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Fox (FOXA)
NASDAQ:FOXA

Fox (FOXA) AI Stock Analysis

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Fox

(NASDAQ:FOXA)

Rating:81Outperform
Price Target:
$64.00
▲(16.09%Upside)
Fox Corporation's overall stock score reflects its strong financial performance, robust earnings call outcomes, and solid technical indicators. The company's strategic positioning in the Entertainment industry, coupled with its effective operational management and growth in digital platforms, enhances its attractiveness despite minor concerns over valuation and overbought technical signals.
Positive Factors
Advertising and Financial Health
Fox is expected to benefit from an improving advertising backdrop and a healthy balance sheet.
Portfolio Performance
Fox's portfolio of 'live', mainly news and sports, is well-positioned as underlying ratings continue to outperform other segments within the linear bundle.
Revenue and Earnings
Fox's F3Q results reflect a strong revenue and EBITDA beat vs. expectations.
Streaming Growth
Tubi, Fox's free streaming service, saw revenue growth accelerate to 35% YoY, faster than other streaming services, and has now crossed $1bn in revenues.
Negative Factors
Competitive Challenges
The quarter faces tough comps related to Copa América and the UEFA European Championship.
Future Revenue Estimates
Reduced estimates for FQ4 due to difficult comparisons in Sports on fewer events and at News due to challenging ratings comparisons.

Fox (FOXA) vs. SPDR S&P 500 ETF (SPY)

Fox Business Overview & Revenue Model

Company DescriptionFox 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 MoneyFox Corporation generates revenue through a multi-faceted business model primarily comprising advertising sales, affiliate fees, and content licensing. Advertising sales are a significant revenue stream, driven by the company's ability to attract large audiences to its sports, news, and entertainment programming. Affiliate fees are collected from cable and satellite providers that distribute Fox's content to their subscribers, providing a steady income stream. Additionally, Fox licenses its content to various digital platforms and international markets, further diversifying its revenue sources. Key partnerships with sports leagues and news organizations enhance Fox's content offerings and contribute to its financial performance.

Fox Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q3-2025)
|
% Change Since: 9.73%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Fox Corporation's strong financial performance with record-breaking advertising revenue and free cash flow, robust growth in Tubi, and leadership in cable news viewership. However, these positive outcomes were partially offset by a decline in net income and increased operating expenses. Overall, the highlights significantly outweigh the lowlights, indicating a strong positive sentiment.
Q3-2025 Updates
Positive Updates
Record-Breaking Advertising Revenue
Total company advertising revenue grew 65% in the quarter, driven by the Super Bowl which generated over $800 million of gross advertising revenue, marking a record for Fox's national broadcast network and local TV stations.
Highest Free Cash Flow in Fox's History
The third quarter reflected the highest free cash flow in Fox's history, over $1.9 billion, driven by strong working capital cycle and sports rights payments.
Fox News Channel Leadership
Fox News Channel finished the quarter as the most watched cable network and was the second most watched network in Monday through Friday prime, surpassing all but one broadcast network.
Tubi's Rapid Growth
Tubi delivered a 35% year-on-year revenue growth with a significant increase in total viewing time by 18%, further establishing itself as a leading streaming platform.
Continued Affiliate Revenue Growth
Affiliate revenues had a notable quarter with total revenue growth of 3% due to higher rates and improved subscriber declines for the third consecutive quarter.
Negative Updates
Decline in Net Income
Net income attributable to Fox stockholders decreased to $346 million or $0.75 per share from $666 million or $1.40 per share reported in the prior year period.
Higher Operating Expenses
Quarterly adjusted EBITDA was $856 million, down from $891 million in the prior year quarter, due to higher expenses, primarily from higher sports rights amortization and production costs.
Company Guidance
During Fox Corporation's Third Quarter Fiscal Year 2025 Earnings Conference Call, several key metrics were highlighted that underscore the company's robust performance. Total advertising revenue rose by 65%, driven by the Super Bowl, which alone generated over $800 million, marking a record for both national and local TV stations. The Super Bowl LIX also delivered 128 million viewers, becoming the most-watched telecast in U.S. history. Additionally, affiliate revenues grew by 3%, marking the third consecutive quarter of improved subscriber declines. Fox News Channel maintained its position as the most-watched cable network, with total day audience up 48% and a 58% increase in the demo. Digital consumption also saw significant growth, with Fox News Digital page views increasing by 18% year-on-year. Tubi, Fox's streaming platform, reported a 35% revenue growth year-on-year, with total viewing time up 24% in April. Furthermore, Fox's free cash flow reached its highest in history, and the company repurchased $800 million in shares year-to-date, contributing to a strong financial position with $4.8 billion in cash. The call also introduced Fox One, a direct-to-consumer platform set to launch before the fall football season, targeting the cord-cutting market.

