Why Fox Corp Stock Is A Buy? Acquirer’s Multiple Stock Screener Analysis

As part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it’s a ‘buy’ based on key fundamentals.

One of the cheapest stocks in our Stock Screeners is:

Fox Corp (FOXA)

Fox represents the assets not sold to Disney by predecessor firm, Twenty First Century Fox, in 2019. The remaining assets include Fox News, the FOX broadcast network, FS1 and FS2, Fox Business, Big Ten Network, 28 owned and operated local television stations of which 17 are affiliated with the Fox Network, Tubi, and the Fox Studios lot. Since the Disney sale, Fox has acquired other related and unrelated assets including Credible Labs, a consumer fintech firm. The Murdoch family continues to control the successor firm, which represents a large-scale bet on the value of live sports and news in the U.S. market.

A quick look at the share price history (below) over the past twelve months shows that the price is up 2.03%. Here’s why the company is undervalued.

FOXA data by YCharts

Key Stats

Market Cap: $15.08 Billion

Enterprise Value: $19.29 Billion

Operating Earnings

Operating Earnings: $2.76 Billion

Acquirer’s Multiple

Acquirer’s Multiple: 7.00

Free Cash Flow (TTM)

Free Cash Flow: $1.44 Billion

FCF/EV Yield %:

FCF/EV Yield: 9.57

Shareholder Yield %:

Shareholder Yield: 15.20

Other Indicators

BuyBack Yield: 13.30

Altman Z-Score (TTM): 2.241

ROA (5 Year Avge%): 13