News Class B (NWS) AI Stock Analysis

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News Class B

(NASDAQ:NWS)

Rating:73Outperform

Price Target:

$36.00

▲(6.92%Upside)

The overall stock score for NWS is driven by stable financial performance and positive earnings call insights. Strong operational efficiency and strategic moves like the sale of Foxtel contribute positively. However, high valuation metrics and mixed technical signals present some risks.

News Class B (NWS) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$17.47B

Dividend Yield0.59%

Average Volume (3M)719.32K

Price to Earnings (P/E)39.5

Beta (1Y)0.84

Revenue Growth-5.43%

EPS Growth135.46%

CountryUS

Employees23,900

SectorCommunication Services

Sector Strength87

IndustryEntertainment

Share Statistics

EPS (TTM)0.17

Shares Outstanding188,909,520

10 Day Avg. Volume626,812

30 Day Avg. Volume719,322

Financial Highlights & Ratios

PEG Ratio1.92

Price to Book (P/B)2.03

Price to Sales (P/S)0.00

P/FCF Ratio21.68

Enterprise Value/Market Cap1.05

Enterprise Value/Revenue0.49

Enterprise Value/Gross Profit1.95

Enterprise Value/Ebitda3.17

Forecast

1Y Price Target

$36.00

Price Target Upside6.92% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

News Class B Business Overview & Revenue Model

Company DescriptionNews Corporation Class B (NWS) is a diversified media and information services company. It operates across several sectors including news and information services, book publishing, digital real estate services, and subscription video services. The company's core products and services include The Wall Street Journal, The Times, HarperCollins Publishers, REA Group, and Foxtel, offering a broad range of media and information content to consumers and businesses globally.

How the Company Makes MoneyNews Corporation generates revenue primarily through advertising, circulation and subscription fees, book sales, and digital real estate services. Advertising revenue is derived from print and digital platforms, where the company sells advertising space across its various media outlets. Circulation and subscription fees come from its newspapers and digital publications, such as The Wall Street Journal and The Times. Book sales are generated through HarperCollins Publishers, which publishes and sells books across various genres. Digital real estate services, through the REA Group, provide a significant revenue stream by offering property listing services and related digital advertising solutions. Additionally, subscription video services, particularly through Foxtel, contribute to the company's earnings by offering pay-TV services to consumers. Strategic partnerships and acquisitions in these sectors further enhance the company's ability to generate revenue.

News Class B Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q3-2025)

% Change Since: 3.60%|

Next Earnings Date:Aug 05, 2025

Earnings Call Sentiment Positive

The earnings call presented a predominantly positive outlook with several key achievements such as a significant rise in net income, strong performances in the Dow Jones and Digital Real Estate segments, and the successful sale of Foxtel. However, there were notable challenges in the news media revenue and ongoing issues with Factiva that impacted results. The highlights significantly outweigh the lowlights, indicating overall positive sentiment.

Q3-2025 Updates

Positive Updates

Significant Increase in Net Income

Net income from continuing operations rose 67% to $107 million in the third quarter compared to the prior year.

Dow Jones Performance

Dow Jones posted a healthy 6% revenue growth, while profitability surged 12% and the margin rose from 21.7% to 23%. Digital circulation revenue expanded 14%.

Digital Real Estate Services Growth

Profitability surged 19% on a 5% increase in revenues, with margins improving from 26.8% to 30.5%.

Successful Sale of Foxtel

Concluded the sale of Foxtel to DAZN, transferring $724 million of debt off the balance sheet, and received an equity interest in DAZN.

Record Earnings Per Share

Reported EPS from continuing operations doubled to $0.14, while adjusted EPS was $0.17 compared to $0.13 a year ago.

Book Publishing Segment Growth

Revenue expanded by 2% to $514 million and EBITDA rose 3% to $64 million.

Negative Updates

News Media Revenue Decline

Revenue for the news media segment was $514 million, down 8% versus the prior year due to tougher advertising conditions.

Factiva Dispute Impact

The ongoing Factiva client dispute had a 200 basis point adverse impact on Dow Jones' professional information business revenues.

Challenges in Digital Real Estate

Realtor.com faced continued difficult macro conditions with lead volumes declining 17% and average monthly unique users falling 8% year-over-year.

Company Guidance

During News Corp's Third Quarter Fiscal 2025 earnings call, several key metrics and strategic insights were highlighted. The company reported a 67% increase in net income from continuing operations, totaling $107 million, and a 1% rise in revenues to $2 billion despite currency challenges. Total segment EBITDA increased by 12%, with the margin expanding from 13% to 14.4%. Adjusted revenues grew by 2%, and adjusted total segment EBITDA rose by 15%. Notably, EPS from continuing operations doubled to $0.14, while adjusted EPS was $0.17 compared to $0.13 a year ago. The sale of Foxtel to DAZN was completed, transferring $724 million of Foxtel debt off the balance sheet, and News Corp received an equity interest of approximately 6% in DAZN. Dow Jones reported 6% revenue growth and a 12% increase in profitability, with digital circulation revenue expanding 14%. Digital Real Estate Services saw a 5% revenue increase and a 19% surge in profitability. Book Publishing revenues grew by 2%, with EBITDA increasing by 3%. The News Media segment achieved 22% EBITDA growth. The company emphasized its focus on three core growth pillars: Dow Jones, Digital Real Estate, and Book Publishing.

