NEW YORK (TheStreet) -- Twenty-First Century Fox (FOXA) - Get Report shares are up 4.25% to $26.87 after the New York-based company nominated activist shareholder and former hedge-fund ValueAct CEO Jeffrey Ubben to its board.
Later this year, Ubben will be up for election to the company's board at its shareholders' meeting.
"Jeff will bring to our board a great perspective as a global investor and a shared belief in building long-term value for shareholders," Executive Co-Chairmen Rupert Murdoch and Lanchlan Murdoch stated.
"The rapidly changing media landscape presents significant opportunities, and I believe 21st Century Fox is uniquely positioned to leverage its global presence and market leadership to create further long-term value for all stockholders," Ubben said.
During the past year, Ubben often met with members of the Murdoch family, the Wall Street Journal noted.
Additionally, the media company said that in the fiscal year ended in June, Rupert Murdoch's total pay dropped to $27.89 million, compared to $29.25 million last year, the Journal said.
Separately, TheStreet Ratings team rates TWENTY-FIRST CENTURY FOX INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate TWENTY-FIRST CENTURY FOX INC (FOXA) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Media industry and the overall market, TWENTY-FIRST CENTURY FOX INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Even though the current debt-to-equity ratio is 1.11, it is still below the industry average, suggesting that this level of debt is acceptable within the Media industry. Despite the fact that FOXA's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.97 is high and demonstrates strong liquidity.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Media industry. The net income has significantly decreased by 91.3% when compared to the same quarter one year ago, falling from $999.00 million to $87.00 million.
- Net operating cash flow has decreased to $983.00 million or 26.96% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: FOXA