Fox (FOX) AI Stock Analysis

• Market Cap: $23.60B
• Dividend Yield: 0.85%
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): 30.7
• Beta (1Y): 0.59
• Revenue Growth: 14.91%
• EPS Growth: 9.30%
• Country: US
• Employees: 10,200
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.82
• Shares Outstanding: 224,702,220
• 10 Day Avg. Volume: 1,791,041
• 30 Day Avg. Volume: 1,819,911
• PEG Ratio: 0.18
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 7.95
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 1.93
• Enterprise Value/Gross Profit: 5.85
• Enterprise Value/Ebitda: 9.55
• 1Y Price Target: $54.50
• Price Target Upside: 2.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 4.65
• Revenue Forecast (FY): $16.28B

• Rating: 66 Neutral
• Price Target: $58.00 ▲(9.27% Upside)
• Action: Downgraded Date: 03/07/26
• Date: Action: Downgraded 03/07/26

The score is primarily supported by solid financial performance (healthy margins and strong operating/free cash flow), but is held back by weaker technical momentum (negative MACD and price below major moving averages) and a relatively high P/E with only a modest dividend yield.

Positive Factors

Strong Cash Generation

Consistently strong operating and free cash flow provide durable internal funding for content rights, distribution deals, and digital investment. High cash conversion improves resilience through advertising cycles, supports capital allocation flexibility, and reduces near-term dependence on external financing.

Healthy Profitability

Sustained double-digit operating and net margins reflect a profitable ad- and affiliate-driven model anchored by live news and sports. Margin levels support strong returns on equity and provide structural cushion to absorb content cost swings and cyclical ad demand over the medium term.

Material Revenue Momentum

Meaningful TTM revenue growth indicates expanding distribution, advertising monetization, and streaming scale (Tubi plus traditional channels). Structural top-line momentum increases bargaining power with distributors and advertisers, supporting durable revenue diversification over coming quarters.

Negative Factors

Declining Net Income

A decline in net income despite higher revenues signals pressure on earnings quality—likely from margin compression or higher content and distribution costs. If structural, this reduces retained earnings available for reinvestment and weakens earnings per share durability over months.

Rising Debt & Lower Assets

Higher absolute debt and declining asset base modestly erode the balance-sheet cushion and reduce strategic flexibility. Increased leverage limits room for large content investments or M&A without raising financing costs and can tighten covenants if cash generation slows.

Decelerating Free Cash Flow Growth

Negative FCF growth suggests weakening momentum in cash generation versus prior years. Over a multi-month horizon this can constrain reinvestment in streaming and sports rights, pressure shareholder returns, and reduce headroom for absorbing cyclical ad-market downturns.

Fox Business Overview & Revenue Model

Company Description

Fox Corporation operates as a news, sports, and entertainment company in the United States (U.S.). The company operates through Cable Network Programming; Television; and Other, Corporate and Eliminations segments. The Cable Network Programming segment produces and licenses news, business news, and sports content for distribution through traditional and virtual multi-channel video programming distributors (MVPDs) and other digital platforms, primarily in the U.S. It operates FOX News, a national cable news channel; FOX Business, a business news national cable channel; FS1 and FS2 multi-sport national networks; FOX Sports Racing, a video programming service that comprises motor sports programming; FOX Soccer Plus, a video programming network for live soccer and rugby competitions; FOX Deportes, a Spanish-language sports programming service; and Big Ten Network, a national video programming service. The Television segment acquires, produces, markets, and distributes programming. It operates The FOX Network, a national television broadcast network that broadcasts sports programming and entertainment; Tubi, an advertising-supported video-on-demand service; Fox Alternative Entertainment, a full-service production studio that develops and produces unscripted and alternative programming; MyNetworkTV, a programming distribution service; and Blockchain Creative Labs, which is focuses on the creation, distribution and monetization of Web3 content. This segment owns and operates 29 broadcast television stations. The Other, Corporate and Eliminations segment owns the FOX Studios Lot that provides production and post-production services, including 15 sound stages, two broadcast studios, theaters and screening rooms, editing rooms, and other television and film production facilities in Los Angeles, California. The company was incorporated in 2018 and is based in New York, New York.

How the Company Makes Money

Fox generates revenue through several key streams. Its primary source of income comes from advertising revenue, which is earned from commercials aired during its television programming. This includes national advertising on its broadcast network and local advertising on its regional affiliates. Additionally, Fox earns revenue from affiliate fees paid by cable and satellite providers for carrying its channels. The company also monetizes its content through licensing agreements and syndication, allowing other networks and platforms to air its shows. Sports programming, particularly events like the NFL games, contributes significantly to its revenue through both advertising and sponsorships. Furthermore, Fox has been expanding its digital offerings, which include subscription services and on-demand content, providing additional revenue opportunities. Strategic partnerships, such as those with sports leagues and streaming platforms, enhance its earnings potential.

