Fox (FOX) AI Stock Analysis

• Market Cap: $23.22B
• Dividend Yield: 0.85%
• Average Volume (3M): 1.61M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.60
• 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: 1,830,188
• 30 Day Avg. Volume: 1,612,241
• 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: 1.33
• Enterprise Value/Revenue: 1.87
• Enterprise Value/Gross Profit: 5.65
• Enterprise Value/Ebitda: 9.24
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 4.65
• Revenue Forecast (FY): $16.27B

• Rating: 73 Outperform
• Price Target: $58.00 ▲(11.30% Upside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

The score is primarily supported by solid financial performance (strong margins and cash generation with manageable leverage) and a positive earnings-call outlook (advertising strength and Tubi profitability). These are partially offset by weak near-term technical momentum (below key moving averages with negative MACD) and only moderate valuation support (reasonable P/E but low dividend yield).

Positive Factors

Cash generation

Sustained, sizable operating and free cash flow provides durable financial flexibility for content investment, dividends, buybacks and debt servicing. Coverage of net income (~0.88x) and improved cash conversion versus prior years indicate higher earnings-to-cash quality that supports multi-quarter strategic execution.

Live-advertising strength

Strong advertising demand tied to live news and sports is a structural advantage: Fox’s portfolio (FOX News, FOX Sports, broadcast) captures premium, hard-to-replicate live audiences. Consistent ad growth supports recurring margin potential and revenue resilience across advertising cycles over the coming quarters.

Tubi profitability & growth

Tubi moving to profitability while growing view time materially improves Fox’s digital economics. A profitable, ad-supported streaming asset diversifies revenue away from linear TV, reduces structural drag from digital investment, and strengthens long-term monetization of streaming audiences.

Negative Factors

Subscriber declines

Persistent pay-TV subscriber attrition is a structural headwind to affiliate and retransmission fee revenue. Even modest distribution growth masks a shrinking subscriber base, which over multiple quarters erodes a stable, recurring revenue stream and increases reliance on advertising and digital monetization.

Rising debt & shrinking assets

Increasing debt alongside declining total assets reduces balance-sheet cushion and financial optionality. While leverage remains manageable, the trend weakens crisis resilience and could constrain capital allocation choices (buybacks, M&A, or content spending) if cash generation weakens or interest costs rise.

Earnings quality pressure

Revenue growth accompanied by lower net income and compressed margins signals margin pressure or cost inflation in content and distribution. If margin erosion persists, it undermines cash conversion and return on capital, making it harder to sustain shareholder distributions and reinvestment over multiple quarters.

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 (healthy operating/net margins and robust TTM operating cash flow/free cash flow), with leverage that appears manageable. Offsets include TTM net income down versus FY2025, margin compression, rising debt, and slightly negative TTM free cash flow growth.

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: 52.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 52.11 is below the 20-day moving average (MA) of 58.86, below the 50-day MA of 62.58, and below the 200-day MA of 55.54, indicating a bearish trend. The MACD of -3.45 indicates Positive momentum. The RSI at 24.74 is Positive, neither overbought nor oversold. The STOCH value of 13.82 is Positive, 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	73 Outperform	$23.22B	12.58	16.87%	0.85%	14.91%	9.30%
DIS	69 Neutral	$189.73B	15.78	11.65%	1.10%	3.61%	152.34%
NFLX	69 Neutral	$329.29B	30.47	42.76%	―	15.49%	35.54%
WBD	68 Neutral	$71.35B	152.08	1.36%	―	-4.29%	―
NWSA	66 Neutral	$13.51B	30.35	5.18%	0.76%	-16.36%	29.53%
ROKU	64 Neutral	$13.30B	155.92	3.43%	―	16.61%	83.98%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%