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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)61Neutral
Positive Factors
Growth Projections
Despite lowering estimates, there is still optimism for 10%+ and 20%+ adjusted EBITDA and FCF/share CAGR over the next few years, which is compelling at current levels.
Sponsorship Revenue
Sponsorship revenue is solid with expectations of growth, positioning Liberty Media as a key platform for exclusive brands.
Negative Factors
Stock Valuation
The stock is trading at a high multiple compared to its expected growth, suggesting potential risk of derating if growth expectations are not met.
US Media Rights
US media rights are expected to come in lower than anticipated, which is seen as a significant issue.
Vegas GP Impact
Vegas economics drag on OIBDA, with the Vegas GP estimated to continue having a negative impact on earnings until 2027.
Liberty Media Liberty Formula One (FWONK) vs. S&P 500 (SPY)
Market Cap
$28.98B
Dividend YieldN/A
Average Volume (3M)1.45M
Price to Earnings (P/E)―
Beta (1Y)0.66
Revenue Growth12.23%
EPS Growth-110.37%
CountryUS
Employees6,486
SectorCommunication Services
Sector Strength85
IndustryTraditional Media
Share Statistics
EPS (TTM)-0.09
Shares Outstanding222,842,360
10 Day Avg. Volume2,109,856
30 Day Avg. Volume1,451,214
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.82
Price to Cash Flow (P/CF)-231.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$107.67Price Target Upside20.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Liberty Media Liberty Formula One Business Overview & Revenue Model
Company DescriptionLiberty Media's Liberty Formula One, trading under the ticker FWONK, is a subsidiary of Liberty Media Corporation that oversees the commercial rights of the Formula One World Championship. The company operates within the sports and entertainment sector, owning exclusive rights to promote, market, and monetize the globally recognized Formula One racing series. Their core services include organizing races, managing broadcasting rights, sponsorships, and licensing agreements, alongside promoting the sport globally.
How the Company Makes MoneyLiberty Formula One generates revenue through several key streams, primarily from race promotion fees, broadcasting agreements, sponsorships, and merchandise licensing. Race promotion fees are paid by venues hosting the Grand Prix events, forming a significant portion of their income. Broadcasting agreements involve selling exclusive rights to television networks and streaming services worldwide, ensuring extensive coverage of the races. Sponsorships and partnerships with leading global brands contribute another vital revenue stream, as these companies seek to leverage the sport's global reach and fanbase. Additionally, licensing merchandise and other intellectual property rights linked to the Formula One brand provides supplementary income. These revenue streams are bolstered by strategic partnerships and long-term contracts that secure financial stability and growth for the company.
Liberty Media Liberty Formula One Financial Statement Overview
Summary
Liberty Media Liberty Formula One has shown a strong recovery and growth trajectory in recent years, with improvements in revenue, profitability, and cash flow. However, some volatility and missing data in the balance sheet for 2024 suggest areas that require closer monitoring.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 | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.56B | 3.65B | 3.22B | 2.57B | 2.14B | 1.15B | Gross Profit |
| 823.00M | 1.17B | 982.00M | 823.00M | 647.00M | 171.00M | EBIT |
| 198.00M | 287.00M | 297.00M | 231.00M | 77.00M | -444.00M | EBITDA |
| 374.00M | 577.00M | 794.00M | 535.00M | 363.00M | -119.00M | Net Income Common Stockholders |
| -123.00M | -30.00M | 185.00M | 558.00M | -120.00M | -594.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.23B | 2.63B | 1.41B | 1.73B | 2.07B | 1.68B | Total Assets |
| 10.61B | 11.76B | 10.27B | 11.02B | 11.66B | 11.19B | Total Debt |
| 2.90B | 2.99B | 2.91B | 2.95B | 3.63B | 3.76B | Net Debt |
| 1.67B | 361.00M | 1.50B | 1.21B | 1.56B | 2.08B | Total Liabilities |
| 4.12B | 4.37B | 3.85B | 4.08B | 4.72B | 4.64B | Stockholders Equity |
| 6.49B | 7.39B | 6.42B | 6.91B | 6.34B | 6.55B |
| Cash Flow | Free Cash Flow | ||||
| 142.00M | 567.00M | 193.00M | 243.00M | 464.00M | -160.00M | Operating Cash Flow |
| 403.00M | 567.00M | 619.00M | 534.00M | 481.00M | -139.00M | Investing Cash Flow |
| -227.00M | -292.00M | -510.00M | 394.00M | -600.00M | 75.00M | Financing Cash Flow |
