NWS  News Corporation

Exchange

NASDAQ

Sector

Consumer Services

Industry

Newspapers/Magazines

Market Cap.

8.19B

Vuru Grade

51.08/100

Current Price

$14.08
-0.025 (-0.177%)

Growth Price

$19.51
Undervalued by 38.58%

Stability Price

$10.47
Overvalued by 25.61%

Company Metrics

  • P/E 40.82
  • P/S 1.008
  • P/B 0.761
  • EPS -1.273
  • Cash ROIC 3.70%
  • Cash Ratio 0.82
  • Dividend 0.2 / 1.44%
  • Avg. Vol. 440,320.00
  • Shares 581.88M
  • Market Cap. 8.19B

Company Description

News Corporation operates as a diversified media company worldwide. Its Cable Network Programming segment engages in producing and licensing programming distributed through cable television systems and direct broadcast satellite operators primarily in the United States, Latin America, Europe, and Asia. The company's Filmed Entertainment segment produces and acquires live-action and animated motion... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

News Corp Unit to Pay Damages to Ex-Spy Whose Computer Was Hacked
Wall Street Journal - Oct 6, 2017
LONDON—A U.K. subsidiary of Rupert Murdoch's News Corp NWS 1.44% apologized in court here and agreed to pay damages to a former British intelligence officer whose computer was hacked by a private investigator working for the now-defunct News of ...
TPG Capital approached News Corp about buying The Australian Financial Review
The Australian Financial Review - Oct 15, 2017
TPG Capital and News Corporation held exploratory high-level talks about the Rupert Murdoch-controlled publisher purchasing The Australian Financial Review and other deals with Fairfax Media.
News Corp pitches in to help The World's Biggest Garage Sale
MuMbrella - Oct 21, 2017
News Corp Australia will be one of the partners of this year's World's Biggest Garage Sale to be held in Brisbane on October 28, the company has announced.
Scott Cam's public apology to Shaynna Blaze: 'I'm an idiot'
NEWS.com.au - 6 hours ago
Scott Cam said he called Shaynna to apologise after the episode aired. Picture: Andrew HenshawSource:News Corp Australia. “Look, obviously I said that in complete jest, and I've said it to get a rise out of the contestants,” he told Hit105's Stav, Abby ...
Why your News Corp newspaper smells like popcorn today
NEWS.com.au - Oct 11, 2017
In an Australian first, specialised scenting technology has been used to infuse the aroma of buttered popcorn on specific pages of News Corp Australia's six capital city papers, including the Herald Sun, The Daily Telegraph, The Courier-Mail, The ...
Statement of Robert Thomson, Chief Executive of News Corp, On Google's ...
Business Wire (press release) - Oct 2, 2017
NEW YORK--(BUSINESS WIRE)--News Corp Chief Executive Robert Thomson has responded to news that Google is ending its First Click Free feature, saying that "The felicitous demise of First Click Free (Second Click Fatal) is an important first step in ...
News Corp's Robert Thomson welcomes Google's decision to end 'First Click Free' - The Australian
Former penthouse pet loses defamation case against News Corp
Daily Telegraph - Sep 29, 2017
Former penthouse pet Simone Farrow has lost her defamation case against News Corp. But the NSW Supreme Court's Court of Appeal refused to grant the jailed model leave to appeal today after finding that much of the article was based on evidence given ...
News Corp to Report Fiscal 2018 First Quarter Earnings
Business Wire (press release) - Oct 4, 2017
NEW YORK--(BUSINESS WIRE)--News Corp will release its first quarter Fiscal 2018 results on Thursday, November 9, 2017. News Corp Chief Executive Robert Thomson and Chief Financial Officer Susan Panuccio will host a call with analysts and media to ...
The DNC picked a bunch of sleazy lobbyists as superdelegates, can't figure out ...
Boing Boing - 10 hours ago
The 2018 "superdelegates" to the Democratic National Convention will include lobbyists for Rupert Murdoch's Newscorp, CITGO petroleum, Citigroup, and other large corporations. Superdelegates are unelected party favorites who get to vote for the party ...
News Corp backs Google policy on free news
The Australian - Oct 2, 2017
News Corp reported a group-wide loss of $US643 million ($A821 million) for 2016/17, lower ad revenue and decline in circulation and subscription revenue in its core News and Information Services division pushed segment revenue down five per cent.
'Abuse of the marketplace': Rupert Murdoch lashes out against tech companies - The Sydney Morning Herald
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for NWS to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate NWS's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$14.08 Current Price

$19.51 Growth Price (DCF)

Undervalued by 38.58%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: -28.3%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$10.47 Stability Price (EPV)

Overvalued by 25.61%


Discount Rate: 15.0%

$0.09 NCA Price

Overvalued by 99.37%

$22.50 Book Price

Undervalued by 59.88%


Poor Cash Return on Invested Capital over the past 5 years

NWS has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

NWS has only created $3.70 of cash for every $100 invested.
Figures in USD. Fiscal year ends in June
20132014201520162017
Free Cash Flow 169.00M 475.00M 453.00M 696.00M 238.00M
divided by
Invested Capital 11.09B 11.08B 10.99B 11.21B 10.08B
Cash ROIC 1.52% 4.29% 4.12% 6.21% 2.36%

Poor Return on Equity over the past 5 years

NWS has shown an inability to deliver strong results for shareholders. This could be due to poor management, NWS operating in a highly competitive industry, or having a weak business in general.

