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

Sirius XM Holdings, Inc.

Fox Corp.

Paramount Global

Entravision Communications Corp.

iHeartMedia, Inc.

Nexstar Media Group, Inc.

TEGNA, Inc.

Qurate Retail, Inc.

Gray Television, Inc.

The E.W. Scripps Co.

Sinclair, Inc.

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 0.92 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 Dec 25

INTEREST COVERAGE RATIO(Q) Lowest at 576.67
CASH AND EQV(HY) Lowest at USD 6,385 MM
INTEREST(Q) Highest at USD 120 MM

With ROCE of 20.28%, it has a fair valuation with a 1.79 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 10.39%, 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.

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?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Fox Corp.

9.35%

2.33

30.78%

S&P 500

16.12%

0.77

19.29%

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

2.13

EV to EBIT

8.84

EV to EBITDA

7.86

EV to Capital Employed

1.79

EV to Sales

1.68

PEG Ratio

1.25

Dividend Yield

61.08%

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 Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

No Trend

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 2,729 MM

DIVIDEND PER SHARE(HY)

Highest at USD 4.7

NET SALES(Q)

Highest at USD 5,182 MM

-11What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 576.67

CASH AND EQV(HY)

Lowest at USD 6,385 MM

INTEREST(Q)

Highest at USD 120 MM

OPERATING PROFIT(Q)

Lowest at USD 692 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.35 %

PRE-TAX PROFIT(Q)

Lowest at USD 490 MM

NET PROFIT(Q)

Lowest at USD 357.87 MM

EPS(Q)

Lowest at USD 0.52

Here's what is working for Fox Corp.

Operating Cash Flow

Highest at USD 2,729 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 4.7 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 5,182 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Here's what is not working for Fox Corp.

Interest

At USD 120 MM has Grown at 20%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 576.67

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 120 MM

in the last five periods and Increased by 20% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit

Lowest at USD 692 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 13.35 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 490 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 357.87 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.52

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 6,385 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents