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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:66Neutral
Price Target:
$94.00
▲(8.02% Upside)
Liberty Media Liberty Formula One's overall stock score is driven by strong cash flow and strategic growth initiatives, particularly in Formula One. However, high valuation metrics and profitability challenges weigh down the score. The positive sentiment from the earnings call and strategic partnerships provide a favorable outlook, but the high P/E ratio and lack of dividend yield are significant concerns.
Positive Factors
Free cash flow generation
An 80.7% increase in free cash flow demonstrates durable cash generation ability, supporting reinvestment in media rights, event production, and digital platforms. Strong FCF enhances balance sheet flexibility to fund growth, acquisitions, or deleveraging without relying on equity issuance.
Conservative capital structure
A relatively low debt-to-equity ratio and strong equity ratio indicate conservative leverage, providing financial resilience through cycles. This structural balance supports long-term investments in global event expansion and commercial partnerships while limiting refinancing and interest-rate risks.
Robust commercial momentum in Formula One
Sustained revenue and adjusted OIBDA growth, plus renewals like Heineken and a U.S. distribution deal with Apple, reflect a durable commercial moat in media rights and sponsorships. Expanding global viewership and attendance supports long-term monetization and pricing power.
Negative Factors
Negative net profit margin
Persistent negative net margins indicate the company struggles to convert revenue into net earnings despite top-line growth. Over the medium term this can limit retained earnings, constrain strategic investments, reduce resilience to cost shocks, and delay meaningful profitability improvements.
MotoGP profitability pressures
Rising freight, travel and headcount costs driving MotoGP OIBDA decline signal structural integration and cost control challenges after acquisition. If persistent, higher operating costs can erode margins and cash conversion, requiring sustained efficiency initiatives to restore profitability.
High absolute leverage in sports assets
Elevated absolute debt and high leverage at newly acquired MotoGP constrain financial flexibility and raise interest and refinancing risk. Material debt service needs can divert cash from growth initiatives or require asset sales/deleveraging, impacting long-term strategic optionality.
Liberty Media Liberty Formula One (FWONK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.13B
Dividend YieldN/A
Average Volume (3M)1.16M
Price to Earnings (P/E)139.2
Beta (1Y)0.40
Revenue Growth9.81%
EPS Growth-42.40%
CountryUS
Employees6,486
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.26
Shares Outstanding223,634,690
10 Day Avg. Volume1,367,797
30 Day Avg. Volume1,163,775
Financial Highlights & Ratios
PEG Ratio6.12
Price to Book (P/B)2.89
Price to Sales (P/S)5.85
P/FCF Ratio43.46
Enterprise Value/Market Cap0.82
Enterprise Value/Revenue5.90
Enterprise Value/Gross Profit17.98
Enterprise Value/Ebitda27.84
Forecast
1Y Price Target
$118.20Price Target Upside35.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
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 channels. A significant portion comes from the sale of broadcasting rights to networks around the world, allowing them to air Formula One races and related content. Additionally, the company earns substantial income from sponsorship deals with major global brands that seek to leverage the exposure associated with the sport. Ticket sales from races also contribute to revenue, as fans purchase access to live events. Furthermore, Liberty Formula One monetizes its digital platforms through content distribution and advertising. Strategic partnerships with teams, sponsors, and media outlets further enhance its ability to generate income, making it a multifaceted revenue-generating entity within the sports industry.
Liberty Media Liberty Formula One Key Performance Indicators (KPIs)
Liberty Media Liberty Formula One Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and strategic partnerships for Formula One, demonstrating growth in revenue, attendance, and fan engagement. However, MotoGP faced challenges with increased costs affecting adjusted OIBDA, and both Formula One and MotoGP maintain significant debt levels. Overall, the highlights outweigh the lowlights, indicating a positive outlook.Q3-2025 Updates
Positive Updates
Strong Financial Performance at Formula One
Despite having one fewer race, Formula One's revenue increased by 9% and adjusted OIBDA grew by 15% year-to-date, showcasing robust financial performance across all revenue streams.
Successful Strategic Partnerships
Formula One renewed its partnership with Heineken and signed a landmark distribution partnership with Apple in the U.S. Additionally, F1 has partnered with notable brands such as Hello Kitty and Pottery Barn, highlighting strong commercial alliances.
Record Attendance and Engagement
Formula One has seen a 4% increase in attendance compared to 2024, reaching 5.8 million attendees. Social media followers increased by nearly 20% to 111 million, indicating growing global fan engagement.
MotoGP Growth in Media and Sponsorship
MotoGP's average broadcast audience grew by 17% through the third quarter, and social engagement increased nearly 120%. They have secured renewals of key events and expanded their race calendar to include Brazil and Buenos Aires.
Negative Updates
MotoGP Adjusted OIBDA Decline
MotoGP's adjusted OIBDA declined year-to-date due to increased costs associated with higher freight, travel expenses, and strategic headcount increases.
Debt Levels at Formula One and MotoGP
Formula One Group's total attributed debt was $5.1 billion, with MotoGP's net leverage at 5.6x. Continued efforts are needed to deleverage at both Formula One and MotoGP.
