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Fox (FOX)
NASDAQ:FOX
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Fox
(NASDAQ:FOX)81Outperform
Fox (FOX) vs. S&P 500 (SPY)
Market Cap
$25.29B
Dividend Yield0.99%
Average Volume (3M)1.26M
Price to Earnings (P/E)11.6
Beta (1Y)0.34
Revenue Growth4.29%
EPS Growth177.70%
CountryUS
Employees10,200
SectorCommunication Services
Sector Strength85
IndustryTraditional Media
Share Statistics
EPS (TTM)4.67
Shares Outstanding235,581,020
10 Day Avg. Volume1,487,273
30 Day Avg. Volume1,264,437
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)N/A
Price to Sales (P/S)1.61
Price to Cash Flow (P/CF)-16.90
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
$60.00Price Target Upside14.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Fox Business Overview & Revenue Model
Company DescriptionFox Corp. delivers compelling news, sports and entertainment content. The company provides news under the brands FOX News, FOX Business, FS1, FS2, Big Ten Network, FOX Network and FOX Television Stations. It empowers a diverse range of creators to imagine and develops culturally significant content, while building an organization that thrives on creative ideas, operational expertise and strategic thinking. The company was founded on May 3, 2018 and is headquartered in New York, NY.
How the Company Makes MoneyFox Corporation primarily generates revenue through advertising sales, affiliate fees, and content licensing. Advertising sales are driven by the company's ability to attract large audiences to its television channels and digital platforms, allowing advertisers to reach a broad demographic. Affiliate fees are collected from cable and satellite operators who pay to carry Fox's channels, providing a steady revenue stream. Additionally, Fox licenses its content to other networks and streaming services, further diversifying its income. The company's financial performance is also bolstered by significant partnerships, including sports broadcasting rights deals that enhance its programming lineup and attract viewers.
Fox Financial Statement Overview
Summary
Fox's financial statements reveal strong revenue growth and profitability. The income statement shows robust revenue and profit margins, the balance sheet reflects moderate leverage but effective debt management, and the cash flow indicates efficient capital management. Continued focus on growth and profitability will be key.Income Statement
Fox shows a strong revenue growth trajectory with a TTM revenue increase of 8.6% compared to the previous year. The gross profit margin is robust at 45.7% in the TTM period, and the net profit margin stands at 14.4%, indicating solid profitability. Additionally, both EBIT and EBITDA margins show healthy efficiency at 18.9% and 25.3% respectively. There is a consistent upward trend in profitability and revenue, although margins could face pressure from industry competition.82
Very Positive
Balance Sheet
The company maintains a relatively balanced financial structure with a debt-to-equity ratio of 0.71, indicating moderate leverage. The return on equity is healthy at 19.0%, showcasing effective use of equity to generate profit. The equity ratio is 49.9%, reflecting a stable financial standing. However, the presence of significant total debt could pose risks if growth slows or interest rates rise.75
Positive
Cash Flow
Fox exhibits strong cash flow generation, with a free cash flow growth rate of 32.2% in the TTM period. The operating cash flow to net income ratio is 0.99, demonstrating effective cash conversion from earnings. The free cash flow to net income ratio is 0.90, indicating substantial free cash flow relative to net earnings. The company is efficiently managing its capital expenditures, but future cash flow sustainability will depend on maintaining revenue and profit growth.78
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 |
| 2.24B | 1.50B | 1.24B | 1.21B | 2.15B | 999.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 4.32B | 4.32B | 4.27B | 5.20B | 5.89B | 4.64B | Total Assets |
| 21.97B | 21.97B | 21.87B | 22.18B | 22.93B | 21.75B | Total Debt |
| 8.15B | 8.15B | 7.21B | 7.31B | 7.95B | 7.95B | Net Debt |
| 3.83B | 3.83B | 2.94B | 2.11B | 2.06B | 3.30B | Total Liabilities |
| 10.92B | 10.92B | 11.42B | 10.81B | 11.80B | 11.64B | Stockholders Equity |
| 10.71B | 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
52.61
Price Trends
48.96
Positive
45.32
Positive
39.93
Positive
Market Momentum
1.39
Positive
58.09
Neutral
46.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FOX, the sentiment is Positive. The current price of 52.61 is above the 20-day moving average (MA) of 52.34, above the 50-day MA of 48.96, and above the 200-day MA of 39.93, indicating a bullish trend. The MACD of 1.39 indicates Positive momentum. The RSI at 58.09 is Neutral, neither overbought nor oversold. The STOCH value of 46.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FOX.
