NWSA : NASDAQ : Services
$11.79 0.0 | 0.0%
Today's Range: 11.58 - 11.94
Avg. Daily Volume: 2987300.0
12/07/16 - 12:01 PM ET

Financial Analysis


NEWS CORP's gross profit margin for the first 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 1.25 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 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 Q1 FY17 Q1 FY16
Net Sales ($mil)1965.02014.0
EBITDA ($mil)135.0165.0
EBIT ($mil)15.044.0
Net Income ($mil)-15.0175.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)1499.01898.0
Total Assets ($mil)15269.014756.0
Total Debt ($mil)381.00.0
Equity ($mil)11550.011636.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin41.1240.47
EBITDA Margin6.878.19
Operating Margin0.762.18
Sales Turnover0.540.57
Return on Assets-0.07-0.25
Return on Equity0.152.91
Debt Q1 FY17 Q1 FY16
Current Ratio1.461.8
Debt/Capital0.030.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)581.32581.4
Div / share0.10.1
EPS-0.030.22
Book value / share19.8720.01
Institutional Own % n/a n/a
Avg Daily Volume3056523.03051430.0

Valuation


HOLD. NEWS CORP's P/E ratio indicates a significant premium compared to an average of 30.03 for the Media industry and a significant premium compared to the S&P 500 average of 25.16. For additional comparison, its price-to-book ratio of 0.60 indicates a significant discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 3.41. 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
NWSA 600.00 Peers 30.03   NWSA 13.52 Peers 11.12

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.

 

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 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
NWSA 22.47 Peers 24.14   NWSA 11.59 Peers 1.50

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NWSA 0.60 Peers 3.41   NWSA -96.56 Peers 48.04

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NWSA 0.85 Peers 5.93   NWSA -2.22 Peers 15.67

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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