming 60.00% of the companies in the same industry.
NWSA's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 48.71%, NWSA is doing good in the industry, outperforming 62.11% of the companies in the same industry.
In the last couple of years the Gross Margin of NWSA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.98% | ||
| PM (TTM) | 2.29% | ||
| GM | 48.71% |
OM growth 3Y19.86%
OM growth 5Y1.13%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.46%
GM growth 5Y1.26%
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
NWSA has an Altman-Z score of 1.64. This is a bad value and indicates that NWSA is not financially healthy and even has some risk of bankruptcy.
NWSA has a better Altman-Z score (1.64) than 63.16% of its industry peers.
NWSA has a debt to FCF ratio of 4.24. This is a neutral value as NWSA would need 4.24 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.24, NWSA belongs to the top of the industry, outperforming 81.05% of the companies in the same industry.
NWSA has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.36, NWSA is doing good in the industry, outperforming 64.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 4.24 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.53
WACC8.12%
2.3 Liquidity
A Current Ratio of 1.44 indicates that NWSA should not have too much problems paying its short term obligations.
NWSA has a Current ratio (1.44) which is in line with its industry peers.
A Quick Ratio of 1.33 indicates that NWSA should not have too much problems paying its short term obligations.
NWSA has a Quick ratio of 1.33. This is in the lower half of the industry: NWSA underperforms 64.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
NWSA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.72%.
NWSA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.72% yearly.
The Revenue has decreased by -1.97% in the past year.
NWSA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.83% yearly.
EPS 1Y (TTM)-17.72%
EPS 3Y30.59%
EPS 5Y1.72%
EPS growth Q2Q85.71%
Revenue 1Y (TTM)-1.97%
Revenue growth 3Y3.12%
Revenue growth 5Y1.83%
Revenue growth Q2Q2.58%
3.2 Future
Based on estimates for the next years, NWSA will show a very strong growth in Earnings Per Share. The EPS will grow by 23.68% on average per year.
NWSA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.84% yearly.
EPS Next Y53.68%
EPS Next 2Y36.43%
EPS Next 3Y30.86%
EPS Next 5Y23.68%
Revenue Next Year1.33%
Revenue Next 2Y2.55%
Revenue Next 3Y2.73%
Revenue Next 5Y1.84%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 36.92 indicates a quite expensive valuation of NWSA.
NWSA's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of NWSA to the average of the S&P500 Index (28.06), we can say NWSA is valued slightly more expensively.
NWSA is valuated quite expensively with a Price/Forward Earnings ratio of 26.31.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWSA is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.72, NWSA is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.92 | ||
| Fwd PE | 26.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NWSA is on the same level as its industry peers.
NWSA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.09 | ||
| EV/EBITDA | 9.92 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NWSA's earnings are expected to grow with 30.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)21.5
EPS Next 2Y36.43%
EPS Next 3Y30.86%
5. Dividend
5.1 Amount
NWSA has a yearly dividend return of 0.83%, which is pretty low.
NWSA's Dividend Yield is a higher than the industry average which is at 4.32.
With a Dividend Yield of 0.83, NWSA pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
The dividend of NWSA has a limited annual growth rate of 2.11%.
NWSA has been paying a dividend for at least 10 years, so it has 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)2.11%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
74.56% of the earnings are spent on dividend by NWSA. This is not a sustainable payout ratio.
The dividend of NWSA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP74.56%
EPS Next 2Y36.43%
EPS Next 3Y30.86%
NEWS CORP - CLASS A
NASDAQ:NWSA (5/2/2024, 7:10:43 PM)
After market: 23.98 -0.02 (-0.08%)24
+0.16 (+0.67%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.71B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.92 | ||
| Fwd PE | 26.31 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.69
PEG (5Y)21.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | 2.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.98% | ||
| PM (TTM) | 2.29% | ||
| GM | 48.71% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-17.72%
EPS 3Y30.59%
EPS 5Y
EPS growth Q2Q
EPS Next Y53.68%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.97%
Revenue growth 3Y3.12%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y