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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $25.29B | 11.57 | 19.01% | 0.99% | 4.29% | 177.70% | |
77 Outperform | $134.23B | 8.57 | 18.92% | 3.45% | 1.78% | 11.62% | |
75 Outperform | $416.03B | 49.05 | 35.21% | ― | 15.28% | 65.72% | |
73 Outperform | $11.74B | ― | -5.19% | ― | 18.03% | 82.15% | |
72 Outperform | $197.07B | 35.40 | 5.51% | 0.84% | 3.97% | 89.53% | |
59 Neutral | $30.54B | 0.25 | -13.23% | 4.04% | 2.36% | -49.53% | |
51 Neutral | $305.42M | 13.94 | -26.48% | ― | -10.71% | -202.93% |
* Communication Services Sector Average
Performance Comparison
FOX
Fox
52.61
26.89
104.55%
AMCX
AMC Networks
6.92
-5.53
-44.42%
CMCSA
Comcast
35.50
-5.35
-13.10%
DIS
Walt Disney
109.01
-0.06
-0.06%
NFLX
Netflix
972.58
374.89
62.72%
ROKU
Roku
80.41
17.74
28.31%
Fox Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: 6.95% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
Fox Corporation's earnings call showcased strong financial performance with record-breaking EBITDA and revenue growth. Advertising and affiliate revenues were robust, supported by significant contributions from Tubi and Fox News. However, challenges such as the impact of wildfires, the suspension of the Venu project, and subscriber declines were noted. Overall, the positive financial results and strategic initiatives suggest a favorable outlook.Highlights
Record EBITDA and Revenue Growth
Fox reported a 123% increase in EBITDA to $781 million and a 20% increase in revenues to over $5 billion, marking a record fiscal second quarter for the company.
Strong Advertising and Affiliate Revenue
Advertising revenue grew by 21%, driven by political ad spend and strong sports ratings. Affiliate fee revenues grew by 6%, with all fiscal 2025 renewals completed.
Tubi's Impressive Performance
Tubi achieved a 31% increase in ad revenues and continues to contribute to overall advertising growth. A Super Bowl live stream on Tubi is expected to enhance viewer engagement.
Fox News and Sports Ratings Surge
Fox News saw a 40% increase in total day audience and a 45% increase in PrimeTime audience. FOX News Channel ended the quarter as the most-watched cable network, achieving record audience shares.
Successful Share Buyback and Dividend Increase
Fox repurchased $550 million in shares and announced a 27% increase in its semiannual dividend.
Lowlights
Impact of Los Angeles Wildfires
The wildfires affected staff significantly, leading Fox to donate and raise over $5 million for community support.
Challenges with Venu Sports Streaming Venture
Fox decided not to move forward with its joint venture Venu due to legal distractions, despite significant preparatory work.
Subscriber Declines
Net subscriber declines were approximately 7%, although these are improving.
Free Cash Flow Deficit
Recorded a deficit of $436 million due to the seasonality of the working capital cycle, including sports rights payments.
Company Guidance
In the Fox Corporation's Second Quarter Fiscal Year 2025 earnings call, the company reported remarkable financial performance with a 123% increase in EBITDA to $781 million, driven by a 20% revenue growth to over $5 billion. This growth was primarily fueled by a 21% rise in advertising revenue, bolstered by strong political ad spend and viewership for sports events like the NFL postseason and MLB. The company also noted a 6% increase in total affiliate revenue, reflecting successful affiliate renewals. Tubi, Fox's streaming service, saw a significant 31% increase in ad revenues, further demonstrating its contribution to overall advertising growth. Fox News maintained its leadership with record viewership, capturing a 60% share of the prime-time cable news audience. The call also highlighted Fox's strategic focus on expanding reach through digital platforms, including plans for Tubi's first-ever Super Bowl livestream and the development of a direct-to-consumer service targeting cord-cutters and cord-nevers by the end of the calendar year.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.