NWSANews Corp (Class A)
Is the business good?
More warning than reassurance: thin cash backing (0.3×) and margins compressing.
Operating profit outpaces operating cash flow, watch accruals and working capital.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 12% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NWSA?
News Corp (Class A) earns 48% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 39 points above what the capital costs: growth creates value
- Operating margin
- 57%
Operating margin · Entertainment median 4.3% · 12 months to Q4 2026
- Cash conversion
- 0.34×
Cash conversion · the operating profit has not turned into cash yet
| Year | Operating margin |
|---|---|
| FY2021 | 48% |
| FY2022 | 51% |
| FY2023 | 51% |
| FY2024 | 54% |
| FY2025 | 56% |
| FY2026 | 57% |
Details›
- Operating margin12 months to Q4 2026
- 57%
- Net margin12 months to Q4 2026
- 6.3%
- Free cash flow margin
- 9.0%
- Revenue, trailing twelve months
- $9.03B
- Free cash flow, trailing twelve months
- $811M
- Net income, trailing twelve months
- $573M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 48%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Entertainment
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