NWSA : NASDAQ : Services
$12.97 | %
Today's Range: 12.54 - 13.02
Avg. Daily Volume: 3,009,300
07/29/16 - 4:00 PM ET

Financial Analysis


NEWS CORP's gross profit margin for the third quarter of its fiscal year 2016 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 1.24 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 decreased by 5.83% 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 FY16 Q3 FY15
Net Sales ($mil)1891.02041.0
EBITDA ($mil)158.0185.0
EBIT ($mil)32.061.0
Net Income ($mil)-149.023.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)1972.02027.0
Total Assets ($mil)15716.015686.0
Total Debt ($mil)369.00.0
Equity ($mil)11666.012389.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin42.6841.01
EBITDA Margin8.359.06
Operating Margin1.692.99
Sales Turnover0.520.55
Return on Assets-1.831.55
Return on Equity-2.662.45
Debt Q3 FY16 Q3 FY15
Current Ratio1.471.8
Debt/Capital0.030.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)579.92583.03
Div / share0.10.0
EPS-0.260.08
Book value / share20.1221.25
Institutional Own % n/a n/a
Avg Daily Volume2939487.04248736.0

Valuation


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 0.62 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 3.71. 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
NWSA NM Peers 23.01   NWSA 10.76 Peers 19.72

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.

 

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
NWSA 24.55 Peers 80.89   NWSA NA Peers 1.36

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

NWSA is trading at a significant discount 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
NWSA 0.62 Peers 3.71   NWSA -203.84 Peers -8.91

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 0.88 Peers 3.76   NWSA -4.50 Peers 42.30

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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