News Corp (NWSA) AI Stock Analysis

• Market Cap: $16.51B
• Dividend Yield: 0.72%
• Average Volume (3M): 3.16M
• Price to Earnings (P/E): 32.6
• Beta (1Y): 0.84
• Revenue Growth: -5.43%
• EPS Growth: 135.46%
• Country: US
• Employees: 23,900
• Sector: Communication Services
• Sector Strength: 89
• Industry: Entertainment
• EPS (TTM): 0.17
• Shares Outstanding: 377,202,970
• 10 Day Avg. Volume: 3,214,897
• 30 Day Avg. Volume: 3,159,173
• PEG Ratio: 0.73
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.89
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 0.83
• Enterprise Value/Ebitda: 1.34
• 1Y Price Target: $39.00
• Price Target Upside: 39.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: $32.00 ▲(14.45%Upside)

News Corp has demonstrated strong financial and strategic performance, particularly in digital growth and debt reduction. However, valuation concerns and revenue challenges slightly temper the overall positive outlook.

Positive Factors

Earnings Performance

NWSA delivered a solid 3Q beat with revenue up 1% and EBITDA 8% ahead of expectations.

Strategic Initiatives

NWSA's exit from FOXTEL is seen as both a financial and strategic positive for the company.

Valuation and Capital Structure

There is potential to close a significant valuation discount, with the company affirming commitment to closing this gap.

Negative Factors

Advertising Environment

The firm pointed to a more challenging ad environment within News Media.

Capital Requirements

Increasing the REA stake by 19% may require $3.9 billion in capital, with identified sources including the pending sale of Foxtel and selling a portion of Move to REA.

News Corp Business Overview & Revenue Model

Company Description

News Corp (NWSA) is a global media and information services company headquartered in New York City. It operates in several sectors, including news and information services, book publishing, digital real estate services, and subscription video services. The company owns prominent brands such as The Wall Street Journal, HarperCollins Publishers, and Realtor.com, providing a diverse range of products and services that appeal to consumers and businesses worldwide.

How the Company Makes Money

News Corp generates revenue through various streams across its diverse business segments. In the news and information services sector, the company earns money primarily from advertising, circulation, and subscription revenues, particularly from its flagship publications like The Wall Street Journal and The Times. The book publishing segment, led by HarperCollins Publishers, contributes to revenue through book sales across multiple formats, including print, digital, and audio. Digital real estate services, such as those provided by Realtor.com, generate income through advertising and lead generation services for real estate agents and brokers. Additionally, News Corp's subscription video services, including pay-TV distribution and licensing of content, further diversify its revenue streams. Key partnerships with other media and technology companies, along with strategic acquisitions, enhance its content distribution capabilities and market reach, contributing significantly to its overall earnings.

News Corp Financial Statement Overview

Summary

News Corp's financial performance is strong with improved profitability and cash flow metrics despite a revenue decline. Operational efficiency and reduced leverage position the company well for future growth, though revenue growth remains a challenge.

Income Statement

News Corp showed a stable gross profit margin with a TTM figure of 100%. The net profit margin improved to 5.18% in TTM from 2.64% annually. Revenue declined by 6.72% in TTM compared to the previous year, indicating potential growth challenges. However, the EBIT margin improved to 10.16% from 7.98% annually, suggesting operational efficiency gains. The EBITDA margin also increased, reflecting strong earnings performance.

Balance Sheet

The debt-to-equity ratio improved to 0.36 in TTM, reflecting a reduction in leverage. The return on equity increased to 5.94% in TTM from 3.28% annually, showing improved profitability. The equity ratio remained stable at around 49.5%, indicating solid financial stability. However, maintaining a high equity ratio is crucial to mitigate financial risk.

