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Fox Corp Class B FOX

Morningstar Rating
$26.57 −0.42 (1.56%)
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Company Report

Fox Earnings: Solid Margins Amid Plunge in Ad Sales Versus Tough Comp; Sports Venture in Focus

As expected, considering tough comparisons, a big drop in advertising revenue led to a steep fiscal second-quarter sales decline for Fox. However, margins were strong, and affiliate revenue from pay-TV distributors and affiliated local Fox stations continues to hold up well. Despite the just-announced streaming sports joint venture among Fox, Disney, and Warner Brothers Discovery, our long-term outlook for generally stagnant top-line results for Fox has not changed, and we are maintaining our $43 fair value estimate.

Price vs Fair Value

FOX is trading within a range we consider fairly valued.
Price
$26.56
Fair Value
$99.00
Uncertainty
High
1-Star Price
$48.45
5-Star Price
$31.10
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Fox News remains the king of the cable news hill and the firm can leverage its strong ratings and audience loyalty to grow affiliate fees.

Bears

Critics of Fox News and of specific hosts have led multiple boycotts of advertisers. Some of these boycotts have been very successful in causing larger corporations to cancel their advertising on the channel and specific shows. Some of these advertisers have not returned.

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News

Trading Information

Previous Close Price
$26.99
Day Range
$26.0426.95
52-Week Range
$26.0433.24
Bid/Ask
$26.29 / $26.83
Market Cap
$12.62 Bil
Volume/Avg
1.6 Mil / 1.6 Mil

Key Statistics

Price/Earnings (Normalized)
8.17
Price/Sales
0.92
Dividend Yield (Trailing)
1.92%
Dividend Yield (Forward)
1.96%
Total Yield
17.06%

Company Profile

Fox represents the assets not sold to Disney by predecessor firm, Twenty First Century Fox, in 2019. The remaining assets include Fox News, the FOX broadcast network, FS1 and FS2, Fox Business, Big Ten Network, 28 owned and operated local television stations of which 17 are affiliated with the Fox Network, Tubi, and the Fox Studios lot. Since the Disney sale, Fox has acquired other related and unrelated assets including Credible Labs, a consumer fintech firm. The Murdoch family continues to control the successor firm, which represents a large-scale bet on the value of live sports and news in the U.S. market.
Sector
Communication Services
Industry
Entertainment
Stock Style Box
Mid Value
Total Number of Employees
10,400

Competitors

Valuation

Metric
FOX
PARA
WBD
Price/Earnings (Normalized)
8.1719.42
Price/Book Value
1.230.300.44
Price/Sales
0.920.230.48
Price/Cash Flow
7.570.421.01
Price/Earnings
FOX
PARA
WBD

Financial Strength

Metric
FOX
PARA
WBD
Quick Ratio
1.920.990.72
Current Ratio
2.291.320.93
Interest Coverage
3.52−0.51−0.82
Quick Ratio
FOX
PARA
WBD

Profitability

Metric
FOX
PARA
WBD
Return on Assets (Normalized)
7.51%0.72%−1.76%
Return on Equity (Normalized)
15.91%1.80%−4.92%
Return on Invested Capital (Normalized)
9.49%2.42%−0.66%
Return on Assets
FOX
PARA
WBD
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