10Y annualized return is
positive but below market average
at 7.2% per year
NWS has met or exceeded earnings expectations in
some
recent quarters (6/10)
Moderate Price-to-Earnings Ratio
Attractive Price-to-Sales Ratio
Healthy Gross Profit Margin
Decent Return on Equity
Strong Liquidity Ratios
Solid Interest Coverage
📈 Strong Revenue Growth
🛡️ Competitive Moats
🏦 Improved Financial Health
🔮 Growth in Digital Segments
📚 Strong Book Publishing Pipeline
High Price-to-Cash-Flow Ratio
Elevated Price-to-Book Ratio
Low Operating and Net Profit Margins
Moderate Debt Levels
Cash Ratio Below Comfort Level
📉 Ad Revenue Challenges
⚠️ Market Uncertainties
📉 Potential Revenue Headwinds
Overall, News Corp demonstrates strong business quality with robust revenue growth across its core segments, effective cost management, and improved financial health. Future prospects appear promising, particularly in digital segments, although challenges in traditional advertising and market uncertainties remain.
Analysis Date: February 5, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
News Corporation is a media company that creates and shares news and entertainment content with people around the world. They publish well-known newspapers like the New York Post and The Times, and they provide financial news through services like The Wall Street Journal. They also offer books for readers of all ages and provide sports and entertainment shows for viewers on TV and streaming platforms. Additionally, they help people buy and sell homes through their real estate websites and apps.
Streams of revenue
Geographic Distribution
Estimations for reference only
Core Products
Business Type
Mixed Business Model
Competitive Advantages
Key Business Risks
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$37.84
Current Market Price: $25.57
IV/P Ratio: 1.48x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
32.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for NWS
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (28.19)
P/B ratio ≤ 1.5 (1.93)
Current ratio ≥ 2.0 (0.62x)
Long-term debt < Net current assets (-5.22x)
Margin of safety (32.0%)
NWS does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
8.84%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
70.63%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
5.70%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
A gross profit margin of 69.17% indicates strong sales efficiency and product profitability, reflecting well on the company's operational capabilities.
The return on equity of 8.84% shows that the company is generating a reasonable return for shareholders, which is a positive indicator of management effectiveness.
The operating profit margin of 6.39% and net profit margin of 5.99% indicate that the company has room for improvement in controlling costs and increasing profitability.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.96x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q2 2025
Current Ratio
Current assets divided by current liabilities
0.62x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q2 2025
The current ratio of 1.73 and quick ratio of 1.65 indicate that the company is in a good position to cover its short-term liabilities, reflecting strong liquidity.
An interest coverage ratio of 14.67 indicates that the company earns significantly more than its interest obligations, suggesting financial stability.
With a debt-to-equity ratio of 0.96, the company has a moderate level of debt compared to equity, which could pose risks if not managed well.
The cash ratio of 0.47 indicates that the company may struggle to meet short-term liabilities purely with its cash reserves, which could be a concern.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
News Corp reported a 5% increase in revenues to $2.24 billion, with profitability rising 20% to $478 million, highlighting effective cost management and operational efficiency.
The company’s three pillars of growth—Digital Real Estate, Dow Jones, and Book Publishing—demonstrate strong segment performance and resilience in the face of market challenges, suggesting solid competitive advantages.
The sale of Foxtel to DAZN for AUD 3.4 billion will strengthen News Corp's balance sheet and has led to upgrades in its credit rating to investment grade, reflecting improved financial stability.
Despite growth in digital advertising, the overall News Media segment faced a 2% revenue decline, indicating challenges in traditional advertising models.
Both Dow Jones and Digital Real Estate segments are expected to see continued growth, particularly with new product offerings and an emphasis on B2B services.
The upcoming releases and strong backlist performance in Book Publishing suggest continued revenue momentum, especially with the anticipated sequels and adaptations boosting sales.
Economic uncertainties and challenges in the housing market could impact growth in the Digital Real Estate segment and overall profitability.
Currency translation effects and ongoing legal costs related to AI initiatives could pose challenges for financial performance in the second half of the year.