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1. Company Snapshot

1.a. Company Description

News 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.

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1.b. Last Insights on NWSA

News Corporation's recent performance was impacted by several factors. The company's Q1 FY26 earnings call revealed a $13M write-off and a 2% decline in book publishing. A Factiva dispute also lingered, contributing to pressure on the stock. Despite Dow Jones strength and cost efficiencies, user metrics declined. Additionally, Asset Management One Co. Ltd. reduced its stake in the company by 2.3%. However, Teacher Retirement System of Texas increased its holdings by 3.7%. The company's Q1 earnings surpassed estimates, with revenue increasing year-over-year.

1.c. Company Highlights

2. News Corp's Fiscal First Quarter 2026 Earnings: A Strong Start

News Corp reported a 2% increase in revenue to $2.14 billion, accompanied by a 5% increase in total segment EBITDA to $340 million. The company's net income from continuing operations was $150 million, up from $149 million last year, and adjusted EPS rose from $0.20 to $0.22, beating analyst estimates of $0.18. The robust cash position is expected to generate strong free cash flow this fiscal year, leading to an increased rate of share buybacks.

Publication Date: Nov -09

📋 Highlights
  • Revenue & EBITDA Growth:: 2% revenue increase to $2.14 billion and 5% total segment EBITDA rise to $340 million, with net income from continuing operations at $150 million.
  • Dow Jones Outperformance:: 10% EBITDA growth driven by 6% revenue increase, including 16% revenue jump in Risk & Compliance and acquisition of Eco-Movement for energy transition data.
  • Book Publishing Challenges:: 2% revenue drop to $534 million and 28% EBITDA decline to $58 million due to a $13 million distributor write-off, but optimism for stronger Q2 titles.
  • News Media Surge:: 67% EBITDA growth to $30 million despite 1% revenue rise, fueled by digital ad gains and higher subscription prices in UK/Australia.
  • Share Repurchase Acceleration:: Strong cash position and $1.5 billion IP award against Anthropic cited as catalysts for elevated buybacks, with $340 million free cash flow expected in FY2026.

Segment Performance

Dow Jones saw a 10% increase in EBITDA, driven by a 6% increase in revenue, with strong growth in Risk & Compliance and Dow Jones Energy. The company acquired Eco-Movement, a leading global platform for EV charging station data, to strengthen its energy transition activity. Digital Real Estate Services saw a 9% revenue boost year-on-year, driven by the strength of growth adjacencies, new homes, rentals, and sellers. However, the Book Publishing segment faced challenges, with a write-off of $13 million due to the expected closure of a book distributor.

Valuation and Outlook

With a P/E Ratio of 11.36 and an EV/EBITDA of 12.61, the market seems to be pricing in moderate growth expectations. However, the company's strong free cash flow yield of 5.03% and ROE of 15.78% suggest that the shares may be undervalued. News Corp expects to continue aggressively pursuing its buyback program and is confident in the outlook for Digital Real Estate and Dow Jones. The company is open to structural changes and simplifying the business to maximize returns for shareholders.

Segment Outlook

Dow Jones is expected to have continued strong revenue growth in B2B, driven by companies' need to minimize risk and maximize compliance. Digital Real Estate's Australian residential new buy listings were down 3% in October, but Realtor hopes to benefit from improving market conditions and growth in adjacencies. Book Publishing expects a stronger front list in the second quarter, and News Media will focus on driving cost efficiencies despite difficult advertising trends.

Share Buyback and Dividend

The company's buyback has accelerated, and they intend to fully utilize the expanded resources approved by the Board. With a Dividend Yield of 0.75%, the stock offers a relatively attractive income stream. As the company continues to focus on maximizing shareholder value, the increased rate of share buybacks is expected to support the stock price.

3. NewsRoom

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Realtor.com® 2026 Housing Forecast: Housing Market Remains Balanced as Supply and Demand Find Firmer Footing

Dec -03

Source: prnewswire.com

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Creative Planning Raises Holdings in News Corporation $NWSA

Nov -26

Source: defenseworld.net

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Realtor.Com®: New Homes Now Priced Closer To Existing Homes Than Ever

Nov -25

Source: prnewswire.com

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U.S. Luxury Market Splits: Price Cuts Ignite Sales While Select Metros See Rapid Price Growth

Nov -24

Source: prnewswire.com

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News Corporation (NASDAQ:NWSA) Given Consensus Rating of “Moderate Buy” by Analysts

Nov -22

Source: defenseworld.net

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Connor Clark & Lunn Investment Management Ltd. Takes $423,000 Position in News Corporation $NWSA

Nov -21

Source: defenseworld.net

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Artisan Partners Limited Partnership Reduces Holdings in News Corporation $NWSA

Nov -21

Source: defenseworld.net

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Home for the Holidays: Half of Americans Factor Thanksgiving Hosting into Their Home Search

Nov -19

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.01%)

6. Segments

News Media

Expected Growth: 1.8%

News Media from News Corporation's 1.8% growth is driven by increasing demand for digital news, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on cost-cutting initiatives and investments in digital infrastructure have improved operational efficiency, contributing to the growth.

