News Corp. (NWSA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

The New York Times Co.

Daily Journal Corp.

News Corp.

Gannett Co., Inc.

Lee Enterprises, Inc.

DallasNews Corp.

Educational Development Corp.

Why is News Corp. ?

Company has a low Debt to Equity ratio (avg) at times

Low Debt Company with Strong Long Term Fundamental Strength

Flat results in Jun 25

INVENTORY TURNOVER RATIO(HY) Lowest at 14.78 times
DEBTORS TURNOVER RATIO(HY) Lowest at 5.66 times
NET PROFIT(Q) At USD 99.91 MM has Fallen at -23.83%

With ROCE of 11.58%, it has a expensive valuation with a 2.42 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -7.86%, its profits have risen by 67.4% ; the PEG ratio of the company is 0.4

Below par performance in long term as well as near term

Along with generating -7.86% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to News Corp. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is News Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

News Corp.

-7.86%

-0.18

24.23%

S&P 500

11.96%

0.60

19.84%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.17%

EBIT Growth (5y)

20.58%

EBIT to Interest (avg)

15.47

Debt to EBITDA (avg)

0.45

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

0.90

Tax Ratio

29.83%

Dividend Payout Ratio

24.56%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

8.96%

ROE (avg)

6.70%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.41

EV to EBIT

20.88

EV to EBITDA

12.70

EV to Capital Employed

2.42

EV to Sales

2.10

PEG Ratio

0.43

Dividend Yield

19.40%

ROCE (Latest)

11.58%

ROE (Latest)

8.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,134 MM

ROCE(HY)

Highest at 5.69%

DIVIDEND PAYOUT RATIO(Y)

Highest at 210.53%

RAW MATERIAL COST(Y)

Fallen by -1.4% (YoY

NET PROFIT(9M)

Higher at USD 430.88 MM

CASH AND EQV(HY)

Highest at USD 4,498 MM

DEBT-EQUITY RATIO (HY)

Lowest at 6.12 %

-4What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 14.78 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.66 times

NET PROFIT(Q)

At USD 99.91 MM has Fallen at -23.83%

EPS(Q)

Lowest at USD 0.05

Here's what is working for News Corp.

Operating Cash Flow

Highest at USD 1,134 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 4,498 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 6.12 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 210.53%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -1.4% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for News Corp.

Net Profit

At USD 99.91 MM has Fallen at -23.83%

over average net sales of the previous four periods of USD 131.16 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.05

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Lowest at 14.78 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 5.66 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio