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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
NWSA
Primary Facts
Broadcasting
Name:
-
Sector:
- 35000.00K
Industry:
16.96
CEO:
Mr. Robert Thomson
Total Employees:
Mid Cap
Our Technological Advancement Rating
Our Rating:
0.697368366
-2.177117537
News Corporation (XNAS:NWSA) In-Depth Stock/Fundamental/Options Analysis Today
Primary Targets/Price Insights
Previous Close ($) :
NEWS CORPORATION (XNAS:NWSA)
One Month Price Target:
Six Month Price Target :
$17.08
Likely Price in One Year's Time:
Ticker:
$17.7
Likely Trading Range Today Under (Normal Volatility)
$17.04
Price Upper limit ($) :
$18.44
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
P436
This week:
$16.12
This month :
$15.08
Other Primary facts
Market Cap:
581.42M
Market Cap Classification:
9.93B
Number of Shares
IPO Date:
D
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
-13.28%
$13.2
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$19.06
13.56%
$14.86
$20.86
Medium risk (<10%) entry points
Buy Call
Sell Call
$18.09
Buy Put:
Sell Put:
$13.06
$15.83
$18.48
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
Broadcasting
Sharpe Ratio:
NWSA, is amongst the top 40% highest yielding stocks in terms of daily returns
Comparison:
1.28%
0.802292341
Sharpe ratio is 80.23% higher than the industry
Average Returns/Yield of
Broadcasting
Daily returns:
1
Weekly returns:
0.07%
Monthly returns:
0.33%
Yearly returns:
15.64%
Comparison of returns:
0.372873134
Classification:
Average annual returns/yield (last 3 years) is 37.29% above industry average
Results of T-Test of Returns:
NWSA is a riskier investment compared to Nasdaq (IXIC)
Statistical test of Returns:
0.89
Volatility (measured by Standard Deviation)
Daily Volatility:
& ratio is 1.11% higher than the market/S&P 500 average
Weekly Volatility:
2.44%
Monthly Volatility:
5.47%
Yearly Volatility:
10.93%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
47.65%
-71.93%
Value at Risk Analysis (VaR)
Daily VaR:
Volatility in last five trading days has been -71.93% below long-term volatility
Weekly VaR:
-4.95%
Monthly VaR:
-11.08%
How Much Can the price of
Broadcasting
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
Risk of crash in next 6/12 months: High (50-70%)
Worst case (decline):
$13.76
This translates to price declining to:
-19%
This translates to price declining to:
-76.76%
Severe Crash Probability
-22.16%
What is Value at Risk (VaR)?
Risk Fundamentals
33.99%
NWSA is a 56.40% riskier investment compared to the market/S&P 500 & is 33.99% riskier than Nasdaq (IXIC)
NWSA is a 56.40% riskier investment compared to the market/S&P 500
Beta Examination of
Broadcasting
1.295
Expected beta in 1 year's time:
0.715
Expected beta in 3 year's time:
0.98
Unlevered (debt free) Beta:
Beta in relation to market/S&P 500--1.30
Beta in relation to Nasdaq (XNAS):
Returns are, approximately, symmetrical
Beta in relation to all global stocks::
Beta is 7.64% above industry average
Beta Comparison & Analysis
Beta of competitors/peers::
0.984
0.023
Average Industry Beta:
Beta is 2.25% higher than peers
0.076417996
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
WACC is 33.81% above industry mean WACC
-70.86%
Alpha provided | Alpha Analysis
Alpha provided:
1.386
1236.093
2.306
Analysis of Cost of Capital of
Broadcasting
Equity cost of capital:
Alpha is 231% higher than market/& is unsustainably high
0.055
Unlevered (without debt) cost of capital:
Equity cost of capital is 5.53% above industry mean WACC
Before-tax cost of debt:
9.14%
After-tax cost of debt:
2.55%
Overall debt rating:
2.02%
Weighted average cost of capital (WACC):
2.55%
33.81%
Key Per-Share Metrics & Analysis
Revenue per share:
Present value of the expected future dividends only: $3.33
Revenue growth rate per share of (3Y):
Price to sales ratio is -59.06% below the industry mean
-92.43%
EPS:
Three Hundred Twenty-Six Million Three Hundred Thirteen Thousand Nine Hundred Sixty Dollars
Expected Annual growth rate of EPS (3Y):
Price to free cash flow ratio is 17.68% higher than the industry
81.22%
Free cash flow (FCF) per share:
Price to book ratio is 9.27% above the industry mean
-
-0.972694154
Debt per share
Debt repayment rate in last quarter: 11.18%
EBITDA per share
Each employee generates -79% less EBITDA than industry average revenue per employee
Valuation Analysis Today of
Broadcasting
P/E Ratio:
Sustainable growth rate is -70.86% below industry average
P/E Ratio of Competitors/Peers:
16.07
0.197042144
11.27791872
0.503823571
$1.26
Share value as per dividend discount (DDM) model: $22.22
P/S (Price to Sales ratio):
$17.55
-0.590621817
P/B (Price to book value ratio):
Price to sales ratio is -59.06% below the industry mean
