Fox Corp (NASDAQ: FOXA)

Sector: Communication Services Industry: Entertainment CIK: 0001754301
Market Cap 29.03 Bn
P/B 2.66
P/E 15.35
P/S 1.75
ROIC (Qtr) 12.42
Div Yield % 0.85
Rev 1y % (Qtr) 2.05
Total Debt (Qtr) 6.60 Bn
Debt/Equity (Qtr) 0.60

About

Fox Corporation, known as Fox Corp, is a prominent player in the news, sports, and entertainment industry, operating solely in the United States. The company was established in 2

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 2.73B provides robust 0.41x coverage of total debt 6.60B, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 2.73B provides exceptional 11.14x coverage of interest expenses 245M, showing strong debt service capability.
  • Operating cash flow of 2.73B provides exceptional 71.82x coverage of minority interest expenses 38M, showing strong core operations.
  • Operating cash flow of 2.73B provides strong 21.49x coverage of stock compensation 127M, indicating sustainable incentive practices.
  • Robust free cash flow of 2.31B exceeds capital expenditure of 419M by 5.51x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 2.73B barely covers its investment activities of (690M), with a coverage ratio of -3.96, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 2.73B provides thin coverage of dividend payments of (290M) with a -9.41 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 2.02B provide limited coverage of acquisition spending of (97M), which is -20.79x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 3.56B relative to inventory of 828M (4.30 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of 2.31B represents just -3.85x of debt issuance (600M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Entertainment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NFLX Netflix Inc 349.87 Bn 31.86 7.74 14.46 Bn
2 DIS Walt Disney Co 195.56 Bn 15.96 2.04 46.64 Bn
3 WBD Warner Bros. Discovery, Inc. 66.35 Bn 136.80 1.75 33.52 Bn
4 FWONA Liberty Media Corp 46.91 Bn -352.74 11.61 7.04 Bn
5 LYV Live Nation Entertainment, Inc. 32.65 Bn 101.32 1.33 9.39 Bn
6 FOXA Fox Corp 29.03 Bn 15.35 1.75 6.60 Bn
7 TKO TKO Group Holdings, Inc. 17.65 Bn -220.73 5.07 4.04 Bn
8 WMG Warner Music Group Corp. 15.37 Bn 768.35 4.64 4.61 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.46 1.60
EV to Cash from Ops. EV/CFO 11.46 74.22
EV to Debt EV to Debt 4.73 109.74
EV to EBIT EV/EBIT 11.32 24.34
EV to EBITDA EV/EBITDA 9.22 31.84
EV to Free Cash Flow [EV/FCF] EV/FCF 13.53 -338.96
EV to Market Cap EV to Market Cap 1.08 62.35
EV to Revenue EV/Rev 1.89 9.43
Price to Book Value [P/B] P/B 2.66 3.87
Price to Earnings [P/E] P/E 15.35 -61.07
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 6.52 1.25
Dividend Payout Ratio % Div Payout % (Qtr) 13.00 -16.52
Dividend per Basic Share Div per Share (Qtr) 0.55 0.14
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 10.31 7.95
Interest Coverage Int. cover (Qtr) 11.27 -7.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -25.83 -46.16
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -39.28 2,379.93
Dividend Growth (1y) % Div 1y % (Qtr) 3.77 0.45
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -11.89 -74.64
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 5.18 3.12
EBIT Growth (1y) % EBIT 1y % (Qtr) -14.07 -56.93
EBT Growth (1y) % EBT 1y % (Qtr) -15.60 11.72
EPS Growth (1y) % EPS 1y % (Qtr) -10.40 23.88
FCF Growth (1y) % FCF 1y % (Qtr) 25.68 -92.46
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 5.80 0.48
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.77 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.09 0.04
Cash Ratio Cash Ratio (Qtr) 0.83 0.48
Current Ratio Curr Ratio (Qtr) 2.78 1.22
Debt to Equity Ratio Debt/Equity (Qtr) 0.60 1.03
Interest Cover Ratio Int Coverage (Qtr) 11.27 -7.86
Times Interest Earned Times Interest Earned (Qtr) 11.27 -7.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 19.00 -64.95
EBIT Margin % EBIT Margin % (Qtr) 16.65 -79.29
EBT Margin % EBT Margin % (Qtr) 15.18 -82.30
Gross Margin % Gross Margin % (Qtr) 35.40 35.55
Net Profit Margin % Net Margin % (Qtr) 11.40 -82.96