Fox Corp. (FOXA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Entravision Communications Corp.

Sirius XM Holdings, Inc.

Fox Corp.

Sinclair, Inc.

Paramount Global

Nexstar Media Group, Inc.

Gray Television, Inc.

iHeartMedia, Inc.

TEGNA, Inc.

Qurate Retail, Inc.

The E.W. Scripps Co.

Why is Fox Corp. ?

High Management Efficiency with a high ROCE of 19.88%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.87 times

Poor long term growth as Operating profit has grown by an annual rate 2.25% of over the last 5 years

Flat results in Mar 26

CASH AND EQV(HY) Lowest at USD 5,618 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 5.23 times
EPS(Q) Lowest at USD 0.38

With ROCE of 20.28%, it has a fair valuation with a 1.83 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -4.53%, its profits have risen by 2.3% ; the PEG ratio of the company is 1.3

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Below par performance in long term as well as near term

Along with generating -4.53% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Fox Corp. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Fox Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Fox Corp.

-4.53%

1.65

33.44%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.54%

EBIT Growth (5y)

2.25%

EBIT to Interest (avg)

7.06

Debt to EBITDA (avg)

0.92

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

0.83

Tax Ratio

25.81%

Dividend Payout Ratio

11.00%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

19.88%

ROE (avg)

16.78%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.18

EV to EBIT

9.03

EV to EBITDA

8.02

EV to Capital Employed

1.83

EV to Sales

1.72

PEG Ratio

1.29

Dividend Yield

59.55%

ROCE (Latest)

20.28%

ROE (Latest)

19.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,071.91

RAW MATERIAL COST(Y)

Fallen by -17.39% (YoY

-3What is not working for the Company

CASH AND EQV(HY)

Lowest at USD 5,618 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.23 times

EPS(Q)

Lowest at USD 0.38

Here's what is working for Fox Corp.

Interest Coverage Ratio

Highest at 1,071.91

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Raw Material Cost

Fallen by -17.39% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Fox Corp.

EPS

Lowest at USD 0.38

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 5,618 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 5.23 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio