Fox Corp

FOXA

Television Broadcasting Stations

Mkt Cap

$16.16B

PE

10.38

Debt

$7.196B

Cash

$3.791B

EV

$19.57B

FCF

$1.081B

Market Cap

$16.16B

P/E Ratio

10.38

Debt

$7.196B

Cash

$3.791B

EV

$19.57B

FCF

$1.081B

Charts data: {"Earnings":[{"time":"2017-06-29","value":1372000000},{"time":"2018-06-29","value":2187000000},{"time":"2019-06-29","value":1595000000},{"time":"2020-06-29","value":999000000},{"time":"2021-06-29","value":2150000000},{"time":"2022-06-29","value":1205000000},{"time":"2023-06-29","value":1239000000}],"Sales":[{"time":"2017-06-29","value":9921000000},{"time":"2018-06-29","value":10153000000},{"time":"2019-06-29","value":11389000000},{"time":"2020-06-29","value":12303000000},{"time":"2021-06-29","value":12909000000},{"time":"2022-06-29","value":13974000000},{"time":"2023-06-29","value":14913000000}],"Net Margins":[{"time":"2017-06-29","value":0.13829251083560126},{"time":"2018-06-29","value":0.2154043139958633},{"time":"2019-06-29","value":0.14004741417156905},{"time":"2020-06-29","value":0.08119970738844184},{"time":"2021-06-29","value":0.1665504686652723},{"time":"2022-06-29","value":0.08623157292113925},{"time":"2023-06-29","value":0.08308187487427077}],"Assets":[{"time":"2018-06-29","value":13121000000},{"time":"2019-06-29","value":19509000000},{"time":"2020-06-29","value":21750000000},{"time":"2021-06-29","value":22926000000},{"time":"2022-06-29","value":22185000000},{"time":"2023-06-29","value":21866000000}],"Stockholders Equity":[{"time":"2017-06-29","value":6093000000},{"time":"2018-06-29","value":9594000000},{"time":"2019-06-29","value":9958000000},{"time":"2020-06-29","value":10111000000},{"time":"2021-06-29","value":11125000000},{"time":"2022-06-29","value":11375000000},{"time":"2023-06-29","value":10445000000}],"ROE":[{"time":"2017-06-29","value":0.2251764319711144},{"time":"2018-06-29","value":0.22795497185741087},{"time":"2019-06-29","value":0.16017272544687688},{"time":"2020-06-29","value":0.09880328355256651},{"time":"2021-06-29","value":0.19325842696629214},{"time":"2022-06-29","value":0.10593406593406593},{"time":"2023-06-29","value":0.11862134992819531}],"ROA":[{"time":"2018-06-29","value":0.16538373599573203},{"time":"2019-06-29","value":0.11399866728176739},{"time":"2020-06-29","value":0.0673103448275862},{"time":"2021-06-29","value":0.1272790717962139},{"time":"2022-06-29","value":0.07635789948163173},{"time":"2023-06-29","value":0.07939266441050032}]}

Fox Corporation operates as a news, sports, and entertainment company in the United States (U.S.). The company operates through Cable Network Programming; Television; and Other, Corporate and Eliminations segments. The Cable Network Programming segment produces and licenses news, business news, and sports content for distribution through traditional and virtual multi-channel video programming distributors (MVPDs) and other digital platforms, primarily in the U.S. It operates FOX News, a national cable news channel; FOX Business, a business news national cable channel; FS1 and FS2 multi-sport national networks; FOX Sports Racing, a video programming service that comprises motor sports programming; FOX Soccer Plus, a video programming network for live soccer and rugby competitions; FOX Deportes, a Spanish-language sports programming service; and Big Ten Network, a national video programming service. The Television segment acquires, produces, markets, and distributes programming. It operates The FOX Network, a national television broadcast network that broadcasts sports programming and entertainment; Tubi, an advertising-supported video-on-demand service; Fox Alternative Entertainment, a full-service production studio that develops and produces unscripted and alternative programming; MyNetworkTV, a programming distribution service; and Blockchain Creative Labs, which is focuses on the creation, distribution and monetization of Web3 content. This segment owns and operates 29 broadcast television stations. The Other, Corporate and Eliminations segment owns the FOX Studios Lot that provides production and post-production services, including 15 sound stages, two broadcast studios, theaters and screening rooms, editing rooms, and other television and film production facilities in Los Angeles, California. The company was incorporated in 2018 and is based in New York, New York.

Sector

10-Q
9/30/23
10-K
6/30/23
10-Q
3/31/23
10-Q
12/31/22
10-Q
9/30/22
10-K
6/30/22
10-Q
3/31/22
10-Q
12/31/21
10-Q
9/30/21
10-K
6/30/21
10-Q
3/31/21
10-Q
12/31/20
10-Q
9/30/20
10-K
6/30/20
10-Q
3/31/20
10-Q
12/31/19
10-Q
9/30/19
10-K
6/30/19
10-Q
3/31/19
10-Q
12/31/18

DCF

Discounted Cash Flow Valuation of Fox Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$1.081B	$1.027B	$975.5M	$926.7M	$880.3M	$836.3M	$794.4M	$754.7M	$716.9M	$681M	$647M	$6.47B
DCF		$893M	$737.6M	$609.3M	$503.3M	$415.8M	$343.5M	$283.7M	$234.4M	$193.6M	$159.9M	$1.599B
Value	$5.973B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -8.6%

Earnings Stability -3.8%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	06-2017	06-2018	06-2019	06-2020	06-2021	06-2022	06-2023	TTM
Net Margin	14%	22%	14%	8.1%	17%	8.6%	8.3%	11%
ROA	-	17%	11%	6.7%	13%	7.6%	7.9%	9.9%
ROE	23%	23%	16%	9.9%	19%	11%	12%	15%

What is the average Net Margin?

The average Net Margin over the past 5 years is +12.88%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -2.11%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +10.5%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -1.38%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +15.08%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -1.76%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	06-2017	06-2018	06-2019	06-2020	06-2021	06-2022	06-2023	TTM
Debt FCF	-	0.00	2.97	3.99	4.06	4.60	5.89	6.66
Debt Equity	-	0.00	0.68	0.79	0.79	0.64	0.81	0.67
MIN
Graham Stability	-	-	-	58%	100%	76%	85%	58%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 6.66.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.98.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.58.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	06-2018	06-2020	06-2022	Trend
Revenue	8%	6.6%	6.7%	0.2%
Net Income	-11%	7.4%	2.8%	-5.2%
Stockholders Equity	1.7%	1.1%	-8.2%	-9.3%
FCF	5.5%	-10%	-8.5%	-8.6%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +7.99%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.2%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -10.74%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -5.17%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +1.71%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -9.27%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +5.54%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -8.65%.