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Liberty Media Corporation Series C Liberty Formula One (FWONK)
:FWONK
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Liberty Media Liberty Formula One
(NASDAQ:FWONK)
Rating:76Outperform
Price Target:
$109.00
▲(11.59%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
$30.90B
Dividend YieldN/A
Average Volume (3M)1.03M
Price to Earnings (P/E)―
Beta (1Y)0.53
Revenue Growth3.60%
EPS Growth-120.30%
CountryUS
Employees6,486
SectorCommunication Services
Sector Strength89
IndustryEntertainment
Share Statistics
EPS (TTM)0.09
Shares Outstanding223,022,900
10 Day Avg. Volume978,018
30 Day Avg. Volume1,031,622
Financial Highlights & Ratios
PEG Ratio-0.31
Price to Book (P/B)1.99
Price to Sales (P/S)0.00
P/FCF Ratio41.76
Enterprise Value/Market Cap0.50
Enterprise Value/Revenue1.07
Enterprise Value/Gross Profit15.45
Enterprise Value/Ebitda6.33
Forecast
1Y Price Target
$108.75Price Target Upside11.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Liberty Media Liberty Formula One Business Overview & Revenue Model
Company DescriptionLiberty Media Corporation's Liberty Formula One Group (FWONK) is a segment of Liberty Media that holds the commercial rights to the Formula One World Championship, a premier global motorsport event. The company is focused on the promotion, marketing, and broadcasting of Formula One races worldwide.
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: 6.91%|
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 a stable balance sheet with manageable leverage. However, profitability challenges and cash flow variability remain key concerns. The company demonstrates growth potential with an expanding asset base but needs to address profitability to enhance 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.75
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.80
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.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.51B | 3.65B | 3.22B | 2.57B | 2.14B | 1.15B | Gross Profit |
| 1.00B | 1.17B | 982.00M | 823.00M | 647.00M | 171.00M | EBIT |
| 121.00M | 287.00M | 297.00M | 173.00M | 40.00M | -444.00M | EBITDA |
| 334.00M | 577.00M | 794.00M | 762.00M | 363.00M | -119.00M | Net Income Common Stockholders |
| -102.00M | -30.00M | 185.00M | 558.00M | -190.00M | -596.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 372.00M | 2.63B | 1.41B | 1.73B | 2.07B | 1.68B | Total Assets |
| 11.37B | 11.76B | 10.27B | 11.02B | 11.66B | 11.19B | Total Debt |
| 5.20B | 2.99B | 2.91B | 2.95B | 3.63B | 3.76B | Net Debt |
| 4.83B | 361.00M | 1.50B | 1.21B | 1.56B | 2.08B | Total Liabilities |
| 5.97B | 4.37B | 3.85B | 4.08B | 4.72B | 4.64B | Stockholders Equity |
| 5.39B | 7.39B | 6.42B | 6.91B | 6.34B | 6.55B |
| Cash Flow | Free Cash Flow | ||||
| 727.00M | 492.00M | 193.00M | 243.00M | 464.00M | -160.00M | Operating Cash Flow |
| 808.00M | 567.00M | 619.00M | 534.00M | 481.00M | -139.00M | Investing Cash Flow |
| -177.00M | -292.00M | -510.00M | 394.00M | -600.00M | 75.00M | Financing Cash Flow |
| 963.00M | 965.00M | -435.00M | -1.27B | 512.00M | 1.16B |
Liberty Media Liberty Formula One Technical Analysis
Positive
97.68
Price Trends
90.60
Positive
91.71
Positive
87.57
Positive
Market Momentum
1.76
Positive
61.37
Neutral
65.29
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 97.68 is above the 20-day moving average (MA) of 97.02, above the 50-day MA of 90.60, and above the 200-day MA of 87.57, indicating a bullish trend. The MACD of 1.76 indicates Positive momentum. The RSI at 61.37 is Neutral, neither overbought nor oversold. The STOCH value of 65.29 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $23.57B | 13.61 | 16.89% | 1.00% | 15.70% | 26.73% | |
78 Outperform | $204.76B | 23.26 | 8.75% | 0.82% | 5.33% | 431.28% | |
77 Outperform | $33.31B | 49.20 | 827.53% | ― | -2.92% | 166.63% | |
76 Outperform | $30.90B | ― | -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 | $14.78B | 5.89 | -4.32% | 3.67% | 2.75% | -30.30% |
* Communication Services Sector Average
Performance Comparison
FWONK
Liberty Media Liberty Formula One
97.76
26.23
36.67%
LYV
Live Nation Entertainment
143.71
53.83
59.89%
DIS
Walt Disney
118.73
18.84
18.86%
TKO
TKO Group Holdings
164.60
56.95
52.90%
FOXA
Fox
54.73
21.69
65.65%
WBD
Warner Bros
10.01
2.20
28.17%
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.