NWS : NASDAQ : Services
$14.47 | %
Today's Range: 14.47 - 14.64
Avg. Daily Volume: 1,296,400
09/23/16 - 4:00 PM ET

Financial Analysis


NEWS CORP's gross profit margin for the fourth quarter of its fiscal year 2016 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 1.41 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.18% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)2226.02117.0
EBITDA ($mil)239.0215.0
EBIT ($mil)104.092.0
Net Income ($mil)90.0-378.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)2147.01951.0
Total Assets ($mil)15483.015093.0
Total Debt ($mil)372.00.0
Equity ($mil)11584.011965.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin43.7642.61
EBITDA Margin10.7310.15
Operating Margin4.674.35
Sales Turnover0.540.56
Return on Assets1.15-0.97
Return on Equity1.392.47
Debt Q4 FY16 Q4 FY15
Current Ratio1.591.84
Debt/Capital0.030.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)580.12581.55
Div / share0.00.0
EPS0.160.01
Book value / share19.9720.57
Institutional Own % n/a n/a
Avg Daily Volume1296121.0818847.0

Valuation


BUY. NEWS CORP's P/E ratio indicates a significant premium compared to an average of 22.94 for the Media industry and a significant premium compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 0.73 indicates a significant discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 3.20. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NWS 53.81 Peers 22.94   NWS 9.46 Peers 11.47

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

NWS 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.

NWS is trading at a discount 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 26.81 Peers 23.61   NWS 0.87 Peers 1.19

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.

 

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.

NWS trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NWS 0.73 Peers 3.20   NWS -47.06 Peers 15.62

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 1.02 Peers 6.85   NWS -2.73 Peers 12.04

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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