Valuation method | Value, $ | Upside, % |
---|---|---|
Artificial intelligence (AI) | 72.64 | 29 |
Intrinsic value (DCF) | 95.45 | 70 |
Graham-Dodd Method | 21.88 | -61 |
Graham Formula | 6.91 | -88 |
Fox Corporation (NASDAQ: FOXA) is a leading U.S.-based media and entertainment company specializing in news, sports, and entertainment content. Operating through its Cable Network Programming, Television, and Other segments, Fox Corporation owns and operates high-profile brands such as FOX News, FOX Business, FS1, FS2, and Tubi, an ad-supported streaming platform. The company's diversified portfolio includes broadcast networks, cable channels, digital platforms, and production studios, positioning it as a key player in the competitive media landscape. With a strong focus on live sports, breaking news, and original programming, Fox Corporation leverages its extensive distribution network across traditional and digital platforms to reach millions of viewers. The company also owns 29 broadcast television stations and the FOX Studios Lot, enhancing its content production capabilities. As a major force in the Communication Services sector, Fox Corporation continues to adapt to evolving consumer preferences while maintaining profitability through advertising, licensing, and subscription revenues.
Fox Corporation presents a mixed investment case. On the positive side, the company benefits from strong brand recognition in news (FOX News) and sports (FS1, Big Ten Network), along with a growing digital presence through Tubi. Its conservative beta (0.522) suggests lower volatility compared to the broader market, and the company generates solid free cash flow ($1.84B operating cash flow in FY 2024). However, risks include high total debt ($8.15B) and exposure to cord-cutting trends affecting traditional cable networks. The company's revenue ($13.98B) and net income ($1.5B) indicate stable performance, but long-term growth depends on successful digital transformation and competition from larger media conglomerates. The dividend yield (~1.5%) is modest, making FOXA more suitable for value-oriented investors seeking media exposure with moderate risk.
Fox Corporation competes in a rapidly evolving media landscape dominated by larger, diversified players. Its key competitive advantage lies in its stronghold in conservative-leaning news (FOX News) and live sports rights (NFL, MLB, Big Ten Conference), which drive consistent viewership and advertising revenue. The company's broadcast network and owned local stations provide additional reach, while Tubi offers a foothold in the fast-growing AVOD (ad-supported video-on-demand) space. However, Fox lacks the scale and direct-to-consumer streaming strength of competitors like Disney or Warner Bros. Discovery. Its reliance on linear TV advertising (~60% of revenue) remains a vulnerability as audiences shift to streaming. Fox's decision to focus on free, ad-supported platforms (Tubi) rather than subscription streaming differentiates it but may limit revenue diversification. The company's sports rights portfolio, while valuable, faces escalating costs and competition from deep-pocketed tech giants like Amazon and Apple. Fox's leaner corporate structure post-2019 Disney asset sale allows for agility but reduces content production scale compared to peers.