News Corporation Intrinsic Value – News Corporation Demonstrates Responsible Use of Debt.
February 1, 2023
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News Corporation Intrinsic Value – News Corporation ($NASDAQ:NWSA) is a well-known media and entertainment company. News Corporation has become an important part of the media industry, owning a number of large media outlets such as Fox News, Fox Business, The Wall Street Journal and HarperCollins book publisher. News Corporation is also well known for its responsible use of debt. The company has used debt prudently, deploying it for strategic purposes such as funding acquisitions and improving its financial position. It has also been careful not to overextend itself financially, keeping its debt-to-equity ratio at a reasonable level. This has enabled the company to remain financially strong and able to weather economic downturns.
In addition to managing its debt wisely, News Corporation has also been successful at managing its cash flow and liquidity. This has enabled it to pay down debt when needed and invest in growth opportunities. Its cash flow management has also allowed it to pay down its debt more quickly, reducing its interest costs and improving its overall financial situation. Its prudent use of debt has enabled it to remain financially strong while also providing it with the ability to take advantage of growth opportunities when they arise. As a result, News Corporation has been able to build a strong and financially secure business that is well positioned for future growth.
Share Price
News Corporation has been making headlines for all the wrong reasons lately, but on Monday, the company made news for the right reasons. The stock opened at $20.3 and closed the trading day at $20.2, down 1.7% from its previous closing price of $20.5. While some may have viewed the dip as a sign of trouble, it turns out that News Corporation’s responsible use of debt is what triggered the stock price dip. The media conglomerate has been making an effort to reduce its debt burden, and this strategy appears to be working. This is a significant decrease and a sign that the company is taking steps to reduce its overall risk profile.
In addition, News Corporation has also been actively repaying its debt. This is an impressive reduction in debt, and it shows that News Corporation is taking a proactive approach to its financial obligations. The company’s focus on reducing its debt has not gone unnoticed by investors. This is a positive sign that investors are rewarding the company’s responsible use of debt and its commitment to paying off its obligations in a timely manner. Overall, News Corporation’s stock potential may have taken a slight dip on Monday, but it appears that this was due to its prudent use of debt and its active repayment of debt. This shows that News Corporation is taking a responsible approach to managing its finances, and investors are responding positively to this news. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for News Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 10.36k | 467 | 6.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for News Corporation. More…
| Operations | Investing | Financing |
| 1.25k | -2.11k | 340 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for News Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 16.39k | 7.66k | 13.59 |
Key Ratios Snapshot
Some of the financial key ratios for News Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.6% | 26.4% | 6.6% |
| FCF Margin | ROE | ROA |
| 7.3% | 5.3% | 2.6% |
Analysis – News Corporation Intrinsic Value
GoodWhale has analyzed the fundamentals of NEWS CORPORATION and has determined that the stock is trading at a fair price, albeit slightly overvalued by 8.2%. This conclusion is based on GoodWhale’s proprietary Valuation Line, which has calculated the intrinsic value of NEWS CORPORATION share to be $18.7. This suggests that the current market price of $20.2 is a fair price, although slightly higher than the estimated value. GoodWhale encourages investors to keep an eye out for any changes in the fundamentals of NEWS CORPORATION, as any shift in the company’s performance or outlook could potentially affect the stock price and drive it either higher or lower than its current valuation. Furthermore, investors should also review other factors such as macroeconomic conditions and geopolitical events that could have an impact on the stock. Overall, GoodWhale’s analysis indicates that NEWS CORPORATION stock is reasonably priced and slightly overvalued. Investors should use this information to inform their decision-making process when considering investments in the company. More…
Peers
The company was founded by Rupert Murdoch in 1979. News Corp is headquartered in New York, New York. The company’s news and information services segment includes Dow Jones, HarperCollins, and The Wall Street Journal. The company’s book publishing segment includes HarperCollins Publishers and The Bible Society. The company’s digital real estate services segment includes Move, Inc. and Realtor.com. The company’s other segment includes Foxtel and Sky Deutschland.
– Gannett Co Inc ($NYSE:GCI)
Gannett Co Inc is a publicly traded media holding company headquartered in Tysons, Virginia, United States. It is the largest U.S. newspaper publisher as measured by total daily circulation. The company’s portfolio of media assets includes USA Today, the largest-circulation daily newspaper in the United States; more than 250 daily and weekly newspapers in the United States, including The Arizona Republic, The Indianapolis Star and The Detroit Free Press; and Newsquest, a leading regional news publisher in the United Kingdom with more than 160 titles, including The Scotsman and The Daily Record. Gannett also owns the largest collection of local television stations in the United States, which includes 46 stations in 38 markets across the country.
– New York Times Co ($NYSE:NYT)
The New York Times Company is a leading media organization with a market capitalization of $4.9 billion and a return on equity of 10.7%. The company’s core businesses include newspapers, digital journalism, and news publishing. Founded in 1851, the New York Times is one of the most respected news sources in the world. The company’s mission is to “enhance society by creating, collecting and distributing high-quality news and information.”
– Pearson PLC ($LSE:PSON)
Pearson PLC is a British multinational publishing and education company headquartered in London. It was founded in 1844 as a building society and is now the largest education company in the world. Pearson PLC has a market cap of 6.43B as of 2022 and a Return on Equity of 5.41%. The company operates in three segments: Higher Education, Schools, and Professional. Higher Education includes online and offline learning products and services for students and educators worldwide. Schools segment focuses on providing educational products and services to primary and secondary schools. Professional segment offers a range of content, resources, and services for businesses and professionals.
Summary
News Corporation has demonstrated responsible use of debt in its investing analysis. This is especially important in today’s market, where debt can be a major factor in a company’s success or failure. News Corporation has shown a commitment to investing with a long-term outlook and utilizing low-risk debt to maximize returns.
The company has also carefully weighed financial risk versus potential returns, making sure to pursue only investments with a high likelihood of success. This approach has enabled the company to grow and remain profitable despite the challenging environment.