Fox Financial Statement Overview

Summary
Fox's financials indicate a robust growth trajectory with strong revenue growth, solid operational efficiency, and stable leverage. The company's cash generation capabilities are impressive, enhancing financial flexibility and shareholder value.
Income Statement
85
Very Positive
Fox has shown a strong revenue growth trajectory with a significant increase from $13.98 billion in 2024 to $16.11 billion in TTM 2025. The gross profit margin remains stable as gross profit equals total revenue. Net profit margin improved to 11.58% in TTM 2025. EBIT and EBITDA margins are also strong at 19.02% and 20.76% respectively, indicating efficient operational management.
Balance Sheet
78
Positive
The balance sheet is stable with a debt-to-equity ratio of 0.70, indicating a balanced leverage. Return on equity stands at 16.18% for TTM 2025, showcasing effective utilization of shareholder funds. The equity ratio of 49.31% reflects a solid capital structure.
Cash Flow
80
Positive
Fox's free cash flow growth is robust, increasing from $1.495 billion in 2024 to $2.386 billion in TTM 2025. The operating cash flow to net income ratio is 1.45, indicating strong cash generation relative to net income. Free cash flow to net income ratio is 1.28, signifying efficient cash conversion.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue16.11B13.98B14.91B13.97B12.91B12.30B
Gross Profit16.11B13.98B4.81B4.49B4.57B4.33B
EBITDA3.34B2.90B2.50B2.43B3.61B2.09B
Net Income1.86B1.50B1.24B1.21B2.15B999.00M
Balance Sheet
Total Assets23.37B21.97B21.87B22.18B22.93B21.75B
Cash, Cash Equivalents and Short-Term Investments4.82B4.32B4.27B5.20B5.89B4.64B
Total Debt8.11B8.15B7.21B7.31B7.95B7.95B
Total Liabilities11.50B10.92B11.42B10.81B11.80B11.64B
Stockholders Equity11.53B10.71B10.38B11.34B11.12B10.09B
Cash Flow
Free Cash Flow2.39B1.50B1.44B1.58B2.15B2.01B
Operating Cash Flow2.71B1.84B1.80B1.88B2.64B2.37B
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-870.00M146.00M

Fox Technical Analysis

Technical Analysis Sentiment
Positive
Last Price55.13
Price Trends
50DMA
53.55
Positive
100DMA
53.53
Positive
200DMA
49.52
Positive
Market Momentum
MACD
0.58
Positive
RSI
50.89
Neutral
STOCH
49.93
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 55.13 is above the 20-day moving average (MA) of 55.06, above the 50-day MA of 53.55, and above the 200-day MA of 49.52, indicating a bullish trend. The MACD of 0.58 indicates Positive momentum. The RSI at 50.89 is Neutral, neither overbought nor oversold. The STOCH value of 49.93 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$24.13B13.9216.89%0.96%15.70%26.73%
TKTKO
78
Outperform
$34.75B101.944.19%0.86%63.73%
DIDIS
78
Outperform
$222.00B25.228.75%0.81%5.33%431.28%
77
Outperform
$17.71B34.835.88%0.67%-5.43%135.46%
61
Neutral
$41.07B-0.81-14.21%3.83%2.45%-73.69%
WBWBD
59
Neutral
$27.07B-27.69%-5.58%-254.85%
58
Neutral
$9.26B-28.56%1.52%-4.50%-898.86%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FOXA
Fox
55.13
20.98
61.43%
PARA
Paramount Global Class B
12.84
1.24
10.69%
NWSA
News Corp
29.61
2.34
8.58%
DIS
Walt Disney
122.98
26.28
27.18%
TKO
TKO Group Holdings
177.46
67.24
61.01%
WBD
Warner Bros
11.12
3.91
54.23%

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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: May 16, 2025