NWSA Down 11% in One Week, Now Is Not The Time To Buy The Stock

We believe there are a few things to fear in NWSA stock given its overall Weak operating performance and financial condition. This isn’t appropriately reflected in the stock’s Moderate valuation which is why we think it is Unattractive. Here is our multi-factor assessment.

NWSA stock has fallen meaningfully recently and we currently find it unattractive. This may feel like a caution, and there is significant risk in relying on a single stock. However, there is a huge value to a broader diversified approach we take with Trefis High Quality Portfolio. Separately, consider what could long-term performance for your portfolio be if you combined 10% commodities, 10% gold, and 2% crypto with equities.

Let’s get into details of each of the assessed factors but before that, for quick background: With $15 Bil in market cap, News provides diverse content and data through digital real estate, subscription video, publishing, news media, and more across multiple media channels and devices.

[1] Valuation Looks Moderate

This table highlights how NWSA is valued vs broader market. For more details see: NWSA Valuation Ratios

[2] Growth Is Inconsistent

• News has seen its top line shrink at an average rate of -3.9% over the last 3 years
• Its revenues have grown 2.4% from $8.7 Bil to $8.9 Bil in the last 12 months
• Also, its quarterly revenues grew 0.8% to $2.1 Bil in the most recent quarter from $2.1 Bil a year ago.

This table highlights how NWSA is growing vs broader market. For more details see: NWSA Revenue Comparison

[3] Profitability Appears Moderate

• NWSA last 12 month operating income was $969 Mil representing operating margin of 10.8%
• With cash flow margin of 10.9%, it generated nearly $978 Mil in operating cash flow over this period
• For the same period, NWSA generated nearly $1.2 Bil in net income, suggesting net margin of about 13.2%

This table highlights how NWSA profitability vs broader market. For more details see: NWSA Operating Income Comparison

[4] Financial Stability Looks Very Strong

• NWSA Debt was $2.9 Bil at the end of the most recent quarter, while its current Market Cap is $15 Bil. This implies Debt-to-Equity Ratio of 19.3%
• NWSA Cash (including cash equivalents) makes up $2.4 Bil of $16 Bil in total Assets. This yields a Cash-to-Assets Ratio of 15.5%

[4] Downturn Resilience Is Weak

NWSA has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• NWSA stock fell 45.9% from a high of $27.64 on 11 May 2021 to $14.95 on 27 September 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 5 June 2024
• Since then, the stock increased to a high of $31.03 on 29 September 2025 , and currently trades at $27.38

 
2020 Covid Pandemic

• NWSA stock fell 45.1% from a high of $14.91 on 16 January 2020 to $8.18 on 3 April 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 12 August 2020

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read NWSA Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – S&P 500, Russell, and S&P midcap. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.