FOX CORP - CLASS B (NASDAQ:FOX) - A Potentially Undervalued Media Stock

FOX CORP - CLASS B (NASDAQ:FOX) was identified by our Decent Value stock screener as a candidate with strong fundamentals and an attractive valuation. 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 Valuation Rating of 8/10, indicating it is priced reasonably relative to its fundamentals:

• P/E Ratio: At 11.48, FOX trades below both the industry average (53.59) and the S&P500 (27.41).
• Forward P/E: 11.70 suggests continued undervaluation compared to peers.
• Price/Free Cash Flow: More than 83% of industry peers are more expensive on this metric.
• PEG Ratio: A low PEG ratio suggests the stock is cheap relative to its expected earnings growth.

Financial Health

With a Health Rating of 8/10, FOX demonstrates solid financial stability:

• Strong Liquidity: Current Ratio (2.45) and Quick Ratio (2.33) are well above industry averages.
• Manageable Debt: A Debt-to-Equity ratio of 0.57 is in line with peers, and its Debt-to-FCF ratio (3.02) is better than 83% of competitors.
• Share Reduction: The company has reduced outstanding shares over the past five years, a positive signal for shareholders.

Profitability

FOX earns a Profitability Rating of 8/10, supported by strong margins and returns:

• Return on Equity (ROE): 16.18%, outperforming 86.6% of industry peers.
• Operating Margin: 19.03%, ranking in the top 12% of the sector.
• Consistent Earnings: Profitable in each of the last five years, with positive cash flow.

Growth

While growth is more moderate, FOX still holds a Growth Rating of 5/10:

• Recent EPS Growth: 29.71% in the past year.
• Revenue Growth: 15.70% year-over-year, though long-term revenue growth averages 4.18%.
• Future EPS Growth: Expected to grow at 10.42% annually, indicating steady expansion.

Our Decent Value screener lists more stocks with strong valuations and solid fundamentals.
For a deeper dive, review the full fundamental report on FOX.

Disclaimer

This is not investment advice. The observations here are based on current data, but investors should conduct their own research before making decisions.