Dow Jones

Expected Growth: 2.2%

Dow Jones' 2.2% growth is driven by increasing demand for financial news and information, particularly in the wake of the COVID-19 pandemic. Strong subscription growth, driven by its digital transformation efforts, and a rebound in advertising revenue also contribute to its growth. Additionally, the company's diversification into new markets and expansion of its data analytics business further support its growth momentum.

Book Publishing

Expected Growth: 1.5%

News Corporation's Book Publishing segment growth of 1.5% is driven by increasing demand for digital content, strategic acquisitions, and expansion into emerging markets. Additionally, the company's focus on bestselling authors and popular franchises, such as HarperCollins' partnership with Agatha Christie's estate, contributes to revenue growth.

Subscription Video Services

Expected Growth: 2.5%

The 2.5% growth in Subscription Video Services from News Corporation is driven by increasing demand for premium content, expansion into new markets, and strategic partnerships. Additionally, the rise of cord-cutting and shift towards online streaming have contributed to the growth, as consumers seek affordable and convenient entertainment options.

Digital Real Estate Services

Expected Growth: 2.1%

The 2.1% growth in Digital Real Estate Services from News Corporation is driven by increasing online property searches, rising demand for digital real estate solutions, and strategic acquisitions. Additionally, the company's strong brand presence, investments in technology, and expansion into new markets have contributed to this growth.

7. Detailed Products

Fox Broadcasting Company

A television network that provides entertainment, sports, and news programming to a wide audience.

Fox News Channel

A 24-hour cable news channel providing news, opinion, and commentary.

The Wall Street Journal

A leading international newspaper and online news site providing business, financial, and world news.

HarperCollins Publishers

A global book publisher of fiction, non-fiction, and children's books.

Fox Sports

A group of regional sports networks and national sports channels broadcasting live sports events.

National Geographic

A media company providing educational and entertaining content on science, history, and culture.

8. News Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

News Corporation operates in a highly competitive industry, with many substitutes available to consumers. However, the company's strong brand recognition and diversified portfolio of media assets mitigate the threat of substitutes to some extent.

Bargaining Power Of Customers

News Corporation's customers have limited bargaining power due to the company's dominant position in the media industry. The company's diverse range of media assets and strong brand recognition also reduce the bargaining power of customers.

Bargaining Power Of Suppliers

News Corporation's suppliers have moderate bargaining power due to the company's dependence on a few large suppliers for content and distribution. However, the company's scale and diversification efforts reduce the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants is high in the media industry, with low barriers to entry and the rise of digital media platforms. News Corporation faces significant competition from new entrants, which could potentially disrupt its business model.

Intensity Of Rivalry

The media industry is highly competitive, with many established players and new entrants vying for market share. News Corporation faces intense rivalry from competitors, which could lead to pricing pressures and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.68%
Debt Cost 4.31%
Equity Weight 66.32%
Equity Cost 10.73%
WACC 8.57%
Leverage 50.78%

11. Quality Control: News Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
News Corp

A-Score: 5.9/10

Value: 5.5

Growth: 5.1

Quality: 7.4

Yield: 2.0

Momentum: 6.5

Volatility: 9.0

1-Year Total Return ->

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Madison Square Garden Sports

A-Score: 5.6/10

Value: 6.4

Growth: 4.9

Quality: 6.4

Yield: 1.0

Momentum: 6.0

Volatility: 8.7

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Sirius XM

A-Score: 5.5/10

Value: 8.6

Growth: 3.8

Quality: 7.0

Yield: 7.0

Momentum: 2.5

Volatility: 4.3

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Live Nation Entertainment

A-Score: 5.3/10

Value: 2.0

Growth: 8.3

Quality: 4.8

Yield: 0.0

Momentum: 8.5

Volatility: 8.3

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Warner Music

A-Score: 5.2/10

Value: 1.3

Growth: 6.4

Quality: 4.8

Yield: 4.0

Momentum: 6.5

Volatility: 8.3

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Endeavor Group Holdings

A-Score: 3.6/10

Value: 4.3

Growth: 3.8

Quality: 2.3

Yield: 0.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

25.63$

Current Price

25.63$

Potential

-0.00%

Expected Cash-Flows