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News Corporation Class B (NWS)
:NWS
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News Class B
(NASDAQ:NWS)
Select Model
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Rating:64Neutral
Price Target:
$35.00
▲(18.52% Upside)
News Corp's overall score is driven by strong earnings call results, highlighting record profitability and growth in key segments. However, mixed financial performance, bearish technical indicators, and high valuation weigh down the score.
News Class B (NWS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.19B
Dividend Yield0.67%
Average Volume (3M)1.17M
Price to Earnings (P/E)35.7
Beta (1Y)0.89
Revenue Growth-11.42%
EPS Growth75.42%
CountryUS
Employees23,900
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.19
Shares Outstanding188,031,200
10 Day Avg. Volume914,527
30 Day Avg. Volume1,173,838
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.36
Enterprise Value/Revenue2.31
Enterprise Value/Gross Profit2.31
Enterprise Value/Ebitda13.19
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
News Class B Business Overview & Revenue Model
Company DescriptionNews 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 in 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 OPIS 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 daily, 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 cable, 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; online real estate services; and financial services. The company was founded in 2012 and is headquartered in New York, New York.
How the Company Makes MoneyNews Class B generates revenue through several key streams, including advertising sales, subscription fees, and content licensing. The company sells advertising space on its television networks and digital platforms, capitalizing on its large audience reach. Subscription revenue is derived from its streaming services, where customers pay monthly or annual fees for access to exclusive content. Additionally, NWS licenses its content to other networks and platforms, earning royalties and fees from these partnerships. Significant relationships with advertisers, sponsors, and content distribution partners further bolster its earnings, allowing the company to diversify its revenue sources and enhance profitability.
News Class B Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
News Corp reported a strong fiscal year with record profitability and growth across several segments, particularly in Dow Jones and Digital Real Estate. However, challenges in the book publishing market and a tough advertising environment were noted, along with increased capital expenditures. The sentiment is bolstered by strategic stock repurchases and a focus on returning capital to shareholders.Q4-2025 Updates
Positive Updates
Record Profitability
News Corp reported a record year for profitability on a continuing operations basis, with total segment EBITDA improving 14% to over $1.4 billion and net income from continuing operations increasing 71% to $648 million.
Strong Performance in Dow Jones Segment
Dow Jones had another strong year, with revenue and EBITDA rising 4% and 8%, respectively. The fourth quarter saw a 7% increase in revenue to $604 million and a 10% rise in EBITDA to $151 million.
Digital Real Estate Growth
Digital Real Estate revenues rose 9% for the year, with the segment posting increased EBITDA of 18%. Realtor.com showed revenue growth for the third consecutive quarter despite a sluggish housing market.
Successful Stock Repurchase Program
The Board authorized a new $1 billion stock repurchase program, in addition to the $300 million remaining from the previous program, reflecting the company's strong cash flow and focus on returning capital to shareholders.
Book Publishing Achievements
Book Publishing posted its second-best revenue year on record with a 3% increase to $2.1 billion, while segment EBITDA expanded by 10% to $296 million.
Negative Updates
Challenges in Book Publishing
Recent months have seen softness in the overall book market, affecting some divisions, although key upcoming titles are expected to improve performance.
News Media Advertising Environment
News Media faced a challenging advertising environment, with revenues down 4% for the quarter and adjusted segment EBITDA declining 18%.
CapEx Increase
CapEx for the fourth quarter was $157 million, up 42%, driven by growth initiatives and the relocation of Sky News studios, indicating increased spending.
