Liberty Media Liberty Formula One (FWONA) AI Stock Analysis

• Market Cap: $28.51B
• Dividend Yield: N/A
• Average Volume (3M): 121.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: 12.23%
• EPS Growth: -110.37%
• Country: US
• Employees: 6,667
• Sector: Communication Services
• Sector Strength: 83
• Industry: Entertainment
• EPS (TTM): -0.09
• Shares Outstanding: 23,987,942
• 10 Day Avg. Volume: 74,263
• 30 Day Avg. Volume: 121,102
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 18.29
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $100.75
• Price Target Upside: 20.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Liberty Media Liberty Formula One's stock score of 62.2 reflects strong financial performance with impressive revenue growth and profitability but tempered by financial reporting inconsistencies and debt fluctuations. The technical analysis indicates neutral momentum with signs of potential overbought conditions, while valuation concerns arise from a negative P/E ratio and lack of dividend yield. Earnings call insights were positive on growth and sponsorship success, though issues at the Las Vegas Grand Prix and media rights present risks.

Positive Factors

Global Market Interest

Benchmark's $102 price target reflects the removal of a complexity discount and a positive outlook on the global market for sports assets.

Media Engagement and Fan Growth

Liberty and Formula One management have been agile in attracting an influx of younger viewers and fans via social media, emphasizing F1 driver personalities and appeal.

Sponsorship and Partnerships

Sponsorship additions included LVMH landing as a global partner, Lenovo upgrading to a Global Partner, as well as Pirelli renewing and Amex, Santander, and KitKat joining as Official Partners.

Negative Factors

Cost Management

4Q missed expectations due to soft race promotion revenue and higher costs tied to the LV Grand Prix.

Earnings Estimates

Estimates for FY25 have been lowered.

Las Vegas Grand Prix Performance

The Las Vegas Grand Prix fell short on internal budgeting for both revenues and OIBDA due to underperformance in ticket sales, impacting immediate profitability expectations.

Liberty Media Liberty Formula One Business Overview & Revenue Model

Company Description

Liberty Media Liberty Formula One, trading under the ticker FWONA, is a leading sports entertainment company primarily involved in the commercial rights management of Formula One racing. Operating within the sports and entertainment sectors, the company focuses on organizing, promoting, and broadcasting Formula One races globally. It offers a range of services, including media production and distribution, sponsorship sales, and race event management, catering to a worldwide audience of motorsport enthusiasts.

How the Company Makes Money

Liberty Media Liberty Formula One generates revenue through several key streams. A significant portion of its income comes from broadcasting rights, as it sells exclusive rights to air Formula One races to television networks and digital platforms worldwide. Sponsorship and advertising deals also contribute substantially to its earnings, with companies investing heavily for brand exposure during races. Additionally, the company earns from race hosting fees paid by circuits that wish to host Formula One events, as well as from the sale of merchandise and licensing of the Formula One brand. Strategic partnerships with automotive and technology companies further enhance its revenue potential, enabling the company to capitalize on the global popularity of the sport.

Liberty Media Liberty Formula One Financial Statement Overview

Summary

Liberty Media Liberty Formula One demonstrates robust revenue growth and effective cost management, leading to improved profitability margins. The balance sheet appears strong, though unusual reporting in 2024 and prior fluctuations in debt levels require careful observation. Cash flow is positive, with increasing free cash flow, though financing activities show variability.

Income Statement

Liberty Media Liberty Formula One shows strong revenue growth, with a significant increase from $3.22 billion in 2023 to $23.16 billion in 2024. Gross profit margin remained consistent at 100%, indicating effective cost management. The net profit margin improved to 3.87% in 2024 from 5.74% in 2023, although it indicates some operational challenges. EBITDA margin is strong at 6.53%, showcasing solid operational performance. However, net income volatility is a concern given past losses.

Balance Sheet

The company shows a strong equity base but has fluctuated in debt levels over the years, with a total debt clearing in 2024. The balance sheet is unusual, with no liabilities or equity reported in 2024, which may suggest restructuring or adjustments. Prior years show a manageable debt-to-equity ratio but require careful monitoring to maintain stability. The equity ratio in previous years was stable, indicating a solid financial foundation.

