News Corporation
News Corporation Fundamental Analysis
News Corporation (NWSA) shows moderate financial fundamentals with a PE ratio of 12.67, profit margin of 12.19%, and ROE of 12.52%. The company generates $8.7B in annual revenue with weak year-over-year growth of 2.42%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NWSA's fundamental strength across five key dimensions:
Efficiency Score
WeakNWSA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNWSA trades at attractive valuation levels.
Growth Score
WeakNWSA faces weak or negative growth trends.
Financial Health Score
ExcellentNWSA maintains a strong and stable balance sheet.
Profitability Score
WeakNWSA struggles to sustain strong margins.
Key Financial Metrics
Is NWSA Expensive or Cheap?
P/E Ratio
NWSA trades at 12.67 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NWSA's PEG of -1.54 indicates potential undervaluation.
Price to Book
The market values News Corporation at 1.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.99 times EBITDA. This is generally considered low.
How Well Does NWSA Make Money?
Net Profit Margin
For every $100 in sales, News Corporation keeps $12.19 as profit after all expenses.
Operating Margin
Core operations generate 12.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.52 in profit for every $100 of shareholder equity.
ROA
News Corporation generates $6.96 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
News Corporation produces operating cash flow of $1.06B, showing steady but balanced cash generation.
Free Cash Flow
News Corporation produces free cash flow of $638.99M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.13 in free cash annually.
FCF Yield
NWSA converts 4.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.32
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How NWSA Stacks Against Its Sector Peers
| Metric | NWSA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.67 | 21.66 | Better (Cheaper) |
| ROE | 12.52% | 1190.00% | Weak |
| Net Margin | 12.19% | -55754.00% (disorted) | Strong |
| Debt/Equity | 0.32 | 1.32 | Strong (Low Leverage) |
| Current Ratio | 1.81 | 1.59 | Neutral |
| ROA | 6.96% | -202359.00% (disorted) | Weak |
NWSA outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews News Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-2.83%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
196.30%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
50.56%
Industry Style: Growth, Technology, Streaming
High Growth