Liberty Media Liberty Formula One (FWONA) AI Stock Analysis

• Market Cap: $34.67B
• Dividend Yield: N/A
• Average Volume (3M): 84.53K
• Price to Earnings (P/E): 89.9
• Beta (1Y): 0.51
• Revenue Growth: 5.77%
• EPS Growth: -6.97%
• Country: US
• Employees: 6,667
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 1.52
• Shares Outstanding: 23,990,946
• 10 Day Avg. Volume: 103,717
• 30 Day Avg. Volume: 84,533
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 32.95
• Enterprise Value/Ebitda: -94.90
• 1Y Price Target: $108.67
• Price Target Upside: 15.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: $99.00 ▲(5.02% Upside)

Liberty Media's strong revenue growth and strategic direction in Formula One are positive, bolstered by effective cash flow management. However, profitability issues and valuation challenges due to negative earnings impact the overall score. Technical indicators show strength but caution is advised due to potential overbought conditions. Recent earnings call data further supports optimism with strong engagement and revenue visibility, despite some cost and negotiation hurdles.

Positive Factors

Revenue Growth

The substantial revenue growth indicates strong market demand and effective monetization strategies, enhancing the company's long-term financial stability.

Cash Flow Management

Robust cash flow management ensures operational efficiency and financial flexibility, supporting strategic investments and debt servicing.

Future Revenue Visibility

Secured future revenues provide high visibility into business performance, reducing uncertainty and supporting long-term planning.

Negative Factors

Profitability Challenges

Ongoing net losses impact profitability, posing challenges for sustainable growth and potentially limiting reinvestment capabilities.

Increased Costs

Rising costs can pressure margins and reduce profitability, necessitating effective cost management to maintain financial health.

Media Rights Challenges

Difficulties in media rights negotiations could affect revenue streams and market reach, impacting long-term growth potential.

Liberty Media Liberty Formula One Business Overview & Revenue Model

Company Description

Formula One Group engages in the motorsports business in the United States and internationally. It holds commercial rights for the world championship, approximately a nine-month long motor race-based competition in which teams compete for the constructors' championship and drivers compete for the drivers' championship. The company was founded in 1950 and is based in Englewood, Colorado. Formula One Group is a subsidiary of Liberty Media Corporation.

How the Company Makes Money

Liberty Formula One generates revenue through multiple streams, primarily from race promotion fees, broadcasting rights, advertising, and sponsorship deals. A significant portion of revenue comes from hosting fees paid by race promoters for the rights to host a Grand Prix event. Additionally, the company earns substantial income from selling exclusive broadcasting rights to television networks and digital platforms across the globe. Sponsorship and advertising also play a crucial role, as brands seek to associate themselves with the high-profile sport, leading to lucrative commercial partnerships. Merchandise sales and licensing agreements further contribute to the company's earnings, capitalizing on the sport's global fanbase. These revenue streams are supported by strategic partnerships with racing teams, sponsors, and media companies, enhancing the overall value proposition of Formula One.

Liberty Media Liberty Formula One Financial Statement Overview

Summary

Liberty Media's Liberty Formula One exhibits strong revenue growth and a solid balance sheet, but faces challenges with profitability due to recent net losses. Cash flow management is robust, supporting operations effectively.

Income Statement

Liberty Media's Liberty Formula One shows a mixed performance in its income statement. The revenue growth from 2020 to the TTM is strong, with a notable increase from $1.145 billion in 2020 to $3.513 billion in TTM. However, the company posted a net loss in the most recent period, leading to a negative net profit margin. While gross profit margin remains healthy, the negative net income indicates challenges in maintaining profitability. The EBIT margin has been volatile but shows improvement over the years.

Balance Sheet

The balance sheet reveals a stable financial structure with a manageable debt-to-equity ratio. The equity ratio is robust, indicating a strong equity base relative to assets. However, the high total debt level could pose potential risks if cash flows are insufficient to cover liabilities. The return on equity has been fluctuating, impacted by the variability in net income.

