Fox Corporation
FOX
$60.27
+2.10%
Fox Corporation is a media and entertainment company operating through two primary segments: Cable Network Programming, which includes Fox News, Fox Business, and sports networks, and Television, which encompasses the Fox broadcast network, local TV stations, and the ad-supported streaming platform Tubi. The company holds a distinct position as a focused player in live news and sports, having divested most of its entertainment assets to Disney in 2019, and is controlled by the Murdoch family. Currently, the investor narrative centers on Fox's transformative $22 billion acquisition of Roku, announced in June 2026, which has sparked concerns about debt and dilution but also positions the company to expand its streaming and advertising capabilities. Recent stock volatility reflects the market's debate over the strategic merits and financial risks of this bold move.…
FOX
Fox Corporation
$60.27
Related headlines
Investment Opinion: Should I buy FOX Today?
Based on the analysis, FOX is rated a Hold. The stock offers a low valuation with a forward PE of 10.67x and a strong operating margin of 24.5%, but the transformative Roku acquisition introduces significant uncertainty. The average analyst target of $65.70 implies a modest upside of 7.1% from the current price, which does not provide a compelling risk-reward given the execution risks.
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FOX 12-Month Price Forecast
The AI assessment is neutral, reflecting the balance between a low valuation and the risks of the Roku acquisition. The stock's low PE and strong margins provide a floor, but the negative revenue growth and high debt limit upside. If the company demonstrates successful integration and revenue recovery, the stance could be upgraded to bullish. Conversely, any signs of financial distress or integration failure would warrant a bearish stance.
Wall Street consensus
The target range, based on EPS estimates, is from $63.80 (low EPS of $5.98 x 10.67x) to $65.70 (high EPS of $6.16 x 10.67x), implying a narrow spread of about 3%, suggesting relatively high conviction among the few analysts. The high target assumes that Fox can maintain its earnings power despite the Roku acquisition, while the low target prices in potential integration risks and margin compression. Institutional ratings data shows a recent downgrade by B of A Securities from Buy to Underperform in February 2026, which is a bearish signal, but other firms have maintained neutral or overweight stances. The overall sentiment is cautious, with the single analyst coverage and the downgrade indicating that the market is still assessing the impact of the Roku deal.
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Bulls vs Bears: FOX Investment Factors
FOX presents a mixed picture: it offers a compelling valuation with a low PE and strong profitability, but faces significant risks from the transformative Roku acquisition, including high debt and potential earnings dilution. The recent revenue decline and analyst downgrade add to the bearish case, yet the stock's recovery from its June low and low beta provide some support. Currently, the bearish evidence is slightly stronger due to the uncertainty surrounding the Roku deal and its impact on near-term earnings. The most critical tension is whether the Roku acquisition will successfully drive long-term growth and justify the debt, or whether it will burden the company with integration challenges and margin compression.
Bullish
- Attractive Valuation with Low PE: FOX trades at a trailing PE of 11.80x and forward PE of 10.67x, which is significantly below the broader market and historical averages for media companies. This low multiple provides a margin of safety and suggests the stock is undervalued relative to its earnings power.
- Strong Profitability and Cash Flow: The company boasts a robust operating margin of 24.5% and a net margin of 9.8%, with free cash flow of $2.36 billion TTM. This financial strength supports the company's ability to service debt from the Roku acquisition and continue returning capital to shareholders.
- Strategic Roku Acquisition for Growth: The $22 billion acquisition of Roku positions FOX to expand its streaming and advertising capabilities, leveraging Roku's platform to reach a larger audience. This transformative move could drive long-term revenue growth and diversify beyond traditional pay-TV.
- Recovering Stock Momentum: FOX has rebounded 27.6% from its June low of $44.55 to $61.32, with a 1-month gain of 16.3%. The stock is trading near the upper end of its 52-week range, indicating renewed investor confidence and positive technical momentum.
