News Corporation
News Corporation Fundamental Analysis
News Corporation (NWSAL) shows weak financial fundamentals with a PE ratio of 33.14, profit margin of 5.35%, and ROE of 5.41%. The company generates $9.6B in annual revenue with weak year-over-year growth of 2.09%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NWSAL's fundamental strength across five key dimensions:
Efficiency Score
WeakNWSAL struggles to generate sufficient returns from assets.
Valuation Score
ModerateNWSAL shows balanced valuation metrics.
Growth Score
ModerateNWSAL shows steady but slowing expansion.
Financial Health Score
ExcellentNWSAL maintains a strong and stable balance sheet.
Profitability Score
WeakNWSAL struggles to sustain strong margins.
Key Financial Metrics
Is NWSAL Expensive or Cheap?
P/E Ratio
NWSAL trades at 33.14 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NWSAL's PEG of -1.34 indicates potential undervaluation.
Price to Book
The market values News Corporation at 1.74 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.72 times EBITDA. This signals the market has high growth expectations.
How Well Does NWSAL Make Money?
Net Profit Margin
For every $100 in sales, News Corporation keeps $5.35 as profit after all expenses.
Operating Margin
Core operations generate 15.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.41 in profit for every $100 of shareholder equity.
ROA
News Corporation generates $2.98 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 $1.32B, showing steady but balanced cash generation.
Free Cash Flow
News Corporation produces free cash flow of $866.88M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.36 in free cash annually.
FCF Yield
NWSAL converts 4.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How NWSAL Stacks Against Its Sector Peers
| Metric | NWSAL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.14 | 22.05 | Worse (Expensive) |
| ROE | 5.41% | 1173.00% | Weak |
| Net Margin | 5.35% | -64583.00% (disorted) | Weak |
| Debt/Equity | 0.34 | 1.36 | Strong (Low Leverage) |
| Current Ratio | 1.76 | 1.58 | Neutral |
| ROA | 2.98% | -200331.00% (disorted) | Weak |
NWSAL outperforms its industry in 1 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
4.48%
Industry Style: Growth, Technology, Streaming
GrowingEPS CAGR
79.11%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
23.49%
Industry Style: Growth, Technology, Streaming
High Growth