| -448.00M | 965.00M | -435.00M | -1.27B | 512.00M | 1.16B |
Liberty Media Liberty Formula One Technical Analysis
Negative
89.26
Price Trends
94.58
Negative
89.87
Negative
82.78
Positive
Market Momentum
-1.02
Positive
38.09
Neutral
35.63
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 89.26 is below the 20-day moving average (MA) of 96.29, below the 50-day MA of 94.58, and above the 200-day MA of 82.78, indicating a neutral trend. The MACD of -1.02 indicates Positive momentum. The RSI at 38.09 is Neutral, neither overbought nor oversold. The STOCH value of 35.63 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
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $24.19B | 11.02 | 20.09% | 1.03% | 4.29% | 177.70% | |
77 Outperform | $137.14B | 8.75 | 19.24% | 3.42% | 1.78% | 11.62% | |
76 Outperform | $30.30B | 46.99 | 827.53% | ― | 1.79% | 99.46% | |
74 Outperform | $190.60B | 34.23 | 5.54% | 0.90% | 3.97% | 89.53% | |
61 Neutral | $28.98B | ― | -0.43% | ― | 12.23% | -110.37% | |
59 Neutral | $30.54B | 0.25 | -13.23% | 4.04% | 2.36% | -49.53% | |
55 Neutral | $4.73B | 83.45 | -20.85% | ― | 21.45% | 47.50% |
* Communication Services Sector Average
Performance Comparison
FWONK
Liberty Media Liberty Formula One
89.26
17.99
25.24%
CMCSA
Comcast
37.59
-4.61
-10.92%
LYV
Live Nation Entertainment
127.51
27.45
27.43%
DIS
Walt Disney
105.51
-5.79
-5.20%
MSGS
Madison Square Garden Sports
196.84
11.96
6.47%
FOX
Fox
51.60
24.70
91.82%
Liberty Media Liberty Formula One Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -5.98% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in Formula One's revenue, sponsorship, and fan engagement. However, there were notable challenges with the Las Vegas Grand Prix's financial performance and uncertainties in the US media rights negotiations. The company is taking steps to address these issues, showing a proactive approach.Highlights
Formula One Revenue Growth
Total revenue grew 6% in 2024, driven by two additional races, contractual increases, and a 10% increase in sponsorship revenue year-over-year.
Strong Financial Position
F1 Group had attributed cash and liquid investments of $2.6 billion at year-end, with a ratio of leverage at 1.3 times.
F1 Sponsorship Success
F1 announced new sponsorship deals with LVMH, Lenovo, and others, contributing to a robust pipeline and strong sponsorship revenue growth for 2025.
Growing F1 Fan Engagement
F1 fanbase reached over 750 million globally, with a 9% increase in unique TV viewers and 38% growth in social media followers.
Sustainable Growth Initiatives
F1 is on track for a net zero carbon footprint by 2030, with sustainable aviation fuel initiatives providing a 19% reduction in emissions.
Lowlights
Las Vegas Grand Prix Underperformance
The Las Vegas Grand Prix missed internal expectations on revenue and OIBDA, primarily due to disappointing ticket sales and hospitality offerings.
Uncertainty in US Media Rights
Ongoing discussions with ESPN and other potential partners suggest uncertainty in securing US broadcast rights, though there's interest in the F1 product.
Challenges in Managing Costs
Efforts are underway to better manage costs associated with the Las Vegas Grand Prix, indicating previous inefficiencies.
Company Guidance
During Liberty Media Corporation's 2024 year-end earnings call, guidance for the upcoming year included several key priorities and financial metrics. The company is focused on closing the Dorna acquisition, with the MotoGP season commencing in March 2025 and featuring a 22-race calendar, up from 20 races in 2024. Liberty Media aims to simplify its structure and highlight the value of its Live Nation equity stake. Formula One's 2024 season set records, and efforts to enhance the Las Vegas Grand Prix's financial performance for 2025 are underway, despite standalone 2024 event economics missing internal expectations on revenue and OIBDA. The company is leveraging two years of data to revise ticketing and cost strategies. Financially, Liberty Media reported $2.6 billion in cash and liquid investments at year-end, with Formula One Group having $2.4 billion in debt. F1's total revenue grew by 6% in 2024, with a 10% increase in sponsorship revenue. Adjusted OIBDA margin improved by nearly 70 basis points year-over-year. The company is in compliance with its debt covenants and is optimistic about continued growth in 2025, especially with 24 F1 races planned and an emphasis on sustainability and diversity.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.