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Liberty Media Corporation Series B Liberty Formula One (FWONB)
OTHER OTC:FWONB
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Liberty Media Liberty Formula One
(OTC:FWONB)
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Rating:71Outperform
Price Target:
$96.00
▲(8.87% Upside)
Liberty Media Liberty Formula One's stock score reflects a balance of strong technical momentum and positive strategic developments against financial performance challenges and valuation concerns. The company's robust cash flow and strategic initiatives, such as securing future revenue and enhancing digital engagement, are significant positives. However, the high leverage and negative profitability metrics weigh on the score, suggesting cautious optimism.
Positive Factors
Revenue Visibility
Secured future revenue provides high visibility into business performance, ensuring stability and predictability in cash flows over the coming years.
Digital Engagement Growth
Strong growth in digital engagement enhances brand visibility and opens new revenue streams through digital platforms, crucial for long-term audience retention and expansion.
Record Attendance
Record-breaking attendance at events signifies strong consumer interest and supports higher revenue from ticket sales, sponsorships, and local partnerships.
Negative Factors
High Leverage
Significant leverage can strain financial flexibility and increase risk, particularly if revenue growth does not offset the cost of debt over time.
Negative Profit Margins
Persistent negative profit margins indicate challenges in achieving profitability, which may impact long-term financial health and shareholder returns.
Revenue Decline
Revenue decline due to fewer races highlights vulnerability to scheduling changes, which can affect overall financial performance and operational stability.
Liberty Media Liberty Formula One (FWONB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.28B
Dividend YieldN/A
Average Volume (3M)10.00
Price to Earnings (P/E)87.4
Beta (1Y)0.28
Revenue Growth9.81%
EPS Growth-42.40%
CountryUS
Employees1,184
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.05
Shares Outstanding2,428,597
10 Day Avg. Volume20
30 Day Avg. Volume10
Financial Highlights & Ratios
PEG Ratio2.52K
Price to Book (P/B)-17.41
Price to Sales (P/S)0.27
P/FCF Ratio-446.44
Enterprise Value/Market Cap0.72
Enterprise Value/Revenue22.02
Enterprise Value/Gross Profit52.63
Enterprise Value/Ebitda-459.53
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Liberty Media Liberty Formula One Business Overview & Revenue Model
Company DescriptionFormula 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 MoneyLiberty Formula One generates revenue through several key streams. The primary source is the sale of broadcasting rights to television networks and streaming platforms, which allows them to air Formula 1 races globally. Sponsorship and advertising deals with major brands also contribute significantly to revenue, given the sport's high-profile viewership. Additionally, the company earns from hosting fees paid by countries and cities hosting Grand Prix events, as well as merchandising and licensing fees for Formula 1 products and branding. Partnerships with automotive and technology companies further enhance its revenue potential, leveraging the sport's global reach and appeal.
Liberty Media Liberty Formula One Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial and operational performance by Liberty Media, particularly through its Formula One segment, with significant revenue and OIBDA growth despite fewer races. The company continues to expand its media and sponsorship deals, notably with a new partnership with Apple in the U.S. However, the call also noted increased costs affecting MotoGP's OIBDA and challenges regarding hospitality capacity, which the company plans to address. Overall, the highlights outweigh the lowlights, indicating positive momentum for Liberty Media.Q3-2025 Updates
Positive Updates
Strong Revenue and OIBDA Growth Despite Fewer Races
Formula One's revenue increased by 9% and adjusted OIBDA by 15% year-to-date, despite having one fewer race compared to the prior year.
Expansion of Media and Sponsorship Deals
F1 renewed its global partnership with Heineken and signed a landmark distribution partnership with Apple in the U.S., which is expected to enhance growth in the U.S. market.
Strong Fan Engagement and Attendance
F1 reported a 4% increase in fan attendance and notable increases in female and under-35 attendees, with strong social media engagement.
Successful Debt Refinancing
MotoGP's debt was refinanced, resulting in future margin reductions as the business deleverages, reducing interest expenses and extending maturities.
Negative Updates
Increased Costs Affecting MotoGP's OIBDA
MotoGP's adjusted OIBDA declined year-to-date due to higher costs from race mix and increased SG&A expenses, despite revenue growth.
Challenges in Hospitality Capacity
F1's hospitality capacity is limited, indicating a need for investment to increase capacity in some markets to meet demand.
