News Corporation
Find Ratings ReportsNEWS CORP's gross profit margin for the second quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the subsector average, its revenue growth has not. NEWS CORP has average liquidity. Currently, the Quick Ratio is 1.16 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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Income Statement | Q2 FY24 | Q2 FY23 |
---|---|---|
Net Sales ($mil) | 2586.0 | 2521.0 |
EBITDA ($mil) | 473.0 | 415.0 |
EBIT ($mil) | 294.0 | 241.0 |
Net Income ($mil) | 156.0 | 67.0 |
Balance Sheet | Q2 FY24 | Q2 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 1724.0 | 1328.0 |
Total Assets ($mil) | 16681.0 | 16891.0 |
Total Debt ($mil) | 4243.0 | 4228.0 |
Equity ($mil) | 8182.0 | 8115.0 |
Profitability | Q2 FY24 | Q2 FY23 |
---|---|---|
Gross Profit Margin | 50.46 | 48.67 |
EBITDA Margin | 18.29 | 16.46 |
Operating Margin | 11.37 | 9.56 |
Sales Turnover | 0.6 | 0.6 |
Return on Assets | 1.36 | 1.77 |
Return on Equity | 2.79 | 3.68 |
Debt | Q2 FY24 | Q2 FY23 |
---|---|---|
Current Ratio | 1.44 | 1.28 |
Debt/Capital | 0.34 | 0.34 |
Interest Expense | 25.0 | 26.0 |
Interest Coverage | 11.76 | 9.27 |
Share Data | Q2 FY24 | Q2 FY23 |
---|---|---|
Shares outstanding (mil) | 571.39 | 575.59 |
Div / share | 0.0 | 0.0 |
EPS | 0.27 | 0.12 |
Book value / share | 14.32 | 14.1 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 2796589.0 | 3149513.0 |
BUY. NEWS CORP's P/E ratio indicates a significant premium compared to an average of 47.17 for the Publishing Industries subsector and a significant premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 1.82 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 11.80. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount.
Price/Earnings |
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Price/Cash Flow |
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NWSA 65.23 | Peers 47.17 | NWSA 12.06 | Peers 33.15 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. NWSA is trading at a significant premium to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. NWSA is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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NWSA 28.36 | Peers 32.16 | NWSA 0.37 | Peers 1.66 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. NWSA is trading at a premium to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. NWSA trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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NWSA 1.82 | Peers 11.80 | NWSA -23.08 | Peers 148.13 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. NWSA is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, NWSA is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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NWSA 1.50 | Peers 12.32 | NWSA -1.97 | Peers 12.66 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. NWSA is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. NWSA significantly trails its peers on the basis of sales growth. |
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