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Fox (FOXA)
NASDAQ:FOXA
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Fox
(NASDAQ:FOXA)82Outperform
Positive Factors
Advertising Revenue
Advertising revenue was up 21% helped by political spend, higher MLB postseason ratings and NFL pricing, continued Tubi momentum, and strong news ratings and pricing.
Financial Performance
Fox reported revenue, adj. EBITDA, and adj. EPS all above consensus expectations.
Negative Factors
Digital Strategy
Long-term strategic questions remain, particularly surrounding the company’s long-term digital strategy due to continued linear ecosystem subscriber losses.
Fox (FOXA) vs. S&P 500 (SPY)
Market Cap
$24.64B
Dividend Yield0.93%
Average Volume (3M)4.14M
Price to Earnings (P/E)12.0
Beta (1Y)0.33
Revenue Growth4.29%
EPS Growth177.70%
CountryUS
Employees10,200
SectorCommunication Services
Sector Strength85
IndustryTraditional Media
Share Statistics
EPS (TTM)4.67
Shares Outstanding217,846,830
10 Day Avg. Volume4,332,529
30 Day Avg. Volume4,140,155
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)N/A
Price to Sales (P/S)1.68
Price to Cash Flow (P/CF)-17.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$56.60Price Target Upside0.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
Fox Business Overview & Revenue Model
Company DescriptionFox Corporation (FOXA) is a prominent American media company that operates primarily in the television broadcasting and cable television sectors. Known for its flagship FOX Broadcasting Company network, the corporation also owns and oversees a portfolio of cable television channels including Fox News, Fox Sports, and the Fox Television Stations group. Fox Corporation is focused on providing news, sports, and entertainment content to a diverse audience across its various platforms.
How the Company Makes MoneyFox Corporation generates revenue through several key streams. A significant portion of its income comes from advertising sales across its television networks and cable channels, particularly from Fox News and Fox Sports, which attract substantial viewership. The company also earns from affiliate fees paid by cable and satellite operators for the right to carry its channels. Additionally, Fox Corporation benefits from content licensing and distribution agreements, which allow the company to monetize its programming through third-party platforms. Strategic partnerships and rights agreements in sports broadcasting further bolster its revenue, as Fox holds valuable sports broadcasting rights for events like NFL games, which draw large audiences and lucrative advertising deals.
Fox Financial Statement Overview
Summary
Fox exhibits a robust financial profile with strong revenue growth, profitability, and cash generation. The company has managed to maintain a healthy balance sheet with a balanced leverage position. While there is a notable amount of debt, the overall financial health is supported by strong operational performance and cash flow generation, positioning the company well for future growth and stability in the traditional media industry.Income Statement
Fox has demonstrated robust revenue growth, particularly evident in the TTM (Trailing-Twelve-Months) where revenue increased to $15.18 billion from the previous annual figure of $13.98 billion. The gross profit margin stands strong at 45.67% for the TTM. Net profit margin has improved to 14.39% in the TTM, reflecting effective cost management and profitability. The EBIT and EBITDA margins are also solid at 18.92% and 25.28%, respectively, indicating operational efficiency. Overall, the income statement reflects a strong financial performance with consistent growth and profitability.85
Very Positive
Balance Sheet
The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.71 in the TTM, indicating a balanced use of leverage. Return on equity (ROE) is strong at 18.99%, showcasing effective utilization of equity capital. The equity ratio is healthy at 49.93%, suggesting a solid equity base supporting the assets. However, the substantial total debt of $8.12 billion represents a potential risk if not managed carefully. Overall, the balance sheet reflects financial stability with manageable leverage.78
Positive
Cash Flow
Fox's cash flow statement reveals a strong operating cash flow of $2.17 billion in the TTM, supporting its operations and capital expenditures. The free cash flow growth rate is impressive, reflecting effective cash management. The operating cash flow to net income ratio stands at 0.99, indicating good cash conversion efficiency. Free cash flow to net income ratio is 0.90, demonstrating strong cash generation relative to net income. Overall, the cash flow statement indicates solid cash generation and financial flexibility.82
Very Positive
| 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 | ||||
| 4.15B | 4.32B | 4.27B | 5.20B | 5.89B | 4.64B | Total Assets |
| 22.40B | 21.97B | 21.87B | 22.18B | 22.93B | 21.75B | Total Debt |
| 7.21B | 8.15B | 7.21B | 7.31B | 7.95B | 7.95B | Net Debt |
| 3.06B | 3.83B | 2.94B | 2.11B | 2.06B | 3.30B | Total Liabilities |
| 12.14B | 10.92B | 11.42B | 10.81B | 11.80B | 11.64B | Stockholders Equity |
| 10.19B | 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
Positive
56.34
Price Trends
51.76
Positive
48.14
Positive
42.64
Positive
Market Momentum
1.52
Positive
61.26
Neutral
20.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FOXA, the sentiment is Positive. The current price of 56.34 is above the 20-day moving average (MA) of 55.57, above the 50-day MA of 51.76, and above the 200-day MA of 42.64, indicating a bullish trend. The MACD of 1.52 indicates Positive momentum. The RSI at 61.26 is Neutral, neither overbought nor oversold. The STOCH value of 20.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FOXA.