-
0.176826132
Net income growth rate (3Y):
Annual revenue growth rate is -92.43% below industry average
-1669.25%
Dividend Analysis
Net income growth rate is -1669.25% lower than the industry average net income growth rate
Dividend payout rate: 5.41%
$0.10
Previous Dividend: $0.10
Previous adjusted dividend: $0.10
Previous Dividend: $0.40
-
-
Average dividend payment (long-term): $0.10
Average dividend increase/decrease (growth rate) % per period: 0.00%
Expected next dividend payment date: 07/12/2022
Expected next dividend record date: 14/06/2022
Expected next dividend declaration date: 05/04/2022
Previous dividend payment date: 13/04/2022
Previous dividend record date: 16/03/2022
Dividend History:
Previous dividend declaration date: 02/03/2022
2021-09-14--$0.10
2020-09-15--$0.10
2022-03-15--$0.10
2021-03-16--$0.10
2020-03-10--$0.10
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
16.91%
Net debt to equity ratio:
The remaining useful life of property plant & equipment is: 10.7 years
Debt to assets ratio:
8.45%
Net debt to assets ratio:
37.06%
-72.99%
Ability to repay debt:
Interest coverage ratio:
Debt-to-asset ratio is -72.99% below industry average
2.55
Looking forward:
Debt growth rate:
1.2x
990.07%
11.18%
Analysis of Key Statistics
Correlation of price movement with the market:
13.83878692
Statistical significance of correlation:
-0.35%
Average Correlation of the industry with the market:
0.468
-10.00%
R Squared (percentage of price movement explained by movement of the market):
0.468
Correlation of price movement with Nasdaq (^IXIC):
0.219
Covariance of price movement with the market:
-0.026
Kurtosis
-0.036
4.777
Skewness of returns:
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
0.059
Fundamental Analysis & Dupont Analysis of
Broadcasting
Gross Profit Margin Ratio:
-
Operating Profit Margin Ratio:
Net profit margin is -13.18% lower than the industry
21.27%
Net Profit Margin Ratio:
-
Effective Tax Rate:
-
-0.875996668
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
Return on assets (ROA) is -6.94% lower than the industry
100.55%
Financial Leverage
Asset Turnover Ratio (ROA):
Operating profit margin is 21.27% higher than the industry
-6.94%
Financial Leverage:
Interest coverage ratio is 255.02% more than industry average
Current Ratio:
Return on equity (ROE) is 100.55% higher than the industry
-0.19654503
Cash Conversion Cycle (days):
$5.23
-
Current ratio is -19.65% below industry average
Stock based compensation to net income ratio:
Equity growth rate per share is -97.27% lower than the industry
In-depth Efficiency Analysis
Revenue generated per employee:
-
-0.561461758
EBITDA generated per employee:
Each employee generates -56% less revenue than industry average revenue per employee
-0.791863657
Profit generated per employee:
$2.37
-78%
Free cash flow (FCF) generated per employee:
Each employee generates -78% less net income/profit than industry average revenue per employee
-1.074865871
Assets/Capital per employee
Each employee generates -107% less free cash flow than industry average revenue per employee
-1.074865871
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
Broadcasting
$53.78
NEWS CORPORATION (XNAS:NWS)
IAC INC. (XNAS:IAC)
ZILLOW GROUP, INC. (XNAS:ZG)
Bilibili Inc. (XNAS:BILI)
DISCOVERY, INC. (XNAS:DISCK)
WARNER BROS. DISCOVERY, INC. (XNAS:WBD)
DISCOVERY, INC. (XNAS:DISCB)
LIBERTY GLOBAL PLC (XNAS:LBTYK)
Current Analyst Ratings
$0.84
Strong buy�4%
Buy�17%
Hold�21%
Sell�4%
Strong sell�0%
Income Statement
Period:
3/31/2022
Date:
Value
Revenue:
TTM
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
10.20B
-
-
-
-
3.59B
418.00M
4.32B
7.01B
-
89.00M
681.00M
53%
107.00M
- 105000.00K
28%
107.00M
Statement of Cash Flow
Date:
Period:
196.00M
Differed Income Tax :
165.00M
Stock Based Compensation :
27.00M
Change in Working Capital :
-
Accounts Receivables:
- 290000.00K
Other Working Capital:
- 240000.00K
Other Non-Cash Items:
-
Net Cash Provided by Operating Activities:
- 30000.00K
Investments in PP&E:
68.00M
Net Acquisitions:
- 2000.00K
Purchases of Investments:
- 16000.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
Value
9/30/2021
2022
Q1
2.10B
-
2.10B
1.50B
308.00M
465.00M
4.37B
3.17B
4.57B
2.11B
499.00M
345.00M
1.36B
12.05B
-
16.42B
309.00M
445.00M
34.00M
467.00M
2.05B
3.27B
3.04B
706.00M
4.00B
-
7.27B
6.00M
- 2715000.00K
- 1061000.0K
Value
7.90B
11.98B
8.21B
15.48B
-
3.49B
-
-
- 77000.00K
- 95000.00K
- 383000.00K
-
-
- 27000.00K
325.00M
- 85000.00K
- 24000.00K
- 136000.00K
2.10B
2.24B
68.00M
- 103000.00K
Our Proprietary Portfolio Rating
Our Rating:
-55.30359125
Price Forecast/Expected Price in Next 5 Years of
Broadcasting
2023
2024
2025
2026
2027
38.51942975
$18.53
$41.87
$45.52
$49.48