News Corporation Fundamental Analysis (NASDAQ: NWSA)
News Corporation (NASDAQ: NWSA) shows weak financial fundamentals with a PE ratio of 29.93, profit margin of 6.35%, and ROE of 6.62%. The company generates $9.1B 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 41.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
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
ModerateNWSA shows balanced valuation metrics.
Growth Score
ModerateNWSA shows steady but slowing expansion.
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 29.93 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NWSA's PEG of -0.59 indicates potential undervaluation.
Price to Book
The market values News Corporation at 2.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.77 times EBITDA. This signals the market has high growth expectations.
How Well Does NWSA Make Money?
Net Profit Margin
For every $100 in sales, News Corporation keeps $6.35 as profit after all expenses.
Operating Margin
Core operations generate 11.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.62 in profit for every $100 of shareholder equity.
ROA
News Corporation generates $3.69 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 $1.51B, showing steady but balanced cash generation.
Free Cash Flow
News Corporation generates strong free cash flow of $1.08B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.93 in free cash annually.
FCF Yield
NWSA converts 6.22% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.59
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.01
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.04
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 | 29.93 | 19.41 | Worse (Expensive) |
| ROE | 6.62% | 578.00% | Weak |
| Net Margin | 6.35% | 923.00% | Weak |
| Debt/Equity | 0.34 | -0.50 (disorted) | Distorted |
| Current Ratio | 1.62 | 1.90 | Neutral |
| ROA | 3.69% | 257.00% | Weak |
NWSA outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
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
137.87%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
50.56%
Industry Style: Growth, Technology, Streaming
High Growth