Fox Risk Analysis
Fox disclosed 26 risk factors in its most recent earnings report. Fox reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fox Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $24.64B | 12.03 | 20.09% | 0.93% | 4.29% | 177.70% | |
77 Outperform | $134.23B | 8.57 | 19.24% | 3.49% | 1.78% | 11.62% | |
75 Outperform | $416.03B | 49.97 | 38.43% | ― | 15.28% | 65.72% | |
72 Outperform | $197.07B | 35.40 | 5.54% | 0.87% | 3.97% | 89.53% | |
60 Neutral | $11.99B | 14.17 | 9.05% | ― | 3.57% | 28.42% | |
59 Neutral | $30.54B | 0.25 | -13.23% | 4.04% | 2.36% | -49.53% | |
51 Neutral | $305.42M | 13.94 | -23.80% | ― | -10.71% | -202.93% |
* Communication Services Sector Average
Performance Comparison
FOXA
Fox
56.34
28.01
98.87%
AMCX
AMC Networks
7.05
-5.00
-41.49%
CMCSA
Comcast
35.56
-4.89
-12.09%
DIS
Walt Disney
109.31
0.12
0.11%
NFLX
Netflix
990.92
382.41
62.84%
LBRDA
Liberty Broadband
86.11
29.64
52.49%
Fox Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: 8.97% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record revenue growth and significant gains in advertising revenue, particularly from political and sports events. Tubi and Fox News demonstrated impressive audience and revenue growth. However, challenges included the impact of Los Angeles wildfires, subscriber declines, and the discontinuation of the Venu venture. Despite these challenges, the achievements in revenue and audience growth, along with the reduction in digital investment, indicate a positive overall sentiment.Highlights
Record Revenue Growth
Fox Corporation achieved a 20% increase in revenues, reaching just over $5 billion, driven by strong affiliate and advertising revenue growth.
EBITDA Surge
EBITDA more than doubled year-over-year to a second quarter record of $781 million, marking a 123% increase.
Strong Political and Sports Advertising
Advertising revenue grew by 21% due to record political revenue and strong sports event pricing, including the NFL postseason and Major League Baseball.
Tubi's Advertising Revenue Growth
Tubi experienced a 31% increase in ad revenues, contributing significantly to the overall advertising growth.
Fox News Audience and Advertising Growth
Fox News achieved a 40% increase in total day audience and 45% growth in PrimeTime audience, with advertising revenue growth supported by over 100 new national clients.
Television Segment Revenue Increase
The Television segment saw a 16% revenue growth, driven by a 19% increase in advertising revenues.
Reduced Digital Investment
Fox Corporation reported a $40 million reduction in digital investment, with better EBITDA at Tubi contributing half of this improvement.
Capital Return to Shareholders
Fox announced a 27% per share semiannual dividend and has returned approximately $7.9 billion to shareholders since its establishment.
Lowlights
Impact of Los Angeles Wildfires
The wildfires in Los Angeles had a devastating impact on the community and Fox staff, with significant efforts needed for long-term recovery.
Subscriber Decline
Cable segment faced a net subscriber decline of approximately 7%, though an improvement from previous quarters.
Discontinuation of Venu
Fox decided not to move forward with Venu, a sports streaming joint venture with Warner Bros. Discovery and Disney, due to legal distractions.
Free Cash Flow Deficit
A free cash flow deficit of $436 million was recorded, attributed to the seasonality of working capital cycles.
Company Guidance
During the Fox Corporation Second Quarter Fiscal Year 2025 Earnings Conference Call, significant financial metrics were highlighted, showcasing robust performance. Fox's EBITDA more than doubled year-over-year, reaching a record $781 million, supported by a 20% revenue growth to over $5 billion. Advertising revenue surged by 21%, partly due to record political ad spending exceeding $400 million in the first half of the fiscal year and strong viewership ratings in sports and news segments. Total affiliate revenue increased by 6%, bolstered by higher rates and improved subscriber decline trends. Tubi also contributed significantly, with a 31% rise in ad revenues, further expanding its audience. The call emphasized Fox News' commanding viewership, which grew by nearly 40% in total day and 45% in PrimeTime year-over-year. Additionally, Fox's strategic initiatives, including the launch of Tubi's first-ever Super Bowl Live Stream, are set to broaden audience engagement and capture valuable first-party data. The company also reaffirmed its commitment to shareholder value through a $550 million share buyback and a 27% increase in semiannual dividends.Fox Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Fox Appoints John Nallen as President and COO
Positive
Feb 10, 2025
On February 7, 2025, Fox Corporation announced that John Nallen has been appointed as President and Chief Operating Officer, extending his employment through June 2028. This decision reflects Nallen’s vital role in FOX’s evolution and strategic direction, as he has been a key partner to the Executive Chair and CEO, Lachlan Murdoch. Additionally, Nallen will serve as a Special Advisor for three years after his term, provided certain conditions are met, which indicates FOX’s commitment to leveraging his expertise for continued operational success and profitability.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.