| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $10,074 | $9,008 | $9,358 | $8,437 | $8,012 | $8,252 |
| Operating Margins | 4% | -17% | 5% | 10% | 5% | 7% |
| Net Margins | 2% | -14% | 4% | 7% | 2% | 3% |
| Net Income (M) | $155 | -$1,269 | $330 | $623 | $149 | $266 |
| Net Interest Expense (M) | -$59 | -$25 | -$53 | -$44 | -$49 | -$18 |
| Depreciation & Amort. (M) | $659 | $644 | $680 | $372 | $415 | $440 |
| Diluted Shares (M) | 590 | 593 | 595 | 578 | 574 | 570 |
| Earnings Per Share | $0.26 | -$2.16 | $0.56 | $1.05 | $0.26 | $0.46 |
| EPS Growth | n/a | -930.77% | 125.93% | 87.5% | -75.24% | 76.92% |
| Free Cash Flow (M) | $356 | $342 | $847 | $1,044 | $745 | $741 |
| CAPEX (M) | $572 | $438 | $390 | $310 | $347 | $357 |
| Total Debt (M) | $1,201 | $1,256 | $2,270 | $3,025 | $3,042 | $1,967 |
| Net Debt / EBITDA | -0.07 | 0.35 | 0.08 | 1.4 | 1.68 | 0.21 |
| Current Ratio | 1.36 | 1.26 | 1.42 | 1.28 | 1.44 | 1.73 |
News Corporation is a media and publishing company that appears to be fairly valued. The company's PEG ratio, which measures the relationship between the price-to-earnings ratio and the earnings growth rate, is 2.13. This indicates that the market may be overvaluing the company's growth potential. Additionally, News Corporation's capital expenditures are decreasing, suggesting that the firm is not reinvesting profits back into the business. The company's revenues are $8.25 billion, and are declining annually at a rate of -2.9%.
However, News Corporation's operating margins of 7.1% compare favorably with the industry average of 5.83%, and its earnings per share have grown at an annualized rate of 10.0% over the last 6 years. The company's free cash flows average $679.17 million over the last 5 years, with a compounded average growth rate of 16.3%. Furthermore, News Corporation has a current ratio of 1.73, indicating that its current assets exceed its current liabilities. The company also has a decent record of dividends over the last 3 years, with a current yield of 0.8%. Additionally, it has healthy leverage levels, with a Net Debt/EBITDA ratio of 0.21, lower than the sector average.
News Corporation's Price to Book Ratio of 1.69 is lower than the sector average of 2.93, indicating potential undervaluation. However, its P/E ratio of 31.4 is higher than the sector average of 20.93, but its expected earnings of $1.12 per share indicate a lower forward P/E ratio of 23.4.
