FOX CORP - CLASS B (NASDAQ:FOX) was identified as a decent value stock by our screener, which looks for companies with strong fundamentals and reasonable valuations. FOX scores well in profitability, financial health, and valuation, making it a candidate for value investors. Below, we break down why this media company stands out.
Valuation
FOX appears attractively priced with a Price/Earnings (P/E) ratio of 11.44, well below both the industry average (39.82) and the S&P500 average (25.91). Its Price/Forward Earnings ratio of 11.72 also suggests a reasonable valuation compared to peers. Additionally, FOX trades at a discount based on Enterprise Value to EBITDA and Price/Free Cash Flow, outperforming 80% of its industry peers in the latter metric.
Financial Health
The company maintains a solid balance sheet with:
- A Current Ratio of 2.45 and Quick Ratio of 2.33, indicating strong liquidity.
- A manageable Debt-to-Equity ratio of 0.57, in line with industry standards.
- A Debt-to-Free Cash Flow ratio of 3.02, meaning it could pay off debt in just over three years using its cash flow.
Profitability
FOX demonstrates strong profitability metrics:
- Return on Assets (ROA) of 7.98% and Return on Equity (ROE) of 16.18%, both ranking in the top quartile of its industry.
- An Operating Margin of 19.03%, outperforming nearly 90% of peers.
- Consistent positive earnings and cash flow over the past five years.
Growth
While growth is more moderate, FOX has shown:
- A 29.71% year-over-year increase in Earnings Per Share (EPS).
- Revenue growth of 15.70% in the past year, though future growth expectations are more subdued.
Our Decent Value Stocks screener lists more stocks with similar characteristics and is updated daily.
For a deeper dive, review the full fundamental report on FOX.
Disclaimer
This is not investment advice. The observations here are based on data at the time of writing, and investors should conduct their own research before making decisions.
