NWS : NASDAQ : Services
$14.45 0.0 | 0.0%
Today's Range: 14.35 - 14.5
Avg. Daily Volume: 443700.0
07/24/17 - 4:00 PM ET

Financial Analysis


NEWS CORP's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. NEWS CORP has average liquidity. Currently, the Quick Ratio is 1.31 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.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.34% 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 Q3 FY17 Q3 FY16
Net Sales ($mil)1978.01891.0
EBITDA ($mil)226.0165.0
EBIT ($mil)117.039.0
Net Income ($mil)-5.0-149.0


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)1850.01972.0
Total Assets ($mil)14886.015716.0
Total Debt ($mil)376.0369.0
Equity ($mil)11159.011666.0


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin44.3442.68
EBITDA Margin11.428.72
Operating Margin5.922.06
Sales Turnover0.560.52
Return on Assets-1.47-1.83
Return on Equity-1.930.61
Debt Q3 FY17 Q3 FY16
Current Ratio1.531.47
Debt/Capital0.030.03
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)581.72579.92
Div / share0.10.1
EPS-0.01-0.26
Book value / share19.1820.12
Institutional Own % n/a n/a
Avg Daily Volume443578.0500156.0

Valuation


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 0.75 indicates a significant discount versus the S&P 500 average of 3.07 and a significant discount versus the industry average of 3.87. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, NEWS CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NWS NM Peers 20.97   NWS 14.57 Peers 11.99

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

NWS's P/E is negative making this valuation measure meaningless.

 

Premium. 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.

NWS is trading at a premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
NWS 30.53 Peers 27.44   NWS NA Peers 2.17

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

NWS is trading at a significant premium to its peers.

 

Neutral. 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NWS 0.75 Peers 3.87   NWS -416.66 Peers 94.15

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.

NWS 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, NWS is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NWS 1.01 Peers 18.35   NWS 1.24 Peers 38.50

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.

NWS is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

NWS significantly trails its peers on the basis of sales growth

 

 

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