NWS has only generated $0.42 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in June
20132014201520162017
Net Income 547.00M 294.00M -78.00M 250.00M -643.00M
divided by
Stockholders' Equity 12.56B 13.24B 11.95B 11.56B 10.79B
Return on Equity 4.36% 2.22% -0.65% 2.16% -5.96%

Excellent Business Performance over the past 10 years

NWS has been able to maintain profitability in good times and bad. This could mean NWS has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

NWS has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in June
2008200920102011201220132014201520162017
Free Cash Flow 2.48B 1.15B 2.94B 3.30B 2.85B 169.00M 475.00M 453.00M 696.00M 238.00M

Good Balance Sheet

NWS's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in June
2008200920102011201220132014201520162017
Cash 4.66B 6.54B 8.71B 12.68B 9.63B 2.38B 3.15B 1.95B 1.83B 2.02B
Current Assets 14.36B 15.84B 18.02B 21.78B 19.45B 4.64B 5.27B 3.98B 3.89B 3.82B
Total Assets 62.31B 53.12B 54.38B 61.98B 56.66B 15.64B 16.49B 15.09B 15.48B 14.55B
Current Liabilities 9.18B 10.64B 8.86B 9.57B 9.62B 2.17B 2.26B 2.16B 2.44B 2.45B
Total Liabilities 33.69B 29.90B 29.27B 32.47B 31.98B 3.09B 3.25B 3.15B 3.92B 3.76B
Stockholder' Equity 28.62B 23.22B 25.11B 29.51B 24.68B 12.56B 13.24B 11.95B 11.56B 10.79B
Current Ratio 1.56 1.49 2.03 2.28 2.02 2.14 2.33 1.84 1.59 1.56
TL-to-TA 0.54 0.56 0.54 0.52 0.56 0.20 0.20 0.21 0.25 0.26

Low or No Reinvestment of Profits over the past 10 years

NWS has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to NWS operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in June
2008200920102011201220132014201520162017
Retained Earnings 11.38B 5.84B 7.68B 12.05B 8.52B - 237.00M 88.00M 150.00M -648.00M
Retained Earnings Growth - -48.66% 31.40% 56.86% -29.26% -100.00% - -62.87% 70.45% -532.00%

Highly Competitive Industry over the past 10 years

It's likely that NWS is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely NWS invests heavily in R&D and Sales, General & Administrative expenses.

Only $2.96 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in June
2008200920102011201220132014201520162017
Net Income 5.39B -3.38B 2.54B 2.89B 1.41B 547.00M 294.00M -78.00M 250.00M -643.00M
divided by
Revenue 33.00B 30.42B 32.78B 33.41B 33.71B 8.89B 8.57B 8.63B 8.29B 8.14B
Net Profit Margin 16.33% -11.10% 7.75% 8.66% 4.17% 6.15% 3.43% -0.90% 3.01% -7.90%

Varying Pricing Power over the past 10 years

NWS has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$45.46 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in June
2008200920102011201220132014201520162017
Gross Profit 12.47B 10.86B 11.76B 12.35B 33.71B 3.47B 3.44B 3.61B 3.56B 3.61B
divided by
Revenue 33.00B 30.42B 32.78B 33.41B 33.71B 8.89B 8.57B 8.63B 8.29B 8.14B
Gross Margin 37.78% 35.70% 35.89% 36.96% 100.00% 39.04% 40.06% 41.79% 42.98% 44.35%

High Capital Intensity over the past 10 years

NWS spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

66.00% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in June
2008200920102011201220132014201520162017
Capital Expenditure 1.44B 1.10B 914.00M 1.17B 939.00M 332.00M 379.00M 378.00M 256.00M 256.00M
divided by
Net Income 5.39B -3.38B 2.54B 2.89B 1.41B 547.00M 294.00M -78.00M 250.00M -643.00M
Capital Expenditure Ratio 26.79% -32.59% 36.00% 40.46% 66.74% 60.69% 128.91% -484.62% 102.40% -39.81%

Very Strong Dividend History over the past 10 years

NWS has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests NWS is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in June
2008200920102011201220132014201520162017
Dividend Paid 373.00M 366.00M 418.00M 500.00M 593.00M 20.00M 24.00M 30.00M 147.00M 152.00M
divided by
Shares Outstanding 2.97B 2.61B 2.63B 2.63B 2.50B - 579.70M 581.00M 582.50M 581.40M
Dividend Paid Per Share 0.13 0.14 0.16 0.19 0.24 - 0.04 0.05 0.25 0.26
Price at Year End 9.05 15.80 16.14 18.18 25.28 17.75 15.18 14.10 11.80 13.05
Dividend Yield 1.39% 0.89% 0.99% 1.04% 0.94% - 0.27% 0.37% 2.14% 2.00%

History of Stock Buybacks over the past 10 years

NWS has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in June
2008200920102011201220132014201520162017
Shares Outstanding 2.97B 2.61B 2.63B 2.63B 2.50B - 579.70M 581.00M 582.50M 581.40M
Stock Bought Back - 13.70% -0.57% -0.19% 5.15% - -100.00% -0.22% -0.26% 0.19%
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