Company Guidance
In the fourth quarter and full fiscal year 2025, News Corp demonstrated significant growth and financial strength, as highlighted in their earnings call. The company reported a 2% increase in full-year revenues, reaching nearly $8.5 billion, while total segment EBITDA improved by 14% to over $1.4 billion. Net income from continuing operations rose 71% to $648 million, with profit margins increasing by 170 basis points to 16.7%. In the fourth quarter alone, revenues increased by 1% to $2.1 billion, with profitability growing by 5% to $322 million, and net income from continuing operations rising 28% to $86 million. Free cash flow for the year was reported at $571 million, enabling a new $1 billion stock repurchase program. The company's core segments, including Dow Jones, Digital Real Estate Services, and Book Publishing, drove the majority of the total segment EBITDA, with Dow Jones experiencing a 4% revenue increase and 8% EBITDA growth for the year. Additionally, Digital Real Estate revenues rose by 9%, while Book Publishing achieved a 3% revenue increase. News Corp plans to continue investing in high-margin content licensing and digital revenues, with a focus on strategic acquisitions and partnerships, particularly in the Professional Information Business sector.News Class B Financial Statement Overview
Summary
News Class B demonstrates a mixed financial performance. The income statement shows strong profitability margins despite a decline in revenue. The balance sheet is stable with moderate leverage and reasonable returns on equity. However, cash flow challenges, particularly in free cash flow growth, indicate potential liquidity concerns. The company should focus on enhancing revenue growth and cash flow generation to strengthen its financial position further.Income Statement
The income statement shows a mixed performance. The TTM data indicates a decline in revenue by 10.1%, which is concerning. However, the company has managed to maintain a positive net profit margin of 5.18% and an EBIT margin of 10.2%, indicating operational efficiency. The EBITDA margin is also strong at 16.67%, suggesting good earnings before depreciation and amortization. Despite the revenue decline, profitability metrics remain relatively stable.65
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.36, indicating moderate leverage. The return on equity (ROE) is 5.95%, showing a reasonable return on shareholders' investments. The equity ratio is not explicitly calculated, but the company appears to have a solid equity base relative to its assets. Overall, the balance sheet suggests a balanced approach to financing with manageable debt levels.70
Positive
Cash Flow
Cash flow analysis reveals some challenges, with a significant decline in free cash flow growth by 29.24% in the TTM period. The operating cash flow to net income ratio is 0.29, indicating that operating cash flow is not fully covering net income. However, the free cash flow to net income ratio is 0.67, suggesting that free cash flow is still a substantial portion of net income. The company needs to improve cash flow generation to support future growth.60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.93B | 8.45B | 10.09B | 9.88B | 10.38B | 9.36B |
| Gross Profit | 8.93B | 8.45B | 10.09B | 4.04B | 4.57B | 3.85B |
| EBITDA | 1.57B | 1.42B | 1.36B | 1.24B | 1.73B | 1.29B |
| Net Income | 1.18B | 1.18B | 266.00M | 149.00M | 623.00M | 330.00M |
Balance Sheet | ||||||
| Total Assets | 15.50B | 15.50B | 16.68B | 16.92B | 17.22B | 16.77B |
| Cash, Cash Equivalents and Short-Term Investments | 2.40B | 2.40B | 1.96B | 1.83B | 1.82B | 2.24B |
| Total Debt | 2.94B | 2.94B | 4.05B | 4.21B | 4.16B | 3.60B |
| Total Liabilities | 6.12B | 6.12B | 7.67B | 7.98B | 8.08B | 7.63B |
| Stockholders Equity | 8.77B | 8.77B | 8.12B | 8.06B | 8.22B | 8.21B |
Cash Flow | ||||||
| Free Cash Flow | 571.00M | 571.00M | 602.00M | 593.00M | 855.00M | 847.00M |
| Operating Cash Flow | 978.00M | 978.00M | 1.10B | 1.09B | 1.35B | 1.24B |
| Investing Cash Flow | -153.00M | -153.00M | -524.00M | -574.00M | -2.08B | -1.29B |
| Financing Cash Flow | -563.00M | -563.00M | -441.00M | -501.00M | 404.00M | 699.00M |
News Class B Technical Analysis
Negative
29.53
Price Trends
32.00
Negative
32.80
Negative
32.16
Negative
Market Momentum
-0.46
Negative
41.27
Neutral
35.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWS, the sentiment is Negative. The current price of 29.53 is below the 20-day moving average (MA) of 30.12, below the 50-day MA of 32.00, and below the 200-day MA of 32.16, indicating a bearish trend. The MACD of -0.46 indicates Negative momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 35.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NWS.
News Class B Risk Analysis
News Class B disclosed 26 risk factors in its most recent earnings report. News Class B reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Developments in AI, Including the Company's Use of AI, May Expose it to Certain Risks, Which Could Adversely Affect its Business, Reputation or Financial Results. Q2, 2025
2.
An Inability to Attract and Retain the Right Talent and Cultivate Their Performance Could Adversely Affect the Company's Business. Q2, 2025
3.
The Company is Exposed to Fluctuations in Foreign Currency Exchange Rates. Q2, 2025
News Class B Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $27.14B | 13.09 | 17.33% | 0.96% | 14.91% | 9.30% | |
77 Outperform | $27.14B | 14.52 | 17.33% | 0.85% | 14.91% | 9.30% | |
69 Neutral | $55.95B | 74.83 | 2.18% | ― | -3.79% | ― | |
64 Neutral | $15.19B | 35.70 | 5.69% | 0.67% | -11.42% | 75.42% | |
64 Neutral | $15.19B | 31.69 | 5.69% | 0.77% | -11.42% | 75.42% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | $7.35B | 7.87 | 8.86% | 4.93% | -2.80% | ― |
* Communication Services Sector Average
NWS
News Class B
29.07
-1.71
-5.56%
NWSA
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25.99
-2.75
-9.57%
SIRI
Sirius XM Holdings
21.83
-3.45
-13.65%
FOXA
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64.53
19.48
43.24%
FOX
Fox
58.15
16.20
38.62%
WBD
Warner Bros
22.60
14.22
169.69%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.