FOX CORP - CLASS B (NASDAQ:FOX) - A Potential Undervalued Opportunity in Media

FOX CORP - CLASS B (NASDAQ:FOX) was identified by our stock screener as a decent value stock, offering a combination of reasonable valuation, solid profitability, and stable financial health. The company operates in the media industry, with segments including cable network programming, television broadcasting, and digital platforms. Below, we examine why FOX may appeal to value investors.

Valuation

FOX stands out with a Price/Earnings (P/E) ratio of 11.25, significantly lower than the S&P 500 average of 26.32. The stock also trades at a discount compared to its industry peers, with 75% of media companies priced higher. Key valuation highlights include:

• Forward P/E of 11.53, suggesting continued reasonable pricing.
• Price/Free Cash Flow ratio better than 83% of industry competitors.
• Low PEG ratio, indicating the stock is priced attractively relative to expected earnings growth.

Financial Health

The company maintains a strong balance sheet, reflected in an 8/10 Health Rating. Key strengths include:

• Current Ratio of 2.45 and Quick Ratio of 2.33, demonstrating ample liquidity.
• Debt/Equity ratio of 0.57, in line with industry norms.
• Declining share count, signaling disciplined capital management.

Profitability

FOX earns an 8/10 Profitability Rating, supported by:

• Return on Equity (ROE) of 16.18%, outperforming 86% of peers.
• Operating Margin of 19.03%, above 88% of competitors.
• Consistent profitability over the past five years.

Growth

While growth is moderate, FOX shows positive trends:

• EPS grew 29.71% YoY, with a 5-year average growth of 8.16%.
• Revenue increased 15.70% in the past year, though long-term growth is slower at 4.18%.
• Expected 10.42% annual EPS growth in coming years.

Our Decent Value Stocks screener lists more stocks with similar characteristics.
For a deeper analysis, review the full fundamental report on FOX.

Disclaimer

This is not investing advice. The observations are based on data available at the time of writing. Always conduct your own research before making investment decisions.