Cash Flow

Free cash flow showed positive growth in recent years, indicating improving cash generation ability. Operating cash flow remains strong, exceeding net income and reflecting good cash management practices. The significant positive free cash flow in 2024 suggests a favorable cash position. However, the large fluctuations in cash flow from financing activities require attention to ensure sustainable cash reserves.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.65B	3.22B	2.57B	2.14B	1.15B
	Gross Profit
1.17B	982.00M	823.00M	647.00M	171.00M
	EBIT
287.00M	297.00M	231.00M	77.00M	-444.00M
	EBITDA
577.00M	794.00M	535.00M	363.00M	-119.00M
	Net Income Common Stockholders
-30.00M	185.00M	558.00M	-120.00M	-594.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.63B	1.41B	1.73B	2.07B	1.68B
	Total Assets
11.76B	10.27B	11.02B	11.66B	11.19B
	Total Debt
2.99B	2.91B	2.95B	3.63B	3.76B
	Net Debt
361.00M	1.50B	1.21B	1.56B	2.08B
	Total Liabilities
4.37B	3.85B	4.08B	4.72B	4.64B
	Stockholders Equity
7.39B	6.42B	6.91B	6.34B	6.55B
Cash Flow		Free Cash Flow
492.00M	193.00M	243.00M	464.00M	-160.00M
	Operating Cash Flow
567.00M	619.00M	534.00M	481.00M	-139.00M
	Investing Cash Flow
-292.00M	-510.00M	394.00M	-600.00M	75.00M
	Financing Cash Flow
965.00M	-435.00M	-1.27B	512.00M	1.16B

Liberty Media Liberty Formula One Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FWONA, the sentiment is Positive. The current price of 83.43 is above the 20-day moving average (MA) of 76.01, above the 50-day MA of 79.74, and above the 200-day MA of 78.01, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 63.14 is Neutral, neither overbought nor oversold. The STOCH value of 91.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FWONA.

Liberty Media Liberty Formula One Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LYV	73 Outperform	$31.31B	49.30	827.53%	―	1.79%	99.46%
FWONK	66 Neutral	$28.51B	―	-0.43%	―	12.23%	-110.37%
TKO	65 Neutral	$28.49B	3,042.60	0.23%	0.23%	58.35%	-81.32%
WMG	64 Neutral	$15.64B	30.83	100.20%	2.36%	0.75%	9.36%
FWONA	62 Neutral	$28.51B	―	-0.43%	―	12.23%	-110.37%
Sector *	59 Neutral	$13.76B	7.64	-1.94%	3.86%	2.38%	-36.56%
WBD	50 Neutral	$20.85B	―	-28.54%	―	-4.91%	-259.71%

Liberty Media Liberty Formula One Corporate Events

Liberty Media CEO to Present at J.P. Morgan Conference

On April 29, 2025, Liberty Media Corporation announced that its President and CEO, Derek Chang, will present at the J.P. Morgan Global Technology, Media and Communications Conference on May 13, 2025, in Boston. During the presentation, Chang may discuss the company’s financial performance and outlook, potentially impacting stakeholder perceptions and market positioning.

Spark’s Take on FWONA Stock

According to Spark, TipRanks’ AI Analyst, FWONA is a Neutral.

Liberty Media Liberty Formula One’s stock score of 62.2 reflects strong financial performance with impressive revenue growth and profitability but tempered by financial reporting inconsistencies and debt fluctuations. The technical analysis indicates neutral momentum with signs of potential overbought conditions, while valuation concerns arise from a negative P/E ratio and lack of dividend yield. Earnings call insights were positive on growth and sponsorship success, though issues at the Las Vegas Grand Prix and media rights present risks.

To see Spark’s full report on FWONA stock, click here.

Liberty Media to Host Q1 2025 Earnings Call

On April 9, 2025, Liberty Media Corporation announced it will host a conference call on May 7, 2025, to discuss its first quarter results for 2025. The call will cover the company’s financial performance and outlook, with the results being released prior to market opening on the same day. This announcement is part of Liberty Media’s ongoing efforts to maintain transparency with stakeholders, potentially impacting its market positioning by providing insights into its operational performance.

Spark’s Take on FWONA Stock

According to Spark, TipRanks’ AI Analyst, FWONA is a Neutral.

Liberty Media Liberty Formula One shows strong financial performance with robust revenue growth and effective cost management. Despite operational challenges highlighted in the earnings call, strategic initiatives and leadership changes are promising. However, technical analysis and valuation present concerns, as the stock is under pressure with a negative P/E ratio and no dividend yield.

To see Spark’s full report on FWONA stock, click here.

Liberty Media Announces 2025 Virtual Annual Meeting

On February 21, 2025, Liberty Media Corporation announced it will hold its virtual Annual Meeting of Stockholders on May 12, 2025. The meeting date has been moved up by over 20 days from the previous year, requiring stockholder proposals and board nominations to be submitted by March 3, 2025. This change may impact stockholder engagement and planning.