News Class B Financial Statement Overview

Summary

News Class B showcases a stable financial position with consistent profitability and robust cash flow generation. While revenue growth has been inconsistent, the company maintains strong margins and a healthy balance sheet with low leverage. Continued focus on operational efficiency and revenue growth could further enhance financial performance.

Income Statement

Positive

The income statement shows a stable gross profit margin of 100% due to the same revenue and gross profit figures, indicating no cost of goods sold. The net profit margin for TTM is 5.18%, showing an improvement from the 2.64% in the previous year, reflecting increased profitability. Revenue growth has been volatile, with a TTM decrease of 6.72% compared to 2024 but a positive trend from 2023 to 2024 with a growth of 2.06%. EBIT and EBITDA margins for TTM are healthy at 10.16% and 16.67%, respectively, showing strong operational efficiency.

Balance Sheet

Positive

The balance sheet is robust with a debt-to-equity ratio of 0.36, indicating a conservative leverage position. The TTM return on equity (ROE) is 5.93%, reflecting moderate profitability. The equity ratio is strong at 49.46%, highlighting a solid equity base relative to total assets. The company maintains substantial liquidity with a considerable amount of cash and cash equivalents.

Cash Flow

Positive

The cash flow statement indicates a positive free cash flow growth rate of 33.89% TTM, suggesting improved cash generation capabilities. The operating cash flow to net income ratio is 2.46 TTM, demonstrating strong cash flow relative to net income. Free cash flow to net income ratio is 1.66, indicating efficient conversion of profits into cash flow, although capital expenditures remain significant.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	10.09B	9.88B	10.38B	9.36B	9.01B
Gross Profit	10.09B	9.88B	10.38B	9.36B	3.36B
EBITDA	1.36B	1.14B	1.73B	1.29B	-695.00M
Net Income	266.00M	149.00M	623.00M	330.00M	-1.27B
Balance Sheet
Total Assets	16.68B	16.92B	17.22B	16.77B	14.26B
Cash, Cash Equivalents and Short-Term Investments	1.96B	1.83B	1.82B	2.24B	1.52B
Total Debt	4.05B	4.21B	4.16B	3.60B	2.54B
Total Liabilities	7.67B	7.98B	8.08B	7.63B	5.87B
Stockholders Equity	8.12B	8.06B	8.22B	8.21B	7.58B
Cash Flow
Free Cash Flow	602.00M	593.00M	855.00M	847.00M	342.00M
Operating Cash Flow	1.10B	1.09B	1.35B	1.24B	780.00M
Investing Cash Flow	-524.00M	-574.00M	-2.08B	-1.29B	-427.00M
Financing Cash Flow	-441.00M	-501.00M	404.00M	699.00M	-472.00M

News Class B Technical Analysis

Technical Analysis Sentiment

Positive

Last Price33.67

Price Trends

50DMA

33.13

Positive

100DMA

31.94

Positive

200DMA

31.38

Positive

Market Momentum

MACD

0.29

Positive

RSI

50.40

Neutral

STOCH

7.87

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWS, the sentiment is Positive. The current price of 33.67 is below the 20-day moving average (MA) of 34.16, above the 50-day MA of 33.13, and above the 200-day MA of 31.38, indicating a neutral trend. The MACD of 0.29 indicates Positive momentum. The RSI at 50.40 is Neutral, neither overbought nor oversold. The STOCH value of 7.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (56)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXA	81 Outperform	$24.07B	13.90	16.89%	0.97%	15.70%	26.73%
FOX	80 Outperform	$24.07B	12.77	16.89%	1.56%	15.70%	26.73%
NWSA	79 Outperform	$17.46B	34.48	5.88%	0.68%	-5.43%	135.46%
NWS	73 Outperform	$17.47B	39.54	5.88%	0.59%	-5.43%	135.46%
WBD	60 Neutral	$31.79B	―	-27.69%	―	-5.58%	-254.85%
SIRI	56 Neutral	$8.08B	―	-37.30%	4.42%	-4.08%	-248.39%
Sector *	56 Neutral	AU$3.55B	17.74	-1.37%	3.14%	4.07%	-17.03%

* Communication Services Sector Average

Performance Comparison

NWS

News Class B

33.75

5.73

20.45%

NWSA

News Corp

29.42

2.32

8.56%

SIRI

Sirius XM Holdings

24.36

-13.90

-36.33%

FOXA

Fox

56.47

19.80

54.00%

FOX

Fox

51.91

17.86

52.45%

WBD

Warner Bros

13.31

4.84

57.14%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 17, 2025