Now trading at a price of $27.74, News has moved 3.6% so far today.
News returned gains of 28.3% last year, with its stock price reaching a high of $28.62 and a low of $19.25. Over the same period, the stock outperformed the S&P 500 index by 9.3%. More recently, the company's 50-day average price was $27.35. 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. The Large-Cap Consumer Discretionary company is based in New York, NY. News has offered a 0.7% dividend yield over the last 12 months.
Generally Positive Cash Flows but an Average Current Ratio:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $9,024 | $10,074 | $9,008 | $9,358 | $10,385 | $9,879 |
| Operating Margins | -12% | 4% | -17% | 5% | 8% | 3% |
| Net Margins | -17% | 2% | -14% | 4% | 6% | 2% |
| Net Income (M) | -$1,514 | $155 | -$1,269 | $330 | $623 | $149 |
| Net Interest Expense (M) | -$7 | -$59 | -$25 | -$53 | -$99 | -$100 |
| Depreciation & Amort. (M) | $472 | $659 | $644 | $680 | $688 | $714 |
| Diluted Shares (M) | 587 | 590 | 593 | 595 | 578 | 574 |
| Earnings Per Share | -$2.6 | $0.26 | -$2.16 | $0.56 | $1.05 | $0.26 |
| EPS Growth | n/a | 110.0% | -930.77% | 125.93% | 87.5% | -75.24% |
| Free Cash Flow (M) | $393 | $356 | $342 | $847 | $855 | $593 |
| CAPEX (M) | $364 | $572 | $438 | $390 | $499 | $499 |
| Total Debt (M) | $1,680 | $1,201 | $1,256 | $2,270 | $3,025 | $3,042 |
| Net Debt / EBITDA | -0.1 | -0.07 | 0.35 | 0.08 | 1.13 | 1.26 |
| Current Ratio | 1.19 | 1.36 | 1.26 | 1.42 | 1.28 | 1.44 |
News has generally positive cash flows, positive EPS growth, and healthy leverage levels. Furthermore, News has slight revenue growth and a flat capital expenditure trend, weak operating margins with a positive growth rate, and just enough current assets to cover current liabilities, as shown by its current ratio of 1.44.
a Lower P/B Ratio Than Its Sector Average but Priced Beyond Its Margin of Safety:
News has a trailing twelve month P/E ratio of 59.5, compared to an average of 22.15 for the Consumer Discretionary sector. Based on its EPS guidance of $1.05, the company has a forward P/E ratio of 26.0. The 5.0% compound average growth rate of News's historical and projected earnings per share yields a PEG ratio of 11.98. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing News in terms of its equity because its P/B ratio is 1.95 while the sector average is 3.11. The company's shares are currently trading 203.5% below their Graham number.
Analysts Give News an Average Rating of Buy:
The 6 analysts following News have set target prices ranging from $28.65 to $38.0 per share, for an average of $32.27 with a buy rating. The company is trading -14.0% away from its average target price, indicating that there is an analyst consensus of some upside potential.
News has a very low short interest because 1.7% of the company's shares are sold short. Institutions own 101.7% of the company's shares, and the insider ownership rate stands at 0.08%, suggesting a small amount of insider investors. The largest shareholder is Price (T.Rowe) Associates Inc, whose 17% stake in the company is worth $1,787,134,977.
