FOXA$63.98

Fox shows solid multi-year revenue growth, with FY2025 revenue rebounding sharply after the FY2024 dip and TTM revenue roughly flat versus the latest full year, suggesting momentum has cooled rather than accelerated. Gross margin has stayed fairly stable in the mid-30s, but operating margin has been more volatile, swinging from 10.6% to 21.2% and settling near the mid-to-high teens in annual results. Net income is durable, yet it is clearly affected by large swings in other non-operating income/expense and occasional operating noise, so underlying earnings power is better read on an adjusted basis. Compared with media peers, profitability is respectable, though the business still faces margin pressure, content and SG&A leverage risk, and some earnings cyclicality.

Fox Corporation’s balance sheet looks solid and broadly stable. Liquidity is comfortable, with FY2025 total current assets of $8.4bn versus current liabilities of $2.9bn, supported by $5.4bn of cash and equivalents. Working capital remains positive and inventory is modest, so near-term funding pressure appears limited. Solvency is manageable: total liabilities were $10.8bn against $23.2bn of assets, and shareholders’ equity reached $12.4bn in FY2025, up from $11.4bn in FY2021. Debt is material at $6.6bn, but it is offset by a meaningful cash position and steady equity growth. The main caution is the sizeable goodwill and intangible asset base, which reduces tangible balance sheet quality somewhat.

Cash generation is solid and improved meaningfully in FY2025, with operating cash flow rising to 3,324 million from 1,840 million in FY2024, though TTM eased to 2,616 million. Free cash flow has remained consistently positive across the period and reached 2,993 million in FY2025 after 331 million of capex, suggesting reinvestment is controlled and sustainable. Cash conversion is generally good, but working capital movements are uneven, especially inventories and other adjustments, which create some volatility. Capital allocation looks disciplined overall: the company returned substantial cash through buybacks of about 1,000 million annually, paid steady dividends, and reduced debt in FY2025. The main flag is the reliance on large repurchases alongside fluctuating operating cash flow.

Fox Corporation is showing a generally stable but mixed operating profile. Liquidity looks comfortable, with the current ratio staying near 2.5–3.6 and the quick ratio mostly above 2.0, suggesting it can meet short-term obligations without strain. Leverage is moderate and has improved over the middle of the period, with debt-to-equity and net debt ratios trending lower through FY2025, though the latest current reading is less favorable. Efficiency is constructive: asset turnover has risen steadily and inventory turnover improved for most of the period, indicating better use of assets, though receivables data is not available. Profitability remains solid, with ROE, ROIC, and ROCE generally strong, but the latest readings show some weakening versus FY2025.

Historical data runs through FY2025, while FY2026-FY2027 are analyst-covered forecasts. Revenue grew steadily from FY2021 to FY2023, dipped in FY2024, then rebounded sharply in FY2025 before moderating to mid-single-digit growth in the forecast years. EPS was more volatile, falling in FY2022, recovering in FY2023, and then accelerating strongly in FY2024-FY2025 before flattening in FY2026 and improving again in FY2027. That pattern suggests some margin leverage, though not consistently. Forward P/E falls from 12.95 to 11.4, which looks reasonable against low-teens EPS growth. Analyst sentiment is constructive: Buy consensus with 19 analysts, a wide but positive target range, and a mostly stable Hold-heavy recommendation mix over recent months.