Fox (FOXA) AI Stock Analysis

• Market Cap: $25.39B
• Dividend Yield: 0.9%
• Average Volume (3M): 3.30M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.50
• Revenue Growth: 16.60%
• EPS Growth: 57.39%
• Country: US
• Employees: 10,200
• Sector: Communication Services
• Sector Strength: 89
• Industry: Entertainment
• EPS (TTM): 1.27
• Shares Outstanding: 209,954,940
• 10 Day Avg. Volume: 2,520,997
• 30 Day Avg. Volume: 3,301,766
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 1.72
• Enterprise Value/Gross Profit: 1.72
• Enterprise Value/Ebitda: 7.31
• 1Y Price Target: $61.45
• Price Target Upside: 0.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 78 Outperform
• Price Target: $68.00 ▲(11.38% Upside)

Fox Corporation's strong financial performance and positive earnings call sentiment are the most significant factors contributing to the stock's score. Technical analysis supports a bullish outlook, though some caution is warranted due to potential overbought conditions. Valuation metrics suggest the stock is fairly priced, with a modest dividend yield.

Positive Factors

Advertising Revenue

Cable Networks revenue was better than estimated, with advertising revenue growth driven by higher news ratings and digital advertising revenues.

Financial Performance

Fox's F4Q results reflect a strong revenue and EBITDA beat, with total company revenue increasing 6.5% and EBITDA increasing 21%.

Shareholder Returns

Fox authorized an incremental $5bn share repurchase authorization and increased their semi-annual dividend to $0.28/share.

Negative Factors

Dependency Risks

Caution is advised due to very challenging comparisons, Fox Broadcast's NFL dependency, and Fox News' pay TV bundle dependency.

Digital Investment

The negative share reaction is largely due to management's commentary on digital investment of $350mn, an unexpected increase.

Tubi Profitability

Uncertainty exists regarding Tubi's path to profitability.

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 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 Financial Statement Overview

Summary

Fox exhibits strong financial performance with impressive revenue growth and profitability improvements. The balance sheet reflects a stable financial structure with manageable leverage, while cash flow metrics indicate robust cash generation and efficient operations.

Income Statement

Fox has demonstrated strong revenue growth with a TTM revenue increase of 21.1% compared to the previous year. The company maintains a high gross profit margin of 100%, indicating effective cost management. Net profit margin has improved to 13.88% in the TTM, reflecting enhanced profitability. EBIT and EBITDA margins have also shown positive trends, supporting robust operational performance.

Balance Sheet

Fox's balance sheet shows a moderate debt-to-equity ratio of 0.62, indicating a balanced approach to leveraging. The return on equity has improved to 19.57% in the TTM, showcasing effective use of equity to generate profits. The equity ratio stands at 51.56%, suggesting a stable financial structure with a good proportion of assets financed by equity.

Cash Flow

The company has achieved a significant free cash flow growth of 25.44% in the TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 0.94, indicating efficient conversion of net income into cash. The free cash flow to net income ratio of 0.88 further supports the company's strong cash flow position.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.30B	16.30B	13.98B	14.91B	13.97B	12.91B
Gross Profit	16.30B	16.30B	13.98B	14.91B	13.97B	12.91B
EBITDA	3.85B	3.85B	2.90B	2.50B	2.43B	3.61B
Net Income	2.26B	2.26B	1.50B	1.24B	1.21B	2.15B
Balance Sheet
Total Assets	23.20B	23.20B	21.97B	21.87B	22.18B	22.93B
Cash, Cash Equivalents and Short-Term Investments	5.35B	5.35B	4.32B	4.27B	5.20B	5.89B
Total Debt	7.46B	7.46B	8.15B	8.21B	7.72B	8.45B
Total Liabilities	10.84B	10.84B	10.92B	11.21B	10.62B	11.54B
Stockholders Equity	11.96B	11.96B	10.71B	10.38B	11.34B	11.12B
Cash Flow
Free Cash Flow	2.99B	2.99B	1.50B	1.44B	1.58B	2.15B
Operating Cash Flow	3.32B	3.32B	1.84B	1.80B	1.88B	2.64B
Investing Cash Flow	-537.00M	-537.00M	-452.00M	-438.00M	-513.00M	-528.00M
Financing Cash Flow	-1.75B	-1.75B	-1.34B	-2.29B	-2.06B	-870.00M

Fox Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 61.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 61.05 is above the 20-day moving average (MA) of 57.83, above the 50-day MA of 56.71, and above the 200-day MA of 52.66, indicating a bullish trend. The MACD of 1.13 indicates Negative momentum. The RSI at 67.17 is Neutral, neither overbought nor oversold. The STOCH value of 83.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FOXA.

Fox Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DIS	78 Outperform	$212.84B	18.56	11.01%	0.85%	5.00%	144.65%
FOXA	78 Outperform	$25.39B	12.44	19.96%	0.90%	16.60%	57.39%
NFLX	77 Outperform	$513.42B	51.74	43.55%	―	14.28%	46.86%
ROKU	77 Outperform	$14.23B	―	-2.47%	―	17.32%	87.79%
WBD	64 Neutral	$28.82B	38.54	2.18%	―	-3.79%	―
NWSA	63 Neutral	$17.46B	36.12	5.69%	0.69%	-11.42%	75.42%
Sector *	60 Neutral	$44.01B	4.13	-12.81%	4.14%	1.86%	-42.71%

Fox Corporate Events

Fox Appoints John Nallen as President and COO

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.