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News Corporation Class B (NWS)
:NWS
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News Class B
(NASDAQ:NWS)
63Neutral
News Class B (NWS) vs. S&P 500 (SPY)
Market Cap
$14.29B
Dividend Yield0.73%
Average Volume (3M)907.39K
Price to Earnings (P/E)37.8
Beta (1Y)0.87
Revenue Growth-1.51%
EPS Growth82.74%
CountryUS
Employees23,900
SectorCommunication Services
Sector Strength73
IndustryEntertainment
Share Statistics
EPS (TTM)0.72
Shares Outstanding189,340,850
10 Day Avg. Volume1,418,071
30 Day Avg. Volume907,386
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)N/A
Price to Sales (P/S)1.78
Price to Cash Flow (P/CF)20.40
P/FCF Ratio20.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
News Class B Business Overview & Revenue Model
Company DescriptionNews Corporation, Class B (NWS), is a global diversified media and information services company renowned for its robust portfolio of leading brands in news, book publishing, and digital real estate. Operating primarily in the United States, Australia, and the United Kingdom, the company is engaged in a wide range of activities, including the distribution of content through various platforms, digital advertising, subscription and licensing services, as well as providing data analytics solutions. Its core subsidiaries include Dow Jones, News UK, News Australia, HarperCollins Publishers, and REA Group.
How the Company Makes MoneyNews Corporation generates revenue through multiple streams, primarily driven by advertising, subscriptions, and content sales. Advertising revenue is derived from selling space across its media properties, including newspapers, websites, and digital platforms. Subscription revenue comes from individual and institutional customers for access to premium content such as The Wall Street Journal and other publications. The company also earns from the sale of books through HarperCollins and digital real estate services via REA Group, where it charges fees for property listings and real estate advertising. Additionally, News Corp benefits from licensing agreements and syndication of its content across various channels. Strategic partnerships, particularly in digital services and technology, also play a crucial role in enhancing its revenue streams.
News Class B Financial Statement Overview
Summary
News Class B presents a solid financial position with strong profitability and cash flow metrics. The income statement highlights operational efficiency and improved margins. However, declining revenue trends and a need for stronger equity support are concerns.Income Statement
News Class B shows a stable financial performance with a strong gross profit margin of 70.62% TTM, indicating efficient cost management. The net profit margin improved significantly to 9.15% TTM, reflecting enhanced profitability. Although the revenue growth is slightly negative in the TTM period, the company maintains a robust EBIT margin of 8.67% and EBITDA margin of 14.29%, showcasing operational efficiency. However, the declining revenue trend in recent periods is a concern.72
Positive
Balance Sheet
The company's balance sheet reveals a moderate debt-to-equity ratio of 0.96 TTM, indicating balanced leverage. The return on equity improved to 6.88% TTM, suggesting effective use of shareholder funds. However, the equity ratio decreased to 39.70% TTM, highlighting a potential risk with lower equity buffer. Overall, the balance sheet shows stability but with some areas for improvement in equity management.65
Positive
Cash Flow
News Class B demonstrates strong cash flow management with a healthy operating cash flow to net income ratio of 1.19 TTM, indicating efficient cash generation from operations. The free cash flow grew by 8.63% TTM, supporting financial flexibility. The free cash flow to net income ratio of 0.73 TTM is solid, reflecting good conversion of earnings into free cash flow. Overall, the cash flow position is robust with positive growth trends.78
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 9.81B | 10.09B | 9.88B | 10.38B | 9.36B | 9.01B | Gross Profit |
| 6.93B | 4.30B | 4.04B | 4.57B | 3.85B | 3.36B | EBIT |
| 851.00M | 805.00M | 230.00M | 1.02B | 671.00M | 2.20B | EBITDA |
| 1.40B | 1.38B | 1.24B | 1.73B | 1.29B | -695.00M | Net Income Common Stockholders |
| 559.00M | 266.00M | 149.00M | 623.00M | 330.00M | -1.54B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 741.00M | 1.96B | 1.83B | 1.82B | 2.24B | 1.52B | Total Assets |
| 16.56B | 16.68B | 16.92B | 17.22B | 16.77B | 14.26B | Total Debt |
| 0.00 | 4.05B | 4.09B | 4.02B | 3.43B | 2.40B | Net Debt |
| -741.00M | 2.09B | 2.26B | 2.19B | 1.19B | 888.00M | Total Liabilities |
| 4.12B | 7.67B | 7.98B | 8.08B | 7.63B | 5.87B | Stockholders Equity |
| 12.44B | 8.12B | 8.06B | 8.22B | 8.21B | 7.58B |
| Cash Flow | Free Cash Flow | ||||
| 654.00M | 602.00M | 593.00M | 855.00M | 847.00M | 342.00M | Operating Cash Flow |
| 1.07B | 1.10B | 1.09B | 1.35B | 1.24B | 780.00M | Investing Cash Flow |
| -302.00M | -524.00M | -574.00M | -2.08B | -1.29B | -427.00M | Financing Cash Flow |
| -639.00M | -441.00M | -501.00M | 404.00M | 699.00M | -472.00M |
News Class B Technical Analysis
Negative
27.54
Price Trends
31.57
Negative
31.40
Negative
29.78
Negative
Market Momentum
-0.45
Positive
41.01
Neutral
30.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWS, the sentiment is Negative. The current price of 27.54 is below the 20-day moving average (MA) of 30.11, below the 50-day MA of 31.57, and below the 200-day MA of 29.78, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 41.01 is Neutral, neither overbought nor oversold. The STOCH value of 30.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NWS.
