Attractive P/E Ratio
Low Price-to-Sales Ratio
Strong Return on Equity
Healthy Profit Margins
Strong Liquidity Ratios
Low Debt Levels
📈 Strong Financial Performance
📺 Leading Market Position
🎮 Diversified Revenue Streams
🚀 Growth and Innovation at Tubi
🏅 Direct-to-Consumer Strategy
📊 Political and Sports Advertising Growth
Moderate EV/EBITDA Ratio
Moderate Operating Profit Margin
Interest Coverage Concern
Overall, Fox Corporation exhibits strong business quality with significant financial growth, a leading market position, and diversified revenue streams. Future prospects are bolstered by Tubi's growth potential and strategic D2C offerings. However, continued monitoring of subscriber trends and competition in the digital space is necessary.
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 FOXA
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (10.40)
P/B ratio ≤ 1.5 (1.98)
Current ratio ≥ 2.0 (2.50x)
Long-term debt < Net current assets (1.51x)
Margin of safety (74.0%)
FOXA does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
A return on equity (ROE) of 19.85% demonstrates effective use of shareholders' equity to generate profits, indicating strong earnings quality.
With a net profit margin of 14.39%, FOXA shows strong profitability relative to its revenue, indicating efficient cost management.
An operating profit margin of 18.92% while respectable, might suggest room for improvement in operational efficiency compared to top performers.
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)
Current ratio of 2.50 and quick ratio of 2.14 indicate strong short-term liquidity, suggesting the company can easily cover its short-term obligations.
The debt-to-equity ratio of 0.71 indicates moderate leverage, while a debt-to-assets ratio of 0.35 shows that the company maintains a solid balance sheet.
While the interest coverage ratio of 6.94 is decent, it may indicate concerns if the company faces declining earnings or rising interest rates.
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 Corporation demonstrated robust financial health, with EBITDA more than doubling year-over-year to $781 million driven by a revenue increase of 20% to over $5 billion. This is indicative of strong operational momentum and a solid business model.
Fox News maintained its status as the most-watched cable network, achieving significant audience growth and advertiser interest, with a notable increase in political advertising revenue. The network outperformed its competitors significantly, showcasing its strong brand and viewer loyalty.
The company has successfully diversified its revenue through affiliate and advertising channels, with Tubi showing strong growth in ad revenues, indicating a well-rounded business model that mitigates risks associated with traditional broadcasting.
Tubi is positioned to grow significantly, targeting a diverse audience and leveraging first-party data acquisition through events like the Super Bowl live stream. This could enhance its advertising capabilities and overall profitability.
Fox is developing a Direct-to-Consumer (D2C) offering aimed at cord-cutters, with plans to launch by the end of the calendar year. This strategic move could capture additional viewers and revenue, enhancing Fox's reach in the evolving media landscape.
The company capitalizes on political advertising cycles and sports viewership trends, which are expected to continue driving revenue growth. Strong demand from advertisers, particularly in the wake of elections, suggests sustained financial momentum.