Fox (FOX) AI Stock Analysis

• Market Cap: $23.54B
• Dividend Yield: 1.06%
• Average Volume (3M): 998.37K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.56
• Revenue Growth: 15.70%
• EPS Growth: 26.73%
• Country: US
• Employees: 10,200
• Sector: Communication Services
• Sector Strength: 79
• Industry: Entertainment
• EPS (TTM): 1.27
• Shares Outstanding: 235,581,020
• 10 Day Avg. Volume: 1,418,600
• 30 Day Avg. Volume: 998,374
• PEG Ratio: 0.32
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 1.17
• P/FCF Ratio: 10.91
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.57
• Enterprise Value/Gross Profit: 1.57
• Enterprise Value/Ebitda: 7.55
• 1Y Price Target: $57.00
• Price Target Upside: 9.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 80 Outperform
• Price Target: $59.00 ▲(13.42% Upside)

Fox's overall stock score reflects its robust financial performance, strong technical indicators, and positive earnings call sentiment. The company's strategic positioning in live sports, news, and digital streaming underpins its growth prospects. While the valuation is attractive, caution is warranted due to high expenses impacting EBITDA.

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 generates revenue through various streams, primarily driven by advertising sales, affiliate fees, and content licensing. Advertising is a major source of income, with the company's networks and television stations selling commercial spots during programming. Affiliate fees are collected from cable and satellite operators who pay to carry Fox's channels. Additionally, Fox earns money by licensing its content to third-party platforms and networks. The company also benefits from significant partnerships and deals that enhance its distribution and content offerings, such as agreements with sports leagues and other media entities.

Fox Financial Statement Overview

Summary

Fox has demonstrated strong financial performance with impressive revenue growth and profitability improvements. The income statement shows a solid gross profit margin and efficient cost management. The balance sheet is robust with moderate leverage, and the cash flow statement highlights strong liquidity and effective cash management.

Income Statement

Fox has demonstrated strong revenue growth with an impressive 15.1% increase in TTM (Trailing-Twelve-Months) vs. the previous year. The gross profit margin remains solid at 100%, indicating efficient cost management. Net profit margin improved to 11.57%, showcasing enhanced profitability. The EBIT and EBITDA margins also reflect strong operational efficiency, standing at 19.02% and 20.76%, respectively. Overall, Fox's income statement portrays a healthy and growing financial position with significant profitability improvements.

Balance Sheet

The company maintains a balanced financial structure with a debt-to-equity ratio of 0.70, suggesting moderate leverage. Return on Equity (ROE) is strong at 16.18%, indicating effective use of shareholder funds to generate profit. The equity ratio of 49.32% reflects a solid capital position, though there is room for improvement in reducing liabilities. Overall, the balance sheet is robust, with good financial stability and shareholder value creation.

Cash Flow

Fox's cash flow demonstrates strong operational performance with an operating cash flow to net income ratio of 1.45, indicating efficient cash generation from operations. The free cash flow to net income ratio stands at 1.28, reflecting ample cash available for reinvestment or debt reduction. Free cash flow growth is notable, increasing by 59.57% in the most recent TTM period compared to the previous year. Overall, the cash flow statement highlights a strong liquidity position and effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.11B	13.98B	14.91B	13.97B	12.91B	12.30B
Gross Profit	16.11B	13.98B	4.81B	4.49B	4.57B	4.33B
EBITDA	3.34B	2.90B	2.50B	2.43B	3.61B	2.09B
Net Income	1.86B	1.50B	1.24B	1.21B	2.15B	999.00M
Balance Sheet
Total Assets	23.37B	21.97B	21.87B	22.18B	22.93B	21.75B
Cash, Cash Equivalents and Short-Term Investments	4.82B	4.32B	4.27B	5.20B	5.89B	4.64B
Total Debt	8.11B	8.15B	7.21B	7.31B	7.95B	7.95B
Total Liabilities	11.50B	10.92B	11.42B	10.81B	11.80B	11.64B
Stockholders Equity	11.53B	10.71B	10.38B	11.34B	11.12B	10.09B
Cash Flow
Free Cash Flow	2.39B	1.50B	1.44B	1.58B	2.15B	2.01B
Operating Cash Flow	2.71B	1.84B	1.80B	1.88B	2.64B	2.37B
Investing Cash Flow	-535.00M	-452.00M	-438.00M	-513.00M	-528.00M	-1.10B
Financing Cash Flow	-1.15B	-1.34B	-2.29B	-2.06B	-870.00M	146.00M

Fox Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.02
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 52.02 is above the 20-day moving average (MA) of 51.31, above the 50-day MA of 50.90, and above the 200-day MA of 47.65, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 43.43 is Neutral, neither overbought nor oversold. The STOCH value of 40.67 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	80 Outperform	$23.54B	10.20	19.96%	1.06%	15.70%	26.73%
DIS	78 Outperform	$212.71B	24.38	8.75%	0.86%	5.33%	431.28%
NWSA	75 Outperform	$17.39B	34.57	5.88%	0.68%	-5.43%	135.46%
CNK	65 Neutral	$2.98B	14.20	70.99%	0.62%	13.80%	109.00%
Sector *	61 Neutral	$41.46B	-2.63	-10.23%	3.97%	2.65%	-47.08%
WBD	60 Neutral	$0.00	―	-27.69%	―	-5.58%	-254.85%
SIRI	49 Neutral	$0.00	―	-38.19%	4.95%	-3.75%	-253.95%