News Class B Risk Analysis
News Class B disclosed 27 risk factors in its most recent earnings report. News Class B reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
News Class B Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $21.07B | 10.39 | 20.09% | 1.11% | 4.29% | 177.70% | |
81 Outperform | $21.07B | 9.53 | 20.09% | 1.21% | 4.29% | 177.70% | |
65 Neutral | $14.29B | 33.21 | 5.23% | 0.83% | -1.51% | 82.74% | |
63 Neutral | $14.29B | 37.81 | 5.23% | 0.73% | -1.51% | 82.74% | |
58 Neutral | $25.04B | 3.23 | -10.53% | 4.39% | 2.30% | -43.13% | |
58 Neutral | $19.86B | ― | -28.54% | ― | -4.91% | -259.71% | |
49 Neutral | $6.90B | ― | -37.33% | 5.26% | -2.84% | -249.80% |
* Communication Services Sector Average
Performance Comparison
NWS
News Class B
27.54
2.09
8.21%
NWSA
News Corp
23.97
-0.67
-2.72%
SIRI
Sirius XM Holdings
19.34
-12.81
-39.84%
FOXA
Fox
47.45
16.93
55.47%
FOX
Fox
43.81
15.79
56.35%
WBD
Warner Bros
7.69
-0.63
-7.57%
News Class B Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -16.87% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call revealed strong financial performance and strategic moves such as the sale of Foxtel and growth in key segments like Digital Real Estate and Book Publishing. However, there were challenges in the News Media segment and the US housing market, along with a significant impact from a Factiva customer dispute.Highlights
Revenue and Profitability Growth
Revenues on a continuing operations basis grew 5% to $2.24 billion, while profitability rose 20% to $478 million. Net income from continuing operations increased by 58% to $306 million compared to the same quarter in the previous year.
Sale of Foxtel to DAZN
News Corp agreed to sell Foxtel to DAZN for a total enterprise value of AUD 3.4 billion. News Corp will hold an approximate 6% stake in DAZN post-sale.
Digital Real Estate Performance
Digital real estate revenue increased 13% to $473 million, with segment EBITDA margin rising 26% to $185 million. Realtor.com showed strong growth in rental, seller, and new homes revenues.
Book Publishing Success
Book Publishing revenue expanded 8% to $595 million, with segment EBITDA surging 19% to $101 million.
Credit Rating Upgrade
S&P Global and Moody's upgraded News Corp's credit rating to investment grade.
Lowlights
News Media Revenue Decline
News Media revenue fell 2% to $570 million, although segment EBITDA grew 30% to $74 million.
Challenges in US Housing Market
Realtor.com faced a hostile housing market in the US, with 30-year mortgage rates above 7% affecting real estate revenues.
Factiva Customer Dispute Impact
Factiva faced an ongoing customer dispute that had a more than 300 basis point adverse impact on revenue.
Company Guidance
In the fiscal second quarter of 2025, News Corp reported robust financial performance, with revenues from continuing operations increasing 5% to $2.24 billion. Profitability showed a significant rise of 20%, reaching $478 million. The company highlighted a 58% surge in net income from continuing operations to $306 million, and earnings per share (EPS) from continuing operations improved to $0.40 from $0.28 in the previous quarter. The overall margin increased from 18.7% to 21.4%. Significant growth was observed in the Digital Real Estate segment, with a 13% rise in revenue to $473 million and a segment EBITDA margin increase of 26% to $185 million. The Dow Jones segment also performed well, with revenue growing 3% to $600 million and segment EBITDA expanding 7% to $174 million. Additionally, Book Publishing saw an 8% increase in revenue to $595 million and a 19% rise in segment EBITDA to $101 million. News Corp's strategic decision to sell Foxtel to DAZN for AUD 3.4 billion further underscored its focus on core growth pillars and enhanced its balance sheet, contributing to an upgrade in its credit rating to investment grade by both S&P Global and Moody's.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.