Bearish
- Revenue Decline in Latest Quarter: Q3 FY2026 revenue fell 8.63% YoY to $3.994 billion, down from $4.371 billion in the prior-year quarter. This decline, driven by lower advertising and sports programming costs, raises concerns about the company's growth trajectory.
- High Debt from Roku Acquisition: The $22 billion Roku acquisition will significantly increase FOX's debt load, with debt-to-equity already at 0.65. This leverage could strain cash flows and limit financial flexibility, especially if integration costs exceed expectations.
- Negative PEG Ratio Signals Earnings Risk: The PEG ratio of -0.59 indicates that earnings growth is expected to be negative in the near term, likely due to the dilutive impact of the Roku deal. This suggests that the market is pricing in a potential earnings decline.
- Analyst Downgrade and Limited Coverage: B of A Securities downgraded FOX from Buy to Underperform in February 2026, and only one analyst currently covers the stock. This lack of coverage and negative sentiment could limit upside as institutional investors remain cautious.
FOX Technical Analysis
Fox's stock is in a strong recovery phase, having rebounded sharply from a mid-June plunge. The 1-year price change is +12.93%, and the current price of $61.32 sits near the upper end of its 52-week range, at approximately 90% of the range (from low of $44.08 to high of $68.175). This positioning near the highs suggests renewed bullish momentum, though the stock remains below its 52-week high, indicating potential resistance overhead. The recovery from the June low of $44.55 (a 27.6% rebound) underscores a significant trend reversal from the earlier downtrend.
Beta
0.54
0.54x market volatility
Max Drawdown
-34.5%
Largest decline past year
52-Week Range
$44-$68
Price range past year
Annual Return
+8.4%
Cumulative gain past year
| Period | FOX Return | S&P 500 |
|---|---|---|
| 1m | +14.5% | +1.0% |
| 3m | +2.6% | +1.1% |
| 6m | +11.0% | +13.8% |
| 1y | +8.4% | +19.5% |
| ytd | -8.6% | +12.2% |
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FOX Fundamental Analysis
Fox's revenue has been volatile, with the most recent quarter (Q3 FY2026, ended March 31, 2026) showing a decline of 8.63% year-over-year to $3.994 billion, down from $4.371 billion in the prior-year quarter. This marks a deceleration from the previous quarter's revenue of $5.182 billion, though that quarter included the NFL postseason. The company's revenue segments show Television contributing $2.197 billion and Cable Network Programming $1.741 billion in the latest quarter, with the decline likely driven by lower advertising revenue and sports programming costs. The multi-quarter trend shows significant fluctuation, with Q1 FY2026 revenue of $3.738 billion and Q4 FY2025 revenue of $3.287 billion, indicating a seasonal but overall stagnant growth trajectory.
Quarterly Revenue
$4.0B
2026-03
Revenue YoY Growth
-8.6%
YoY Comparison
Gross Margin
37.6%
Latest Quarter
Free Cash Flow
$2.4B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is FOX Overvalued?
Given that Fox has positive net income, the PE ratio is the primary valuation metric. The trailing PE is 11.80x, while the forward PE is 10.67x, indicating that the market expects earnings growth. The gap between trailing and forward PE suggests a modest improvement in earnings, which is consistent with the company's focus on cost efficiency and streaming growth. The PEG ratio is negative at -0.59, which is unusual and suggests that earnings growth is expected to be negative in the near term, possibly due to the Roku acquisition's impact.
PE
11.8x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 5x~31x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
7.7x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risks are elevated following the Roku acquisition. The company's debt-to-equity ratio of 0.65 will likely increase substantially, and interest expenses are already notable at $66 million in Q3 FY2026. Revenue declined 8.63% YoY in the latest quarter, and the negative PEG ratio of -0.59 suggests near-term earnings headwinds. Free cash flow of $2.36 billion provides some cushion, but integration costs and potential margin compression could strain liquidity. Additionally, the company's reliance on advertising revenue makes it sensitive to economic cycles, as seen in the revenue volatility across quarters.