Company Guidance
During Liberty Media Corporation's 2025 Third Quarter Earnings Call, guidance was provided on several key metrics and strategic initiatives. Liberty Media anticipates completing the split-off of Liberty Live on December 15, 2025, with the stock expected to begin trading as a stand-alone asset-backed equity the following day. This move is aimed at better highlighting Liberty's position in Live Nation. The company has seen sustained growth in their sports properties, notably in Formula One, where they continue to expand commercial opportunities, despite having one fewer race this year. This includes a renewal of a global partnership with Heineken, and a landmark distribution partnership with Apple in the U.S. MotoGP, which Liberty acquired on July 3, 2025, is focusing on enhancing the Grand Prix experience and expanding its global footprint. For Formula One, revenue year-to-date increased by 9%, and adjusted OIBDA rose by 15%, driven by strong growth in media rights and sponsorship revenue. Liberty Media's guidance reflects continued investment in growth initiatives, with a particular focus on long-term monetization opportunities in both Formula One and MotoGP.Liberty Media Liberty Formula One Financial Statement Overview
Summary
Liberty Media Liberty Formula One shows strong cash flow generation and a stable balance sheet, with significant free cash flow growth of 80.7%. However, profitability remains a challenge due to a negative net profit margin, despite positive revenue growth and improved operational efficiency.Income Statement
Liberty Media Liberty Formula One has shown a positive revenue growth rate of 4.5% in the TTM, indicating a steady increase in sales. However, the net profit margin remains negative, reflecting ongoing profitability challenges. The gross profit margin is relatively low, suggesting cost management issues. Despite these challenges, the company has improved its EBIT and EBITDA margins over the past year, indicating better operational efficiency.65
Positive
Balance Sheet
The company's debt-to-equity ratio is relatively low, suggesting a conservative leverage position, which is a positive sign of financial stability. However, the return on equity is modest, indicating limited profitability from shareholder investments. The equity ratio is strong, reflecting a solid capital structure with a significant portion of assets financed by equity.70
Positive
Cash Flow
Liberty Media Liberty Formula One has achieved significant free cash flow growth of 80.7% in the TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is healthy, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio is also robust, suggesting effective cash management.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.03B | 3.65B | 3.22B | 2.57B | 2.14B | 1.15B |
| Gross Profit | 1.32B | 1.17B | 982.00M | 823.00M | 647.00M | 171.00M |
| EBITDA | 854.00M | 577.00M | 794.00M | 762.00M | 363.00M | -119.00M |
| Net Income | 205.00M | -30.00M | 185.00M | 558.00M | -190.00M | -596.00M |
Balance Sheet | ||||||
| Total Assets | 17.82B | 11.76B | 10.27B | 11.02B | 11.66B | 11.19B |
| Cash, Cash Equivalents and Short-Term Investments | 1.59B | 2.63B | 1.41B | 1.73B | 2.07B | 1.68B |
| Total Debt | 7.04B | 2.99B | 2.91B | 2.95B | 3.63B | 3.76B |
| Total Liabilities | 9.73B | 4.37B | 3.85B | 4.08B | 4.72B | 4.64B |
| Stockholders Equity | 7.38B | 7.39B | 6.42B | 6.91B | 6.34B | 6.55B |
Cash Flow | ||||||
| Free Cash Flow | 674.00M | 492.00M | 193.00M | 243.00M | 464.00M | -160.00M |
| Operating Cash Flow | 755.00M | 567.00M | 619.00M | 534.00M | 481.00M | -139.00M |
| Investing Cash Flow | -3.15B | -292.00M | -510.00M | 394.00M | -600.00M | 75.00M |
| Financing Cash Flow | 1.00B | 965.00M | -435.00M | -1.27B | 512.00M | 1.16B |
Liberty Media Liberty Formula One Technical Analysis
Negative
87.02
Price Trends
93.27
Negative
97.33
Negative
97.62
Negative
Market Momentum
-2.01
Positive
32.32
Neutral
28.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FWONK, the sentiment is Negative. The current price of 87.02 is below the 20-day moving average (MA) of 90.64, below the 50-day MA of 93.27, and below the 200-day MA of 97.62, indicating a bearish trend. The MACD of -2.01 indicates Positive momentum. The RSI at 32.32 is Neutral, neither overbought nor oversold. The STOCH value of 28.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $30.61B | 14.76 | 17.33% | 0.85% | 14.91% | 9.30% | |
75 Outperform | $200.04B | 16.47 | 11.78% | 1.10% | 3.61% | 152.34% | |
71 Outperform | $39.52B | 80.95 | 5.82% | 1.07% | 56.31% | ― | |
69 Neutral | $33.77B | 106.17 | 79.63% | ― | 5.39% | 36.94% | |
68 Neutral | $68.26B | 146.80 | 1.36% | ― | -4.29% | ― | |
66 Neutral | $29.13B | 139.19 | 2.25% | ― | 9.81% | -42.40% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
FWONK
Liberty Media Liberty Formula One
87.02
-8.68
-9.07%
LYV
Live Nation Entertainment
145.45
-0.39
-0.27%
DIS
Walt Disney
112.80
0.05
0.04%
TKO
TKO Group Holdings
202.58
47.49
30.62%
FOX
Fox
65.57
16.88
34.67%
WBD
Warner Bros
27.54
17.38
171.06%
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.