Company Guidance
During Liberty Media Corporation's 2025 Third Quarter Earnings Call, the company provided guidance indicating continued strategic investments and operational achievements. Liberty announced the planned split-off of Liberty Live, expected to be completed by December 15, aiming to enhance the trading dynamics of their asset-backed equity. Formula One (F1) reported robust financial results, with year-to-date revenue up 9% and adjusted OIBDA up 15%, despite one fewer race. F1 has renewed major partnerships, such as a multi-year deal with Heineken, and signed a landmark distribution agreement with Apple in the U.S. MotoGP, acquired in July, reflected increased costs due to strategic investments aimed at growth, with adjusted OIBDA performance impacted by these expenses. Liberty Media plans to continue leveraging opportunities across sponsorship, media rights, and licensing to drive future growth.Liberty Media Liberty Formula One Financial Statement Overview
Summary
Liberty Media Liberty Formula One showcases a mixed financial performance. The company faces revenue growth challenges but maintains strong gross margins. The balance sheet reflects solid equity but significant leverage, and cash flows are robust, indicating effective cash management. Key areas for improvement include enhancing profitability and managing debt levels.Income Statement
The TTM (Trailing-Twelve-Months) revenue of Liberty Media Liberty Formula One is slightly down due to a 3.83% decline from the previous annual period, reflecting recent revenue challenges. While the gross profit margin is robust at 28.61%, the net profit margin is negative due to consistent net losses, indicating poor bottom-line performance. The EBIT and EBITDA margins stand at 3.44% and 9.51% respectively, showing moderate operational efficiency but room for improvement in earnings before interest and taxes.65
Positive
Balance Sheet
The balance sheet reveals a strong equity position with an equity ratio of 52.97%, highlighting financial stability. However, the debt-to-equity ratio is relatively high at 0.65, indicating significant leverage. The return on equity (ROE) is negative at -1.45%, primarily due to net losses, suggesting inefficiencies in generating shareholder returns.70
Positive
Cash Flow
Liberty Media Liberty Formula One exhibits strong cash flow management with a TTM free cash flow of $727 million, a significant 47.76% increase from the previous year. The operating cash flow to net income ratio is healthy, showing efficient cash generation relative to net income. However, the free cash flow to net income ratio is skewed due to net losses, indicating reliance on cash flows rather than profitability.77
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.08B | 0.00 | 0.00 | 0.00 | 0.00 | 1.15B |
| Gross Profit | 454.00M | 0.00 | 0.00 | 0.00 | 0.00 | 171.00M |
| EBITDA | -52.00M | -12.00M | -170.00M | 0.00 | 0.00 | -119.00M |
| Net Income | -269.00M | -31.00M | -142.00M | 1.29M | -358.00K | -594.00M |
Balance Sheet | ||||||
| Total Assets | 17.82B | 1.22B | 1.16B | 667.00M | 664.00M | 11.19B |
| Cash, Cash Equivalents and Short-Term Investments | 1.59B | 325.00M | 305.00M | 0.00 | 0.00 | 1.68B |
| Total Debt | 1.92B | 1.56B | 1.32B | 920.00M | 1.98B | 3.76B |
| Total Liabilities | 9.73B | 1.56B | 1.33B | 920.00M | 1.98B | 4.64B |
| Stockholders Equity | 7.38B | -359.00M | -188.00M | -278.00M | -1.34B | 6.55B |
Cash Flow | ||||||
| Free Cash Flow | 837.76M | -14.00M | 0.00 | -8.00M | -25.00M | -160.00M |
| Operating Cash Flow | 828.36M | -14.00M | -13.00M | -8.00M | -25.00M | -139.00M |
| Investing Cash Flow | -3.30B | 105.00M | 1.00M | -37.00M | 21.00M | 75.00M |
| Financing Cash Flow | 835.51M | -71.00M | 317.00M | 45.00M | 4.00M | 1.16B |
Liberty Media Liberty Formula One Technical Analysis
Negative
88.18
Price Trends
92.97
Negative
92.50
Negative
89.18
Negative
Market Momentum
-1.54
Positive
33.57
Neutral
23.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FWONB, the sentiment is Negative. The current price of 88.18 is below the 20-day moving average (MA) of 91.14, below the 50-day MA of 92.97, and below the 200-day MA of 89.18, indicating a bearish trend. The MACD of -1.54 indicates Positive momentum. The RSI at 33.57 is Neutral, neither overbought nor oversold. The STOCH value of 23.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FWONB.
Liberty Media Liberty Formula One Risk Analysis
Liberty Media Liberty Formula One disclosed 106 risk factors in its most recent earnings report. Liberty Media Liberty Formula One reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Liberty Media Liberty Formula One Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $30.74B | 138.81 | 2.25% | ― | 9.81% | -42.40% | |
71 Outperform | $33.28B | 87.36 | 3.79% | ― | 9.81% | -42.40% | |
70 Outperform | $60.78B | 130.76 | 1.36% | ― | -4.29% | ― | |
66 Neutral | $33.28B | 95.15 | 2.25% | ― | 9.81% | -42.40% | |
64 Neutral | $29.85B | 93.82 | 79.63% | ― | 5.39% | 36.94% | |
63 Neutral | $37.97B | 77.78 | 5.82% | 0.78% | 56.31% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
FWONB
Liberty Media Liberty Formula One
88.18
3.18
3.74%
FWONA
Liberty Media Liberty Formula One
85.09
1.60
1.92%
LYV
Live Nation Entertainment
136.01
-0.72
-0.53%
TKO
TKO Group Holdings
194.90
58.03
42.40%
FWONK
Liberty Media Liberty Formula One
92.29
0.70
0.76%
WBD
Warner Bros
24.57
13.92
130.70%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.