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Liberty Media Corporation Series C Liberty Formula One (FWONK)
NASDAQ:FWONK
RESEARCH TOOLSreports
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Liberty Media Liberty Formula One
(NASDAQ:FWONK)
Rating:76Outperform
Price Target:
$109.00
▲(10.12%Upside)
Positive Factors
Acquisition and Growth
The acquisition of MotoGP, the world’s premier motorcycle road racing league, is expected to materially accelerate the organic F1 growth rate.
Audience Engagement
F1 continues to have strong global engagement momentum, with this season showing particular audience strength in the US, up 45% YoY.
Negative Factors
Market Complexity
The tracking stock structure and pending large acquisition create a fair amount of complexity for investors.
Media Rights Concerns
US media rights are expected to come in lower than anticipated, which is seen as a significant issue.
Liberty Media Liberty Formula One (FWONK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.35B
Dividend YieldN/A
Average Volume (3M)1.04M
Price to Earnings (P/E)―
Beta (1Y)0.53
Revenue Growth3.60%
EPS Growth-120.30%
CountryUS
Employees6,486
SectorCommunication Services
Sector Strength88
IndustryEntertainment
Share Statistics
EPS (TTM)0.09
Shares Outstanding223,022,900
10 Day Avg. Volume900,487
30 Day Avg. Volume1,038,492
Financial Highlights & Ratios
PEG Ratio0.67
Price to Book (P/B)3.22
Price to Sales (P/S)0.00
P/FCF Ratio61.56
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue2.14
Enterprise Value/Gross Profit31.31
Enterprise Value/Ebitda-13.29
Forecast
1Y Price Target
$108.75Price Target Upside9.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
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 various streams, primarily from race promotion fees paid by circuits to host Grand Prix events, broadcasting rights from television networks and digital platforms for live coverage and highlights, and sponsorship agreements with global brands. The company also earns income from licensing and merchandising, which includes the sale of official Formula One products and video game rights. Additionally, Formula One benefits from hosting fan engagement events and experiences, contributing to its financial performance.
Liberty Media Liberty Formula One Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 8.33%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Positive
The call highlighted a strong start to 2025 with record attendance, robust sponsorship growth, and an expanding Formula One calendar. While there were challenges with revenue recognition due to fewer races and increased operational costs, the overall trajectory and strategic initiatives suggest a positive outlook.Q1-2025 Updates
Positive Updates
Record Attendance at Formula One Events
The Argentina Grand Prix set a new attendance record with over 200,000 spectators. Other events, such as Thailand and Coda, also saw significant increases in attendance, with 15% and 24% growth, respectively, over previous years.
Strong Sponsorship and Licensing Growth
Continued momentum in sponsorship and licensing, including successful collaborations like the LEGO partnership, which captivated fans. Sponsorship pipeline for 2026 is strong, with focus on securing blue-chip names.
Formula One's Robust Financial Position
As of March 31, Formula One had $14.2 billion of future revenue secured under contract. Advanced ticket sales for promoters and hospitality tickets remain strong.
Expansion of Formula One Calendar
The addition of new races and extensions of key events through long-term agreements, such as the Miami GP extended through 2041, highlights the growth and popularity of Formula One.
Growing Fan Engagement
LiveTV viewership grew for the first five races of the season, with U.S. viewership up 45%. Social media following reached 100 million, growing 30% year-over-year.
Negative Updates
Decrease in Race Promotion Revenue
Race promotion revenue decreased due to fewer races held in Q1 2025 compared to Q1 2024, impacting year-over-year comparisons.
Challenges in Sponsorship Revenue Recognition
Sponsorship revenue declined due to changes in race-specific local title sponsorships and recognition shifted with timing of races.
Increased Operational Costs
Higher freight costs with longer routes flown and increased commissions and partner servicing costs impacted financials.
Company Guidance
In Liberty Media Corporation's 2025 Q1 earnings call, several key metrics and strategic priorities were discussed, signaling a promising start to the year. The company is progressing with the Dorna acquisition and anticipates regulatory approval by June 30, 2025. MotoGP's calendar has expanded to 22 races, with significant attendance growth noted at events like the Argentina Grand Prix, which drew over 200,000 spectators. Formula One's performance is robust, with future revenue secured at $14.2 billion as of March 31, 2025, and strong advance ticket sales. The company is also focused on structural simplification, including the planned split-off of Liberty Live. Sponsorship and licensing momentum is strong, with notable activations such as the LEGO partnership in Miami, and advanced discussions for U.S. media rights. Additionally, Formula One's social media following has reached 100 million, growing 30% year-over-year, and media viewership is up 45% in the U.S. Overall, Formula One's cash flow visibility and resilience amidst economic uncertainties reinforce its solid financial outlook.Liberty Media Liberty Formula One Financial Statement Overview
Summary
Liberty Media Liberty Formula One shows strong revenue growth and profitability improvements, with a transition to positive free cash flow. However, balance sheet volatility and missing data for 2024 require attention.Income Statement
Liberty Media Liberty Formula One has demonstrated strong revenue growth with a significant increase in total revenue from 2020 to 2024. The gross profit margin remains high, indicating efficient cost management. However, fluctuations in net profit margin suggest volatility in profitability, with a notable improvement in recent years. The company has successfully transitioned from net losses to consistent net income, which is a positive trajectory.75
Positive
Balance Sheet
The company's balance sheet shows a solid equity position relative to its assets, but the absence of current data on debt and equity for 2024 limits a complete assessment. Historically, the debt-to-equity ratio has improved, indicating reduced leverage, which is favorable. However, missing equity data in the most recent year makes it difficult to assess current financial health comprehensively.60
Neutral
Cash Flow
The cash flow analysis shows a transition to positive free cash flow in recent years, which is a positive development. Operating cash flow remains strong, supporting net income growth, although the free cash flow growth rate fluctuates, highlighting potential investment and financing challenges. Overall, the cash flow position is improving but faces some volatility.68
Positive
| 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
Positive
98.98
Price Trends
90.26
Positive
91.60
Positive
87.39
Positive
Market Momentum
1.93
Positive
68.26
Neutral
84.11
Negative
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 98.98 is above the 20-day moving average (MA) of 96.72, above the 50-day MA of 90.26, and above the 200-day MA of 87.39, indicating a bullish trend. The MACD of 1.93 indicates Positive momentum. The RSI at 68.26 is Neutral, neither overbought nor oversold. The STOCH value of 84.11 is Negative, 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $23.37B | 13.52 | 16.89% | 0.99% | 15.70% | 26.73% | |
78 Outperform | $204.76B | 23.26 | 8.75% | 0.83% | 5.33% | 431.28% | |
77 Outperform | $33.41B | 49.35 | 827.53% | ― | -2.92% | 166.63% | |
76 Outperform | $31.35B | ― | -1.22% | ― | 3.60% | -120.30% | |
74 Outperform | $32.84B | 96.33 | 4.19% | 0.23% | 63.73% | ― | |
63 Neutral | $24.30B | ― | -27.69% | ― | -5.58% | -254.85% | |
61 Neutral | $14.60B | 5.95 | -4.32% | 3.69% | 2.76% | -30.49% |
* Communication Services Sector Average
Performance Comparison
FWONK
Liberty Media Liberty Formula One
98.98
26.77
37.07%
LYV
Live Nation Entertainment
144.15
54.40
60.61%
DIS
Walt Disney
113.90
12.08
11.86%
TKO
TKO Group Holdings
165.94
58.31
54.18%
FOXA
Fox
54.37
21.06
63.22%
WBD
Warner Bros
9.82
1.70
20.94%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.