DB:LM05

Stock Analysis Report

Formula One Group

Executive Summary

Formula One Group operates in the motorsports business.


Snowflake Analysis

Reasonable growth potential and overvalued.

Share Price & News

How has Formula One Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LM05's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.8%

LM05

20.6%

DE Entertainment

7.2%

DE Market


1 Year Return

-27.7%

LM05

-8.9%

DE Entertainment

-17.5%

DE Market

Return vs Industry: LM05 underperformed the German Entertainment industry which returned -8.6% over the past year.

Return vs Market: LM05 underperformed the German Market which returned -14.1% over the past year.


Shareholder returns

LM05IndustryMarket
7 Day7.8%20.6%7.2%
30 Day-40.3%-22.1%-22.3%
90 Day-43.1%-27.5%-26.1%
1 Year-27.7%-27.7%-7.7%-8.9%-14.9%-17.5%
3 Year-26.5%-26.5%-2.8%-7.5%-18.7%-25.7%
5 Yearn/a40.5%29.3%-17.8%-29.1%

Price Volatility Vs. Market

How volatile is Formula One Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Formula One Group undervalued compared to its fair value and its price relative to the market?

13.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LM05 (€22.2) is trading below our estimate of fair value (€25.68)

Significantly Below Fair Value: LM05 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LM05 is unprofitable, so we can't compare its PE Ratio to the Entertainment industry average.

PE vs Market: LM05 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LM05's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LM05 is overvalued based on its PB Ratio (1.2x) compared to the DE Entertainment industry average (1.1x).


Next Steps

Future Growth

How is Formula One Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

94.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LM05 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: LM05 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LM05's is expected to become profitable in the next 3 years.

Revenue vs Market: LM05's revenue (6.7% per year) is forecast to grow faster than the German market (4% per year).

High Growth Revenue: LM05's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LM05 is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Formula One Group performed over the past 5 years?

-28.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LM05 is currently unprofitable.

Growing Profit Margin: LM05 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LM05 is unprofitable, and losses have increased over the past 5 years at a rate of -28.4% per year.

Accelerating Growth: Unable to compare LM05's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LM05 is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (-50.4%).


Return on Equity

High ROE: LM05 has a negative Return on Equity (-5.93%), as it is currently unprofitable.


Next Steps

Financial Health

How is Formula One Group's financial position?


Financial Position Analysis

Short Term Liabilities: LM05's short term assets ($748.0M) exceed its short term liabilities ($426.0M).

Long Term Liabilities: LM05's short term assets ($748.0M) do not cover its long term liabilities ($5.8B).


Debt to Equity History and Analysis

Debt Level: LM05's debt to equity ratio (108.3%) is considered high.

Reducing Debt: Insufficient data to determine if LM05's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: LM05 has a low level of unsold assets or inventory.

Debt Coverage by Assets: LM05's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: LM05 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: LM05 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Formula One Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LM05's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LM05's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LM05's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LM05's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LM05's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?


CEO

Chase Carey (66yo)

no data

Tenure

Mr. Charles Carey, also known as Chase, has been Chief Executive at Formula One World Championship Limited since January 2017. Mr. Carey has been the Chief Executive Officer at Delta Topco Limited since Ja ...


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Formula One Group's company bio, employee growth, exchange listings and data sources


Key Information


Location

  • Formula One Group
  • 12300 Liberty Boulevard
  • Englewood
  • Colorado
  • 80112
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FWON.KNasdaqGS (Nasdaq Global Select)YesSeries C Common StockUSUSDApr 2016
FWON.ANasdaqGS (Nasdaq Global Select)Series A Common StockUSUSDApr 2016
LM05DB (Deutsche Boerse AG)Series A Common StockDEEURApr 2016
0JUJLSE (London Stock Exchange)Series A Common StockGBUSDApr 2016
FWON.BOTCPK (Pink Sheets LLC)Series B Common StockUSUSDApr 2016

Biography

Formula One Group operates in the motorsports business. It holds commercial rights for the world championship, a motor race-based competition in which teams compete for the constructors’ championship and drivers compete for the drivers’ championship. The company is based in Englewood, Colorado. Formula One Group operates as a subsidiary of Liberty Media Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/27 23:38
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.