News (ASX:NWS) - Share price, News & Analysis

NWS fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	3/6
Financial Health	4/6
Dividends	0/6

NWS Stock Overview

News Corporation, a media and information services company, focuses on creating and distributing content for consumers and businesses worldwide.

Rewards

Trading at 70.9% below our estimate of its fair value

Earnings are forecast to grow 8.2% per year

Became profitable this year

Risk Analysis

No risks detected for NWS from our risk checks.

News Peers

REA Group

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AU$14.2b

SEEK

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AU$8.7b

Nine Entertainment Holdings

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AU$4.0b

carsales.com

ASX:CAR

AU$5.3b

Price History & Performance

Summary of all time highs, changes and price drops for News
Historical stock prices
Current Share Price	US$24.25
52 Week High	US$35.23
52 Week Low	US$23.62
Beta	1.32
1 Month Change	-16.15%
3 Month Change	-26.54%
1 Year Change	-24.01%
3 Year Change	46.17%
5 Year Change	34.35%
Change since IPO	66.67%

Shareholder Returns

	NWS	AU Media	AU Market
7D	-15.8%	-5.6%	-3.3%
1Y	-24.0%	-4.3%	1.6%

Return vs Industry: NWS underperformed the Australian Media industry which returned -4.3% over the past year.

Return vs Market: NWS underperformed the Australian Market which returned 1.6% over the past year.

Price Volatility

Is NWS's price volatile compared to industry and market?
NWS volatility
NWS Average Weekly Movement	5.1%
Media Industry Average Movement	6.0%
Market Average Movement	9.2%
10% most volatile stocks in AU Market	16.6%
10% least volatile stocks in AU Market	4.2%

Stable Share Price: NWS is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NWS's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	24,000	Robert Thomson	https://newscorp.com

News Corporation, a media and information services company, focuses on creating and distributing content for consumers and businesses worldwide. It operates in six segments: Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media, and Other. The company distributes content and data products, including The Wall Street Journal, Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, Barron’s, MarketWatch, and Investor’s Business Daily through various media channels, such as newspapers, newswires, websites, applications for mobile devices, tablets and e-book readers, newsletters, magazines, proprietary databases, live journalism, videos, and podcasts.

News Fundamentals Summary

How do News's earnings and revenue compare to its market cap?
NWS fundamental statistics
Market Cap	US$9.98b
Earnings (TTM)	US$499.00m
Revenue (TTM)	US$10.20b

20.1x

P/E Ratio

1.0x

P/S Ratio

Is NWS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NWS income statement (TTM)
Revenue	US$10.20b
Cost of Revenue	US$5.00b
Gross Profit	US$5.20b
Other Expenses	US$4.70b
Earnings	US$499.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.85
Gross Margin	50.99%
Net Profit Margin	4.89%
Debt/Equity Ratio	29.0%

How did NWS perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

24%

Payout Ratio

New valuation analysis is now available for all ASX stocks. This is in beta.

Future Growth

How is News forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWS's forecast earnings growth (8.2% per year) is above the savings rate (1.8%).

Earnings vs Market: NWS's earnings (8.2% per year) are forecast to grow faster than the Australian market (6.3% per year).

High Growth Earnings: NWS's earnings are forecast to grow, but not significantly.

Revenue vs Market: NWS's revenue (3.5% per year) is forecast to grow slower than the Australian market (4.7% per year).

High Growth Revenue: NWS's revenue (3.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: NWS's Return on Equity is forecast to be low in 3 years time (7%).

Past Performance

How has News performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

34.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NWS has high quality earnings.

Growing Profit Margin: NWS became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: NWS has become profitable over the past 5 years, growing earnings by 34.1% per year.

Accelerating Growth: NWS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NWS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (30%).

Return on Equity

High ROE: NWS's Return on Equity (6.6%) is considered low.

Financial Health

How is News's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NWS's short term assets ($4.2B) exceed its short term liabilities ($3.5B).

Long Term Liabilities: NWS's short term assets ($4.2B) do not cover its long term liabilities ($4.5B).

Debt to Equity History and Analysis

Debt Level: NWS's net debt to equity ratio (8.7%) is considered satisfactory.

Reducing Debt: NWS's debt to equity ratio has increased from 3.3% to 29% over the past 5 years.

Debt Coverage: NWS's debt is well covered by operating cash flow (44.2%).

Interest Coverage: NWS's interest payments on its debt are well covered by EBIT (10x coverage).

Balance Sheet

Dividend

What is News's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.17%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NWS's dividend (1.17%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.5%).

High Dividend: NWS's dividend (1.17%) is low compared to the top 25% of dividend payers in the Australian market (5.97%).

Stability and Growth of Payments

Stable Dividend: NWS is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: NWS is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: NWS is not paying a notable dividend for the Australian market.

Cash Payout to Shareholders

Cash Flow Coverage: NWS is not paying a notable dividend for the Australian market.

Next Steps

Explore strong dividend paying companies in the Media industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average management tenure

CEO

Robert Thomson (60 yo)

9.33yrs

Tenure

US$23,024,845

Compensation

Mr. Robert J. Thomson has been the Chief Executive Officer of News Corporation since January 2013. He served as Editor-in-Chief of Dow Jones & Company, Inc and Managing Editor of The Wall Street Journal fr...

CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD23.02M) is above average for companies of similar size in the Australian market ($USD3.89M).

Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: NWS's management team is seasoned and experienced (7.8 years average tenure).

Board Members

Experienced Board: NWS's board of directors are considered experienced (8.9 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/09 00:00
End of Day Share Price	2022/05/09 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30