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Liberty Media Corporation Series C Liberty Formula One (FWONK)
NASDAQ:FWONK
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Liberty Media Liberty Formula One
(NASDAQ:FWONK)
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Rating:69Neutral
Price Target:
$112.00
▲(8.02% Upside)
The overall stock score is driven by strong earnings call sentiment and positive technical indicators. However, concerns about profitability and high valuation metrics weigh down the score. The company's strategic initiatives and growth in key areas like Formula 1 and MotoGP provide a positive outlook, but profitability improvements are needed to enhance the stock's attractiveness.
Positive Factors
Revenue Growth
Strong revenue growth in Formula 1 indicates robust demand and successful monetization strategies, enhancing long-term financial stability.
Sponsorship Growth
New sponsorship deals with major brands like Pepsi boost revenue streams and increase brand visibility, supporting sustained business growth.
Diverse Audience Engagement
A diverse and growing audience enhances market reach and attractiveness to sponsors, supporting long-term engagement and revenue potential.
Negative Factors
Profitability Concerns
Ongoing profitability challenges could hinder reinvestment and growth, requiring improved cost management for sustainable financial health.
High Leverage
High leverage post-MotoGP acquisition increases financial risk, potentially limiting flexibility for future investments and strategic initiatives.
MotoGP Financial Challenges
Declining MotoGP revenue highlights operational challenges, which could impact overall profitability and require strategic adjustments.
Liberty Media Liberty Formula One (FWONK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.35B
Dividend YieldN/A
Average Volume (3M)1.01M
Price to Earnings (P/E)97.9
Beta (1Y)0.47
Revenue Growth5.77%
EPS Growth-6.97%
CountryUS
Employees6,486
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)1.52
Shares Outstanding223,627,030
10 Day Avg. Volume882,602
30 Day Avg. Volume1,005,261
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 Cap0.76
Enterprise Value/Revenue6.78
Enterprise Value/Gross Profit21.42
Enterprise Value/Ebitda30.39
Forecast
1Y Price Target
$113.93Price Target Upside9.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
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 multiple key streams, including the sale of broadcasting rights, sponsorship deals, and race hosting fees. The company earns significant income from long-term broadcasting agreements with networks and streaming services that pay for the rights to air Formula One races globally. Additionally, Liberty Formula One benefits from substantial sponsorship deals with major brands looking to leverage the sport's global audience for advertising and marketing purposes. The organization also receives race hosting fees from cities and countries that wish to host Formula One events, further contributing to its revenue. Collaborations with teams and partners in the automotive and technology sectors enhance its earnings potential through joint ventures and innovative initiatives.
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
Liberty Media's earnings call highlighted robust growth in Formula 1's financials, record engagement in MotoGP, and the successful acquisition of MotoGP. However, challenges include MotoGP's recent financial performance issues and high leverage post-acquisition. Despite these concerns, the overall sentiment is positive due to strong sponsorship growth, successful media endeavors, and strategic initiatives.Q2-2025 Updates
Positive Updates
Strong Formula 1 Financial Performance
Formula 1 revenue up 14% and adjusted OIBDA up 21% year-to-date through the second quarter, driven by sponsorship, race promotion, and media rights growth.
Record Attendance and Engagement in MotoGP
MotoGP attendance increased by 6% year-over-year, with record attendance at various Grand Prix events. MotoGP's social media followers grew by 6% year-over-year.
Successful Completion of MotoGP Acquisition
Liberty Media completed its acquisition of MotoGP, acquiring 84% of the company, with plans to enhance growth and leverage synergies with Formula 1.
Formula 1 Movie Success
The F1 movie achieved over $500 million in global box office sales, becoming the highest-grossing Apple film to date, contributing to increased brand awareness.
Strong Sponsorship Growth
Formula 1 entered into significant new partnerships, including with Pepsi and MSC Cruises, with high visibility into the pipeline for 2026 and beyond.
Negative Updates
MotoGP Financial Challenges
MotoGP faced a decline in revenue from EUR 486 million in 2023 to EUR 462 million in 2024, impacted by race cancellations and lower fee races.
High Leverage Post MotoGP Acquisition
Post-acquisition, Formula One OpCo had approximately $3.4 billion of debt, bringing pro forma leverage to 3.3x.
Challenges in Competitive Balance for F1 Teams
Despite efforts, competitive balance issues remain in F1, with six out of ten teams not competing effectively for championships or podiums.