Fox Financial Statement Overview

Summary

Strong profitability and cash generation support the score (TTM operating margin ~18.8%, net margin ~12.4%; TTM operating cash flow $2.73B and free cash flow $2.54B). Offsetting factors include net income down versus FY2025 ($1.89B TTM vs. $2.26B), some margin compression, modestly negative TTM free cash flow growth (-4.84%), and higher total debt versus FY2025 ($8.34B vs. $7.47B).

Income Statement

TTM (Trailing-Twelve-Months) results show strong profitability for the industry, with solid operating and net margins (about 18.8% and 12.4%, respectively). Revenue growth is very strong in the TTM period (+63.1%) and revenue is up versus the last annual period ($16.58B TTM vs. $16.30B FY2025). However, net income is down from FY2025 ($1.89B TTM vs. $2.26B), and margins have stepped down from FY2025 levels, pointing to some near-term pressure on earnings quality despite higher sales.

Balance Sheet

Leverage looks manageable with debt-to-equity around 0.61 in TTM (Trailing-Twelve-Months), improved from higher leverage levels seen in prior years (roughly 0.68–0.79). Equity remains sizable ($10.93B) against total debt ($8.34B), supporting balance sheet flexibility. That said, total debt has risen versus FY2025 ($8.34B TTM vs. $7.47B), and total assets have declined (from $23.20B FY2025 to $21.47B TTM), which modestly reduces the balance-sheet cushion even as returns on equity remain healthy (~17%).

Cash Flow

Cash generation is a key strength: TTM (Trailing-Twelve-Months) operating cash flow is $2.73B and free cash flow is $2.54B, with free cash flow covering a large portion of net income (~0.88x). Cash conversion has improved versus FY2024–FY2023, where operating cash flow relative to net income was notably weaker, suggesting better earnings-to-cash quality recently. The main weakness is growth: TTM free cash flow growth is negative (-4.84%), indicating some deceleration after a stronger FY2025.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	16.58B	16.30B	13.98B	14.91B	13.97B	12.91B
Gross Profit	5.48B	5.40B	13.98B	14.91B	13.97B	12.91B
EBITDA	3.35B	3.85B	2.90B	2.50B	2.43B	3.61B
Net Income	1.89B	2.26B	1.50B	1.24B	1.21B	2.15B
Balance Sheet
Total Assets	21.47B	23.20B	21.97B	21.87B	22.18B	22.93B
Cash, Cash Equivalents and Short-Term Investments	2.02B	5.35B	4.32B	4.27B	5.20B	5.89B
Total Debt	8.34B	7.46B	8.15B	8.21B	7.72B	8.45B
Total Liabilities	10.35B	10.84B	10.92B	11.21B	10.62B	11.54B
Stockholders Equity	10.93B	11.96B	10.71B	10.38B	11.34B	11.12B
Cash Flow
Free Cash Flow	2.54B	2.99B	1.50B	1.44B	1.58B	2.15B
Operating Cash Flow	2.73B	3.32B	1.84B	1.80B	1.88B	2.64B
Investing Cash Flow	-690.00M	-537.00M	-452.00M	-438.00M	-513.00M	-528.00M
Financing Cash Flow	-3.34B	-1.75B	-1.34B	-2.29B	-2.06B	-870.00M

Fox Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 53.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FOX, the sentiment is Negative. The current price of 53.08 is above the 20-day moving average (MA) of 52.37, below the 50-day MA of 59.61, and below the 200-day MA of 55.43, indicating a neutral trend. The MACD of -1.63 indicates Negative momentum. The RSI at 42.22 is Neutral, neither overbought nor oversold. The STOCH value of 86.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FOX.

Fox Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NFLX	76 Outperform	$409.30B	36.11	43.25%	―	15.49%	35.54%
DIS	69 Neutral	$179.49B	21.11	11.35%	1.10%	3.61%	152.34%
FOX	66 Neutral	$23.60B	30.69	16.22%	0.85%	14.91%	9.30%
NWSA	66 Neutral	$13.94B	31.10	12.52%	0.76%	-16.36%	29.53%
ROKU	64 Neutral	$14.82B	180.68	3.40%	―	16.61%	83.98%
WBD	62 Neutral	$68.84B	98.11	2.05%	―	-4.29%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%