NEWS CORP - CLASS A (NWSA) Stock Fundamental Analysis
NASDAQ:NWSA - Nasdaq - US65249B1098 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to NWSA. NWSA was compared to 98 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
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
With a decent Return On Assets value of 2.94%, NWSA is doing good in the industry, outperforming 77.55% of the companies in the same industry.
The Return On Equity of NWSA (5.94%) is better than 69.39% of its industry peers.
NWSA has a Return On Invested Capital of 4.61%. This is in the better half of the industry: NWSA outperforms 64.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NWSA is below the industry average of 7.63%.
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
NWSA has a Profit Margin of 5.18%. This is in the better half of the industry: NWSA outperforms 76.53% of its industry peers.
NWSA's Profit Margin has improved in the last couple of years.
NWSA has a better Operating Margin (10.08%) than 66.33% of its industry peers.
NWSA's Operating Margin has improved in the last couple of years.
NWSA's Gross Margin of 53.29% is fine compared to the rest of the industry. NWSA outperforms 66.33% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NWSA is destroying value.
Compared to 1 year ago, NWSA has less shares outstanding
Compared to 5 years ago, NWSA has less shares outstanding
The debt/assets ratio for NWSA has been reduced compared to a year ago.
2.2 Solvency
NWSA has an Altman-Z score of 1.96. 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.
NWSA's Altman-Z score of 1.96 is fine compared to the rest of the industry. NWSA outperforms 69.39% of its industry peers.
NWSA has a debt to FCF ratio of 2.43. This is a good value and a sign of high solvency as NWSA would need 2.43 years to pay back of all of its debts.
NWSA has a better Debt to FCF ratio (2.43) than 86.73% 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.
With a decent Debt to Equity ratio value of 0.24, NWSA is doing good in the industry, outperforming 69.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.56
WACC8.21%
2.3 Liquidity
A Current Ratio of 1.68 indicates that NWSA should not have too much problems paying its short term obligations.
NWSA's Current ratio of 1.68 is fine compared to the rest of the industry. NWSA outperforms 65.31% of its industry peers.
A Quick Ratio of 1.60 indicates that NWSA should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.60, NWSA is doing good in the industry, outperforming 65.31% of the companies in the same industry.
| 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.
NWSA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.76% yearly.
NWSA shows a decrease in Revenue. In the last year, the revenue decreased by -5.43%.
NWSA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.02% yearly.
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
The Earnings Per Share is expected to grow by 14.66% on average over the next years. This is quite good.
The Revenue is expected to decrease by -0.42% on average over the next years.
EPS Next Y30.85%
EPS Next 2Y24.67%
EPS Next 3Y20.54%
EPS Next 5Y14.66%
Revenue Next Year-13.58%
Revenue Next 2Y-6.5%
Revenue Next 3Y-3.24%
Revenue Next 5Y-0.42%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 31.68, the valuation of NWSA can be described as expensive.
NWSA's Price/Earnings ratio is a bit cheaper when compared to the industry. NWSA is cheaper than 62.24% of the companies in the same industry.
NWSA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.55.
NWSA is valuated quite expensively with a Price/Forward Earnings ratio of 25.62.
The rest of the industry has a similar Price/Forward Earnings ratio as NWSA.
The average S&P500 Price/Forward Earnings ratio is at 22.40. NWSA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.68 | ||
| Fwd PE | 25.62 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NWSA.
Based on the Price/Free Cash Flow ratio, NWSA is valued a bit cheaper than the industry average as 65.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.56 | ||
| EV/EBITDA | 10.61 |
4.3 Compensation for Growth
NWSA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of NWSA may justify a higher PE ratio.
NWSA's earnings are expected to grow with 20.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)3.62
EPS Next 2Y24.67%
EPS Next 3Y20.54%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, NWSA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.08, NWSA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.72, NWSA pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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.
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 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 2Y24.67%
EPS Next 3Y20.54%
27.88
-0.08 (-0.29%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners102.44%
Inst Owner Change1.37%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap15.78B
Analysts82.5
Price Target36.81 (32.03%)
Short Float %2.38%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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)-0.37%
PT rev (3m)0.2%
EPS NQ rev (1m)-6.54%
EPS NQ rev (3m)-13.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.27%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.68 | ||
| Fwd PE | 25.62 | ||
| P/S | 1.68 | ||
| P/FCF | 19.56 | ||
| P/OCF | 13.15 | ||
| P/B | 1.92 | ||
| P/tB | 7.75 | ||
| EV/EBITDA | 10.61 |
EPS(TTM)0.88
EY3.16%
EPS(NY)1.09
Fwd EY3.9%
FCF(TTM)1.43
FCFY5.11%
OCF(TTM)2.12
OCFY7.6%
SpS16.61
BVpS14.49
TBVpS3.6
PEG (NY)1.03
PEG (5Y)3.62
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 | 1.96 |
F-Score8
WACC8.21%
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 Y30.85%
EPS Next 2Y24.67%
EPS Next 3Y20.54%
EPS Next 5Y14.66%
Revenue 1Y (TTM)-5.43%
Revenue growth 3Y2.53%
Revenue growth 5Y0.02%
Sales Q2Q%-17.09%
Revenue Next Year-13.58%
Revenue Next 2Y-6.5%
Revenue Next 3Y-3.24%
Revenue Next 5Y-0.42%
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%