Here is why News Corp (USA Stocks:NWS) can still attract private investors

News Corp (USA Stocks: NWS), a key player in the Media and Entertainment industry, presents a promising investment opportunity with its robust financial health and strong market presence. The company's gross profit stands at a staggering 4.8B, indicating its strong profitability potential. Despite a slight dip in quarterly revenue growth (-0.09), News Corp's revenue remains robust at 9.9B, demonstrating the company's ability to generate substantial sales. The company's book value of 14.099, coupled with an open price of 21.18, suggests that the stock is undervalued, offering a lucrative buying opportunity for investors. Furthermore, the company's marketing and selling expenses of 1.7B reflect its commitment to expanding its market reach and enhancing its product offerings. Despite a minor price change of -0.2, the company's market risk adjusted performance of 3.32 and a low downside deviation of 1.3 signal a relatively low-risk investment.

Supplemental assessment

Our advisory module complements the current analysts and expert consensus on News Corp B. It assesses the company's potential for growth using all available fundamental, technical, and market-related data at the time.
Published over a year ago
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Reviewed by Vlad Skutelnik

News Corp (NWS.US), a leading player in the Communication Services sector, specifically within the Media & Entertainment industry, has demonstrated its potential as a lucrative investment opportunity for private investors. Despite a challenging quarter with a revenue growth decline of 9%, the company managed to maintain a net income applicable to common shares of $149M. This resilience is attributed to the company's robust operating margin of 7.19% and a profit margin of 1.51%. News Corp's enterprise value stands at $15.6B, with an enterprise value revenue of 1.2906, indicating a healthy valuation. The company's book value of $14.099 per share and a diluted EPS of $0.26 further underscore its financial stability. Despite a loss of $100M in net interest income, the company's selling and marketing expenses were effectively managed at $1.7B. With a Wall Street target price of $32.6 and a dividend per share of $0.2, News Corp remains a compelling investment proposition in the Communication Services sector. As conservative investors increasingly venture into the media space, News Corp B could be on your radar. I will delve deeper into this stock and the latest sentiment generated by private investors. In this article, I will also discuss various factors influencing News Corp's products and services, and explain how these could impact News Corp's private investors.
The performance of News Corp B in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence News Corp's stock prices. When investing in News Corp, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, News Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as News Corp carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

And What about dividends?

A dividend is the distribution of a portion of News Corp earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. News Corp dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. News one year expected dividend income is about USD0.13 per share.
At this time, News Corp's Dividend Payout Ratio is comparatively stable compared to the past year. Dividend Paid And Capex Coverage Ratio is likely to gain to 2.08 in 2024, despite the fact that Dividends Paid is likely to grow to (163.4 M).
Last ReportedProjected for Next Year
Dividends Paid-172 M-163.4 M
Dividend Yield 0.01  0.01 
Dividend Payout Ratio 0.65  0.68 
Dividend Paid And Capex Coverage Ratio 1.64  2.08 
Investing in stocks that pay dividends, such as stock of News Corp B, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in News Corp must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for News Corp. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is News Corp's Liquidity

News Corp financial leverage refers to using borrowed capital as a funding source to finance News Corp B ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. News Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to News Corp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of News Corp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between News Corp's total debt and its cash.

What do experts say about News?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis Consensus

Another Outlook On News Corp

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. News Corp has an asset utilization ratio of 58.38 percent. This implies that the company is making $0.58 for each dollar of assets. An increasing asset utilization means that News Corp B is more efficient with each dollar of assets it utilizes for everyday operations. News Corp (USA Stocks: NWS) continues to exhibit strong financial health and remains an attractive investment opportunity. With a current ratio of 1.16X, the company's ability to meet its short-term obligations is sound. Its book value stands at 14.099, which when compared with its price to book ratio of 1.39X, suggests the stock is reasonably priced. News Corp's EBITDA of $1.29B and operating income of $230M underlines the company's robust operating performance.
The firm's total debt of $4.09B is manageable, given its strong cash flow from operations of $1.09B. Furthermore, the company's price to earnings to growth (PEG) ratio of 10.17X indicates the stock could offer good value. The entertainment industry giant, listed on the NASDAQ, is not without risks. It has a beta of 1.33, meaning it's more volatile than the market. However, the firm's risk-adjusted performance of 0.0565 and Treynor ratio of 3.31 suggest it has been efficiently managing these risks. Moreover, with an operating margin of 0.07% and Wall Street's target price at $32.6, there's potential for future growth. The company's shares are also largely held by insiders, with 40.34% ownership, reflecting confidence in the company's prospects. Given these factors, News Corp's stock product could be a lucrative investment for private investors. .

News Corp has 54 percent chance to drop under $21 in the coming weeks

The Total Risk Alpha for News Corp B Stock has recently increased to 0.04, indicating a heightened level of risk. This, in conjunction with the potential for a price decline, suggests that investors should proceed with caution. According to these metrics, there is a 54 percent probability that News Corp's share price could drop below $21 in the upcoming weeks. Investors are encouraged to closely monitor this stock and consider their risk tolerance levels when making investment decisions. As of September 16, 2023, News Corp has a Risk Adjusted Performance of 0.0565, a downside deviation of 1.3, and a Mean Deviation of 0.9662. In relation to fundamental indicators, the technical analysis model allows you to examine the current technical drivers of News Corp B, as well as their interrelationships. In essence, this information can be used to determine if the company will indeed reflect its historical price model, or if prices will eventually revert. We can interpolate and analyze nineteen technical drivers for News Corp, which can be compared to its industry peers. Please verify News Corp B's Jensen Alpha and semi-variance to determine if News Corp B is somewhat accurately priced, assuming the market reflects its recent price of $20.98 per share. Given that News Corp B has a Jensen Alpha of 0.1034, we recommend you to check News Corp's recent market performance to ensure the company can sustain itself in the future.

Our Conclusion on News Corp

Whereas many other companies under the entertainment industry are still a bit expensive, News Corp may offer a potential longer-term growth to private investors. With a relatively neutral outlook on the newest economy, it is better to hold off any trading of News as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to News Corp.

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