Attractive P/E Ratio
Reasonable Price-to-Sales Ratio
Strong Gross Profit Margin
Healthy Return on Equity
Strong Liquidity Ratios
Favorable Debt Levels
📈 Strong Financial Performance
📺 Leading Audience Engagement
🛡️ Diverse Revenue Streams
🚀 Expansion of Tubi and D2C Strategy
🏈 Strong Sports Programming
Moderate P/B Ratio
Moderate Operating Profit Margin
Average Interest Coverage
📉 Subscriber Declines
⚖️ Legal Distractions
⚠️ Uncertain Competitive Landscape
💰 Digital Investment Needs
Overall, Fox Corporation demonstrates a strong business model with solid financial performance and competitive advantages, particularly in news and sports. However, it faces challenges in subscriber retention and an increasingly competitive landscape. The company's plans for D2C offerings and Tubi's growth present promising future opportunities.
Analysis Date: February 4, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$184.08
Current Market Price: $47.28
IV/P Ratio: 3.89x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
74.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for FOX
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (9.56)
P/B ratio ≤ 1.5 (1.82)
Current ratio ≥ 2.0 (2.50x)
Long-term debt < Net current assets (1.51x)
Margin of safety (74.0%)
FOX does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
A gross profit margin of 59.56% suggests that the company retains a large portion of revenue after covering the cost of goods sold, indicating strong pricing power.
The return on equity (ROE) of 19.85% indicates effective management in generating profits from shareholders' equity, reflecting strong profitability.
An operating profit margin of 13.03% is decent but may indicate potential inefficiencies in operations compared to industry leaders.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
19.85%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
1.62%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
59.56%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
14.39%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
The current ratio of 2.50 and quick ratio of 2.14 indicate that the company is well-positioned to cover its short-term liabilities, showcasing good liquidity.
A debt-to-equity ratio of 0.71 and debt-to-assets ratio of 0.35 suggest that the company maintains a manageable level of debt relative to its equity and assets.
While the interest coverage ratio of 6.94 is acceptable, it may not be robust enough to withstand significant downturns in earnings.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.69x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q2 2025
Current Ratio
Current assets divided by current liabilities
2.50x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q2 2025
Fox reported a record second quarter EBITDA of $781 million, more than doubling year-over-year, driven by a 20% increase in revenue to over $5 billion. The growth was supported by significant political advertising revenue and robust sports programming, showcasing the strength of their content portfolio.
Fox News achieved remarkable audience engagement with a 69% share of the PrimeTime cable news audience, significantly outperforming competitors. This indicates a strong competitive advantage in the news segment.
The company benefits from a diversified revenue model with strong affiliate revenue growth of 6% and a notable contribution from Tubi, which saw a 31% increase in advertising revenue, highlighting the resilience and adaptability of their business model.
Despite improvements, Fox experienced a 7% decline in subscribers, which signals ongoing challenges in retaining traditional cable customers amidst industry-wide trends.
The cancellation of the Venu sports streaming joint venture due to legal distractions indicates potential challenges in expanding digital distribution channels effectively.
Fox plans to launch a direct-to-consumer (D2C) service targeting cord-cutters and cord-nevers by the end of the calendar year, which could enhance their reach and revenue streams without incurring significant additional costs.
The company is well-positioned in the sports market, with significant viewership for NFL and MLB events, and ongoing demand for advertising space, particularly around major events like the Super Bowl.
As competition for sports rights intensifies, especially with digital players like Netflix entering the market, Fox may face challenges in securing future sports broadcasting rights.
While Tubi is growing, continued investments are still necessary to enhance its content and attract more users, which could impact short-term profitability.