Investment Thesis
Fox Corp demonstrates deteriorating operational efficiency with severely negative free cash flow of -$1.0B despite 16.6% revenue growth, indicating quality-of-earnings concerns and cash generation problems. While the company maintains adequate liquidity and leverage ratios, the combination of negative operating cash flow, weak ROA of 3.9%, and declining net income despite higher revenues suggests fundamental operational challenges that outweigh near-term growth.
FOX Strengths
- Strong revenue growth of 16.6% YoY demonstrates market demand and top-line expansion
- Solid liquidity position with current ratio of 2.78x and $2.0B cash providing financial flexibility
- Moderate leverage with debt-to-equity of 0.60x and 3.6x interest coverage ratio indicating manageable debt burden
FOX Risks
- Severe negative free cash flow of -$1.0B with -11.5% FCF margin signals deteriorating cash generation capabilities despite revenue growth
- Operating cash flow is negative at -$799.0M, indicating the company is burning cash from operations and unable to fund capital expenditures internally
- Declining net income (-1.3% YoY) despite 16.6% revenue growth and poor ROA of 3.9% suggest operational inefficiency and cost structure problems
- Low ROE of 7.6% indicates poor returns on shareholder capital despite reasonable equity base
Key Metrics to Watch
- Operating cash flow trend - must return to positive territory for sustainability
- Free cash flow generation and FCF margin improvement
- Operating expense ratio and margin expansion relative to revenue growth
- Return on assets and equity improvement trajectory
FOX Financial Metrics
FOX Profitability Ratios
FOX Balance Sheet & Liquidity
FOX 5-Year Financial Trend
5-Year Trend Summary: Fox Corp's revenue has grown significantly by 17% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.33 reflects profitable operations.
FOX Growth Metrics (YoY)
FOX Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $5.1B | $247.0M | $0.52 |
| Q1 2026 | $3.6B | $609.0M | $1.32 |
| Q3 2025 | $3.4B | $354.0M | $0.75 |
| Q2 2025 | $4.2B | $115.0M | $0.23 |
| Q1 2025 | $3.2B | $415.0M | $0.82 |
| Q3 2024 | $3.4B | -$50.0M | $-0.10 |
| Q2 2024 | $4.2B | $115.0M | $0.23 |
| Q1 2024 | $3.2B | $415.0M | $0.82 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FOX Capital Allocation
FOX SEC Filings
Access official SEC EDGAR filings for Fox Corp (CIK: 0001754301)