Cash Flow

Cash flow analysis shows a positive trajectory with consistent free cash flow generation in recent years, suggesting effective cash management. The operating cash flow to net income ratio is strong, highlighting efficient conversion of earnings into cash. Despite historical fluctuations, the free cash flow growth rate is positive, reflecting improved operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.94B	23.16B	0.00	0.00	0.00	1.15B
Gross Profit	723.00M	0.00	0.00	0.00	0.00	171.00M
EBITDA	-251.00M	0.00	-170.00M	0.00	0.00	-119.00M
Net Income	-287.00M	-31.00K	-142.00M	1.29M	-358.00K	-594.00M
Balance Sheet
Total Assets	1.37B	1.22B	1.16B	667.00M	664.00M	11.19B
Cash, Cash Equivalents and Short-Term Investments	308.00M	325.00M	305.00M	0.00	0.00	1.68B
Total Debt	1.77B	1.56B	1.32B	920.00M	1.98B	3.76B
Total Liabilities	1.86B	1.56B	1.33B	920.00M	1.98B	4.64B
Stockholders Equity	-511.00M	-359.00M	-188.00M	-278.00M	-1.34B	6.55B
Cash Flow
Free Cash Flow	337.00M	-14.00M	-13.00M	-8.00M	-25.00M	-160.00M
Operating Cash Flow	364.00M	-14.00M	-13.00M	-8.00M	-25.00M	-139.00M
Investing Cash Flow	-238.00M	105.00M	1.00M	-37.00M	21.00M	75.00M
Financing Cash Flow	-61.00M	-71.00M	317.00M	45.00M	4.00M	1.16B

Liberty Media Liberty Formula One Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 94.27
• 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 94.27 is above the 20-day moving average (MA) of 91.71, above the 50-day MA of 90.90, and above the 200-day MA of 86.73, indicating a bullish trend. The MACD of 1.03 indicates Negative momentum. The RSI at 59.44 is Neutral, neither overbought nor oversold. The STOCH value of 83.26 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
FWONA	74 Outperform	$34.67B	89.87	3.79%	―	5.77%	-6.97%
TKO	72 Outperform	38.82B	90.14	4.94%	0.78%	53.33%	―
WMG	71 Outperform	17.43B	59.16	50.42%	2.19%	1.36%	-45.79%
FWONK	69 Neutral	34.67B	98.18	3.26%	―	5.77%	-6.97%
WBD	68 Neutral	49.07B	65.50	2.13%	―	-3.79%	―
LYV	68 Neutral	37.59B	70.36	255.34%	―	-0.39%	108.72%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Liberty Media Liberty Formula One Corporate Events

Liberty Media Signs Variable Forward Contracts

On May 28, 2025, Liberty Media’s subsidiary, LN Holdings 1, LLC, entered into variable forward contracts with several financial institutions. These contracts, related to the anticipated split-off of Liberty Media’s Liberty Live Group, involve the potential delivery of Live Nation shares or cash, providing liquidity options for the newly formed Liberty Live Holdings, Inc. The contracts are structured to manage obligations related to Liberty Media’s equity interests in Live Nation and its exchangeable senior debentures, with no immediate change in Liberty Media’s ownership stake in Live Nation.

The most recent analyst rating on (FWONA) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on Liberty Media Liberty Formula One stock, see the FWONA Stock Forecast page.

Liberty Media Sets Terms for Live Nation Split-Off

On May 28, 2025, Liberty Media’s subsidiary LN Holdings 1, LLC entered into agreements with several banks to establish terms for variable forward transactions involving shares of Live Nation Entertainment, Inc. This move is part of the planned split-off of Liberty Media’s Liberty Live Group, which will result in the creation of a new entity, Liberty Live Holdings, Inc. The agreements are designed to provide liquidity to the new company to manage potential financial obligations arising from the split-off, while maintaining Liberty Media’s existing ownership stake in Live Nation.

The most recent analyst rating on (FWONA) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on Liberty Media Liberty Formula One stock, see the FWONA Stock Forecast page.

Liberty Media Aligns CEO Equity Awards with Team

On May 12, 2025, Liberty Media Corporation modified the equity award components for its CEO, Derek Chang, aligning his equity grants with those of the management team and adjusting vesting dates. Additionally, at the company’s annual meeting, stockholders re-elected three board members and ratified KPMG LLP as the independent auditors for the fiscal year 2025, reflecting continued confidence in the company’s governance and financial oversight.

The most recent analyst rating on (FWONA) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on Liberty Media Liberty Formula One stock, see the FWONA Stock Forecast page.

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.

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.