News Corporation [NASDAQ:NWSA]: Analyst Rating and Earnings
Pro stock market traders often keep their attention pointed at what top market analysts have to say regarding a potential equity investment. For News Corporation [NWSA] currently, the latest-available mean analyst rating is for the fiscal quarter that will end in June. On average, stock market experts give NWSA an Hold rating. Its stock price has been found in the range of 10.65 to 16.65. This is compared to its latest closing price of $12.65.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for News Corporation [NWSA] is sitting at 3.00. This is compared to 1 month ago, when its average rating was 3.00.
For the quarter ending in Dec-18 News Corporation [NWSA] generated $2.63 billion in sales. That’s 0.82% higher than the average estimate of $2.61 billion as provided by Wall Street analysts. The three indicators above suggest that the company is performing better than market experts expected, boosting its appeal as a solid investment.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Thu 9 May (In 27 Days).
Fundamental Analysis of News Corporation [NWSA]
Now let’s turn to look at profitability: with a current Operating Margin for News Corporation [NWSA] sitting at +6.27 and its Gross Margin at +40.45, this company’s Net Margin is now -13.10%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 4.73, and its Return on Invested Capital has reached -8.30%. Its Return on Equity is -15.05, and its Return on Assets is -9.80. These metrics suggest that this News Corporation does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, News Corporation [NWSA] has generated a Total Debt to Total Equity ratio of 20.96. Similarly, its Total Debt to Total Capital is 17.33, while its Total Debt to Total Assets stands at 11.94. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 16.04, and its Long-Term Debt to Total Capital is 13.23. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 6.93 and its Total Debt to EBITDA Value is 1.88. The Enterprise Value to Sales for this firm is now 0.72, and its Total Debt to Enterprise Value stands at 0.19. News Corporation [NWSA] has a Price to Book Ratio of 0.97, a Price to Cash Flow Ratio of 11.93.
Shifting the focus to workforce efficiency, News Corporation [NWSA] earns $322,286 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.98 and its Total Asset Turnover is 0.58. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.22 and its Current Ratio is 1.33. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
News Corporation [NWSA] has 583.90M shares outstanding, amounting to a total market cap of $7.32B. Its stock price has been found in the range of 10.65 to 16.65. At its current price, it has moved by -24.69% from its 52-week high, and it has moved 17.75% from its 52-week low.
This stock’s Beta value is currently 1.48, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 49.61. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is News Corporation [NWSA] a Reliable Buy?
Shares of News Corporation [NWSA], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.