Company Guidance
During the Liberty Media Corporation's 2025 Second Quarter Earnings Call, several key metrics and guidance points were discussed. Formula One (F1) saw significant financial success, with revenue up 14% and adjusted OIBDA rising by 21% year-to-date. This growth was driven by increased sponsorship, media rights, and race promotion revenues. F1's global fan base reached 826 million in 2024, with 43% under the age of 35 and 42% female, highlighting a diverse and growing audience. Additionally, MotoGP, which Liberty acquired an 84% stake in, reported a 6% increase in race attendance year-to-date, setting record attendance at several circuits. Average TV viewership for MotoGP stood at 38.2 million through the first 12 races, with social media followers growing 6% year-over-year to nearly 60 million. Liberty plans to delever both F1 and MotoGP, targeting a 3 to 4x leverage ratio for MotoGP by the end of 2026. The call also detailed the impact of the F1 movie, which grossed over $500 million in its first five weeks, contributing a mid-teens million-dollar figure to quarterly revenue.Liberty Media Liberty Formula One Financial Statement Overview
Summary
Liberty Media Liberty Formula One demonstrates robust revenue growth and a stable balance sheet, but profitability and cash flow variability present ongoing challenges. The company shows potential for growth with an expanding asset base and manageable leverage, yet needs to address profitability issues to enhance overall financial stability.Income Statement
Liberty Media Liberty Formula One has exhibited a strong revenue growth trajectory with a significant increase from $1.145 billion in 2020 to $3.513 billion in TTM 2025. Despite this growth, profitability is a concern, as evidenced by a negative net income in recent periods, particularly in TTM 2025. Gross profit margins have improved over the years, indicating efficiency in cost management, but the negative net profit margin in TTM 2025 highlights ongoing profitability challenges.65
Positive
Balance Sheet
The company's balance sheet shows a strong equity position with a stable equity ratio around 50% in TTM 2025. The debt-to-equity ratio is reasonable, reflecting manageable leverage levels. The return on equity is variable, influenced by fluctuating net incomes, but the overall asset base has expanded, indicating growth potential.70
Positive
Cash Flow
Liberty Media Liberty Formula One's cash flows have shown improvement, with consistent free cash flow generation. Operating cash flow to net income ratios highlight strong cash generation capabilities despite negative net income in TTM 2025. However, fluctuations in free cash flow growth rates suggest variability in cash flow management and potential risks in cash sustainability.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.87B | 3.65B | 3.22B | 2.57B | 2.14B | 1.15B |
| Gross Profit | 1.22B | 1.17B | 982.00M | 823.00M | 647.00M | 171.00M |
| EBITDA | 863.00M | 577.00M | 794.00M | 762.00M | 363.00M | -119.00M |
| Net Income | 256.00M | -30.00M | 185.00M | 558.00M | -190.00M | -596.00M |
Balance Sheet | ||||||
| Total Assets | 12.48B | 11.76B | 10.27B | 11.02B | 11.66B | 11.19B |
| Cash, Cash Equivalents and Short-Term Investments | 3.14B | 2.63B | 1.41B | 1.73B | 2.07B | 1.68B |
| Total Debt | 3.03B | 2.99B | 2.91B | 2.95B | 3.63B | 3.76B |
| Total Liabilities | 4.63B | 4.37B | 3.85B | 4.08B | 4.72B | 4.64B |
| Stockholders Equity | 7.85B | 7.39B | 6.42B | 6.91B | 6.34B | 6.55B |
Cash Flow | ||||||
| Free Cash Flow | 694.00M | 492.00M | 193.00M | 243.00M | 464.00M | -160.00M |
| Operating Cash Flow | 784.00M | 567.00M | 619.00M | 534.00M | 481.00M | -139.00M |
| Investing Cash Flow | -104.00M | -292.00M | -510.00M | 394.00M | -600.00M | 75.00M |
| Financing Cash Flow | 967.00M | 965.00M | -435.00M | -1.27B | 512.00M | 1.16B |
Liberty Media Liberty Formula One Technical Analysis
Positive
103.68
Price Trends
100.88
Positive
99.26
Positive
95.13
Positive
Market Momentum
0.30
Negative
58.47
Neutral
78.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FWONK, the sentiment is Positive. The current price of 103.68 is above the 20-day moving average (MA) of 100.92, above the 50-day MA of 100.88, and above the 200-day MA of 95.13, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 58.47 is Neutral, neither overbought nor oversold. The STOCH value of 78.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FWONK.
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 |
|---|---|---|---|---|---|---|---|
80 Outperform | 25.05B | 10.91 | 18.92% | 1.02% | 16.60% | 57.39% | |
76 Outperform | 208.74B | 18.20 | 10.58% | 0.87% | 5.00% | 144.65% | |
72 Outperform | 39.93B | 92.72 | 4.94% | 0.75% | 53.33% | 0.00% | |
69 Neutral | $34.35B | 97.91 | 3.79% | ― | 5.77% | -6.97% | |
68 Neutral | 44.54B | 61.92 | 2.13% | ― | -3.79% | 0.00% | |
68 Neutral | 39.29B | 71.53 | 255.34% | ― | -0.39% | 108.72% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
Performance Comparison
FWONK
Liberty Media Liberty Formula One
103.68
24.65
31.19%
LYV
Live Nation Entertainment
164.68
60.36
57.86%
DIS
Walt Disney
114.86
22.22
23.99%
TKO
TKO Group Holdings
202.80
79.39
64.33%
FOX
Fox
54.02
16.87
45.41%
WBD
Warner Bros
18.70
10.30
122.62%
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.