NEWS CORP - CLASS A (NWSA) Stock Fundamental Analysis
USA - NASDAQ:NWSA - US65249B1098 - Common Stock
26.215 USD
+0.23 (+0.87%)
We assign a fundamental rating of 6 out of 10 to NWSA. NWSA was compared to 95 industry peers in the Media industry. While NWSA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, NWSA is valued expensive at the moment.
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 each of the past 5 years.
In the past 5 years NWSA always reported a positive cash flow from operatings.
1.2 Ratios
NWSA's Return On Assets of 7.61% is amongst the best of the industry. NWSA outperforms 88.42% of its industry peers.
With an excellent Return On Equity value of 13.45%, NWSA belongs to the best of the industry, outperforming 81.05% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.09%, NWSA is in the better half of the industry, outperforming 63.16% 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 8.55%.
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's Profit Margin of 13.21% is amongst the best of the industry. NWSA outperforms 88.42% of its industry peers.
In the last couple of years the Profit Margin of NWSA has grown nicely.
NWSA's Operating Margin of 10.89% is fine compared to the rest of the industry. NWSA outperforms 62.11% of its industry peers.
In the last couple of years the Operating Margin of NWSA has grown nicely.
NWSA has a better Gross Margin (54.70%) than 64.21% of its industry peers.
In the last couple of years the Gross Margin of NWSA has grown nicely.
| 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
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
The number of shares outstanding for NWSA has been reduced compared to 5 years ago.
The debt/assets ratio for NWSA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.19 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 2.19. This is in the better half of the industry: NWSA outperforms 71.58% of its industry peers.
The Debt to FCF ratio of NWSA is 2.70, which is a good value as it means it would take NWSA, 2.70 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.70, NWSA is doing good in the industry, outperforming 80.00% of the companies in the same industry.
NWSA has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
NWSA has a better Debt to Equity ratio (0.22) than 66.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.7 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.65
WACC7.87%
2.3 Liquidity
A Current Ratio of 1.84 indicates that NWSA should not have too much problems paying its short term obligations.
NWSA's Current ratio of 1.84 is fine compared to the rest of the industry. NWSA outperforms 72.63% of its industry peers.
A Quick Ratio of 1.72 indicates that NWSA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.72, NWSA is in the better half of the industry, outperforming 72.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.57% over the past year.
Measured over the past years, NWSA shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.55% on average per year.
Looking at the last year, NWSA shows a very negative growth in Revenue. The Revenue has decreased by -11.42% in the last year.
NWSA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.27% yearly.
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 9.75% on average over the next years. This is quite good.
Based on estimates for the next years, NWSA will show a small growth in Revenue. The Revenue will grow by 3.39% on average per year.
EPS Next Y10.92%
EPS Next 2Y14.98%
EPS Next 3Y12.92%
EPS Next 5Y9.75%
Revenue Next Year1.06%
Revenue Next 2Y2.25%
Revenue Next 3Y2.52%
Revenue Next 5Y3.39%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
Based on the Price/Earnings ratio of 29.13, 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 62.11% of the companies in the same industry.
NWSA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 26.26 indicates a quite expensive valuation of NWSA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWSA is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of NWSA to the average of the S&P500 Index (22.53), we can say NWSA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.13 | ||
| Fwd PE | 26.26 |
4.2 Price Multiples
NWSA's Enterprise Value to EBITDA is on the same level as the industry average.
NWSA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.35 | ||
| EV/EBITDA | 9.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NWSA does not grow enough to justify the current Price/Earnings ratio.
NWSA has an outstanding profitability rating, which may justify a higher PE ratio.
NWSA's earnings are expected to grow with 12.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.67
PEG (5Y)0.89
EPS Next 2Y14.98%
EPS Next 3Y12.92%
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, NWSA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.46, NWSA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, NWSA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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
NWSA pays out 15.68% 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.
DP15.68%
EPS Next 2Y14.98%
EPS Next 3Y12.92%
NASDAQ:NWSA (11/4/2025, 10:06:50 AM)
26.215
+0.23 (+0.87%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners104.96%
Inst Owner Change-0.18%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap14.79B
Revenue(TTM)8.93B
Net Income(TTM)1.18B
Analysts80
Price Target37.66 (43.66%)
Short Float %2.99%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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)-0.34%
PT rev (3m)2.32%
EPS NQ rev (1m)-1.77%
EPS NQ rev (3m)-14.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.79%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.13 | ||
| Fwd PE | 26.26 | ||
| P/S | 1.66 | ||
| P/FCF | 20.35 | ||
| P/OCF | 13.04 | ||
| P/B | 1.69 | ||
| P/tB | 5.99 | ||
| EV/EBITDA | 9.93 |
EPS(TTM)0.9
EY3.43%
EPS(NY)1
Fwd EY3.81%
FCF(TTM)1.29
FCFY4.91%
OCF(TTM)2.01
OCFY7.67%
SpS15.83
BVpS15.55
TBVpS4.38
PEG (NY)2.67
PEG (5Y)0.89
Graham Number17.75
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%
ROICexgc growth 3Y-1.1%
ROICexgc 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 | 2.19 |
F-Score7
WACC7.87%
ROIC/WACC0.65
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 Y10.92%
EPS Next 2Y14.98%
EPS Next 3Y12.92%
EPS Next 5Y9.75%
Revenue 1Y (TTM)-11.42%
Revenue growth 3Y-6.63%
Revenue growth 5Y-1.27%
Sales Q2Q%-18.16%
Revenue Next Year1.06%
Revenue Next 2Y2.25%
Revenue Next 3Y2.52%
Revenue Next 5Y3.39%
EBIT growth 1Y24.9%
EBIT growth 3Y0.1%
EBIT growth 5Y20.59%
EBIT Next Year58.17%
EBIT Next 3Y23.88%
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%
NEWS CORP - CLASS A / NWSA FAQ
What is the fundamental rating for NWSA stock?
ChartMill assigns a fundamental rating of 6 / 10 to NWSA.
What is the valuation status for NWSA stock?
ChartMill assigns a valuation rating of 3 / 10 to NEWS CORP - CLASS A (NWSA). This can be considered as Overvalued.
How profitable is NEWS CORP - CLASS A (NWSA) stock?
NEWS CORP - CLASS A (NWSA) has a profitability rating of 8 / 10.
What is the valuation of NEWS CORP - CLASS A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NEWS CORP - CLASS A (NWSA) is 29.13 and the Price/Book (PB) ratio is 1.69.
What is the earnings growth outlook for NEWS CORP - CLASS A?
The Earnings per Share (EPS) of NEWS CORP - CLASS A (NWSA) is expected to grow by 10.92% in the next year.