NWSA : NASDAQ : Services
$13.27 | %
Today's Range: 13.045 - 13.47
Avg. Daily Volume: 1578200.0
08/18/17 - 4:00 PM ET

Financial Analysis

NEWS CORP's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. NEWS CORP has average liquidity. Currently, the Quick Ratio is 1.34 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, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 6.69% 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 FY17 Q4 FY16
Net Sales ($mil)2080.02226.0
EBITDA ($mil)215.0239.0
EBIT ($mil)115.0104.0
Net Income ($mil)-429.090.0

Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)2016.02147.0
Total Assets ($mil)14552.015483.0
Total Debt ($mil)276.0372.0
Equity ($mil)10809.011584.0

Profitability Q4 FY17 Q4 FY16
Gross Profit Margin44.9543.76
EBITDA Margin10.3310.73
Operating Margin5.534.67
Sales Turnover0.560.54
Return on Assets-5.071.15
Return on Equity-6.841.39
Debt Q4 FY17 Q4 FY16
Current Ratio1.561.59
Interest Expense0.00.0
Interest Coverage0.00.0

Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)581.72580.12
Div / share0.00.0
Book value / share18.5819.97
Institutional Own % n/a n/a
Avg Daily Volume1574621.02090043.0


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.74 indicates a significant discount versus the S&P 500 average of 3.03 and a significant discount versus the industry average of 3.52. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NWSA NM Peers 31.89   NWSA 16.11 Peers 11.22

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.

NWSA'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.

NWSA is trading at a significant premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
NWSA 25.10 Peers 31.60   NWSA NA Peers 2.30

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

NWSA is trading at a valuation on par with 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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NWSA 0.74 Peers 3.52   NWSA -574.07 Peers 59.88

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NWSA 0.98 Peers 22.12   NWSA -1.85 Peers 20.53

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 industry on this measurement.


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

NWSA significantly trails its peers on the basis of sales growth



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