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News Corporation Class B (NWS)
NASDAQ:NWS
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News Class B
(NASDAQ:NWS)
Rating:73Outperform
Price Target:
$36.00
▲(7.30%Upside)
News Class B (NWS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.77B
Dividend Yield0.6%
Average Volume (3M)716.83K
Price to Earnings (P/E)40.4
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. Volume606,981
30 Day Avg. Volume716,829
Financial Highlights & Ratios
PEG Ratio-1.01
Price to Book (P/B)1.41
Price to Sales (P/S)0.00
P/FCF Ratio19.17
Enterprise Value/Market Cap0.77
Enterprise Value/Revenue0.37
Enterprise Value/Gross Profit1.45
Enterprise Value/Ebitda2.36
Forecast
1Y Price Target
$36.00Price Target Upside7.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
News Class B Business Overview & Revenue Model
Company DescriptionNews Corporation, a media and information services company, creates and distributes authoritative and engaging content, and other products and services for consumers and businesses worldwide. It operates in six segments: Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media, and Other. The company distributes content and data products, including The Wall Street Journal, Barron's, MarketWatch, Investor's Business Daily, Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, and OPIS through various media channels, such as newspapers, newswires, websites, mobile apps, newsletters, magazines, proprietary databases, live journalism, video, and podcasts. It also owns and operates daily, Sunday, weekly, and bi-weekly newspapers comprising The Australian, The Weekend Australian, The Daily Telegraph, The Sunday Telegraph, Herald Sun, Sunday Herald Sun, The Courier Mail, The Sunday Mail, The Advertiser, Sunday Mail, The Sun, The Sun on Sunday, The Times, The Sunday Times, and New York Post, as well as digital mastheads and other websites. In addition, the company publishes general fiction, nonfiction, children's, and religious books; provides sports, entertainment, and news services to pay-TV and streaming subscribers, and other commercial licensees through cable, satellite, and internet distribution; and broadcasts rights to live sporting events. Further, it offers property and property-related advertising and services on its websites and mobile applications; online real estate services; and financial services. The company was founded in 2012 and is headquartered in New York, New York.
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: 3.23%|
Next Earnings Date:Aug 07, 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
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.75
Positive
Balance Sheet
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.80
Positive
Cash Flow
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.70
Positive
| Breakdown | TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.40B | 10.09B | 9.88B | 10.38B | 9.36B | 9.01B |
| Gross Profit | 9.40B | 10.09B | 4.04B | 4.57B | 3.85B | 3.36B |
| EBITDA | 1.57B | 1.36B | 1.14B | 1.73B | 1.29B | -695.00M |
| Net Income | 487.00M | 266.00M | 149.00M | 623.00M | 330.00M | -1.27B |
Balance Sheet | ||||||
| Total Assets | 16.58B | 16.68B | 16.92B | 17.22B | 16.77B | 14.26B |
| Cash, Cash Equivalents and Short-Term Investments | 2.10B | 1.96B | 1.83B | 1.82B | 2.24B | 1.52B |
| Total Debt | 2.92B | 4.05B | 4.21B | 4.16B | 3.60B | 2.54B |
| Total Liabilities | 7.50B | 7.67B | 7.98B | 8.08B | 7.63B | 5.87B |
| Stockholders Equity | 8.20B | 8.12B | 8.06B | 8.22B | 8.21B | 7.58B |
Cash Flow | ||||||
| Free Cash Flow | 807.00M | 602.00M | 593.00M | 855.00M | 847.00M | 342.00M |
| Operating Cash Flow | 1.20B | 1.10B | 1.09B | 1.35B | 1.24B | 780.00M |
| Investing Cash Flow | -379.00M | -524.00M | -574.00M | -2.08B | -1.29B | -427.00M |
| Financing Cash Flow | -588.00M | -441.00M | -501.00M | 404.00M | 699.00M | -472.00M |
News Class B Technical Analysis
Neutral
33.55
Price Trends
33.08
Positive
31.90
Positive
31.32
Positive
Market Momentum
0.41
Positive
47.90
Neutral
34.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWS, the sentiment is Neutral. The current price of 33.55 is below the 20-day moving average (MA) of 34.13, above the 50-day MA of 33.08, and above the 200-day MA of 31.32, indicating a neutral trend. The MACD of 0.41 indicates Positive momentum. The RSI at 47.90 is Neutral, neither overbought nor oversold. The STOCH value of 34.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $24.21B | 13.99 | 16.89% | 0.97% | 15.70% | 26.73% | |
80 Outperform | $24.21B | 12.85 | 16.89% | 1.57% | 15.70% | 26.73% | |
79 Outperform | $17.77B | 34.98 | 5.88% | 0.69% | -5.43% | 135.46% | |
73 Outperform | $17.77B | 40.37 | 5.88% | 0.60% | -5.43% | 135.46% | |
60 Neutral | $31.54B | ― | -27.69% | ― | -5.58% | -254.85% | |
56 Neutral | $7.96B | ― | -37.30% | 4.63% | -4.08% | -248.39% | |
55 Neutral | HK$66.95B | -2.16 | -3.62% | 5.80% | -4.24% | -17.51% |
* Communication Services Sector Average
Performance Comparison
NWS
News Class B
33.55
4.69
16.25%
NWSA
News Corp
29.16
1.27
4.55%
SIRI
Sirius XM Holdings
23.23
-13.21
-36.25%
FOXA
Fox
55.47
18.82
51.35%
FOX
Fox
51.07
16.94
49.63%
WBD
Warner Bros
12.80
4.18
48.49%
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.