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NWSA

News NasdaqGS:NWSA Stock Report

Last Price

US$17.84

Market Cap

US$10.5b

7D

4.3%

1Y

-33.2%

Updated

15 May, 2022

Data

Company Financials +
NWSA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health4/6
Dividends2/6

NWSA Stock Overview

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

Rewards

Trading at 68.4% 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 NWSA from our risk checks.

News Competitors

Price History & Performance

Summary of all time highs, changes and price drops for News
Historical stock prices
Current Share PriceUS$17.84
52 Week HighUS$27.51
52 Week LowUS$16.54
Beta1.32
1 Month Change-15.73%
3 Month Change-19.93%
1 Year Change-33.18%
3 Year Change56.35%
5 Year Change39.16%
Change since IPO12.91%

Recent News & Updates

May 12
Is News (NASDAQ:NWSA) Using Too Much Debt?

Is News (NASDAQ:NWSA) Using Too Much Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

NWSAUS MediaUS Market
7D4.3%1.6%-2.5%
1Y-33.2%-29.2%-10.4%

Return vs Industry: NWSA underperformed the US Media industry which returned -29.2% over the past year.

Return vs Market: NWSA underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is NWSA's price volatile compared to industry and market?
NWSA volatility
NWSA Average Weekly Movement6.4%
Media Industry Average Movement8.3%
Market Average Movement7.8%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: NWSA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NWSA's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a24,000Robert Thomsonhttps://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?
NWSA fundamental statistics
Market CapUS$10.47b
Earnings (TTM)US$499.00m
Revenue (TTM)US$10.20b

20.9x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NWSA income statement (TTM)
RevenueUS$10.20b
Cost of RevenueUS$5.00b
Gross ProfitUS$5.20b
Other ExpensesUS$4.70b
EarningsUS$499.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.85
Gross Margin50.99%
Net Profit Margin4.89%
Debt/Equity Ratio29.0%

How did NWSA perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

24%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: NWSA ($17.84) is trading below our estimate of fair value ($56.52)

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


Price To Earnings Ratio

PE vs Industry: NWSA is poor value based on its PE Ratio (20.9x) compared to the US Media industry average (16.6x).

PE vs Market: NWSA is poor value based on its PE Ratio (20.9x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: NWSA is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: NWSA is good value based on its PB Ratio (1.2x) compared to the US Media industry average (1.6x).


Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • 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: NWSA's forecast earnings growth (8.2% per year) is above the savings rate (1.9%).

Earnings vs Market: NWSA's earnings (8.2% per year) are forecast to grow slower than the US market (12.6% per year).

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

Revenue vs Market: NWSA's revenue (3.3% per year) is forecast to grow slower than the US market (8% 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 (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: NWSA has high quality earnings.

Growing Profit Margin: NWSA became profitable in the past.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: NWSA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (22.7%).


Return on Equity

High ROE: NWSA'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: NWSA's short term assets ($4.2B) exceed its short term liabilities ($3.5B).

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


Debt to Equity History and Analysis

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

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

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

Interest Coverage: NWSA'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

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.12%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NWSA's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: NWSA's dividend (1.12%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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 7 years, and since then payments have not increased.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (23.7%), NWSA's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (15.6%), NWSA's dividend payments are well covered by cash flows.


Next Steps

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 ($USD23.02M) is above average for companies of similar size in the US market ($USD13.26M).

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 (7.8 years average tenure).


Board Members

Experienced Board: NWSA'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.


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 employee growth, exchange listings and data sources


Key Information

  • Name: News Corporation
  • Ticker: NWSA
  • Exchange: NasdaqGS
  • Founded: NaN
  • Industry: Publishing
  • Sector: Media
  • Implied Market Cap: US$10.466b
  • Shares outstanding: 585.46m
  • Website: https://newscorp.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/15 00:00
End of Day Share Price2022/05/13 00:00
Earnings2022/03/31
Annual Earnings2021/06/30


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.