NasdaqGS:NWSA

Stock Analysis Report

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Executive Summary

News Corporation, a media and information services company, creates and distributes content for consumers and businesses worldwide. More Details

Rewards

Trading at 36.4% below our estimate of its fair value

Earnings are forecast to grow 37.8% per year

Risk Analysis

No risks detected for NWSA from our risk checks.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has News's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

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


Market Performance


7 Day Return

5.4%

NWSA

2.2%

US Media

1.5%

US Market


1 Year Return

41.4%

NWSA

16.6%

US Media

22.3%

US Market

Return vs Industry: NWSA exceeded the US Media industry which returned 16.6% over the past year.

Return vs Market: NWSA exceeded the US Market which returned 22.3% over the past year.


Shareholder returns

NWSAIndustryMarket
7 Day5.4%2.2%1.5%
30 Day33.4%16.6%8.8%
90 Day24.9%16.0%10.8%
1 Year43.7%41.4%18.4%16.6%25.1%22.3%
3 Year18.1%12.8%40.2%34.1%49.5%39.6%
5 Year51.5%40.2%78.4%65.4%105.8%83.3%

Long-Term Price Volatility Vs. Market

How volatile is News's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is News undervalued compared to its fair value and its price relative to the market?

36.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NWSA ($18.68) is trading below our estimate of fair value ($29.35)

Significantly Below Fair Value: NWSA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NWSA is unprofitable, so we can't compare its PE Ratio to the US Media industry average.

PE vs Market: NWSA is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NWSA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NWSA is good value based on its PB Ratio (1.4x) compared to the US Media industry average (1.7x).


Next Steps

Future Growth

How is News forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

37.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWSA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: NWSA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NWSA's is expected to become profitable in the next 3 years.

Revenue vs Market: NWSA's revenue (2.5% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: NWSA's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NWSA's Return on Equity is forecast to be low in 3 years time (3.7%).


Next Steps

Past Performance

How has News performed over the past 5 years?

-33.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NWSA is currently unprofitable.

Growing Profit Margin: NWSA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NWSA is unprofitable, and losses have increased over the past 5 years at a rate of 33.9% per year.

Accelerating Growth: Unable to compare NWSA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NWSA is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (-12.2%).


Return on Equity

High ROE: NWSA has a negative Return on Equity (-15.22%), as it is currently unprofitable.


Next Steps

Financial Health

How is News's financial position?


Financial Position Analysis

Short Term Liabilities: NWSA's short term assets ($3.4B) exceed its short term liabilities ($2.7B).

Long Term Liabilities: NWSA's short term assets ($3.4B) exceed its long term liabilities ($3.2B).


Debt to Equity History and Analysis

Debt Level: NWSA's debt to equity ratio (14.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if NWSA's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable NWSA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NWSA is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 5.6% per year.


Next Steps

Dividend

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

1.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NWSA's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: NWSA's dividend (1.07%) is low compared to the top 25% of dividend payers in the US market (4.04%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NWSA has been paying a dividend for less than 10 years.

Growing Dividend: NWSA has only been paying a dividend for 5 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: NWSA is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: NWSA's dividends in 3 years are forecast to be well covered by earnings (32.7% payout ratio).


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

Robert Thomson (59 yo)

7.92yrs

Tenure

US$13,535,201

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 ($USD13.54M) is about average for companies of similar size in the US market ($USD10.83M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Keith Murdoch
Executive Chairman of the Board8yrsUS$3.36m13.68%
$ 1.5b
Robert Thomson
CEO & Director7.92yrsUS$13.54m0.00034%
$ 37.5k
Susan Panuccio
Chief Financial Officer3.75yrsUS$4.94m0.0088%
$ 966.5k
David Pitofsky
Executive VPno dataUS$3.61m0.011%
$ 1.2m
Kevin Halpin
Principal Accounting Officerno datano data0.0017%
$ 186.5k
David Kline
CTO & Executive VP0.92yrno datano data
Michael Florin
Senior VP & Head of Investor Relations7.67yrsno datano data
Jim Kennedy
Chief Communications Officer7yrsno datano data
Dana Ritzcovan
Chief Human Resources Officer2.25yrsno datano data
Antoinette Cook Bush
Global Head of Government Affairs & Executive VP7.5yrsno datano data
Anoushka Healy
Executive VP & Chief Strategy Officerno datano datano data
Michael Bunder
Senior VPno datano datano data

7.0yrs

Average Tenure

60.5yo

Average Age

Experienced Management: NWSA's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Keith Murdoch
Executive Chairman of the Board8yrsUS$3.36m13.68%
$ 1.5b
Robert Thomson
CEO & Director7.92yrsUS$13.54m0.00034%
$ 37.5k
Masroor Siddiqui
Independent Director7.5yrsUS$302.03kno data
Lachlan Murdoch
Co-Chairman of the Board6.75yrsUS$301.79k0.00027%
$ 29.8k
Peter Barnes
Independent Lead Director7.5yrsUS$347.03k0.00034%
$ 37.5k
Michael Miller
Executive Chairman of News Corp Australasia5.08yrsno datano data
José Aznar
Independent Director7.5yrsUS$291.53k0.00018%
$ 19.9k
Natalie Bancroft
Independent Director7.5yrsUS$285.03k0.00036%
$ 39.7k
Ana Pessoa
Independent Director7.5yrsUS$281.03kno data
Sarah Wood
Chairman of Unruly2.67yrsno datano data
Kelly Ayotte
Independent Director3.67yrsUS$277.24kno data

7.5yrs

Average Tenure

53yo

Average Age

Experienced Board: NWSA's board of directors are considered experienced (7.5 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

News Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: News Corporation
  • Ticker: NWSA
  • Exchange: NasdaqGS
  • Founded:
  • Industry: Publishing
  • Sector: Media
  • Market Cap: US$11.033b
  • Shares outstanding: 590.84m
  • Website: https://newscorp.com

Number of Employees


Location

  • News Corporation
  • 1211 Avenue of the Americas
  • New York
  • New York
  • 10036
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NWSLVASX (Australian Securities Exchange)CDI NPV CLASS A (NEW)AUAUDJun 2013
NWSASX (Australian Securities Exchange)CDI NPV CLASS B (NEW)AUAUDJun 2013
NWSNasdaqGS (Nasdaq Global Select)Class B Common StockUSUSDJun 2013
NWSANasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDJun 2013
NC0BDB (Deutsche Boerse AG)Class B Common StockDEEURJun 2013
NC0DB (Deutsche Boerse AG)YesClass A Common StockDEEURJun 2013
NC0EDB (Deutsche Boerse AG)CDI NPV CLASS B (NEW)DEEURJun 2013
NWSLVCHIA (Chi-X Australia)CDI NPV CLASS A (NEW)AUAUDJun 2013
NWSCHIA (Chi-X Australia)CDI NPV CLASS B (NEW)AUAUDJun 2013
NWSA.LOTCPK (Pink Sheets LLC)CDI NPV CLASS B (NEW)USUSDJun 2013
0K7ULSE (London Stock Exchange)YesClass A Common StockGBUSDJun 2013
0K7VLSE (London Stock Exchange)Class B Common StockGBUSDJun 2013
N1WS34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 2020
N1WS35BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COM NPVBRBRLOct 2020

Biography

News Corporation, a media and information services company, creates and distributes content for consumers and businesses worldwide. It operates in six segments: Digital Real Estate Services, Subscription V...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/06 00:48
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.