Cash Flow

Free cash flow increased by 34% in TTM, demonstrating strong cash generation. The operating cash flow to net income ratio was 2.46, indicating robust cash flow relative to earnings. The free cash flow to net income ratio was 1.66, reflecting efficient cash flow management. Overall, the cash flow metrics highlight healthy financial operations.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
9.40B	10.09B	9.88B	10.38B	9.36B	9.01B
	Gross Profit
9.40B	10.09B	4.04B	4.57B	3.85B	3.36B
	EBIT
955.00M	805.00M	706.00M	981.00M	593.00M	369.00M
	EBITDA
1.57B	1.36B	1.14B	1.73B	1.29B	-695.00M
	Net Income Common Stockholders
487.00M	266.00M	149.00M	623.00M	330.00M	-1.27B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.65B	1.96B	1.83B	1.82B	2.24B	1.52B
	Total Assets
16.06B	16.68B	16.92B	17.22B	16.77B	14.26B
	Total Debt
1.55B	4.05B	4.21B	4.16B	3.60B	2.54B
	Net Debt
-102.00M	2.09B	2.37B	2.33B	1.36B	1.02B
	Total Liabilities
5.60B	7.67B	7.98B	8.08B	7.63B	5.87B
	Stockholders Equity
9.29B	8.12B	8.06B	8.22B	8.21B	7.58B
Cash Flow		Free Cash Flow
807.00M	602.00M	593.00M	855.00M	847.00M	342.00M
	Operating Cash Flow
1.20B	1.10B	1.09B	1.35B	1.24B	780.00M
	Investing Cash Flow
-379.00M	-524.00M	-574.00M	-2.08B	-1.29B	-427.00M
	Financing Cash Flow
-588.00M	-441.00M	-501.00M	404.00M	699.00M	-472.00M

News Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWSA, the sentiment is Positive. The current price of 27.96 is below the 20-day moving average (MA) of 28.08, above the 50-day MA of 27.20, and above the 200-day MA of 27.52, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 30.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NWSA.

News Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXA	81 Outperform	$23.37B	13.52	16.89%	1.00%	15.70%	26.73%
FOX	80 Outperform	$23.37B	12.38	16.89%	1.09%	15.70%	26.73%
NWSA	75 Outperform	$16.51B	32.58	5.88%	0.72%	-5.43%	135.46%
WBD	63 Neutral	$24.30B	―	-27.69%	―	-5.58%	-254.85%
Sector *	61 Neutral	$14.78B	5.89	-4.32%	3.67%	2.75%	-30.30%
PARA	56 Neutral	$8.47B	―	-28.56%	1.68%	-4.50%	-898.86%
PARAA	50 Neutral	$8.47B	―	-28.56%	0.89%	-4.50%	-898.86%

News Corp Corporate Events

News Corp Announces $1 Billion Stock Buyback

News Corporation has announced a stock repurchase program allowing the company to buy back up to $1 billion of its Class A and Class B common stock. This initiative, reported on May 30, 2025, aims to enhance shareholder value and is subject to market conditions and stock price fluctuations. The repurchase will be conducted in the open market or otherwise, with no ASX-listed CDIs being repurchased. The buyback reflects the company’s strategic move to optimize its capital structure and potentially improve its market positioning.

The most recent analyst rating on (NWSA) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on News Corp stock, see the NWSA Stock Forecast page.

News Corp Announces $1 Billion Stock Buyback

News Corporation has announced a stock repurchase program, authorizing the buyback of up to $1 billion of its Class A and Class B common stock. This initiative, aimed at enhancing shareholder value, is subject to market conditions and other factors, and does not require security holder approval. The program reflects the company’s strategic focus on optimizing its capital structure and returning value to shareholders.

The most recent analyst rating on (NWSA) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on News Corp stock, see the NWSA Stock Forecast page.

News Corp Announces $1 Billion Stock Buyback

News Corporation has announced a stock repurchase program, authorizing the buyback of up to $1 billion of its Class A and Class B common stock. This initiative, disclosed on May 28, 2025, aims to enhance shareholder value and is subject to market conditions and stock price fluctuations. The buyback program does not require security holder approval and is part of the company’s strategy to strengthen its financial standing.

The most recent analyst rating on (NWSA) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on News Corp stock, see the NWSA Stock Forecast page.

News Corp Updates Stock Repurchase Program

News Corporation has announced an update to its stock repurchase program, initially reported on September 22, 2021, allowing the company to buy back up to $1 billion of its Class A and Class B common stock. This move, aimed at enhancing shareholder value, does not require security holder approval and is subject to market conditions and other factors, reflecting the company’s strategic focus on optimizing its capital structure.

The most recent analyst rating on (NWSA) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on News Corp stock, see the NWSA Stock Forecast page.