NWS$30.7
$30.92
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Performance
Key Stats
AI NWS Summary
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Powered by LiveAIOverall Analysis
NeutralNews Corp shows a mixed investment profile. While its diversified media and information services business offers some stability, recent performance and valuation metrics suggest a neutral stance. Thematic exposure to digital real estate and a solid dividend yield are positives, but the company faces revenue pressures in traditional media segments. Technical indicators are mixed, leaning towards caution.
Thematic
News Corp operates in several evolving sectors. Its digital real estate services segment is a key growth driver, capitalizing on property technology trends. However, the traditional news and publishing segments face ongoing challenges from digital disruption and shifting advertising models. Exposure to information services like Dow Jones provides a more stable revenue stream.
Fundamental
News Corp exhibits moderate financial health. Revenue growth has been inconsistent, with a recent increase in Q2 2024 but a slight dip in 2023. Profitability, while present, has seen fluctuations, notably a lower net margin in Q2 2024. The company manages its debt effectively with sufficient cash reserves.
Technical
The stock's recent performance shows a downtrend, with the price below key moving averages and several technical indicators suggesting downward momentum. While some oscillators are oversold, signaling potential for a bounce, the overall trend remains bearish in the short to medium term.
| Factor | Score |
|---|---|
| Digital Real Estate Services | 85 |
| Digital Transformation | 70 |
| Information Services | 80 |
| Media Industry Disruption | 40 |
| Global Economic Sensitivity | 60 |
| Factor | Score |
|---|---|
| Valuation | 35 |
| Profitability | 40 |
| Growth | 55 |
| Balance Sheet Health | 75 |
| Cash Flow | 70 |
| Dividend Yield | 60 |
| Factor | Score |
|---|---|
| Trend Analysis | 30 |
| Momentum | 50 |
| Volume Confirmation | 40 |
| Support & Resistance | 65 |
| Short-term Oscillators | 60 |
AI Investing Checklist
Powered by LiveAIBullish Points (7)
Potential Undervaluation
The Price-to-Earnings (P/E) ratio of 39.8 is higher than some historical periods, but the Price-to-Sales (P/S) ratio of 2.5 for TTM is comparable to its 2021 levels and within a reasonable range for a growth-oriented media company. Recent quarterly P/E ratios show significant volatility, with Q4 2024 at 26.6 and Q3 2024 at 44.1, suggesting potential opportunities during dips.
Improving Liquidity and Debt Management
Cash and cash equivalents have remained robust, around $1.8 billion to $2.2 billion in recent years. While debt was $4.05 billion in Q2 2024, the company's free cash flow generation (e.g., $602 million in Q2 2024) indicates a capacity to service its debt. The debt-to-equity ratio, implied by the capital structure data and balance sheet equity, appears manageable given the company's asset base and revenue streams.
Bearish Points (7)
Elevated P/E Ratio and Volatile Quarterly Valuations
The TTM P/E ratio of 39.8 and a recent quarterly P/E of 126.5 (Q2 2024) suggest the stock is trading at a premium. This could indicate high investor expectations that may be difficult to consistently meet, especially considering the net income fluctuations.
Declining Net Margins
Net margins have shown a downward trend, particularly in recent quarters (1.9% in Q2 2024, 4.6% in Q3 2024, 9.6% in Q4 2024) compared to earlier periods (6.0% in Q2 2022, 3.5% in Q2 2021). This indicates pressure on profitability relative to revenue.
Calendar
March 2025
12
Ex-Dividend Date
April 2025
9
Next Dividend Date
August 2025
6
Next Earnings Date
H: $0.18
A: $0.17
L: $0.17
H: 2.11B
A: 2.09B
L: 2.05B
Profile
News Corporation, a media and information services company, creates and distributes authoritative and engaging content, and other products and services for consumers and businesses worldwide. It operates through six segments: Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media, and Other. The company distributes content and data products, including The Wall Street Journal, Barron's, MarketWatch, Investor's Business Daily, Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, and Dow Jones Energy through various media channels, such as newspapers, newswires, websites, mobile apps, newsletters, magazines, proprietary databases, live journalism, video, and podcasts. It also owns and operates Monday to Friday, Saturday and Sunday, weekly, and bi-weekly newspapers comprising The Australian, The Weekend Australian, The Daily Telegraph, The Sunday Telegraph, Herald Sun, Sunday Herald Sun, The Courier Mail, The Sunday Mail, The Advertiser, Sunday Mail, The Sun, The Sun on Sunday, The Times, The Sunday Times, and New York Post, as well as digital mastheads and other websites. In addition, the company publishes general fiction, nonfiction, children's, and religious books; provides sports, entertainment, and news services to pay-TV and streaming subscribers, and other commercial licensees through satellite and internet distribution; and broadcasts rights to live sporting events. Further, it offers property and property-related advertising and services on its websites and mobile applications; digital real estate services; and financial services. News Corporation was founded in 2012 and is headquartered in New York, New York.
Seasonals
Price Target
26.50 USD
The 39 analysts offering 1 year price forecasts for NWS have a max estimate of 26.50 and a min estimate of 26.50.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
Related Companies
Powered by LiveAIWeight: 95
Former parent company of News Corp, shares common founder, operates in similar broadcast, cable news, and sports media segments, with some content licensing and competitive overlap.
Weight: 92
Dominant digital advertising platform; Google News competes for content distribution and ad revenue; search engine impacts News Corp's online traffic and digital ad opportunities.
Weight: 90
Major competitor for digital advertising revenue and user attention; Facebook/Instagram host news content, impacting News Corp's audience reach and monetization.
Weight: 90
Direct competitor to News Corp's Realtor.com (via Move, Inc. subsidiary) in the online real estate services market.