Fox logged a -0.9% change during today's afternoon session, and is now trading at a price of $31.51 per share. The S&P 500 index moved 0.7% and the Nasdaq posted a 1.3% change.
Fox shares moved -14.8% over the last 52 weeks, with a high of $40.91 and a low of $26.35. During this time, the stock lagged the S&P 500 index by -5.8%. As of January 2022, the company's 50-day average price is $29.83. Fox Corporation operates as a news, sports, and entertainment company in the United States (U. The large-cap Communication Services company has 10,600 full time employees and is based in New York, NY. Fox has returned a 1.5% dividend yield over the last 12 months.
The Company's Operating Margins Are Consistently Higher Than the 7.51% Industry Average:
| 2019-06-30 | 2020-06-30 | 2021-06-30 | 2022-06-30 | |
|---|---|---|---|---|
| Revenue (MM) | $11,389 | $12,303 | $12,909 | $13,974 |
| Revenue Growth | n/a | 8.03% | 4.93% | 8.25% |
| Operating Margins | 21.4% | 20.3% | 21.4% | 18.4% |
| Operating Margins Growth | n/a | -5.14% | 5.42% | -14.02% |
| Net Margins | 14.0% | 8.12% | 16.66% | 8.62% |
| Net Margins Growth | n/a | -42.0% | 105.17% | -48.26% |
| Earnings Per Share | $2.57 | $1.62 | $3.61 | $2.11 |
| EPS Growth | n/a | -36.96% | 122.84% | -41.55% |
| Free Cash Flow (MM) | $2,289 | $2,006 | $2,155 | $1,577 |
| FCF Growth | n/a | -12.36% | 7.43% | -26.82% |
| Capital Expenditures (MM) | -$235 | -$359 | -$484 | -$307 |
| Net Debt / EBITDA | 1.36 | 1.31 | 0.61 | 0.69 |
Fox Is Reasonably Valued:
Compared to the Communication Services sector's average of 18.85, Fox has a trailing twelve month P/E ratio of 16.0 and, according to its EPS guidance of 2.35, an expected P/E ratio of 13.4. Fox's PEG ratio is 1.16 based on its 13.75% annual average growth rate of historical and projected earnings per share. This implies that the company's shares are fairly valued.
Furthermore, Fox is likely undervalued in terms of its equity because its P/B ratio is 1.5 compared to its sector average of 3.12. The company's shares are currently trading -8.3% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 2.48 * 21.164) = $34.36
Fox Benefits From Positive Market Indicators:
The company has a very low short interest since 1.2% of the company's shares are tied to short positions. Institutions own 56.1% of Fox's shares, while the insider ownership rate stands at 43.15%. The biggest shareholder is the Vanguard Group, Inc. with a 7% stake in the company worth approximately $521,473,110.
