Fox (FOX) AI Stock Analysis

• Market Cap: $22.46B
• Dividend Yield: 1.23%
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.52
• Revenue Growth: 4.29%
• EPS Growth: 177.70%
• Country: US
• Employees: 10,200
• Sector: Communication Services
• Sector Strength: 98
• Industry: Entertainment
• EPS (TTM): 4.67
• Shares Outstanding: 235,581,020
• 10 Day Avg. Volume: 1,754,576
• 30 Day Avg. Volume: 1,441,638
• PEG Ratio: 0.06
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.48
• Price to Cash Flow (P/CF): -15.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $60.00
• Price Target Upside: 25.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

Fox's strong financial performance and positive earnings call sentiment are major strengths, supported by robust technical indicators. The valuation suggests potential for growth despite minor challenges like subscriber declines and external disruptions. Overall, Fox demonstrates a solid investment opportunity in the traditional media sector.

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 Corporation primarily generates revenue through advertising sales, affiliate fees, and content licensing. Advertising sales are driven by the company's ability to attract large audiences to its television channels and digital platforms, allowing advertisers to reach a broad demographic. Affiliate fees are collected from cable and satellite operators who pay to carry Fox's channels, providing a steady revenue stream. Additionally, Fox licenses its content to other networks and streaming services, further diversifying its income. The company's financial performance is also bolstered by significant partnerships, including sports broadcasting rights deals that enhance its programming lineup and attract viewers.

Fox Financial Statement Overview

Summary

Fox's financial statements reveal strong revenue growth and profitability. The income statement shows robust revenue and profit margins, the balance sheet reflects moderate leverage but effective debt management, and the cash flow indicates efficient capital management. Continued focus on growth and profitability will be key.

Income Statement

Fox shows a strong revenue growth trajectory with a TTM revenue increase of 8.6% compared to the previous year. The gross profit margin is robust at 45.7% in the TTM period, and the net profit margin stands at 14.4%, indicating solid profitability. Additionally, both EBIT and EBITDA margins show healthy efficiency at 18.9% and 25.3% respectively. There is a consistent upward trend in profitability and revenue, although margins could face pressure from industry competition.

Balance Sheet

The company maintains a relatively balanced financial structure with a debt-to-equity ratio of 0.71, indicating moderate leverage. The return on equity is healthy at 19.0%, showcasing effective use of equity to generate profit. The equity ratio is 49.9%, reflecting a stable financial standing. However, the presence of significant total debt could pose risks if growth slows or interest rates rise.

Cash Flow

Fox exhibits strong cash flow generation, with a free cash flow growth rate of 32.2% in the TTM period. The operating cash flow to net income ratio is 0.99, demonstrating effective cash conversion from earnings. The free cash flow to net income ratio is 0.90, indicating substantial free cash flow relative to net earnings. The company is efficiently managing its capital expenditures, but future cash flow sustainability will depend on maintaining revenue and profit growth.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
15.18B	13.98B	14.91B	13.97B	12.91B	12.30B
	Gross Profit
6.93B	4.50B	4.81B	4.49B	4.57B	4.33B
	EBIT
2.87B	2.48B	2.06B	2.06B	3.35B	2.28B
	EBITDA
3.84B	2.90B	2.50B	2.43B	3.61B	2.09B
	Net Income Common Stockholders
2.19B	1.50B	1.24B	1.21B	2.15B	999.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.32B	4.32B	4.27B	5.20B	5.89B	4.64B
	Total Assets
23.02B	21.97B	21.87B	22.18B	22.93B	21.75B
	Total Debt
8.12B	8.15B	7.21B	7.31B	7.95B	7.95B
	Net Debt
4.80B	3.83B	2.94B	2.11B	2.06B	3.30B
	Total Liabilities
11.21B	10.92B	11.42B	10.81B	11.80B	11.64B
	Stockholders Equity
11.49B	10.71B	10.38B	11.34B	11.12B	10.09B
Cash Flow		Free Cash Flow
1.98B	1.50B	1.44B	1.58B	2.15B	2.01B
	Operating Cash Flow
2.17B	1.84B	1.80B	1.88B	2.64B	2.37B
	Investing Cash Flow
-549.00M	-452.00M	-438.00M	-513.00M	-528.00M	-1.10B
	Financing Cash Flow
-2.42B	-1.34B	-2.29B	-2.06B	-870.00M	146.00M

Fox Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 47.71 is below the 20-day moving average (MA) of 49.05, below the 50-day MA of 50.37, and above the 200-day MA of 42.13, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 57.19 is Neutral, neither overbought nor oversold. The STOCH value of 79.34 is Neutral, 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
FOX	81 Outperform	$22.46B	10.21	20.09%	1.23%	4.29%	177.70%
DIS	77 Outperform	$165.30B	29.69	5.54%	1.16%	3.97%	89.53%
CNK	66 Neutral	$3.16B	13.03	67.31%	0.31%	-0.56%	63.92%
NWSA	65 Neutral	$15.62B	36.11	5.23%	0.83%	-1.51%	82.74%
Sector *	58 Neutral	$27.01B	3.11	-10.53%	4.44%	2.30%	-43.13%
WBD	58 Neutral	$22.73B	―	-28.54%	―	-4.91%	-259.71%
SIRI	48 Neutral	$7.08B	―	-37.33%	5.54%	-2.84%	-249.80%