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Liberty Media Corporation Series B Liberty Formula One (FWONB)
:FWONB
RESEARCH TOOLSreports
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Liberty Media Liberty Formula One
(OTC:FWONB)
Rating:71Outperform
Price Target:
$96.00
▲(3.18% Upside)
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
$34.59B
Dividend YieldN/A
Average Volume (3M)33.00
Price to Earnings (P/E)87.9
Beta (1Y)0.33
Revenue Growth5.77%
EPS Growth-6.97%
CountryUS
Employees1,184
SectorCommunication Services
Sector Strength96
IndustryEntertainment
Share Statistics
EPS (TTM)1.52
Shares Outstanding2,428,597
10 Day Avg. Volume0
30 Day Avg. Volume33
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.69
Enterprise Value/Revenue0.96
Enterprise Value/Gross Profit33.05
Enterprise Value/Ebitda-95.20
Forecast
1Y Price Target
$96.00Price Target Upside3.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
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:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth and engagement in the F1 segment, driven by increased attendance, media rights, and successful new initiatives like the F1 movie. The acquisition of MotoGP presents significant growth potential, though challenges remain in monetizing its fan base and increasing sponsorship. Financial concerns, such as increased debt levels and the Las Vegas Grand Prix's profitability, were noted but outweighed by the positive trends in core operations.Q2-2025 Updates
Positive Updates
Formula One Revenue and Growth
F1 revenue increased by 14% year-to-date with adjusted OIBDA up 21%. Revenue growth was driven by sponsorship, race promotion, and media rights.
Record Attendance and Fan Engagement
F1 saw record attendance with nearly all events operating at capacity and 6 races setting new attendance records. TV viewership is up, with significant growth in markets like the U.S., where live viewership is up 7%.
MotoGP Acquisition and Growth Potential
Liberty Media completed the acquisition of MotoGP, with plans to enhance global presence and increase sponsorship. Attendance is up 6%, and social media followers grew 6% year-over-year.
Successful F1 Movie Release
The F1 movie saw global box office sales over $500 million, becoming the highest-grossing Apple film to date, contributing to increased global awareness and engagement with the sport.
Negative Updates
Increased Debt Levels
Formula One Group's attributed principal amount of debt was $2.9 billion, with MotoGP's acquisition bringing pro forma leverage to 3.3x.
Challenges in Monetizing MotoGP
MotoGP relies heavily on endemic sponsorships, and there are challenges in scaling sponsorship partners and monetizing the existing fan base.
Las Vegas Grand Prix Financials
Liberty Media is working on improving the profitability of the Las Vegas Grand Prix, with a significant capital investment yet to yield expected returns.
Company Guidance
In the 2025 Second Quarter Earnings Call, Liberty Media provided a comprehensive update on its strategic initiatives and financial performance. The company announced plans to complete the split-off of Liberty Live in the fourth quarter, with Chad Hollingsworth set to lead as CEO. Liberty Media highlighted its acquisition of MotoGP and outlined near- and medium-term priorities for growth, including enhancing commercial functions and expanding global reach, particularly targeting the U.S. market. The company emphasized the significant growth potential for MotoGP, noting that while F1's audience is about double that of MotoGP, F1 monetizes its revenue streams at a much higher rate. Financially, the Formula One Group reported attributed cash and liquid investments of $3.1 billion and a principal debt amount of $2.9 billion. Year-to-date, F1 revenue grew 14% with adjusted OIBDA up 21%. MotoGP's Spanish GAAP revenue for the first half was EUR 220 million, with expectations for higher profitability in the second half. The call also addressed the ongoing U.S. media rights negotiations, emphasizing the balance between reach and payment, and the strategic importance of F1 TV.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 | 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
Positive
93.04
Price Trends
92.21
Positive
89.87
Positive
87.00
Positive
Market Momentum
0.31
Negative
57.47
Neutral
55.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FWONB, the sentiment is Positive. The current price of 93.04 is above the 20-day moving average (MA) of 91.36, above the 50-day MA of 92.21, and above the 200-day MA of 87.00, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 57.47 is Neutral, neither overbought nor oversold. The STOCH value of 55.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $33.40B | 84.61 | 3.79% | ― | 5.77% | -6.97% | |
72 Outperform | $38.69B | 89.84 | 5.11% | 0.38% | 53.33% | ― | |
71 Outperform | $34.59B | 87.86 | 3.79% | ― | 5.77% | -6.97% | |
69 Neutral | $33.40B | 93.37 | 3.79% | ― | 5.77% | -6.97% | |
68 Neutral | $39.64B | 74.23 | 345.87% | ― | -0.39% | 108.72% | |
62 Neutral | $31.05B | 41.52 | 2.18% | ― | -3.79% | ― | |
60 Neutral | $47.27B | 4.45 | -11.27% | 4.14% | 1.88% | -40.90% |
* Communication Services Sector Average
Performance Comparison
FWONB
Liberty Media Liberty Formula One
93.04
21.54
30.13%
FWONA
Liberty Media Liberty Formula One
92.43
22.67
32.50%
LYV
Live Nation Entertainment
174.06
76.79
78.95%
TKO
TKO Group Holdings
202.24
87.83
76.77%
FWONK
Liberty Media Liberty Formula One
102.14
26.84
35.64%
WBD
Warner Bros
16.17
8.51
111.10%
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.