Fox (FOXA) AI Stock Analysis

• Market Cap: $23.57B
• Dividend Yield: 0.99%
• Average Volume (3M): 3.95M
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.50
• Revenue Growth: 15.70%
• EPS Growth: 26.73%
• Country: US
• Employees: 10,200
• Sector: Communication Services
• Sector Strength: 90
• Industry: Entertainment
• EPS (TTM): 1.10
• Shares Outstanding: 214,037,160
• 10 Day Avg. Volume: 3,732,953
• 30 Day Avg. Volume: 3,951,620
• PEG Ratio: 1.47
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.46
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 1.30
• Enterprise Value/Ebitda: 1.55
• 1Y Price Target: $57.43
• Price Target Upside: 6.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 81 Outperform
• Price Target: $64.00 ▲(18.91%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

Financial Performance

Fox's F3Q results reflect a strong revenue and EBITDA beat vs. expectations.

Revenue Growth

Revenue for FY25 is expected to remain largely unchanged with a significant year-over-year growth of 15%.

Stock Price Target

The price target for Fox Corporation Class A stock has been raised from $45 to $50.

Streaming Service Success

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

Advertising Revenue Exposure

With mounting questions around macro concerns, 40% of revenue from advertising is viewed as cyclically exposed.

Advertising Revenue Risk

The market may not be fully factoring in advertising revenue risk and terminal value concerns.

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'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

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

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

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.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 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
	EBIT
3.06B	2.48B	2.06B	2.06B	3.35B	2.28B
	EBITDA
3.34B	2.90B	2.50B	2.43B	3.61B	2.09B
	Net Income Common Stockholders
1.86B	1.50B	1.24B	1.21B	2.15B	999.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.82B	4.32B	4.27B	5.20B	5.89B	4.64B
	Total Assets
23.37B	21.97B	21.87B	22.18B	22.93B	21.75B
	Total Debt
8.11B	8.15B	7.21B	7.31B	7.95B	7.95B
	Net Debt
3.29B	3.83B	2.94B	2.11B	2.06B	3.30B
	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: Neutral
• Last Price: 53.82
• 50DMA: Positive
• 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 FOXA, the sentiment is Neutral. The current price of 53.82 is below the 20-day moving average (MA) of 55.03, above the 50-day MA of 52.07, and above the 200-day MA of 48.52, indicating a neutral trend. The MACD of 0.48 indicates Positive momentum. The RSI at 49.29 is Neutral, neither overbought nor oversold. The STOCH value of 34.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FOXA.

Fox Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXA	81 Outperform	$23.57B	13.61	16.89%	0.99%	15.70%	26.73%
DIS	78 Outperform	$213.45B	24.25	8.75%	0.84%	5.33%	431.28%
NWSA	75 Outperform	$16.53B	32.66	5.88%	0.72%	-5.43%	135.46%
TKO	74 Outperform	$32.58B	95.55	4.19%	0.92%	63.73%	―
WBD	63 Neutral	$24.77B	―	-27.69%	―	-5.58%	-254.85%
Sector *	61 Neutral	$14.75B	5.86	-3.99%	6.11%	2.67%	-30.24%
PARA	56 Neutral	$8.63B	―	-28.56%	1.63%	-4.50%	-898.86%

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.