NasdaqGS:NWSA

Stock Analysis Report

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Market Cap

US$14.3b

Last Updated

2021/07/31 06:29 UTC

Data Sources

Company Financials +

Executive Summary

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

Rewards

Trading at 23.5% below our estimate of its fair value

Earnings are forecast to grow 20.5% 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 not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NWSA's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.5%

NWSA

0.7%

US Media

-0.5%

US Market


1 Year Return

93.6%

NWSA

38.0%

US Media

35.9%

US Market

Return vs Industry: NWSA exceeded the US Media industry which returned 36.2% over the past year.

Return vs Market: NWSA exceeded the US Market which returned 37.5% over the past year.


Shareholder returns

NWSAIndustryMarket
7 Day-0.5%0.7%-0.5%
30 Day-5.8%0.4%0.3%
90 Day-6.0%2.7%3.1%
1 Year95.7%93.6%39.6%38.0%38.0%35.9%
3 Year70.5%63.3%68.3%61.2%62.9%52.7%
5 Year106.3%92.0%81.6%68.6%121.7%97.3%

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?

23.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NWSA ($24.63) is trading below our estimate of fair value ($32.19)

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 (1.8x) compared to the US Media industry average (2x).


Future Growth

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

20.5%

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%).

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 (3.3% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: NWSA's revenue (3.3% 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 (5.8%).


Past Performance

How has News performed over the past 5 years?

-16.1%

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 16.1% 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 (56.9%).


Return on Equity

High ROE: NWSA has a negative Return on Equity (0.032%), as it is currently unprofitable.


Financial Health

How is News's financial position?


Financial Position Analysis

Short Term Liabilities: NWSA's short term assets ($3.9B) exceed its short term liabilities ($3.2B).

Long Term Liabilities: NWSA's short term assets ($3.9B) exceed its long term liabilities ($3.1B).


Debt to Equity History and Analysis

Debt Level: NWSA's debt to equity ratio (12.4%) is considered satisfactory.

Reducing Debt: NWSA's debt to equity ratio has increased from 3.1% to 12.4% 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, due to free cash flow being positive and growing by 5.8% per year.


Dividend

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

0.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NWSA's dividend (0.81%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: NWSA's dividend (0.81%) is low compared to the top 25% of dividend payers in the US market (3.5%).


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 6 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 (24.1% 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 (60 yo)

8.5yrs

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 ($USD13.54M) is about average for companies of similar size in the US market ($USD11.23M).

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


Leadership Team

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


Board Members

Experienced Board: NWSA's board of directors are considered experienced (8 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: NaN
  • Industry: Publishing
  • Sector: Media
  • Market Cap: US$14.333b
  • Shares outstanding: 591.02m
  • Website: https://newscorp.com

Number of Employees


Location

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

Listings


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 Analysis2021/07/31 06:29
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
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.