# Liberty Media Corporation Series C Liberty Formula One Common Stock (FWONK.US)

Canonical: https://gigainvestors.com/s/FWONK

Analysis as of: 2026-10-16T07:28:41.633Z. Financial observations: FY2009–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $90.81 per share; close as of 2026-10-15.

Estimated value: low $22.32 per share, central $24.64 per share, high $27.73 per share. Buy at or below the central value $24.64 per share. Valuation as of 2026-10-16T07:28:41.633Z; scenarios are not confidence intervals.

Expected annual return: 4.5% at the stated quote. About 4.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 5

- Operating margin variation: 114.93×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.08×

- FY2017: -0.02×

- FY2018: -0.06×

- FY2019: -0.02×

- FY2020: -0.39×

- FY2021: 0.02×

- FY2022: 0.07×

- FY2023: 0.09×

- FY2024: 0.08×

- FY2025: 0.13×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 5.5pp below the typical margin (limit 4pp)

- ROIC, median of available years: 0.5%

- ROIC, second-lowest year: -0.8%

- Typical minus recent gross margin: 5.5 pp

- Typical gross margin (annual median): 30.4%

- Recent gross margin (lower of latest and 3-year median): 24.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.9%

- ROIC including acquisitions, ten-year median: 1.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 4.1%

- FY2017: -0.3%

- FY2018: -0.8%

- FY2019: -0.2%

- FY2020: -3.2%

- FY2021: 0.3%

- FY2022: 0.7%

- FY2023: 6.5%

- FY2024: 5.7%

- FY2025: 10.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.93×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.1B

- Net income, five-year total: $1.1B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.8 pp

- Working capital / revenue, change between three-year averages: -5.4 pp

- Working capital / revenue, final three-year average: -11.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -1.00×

- FY2022: 1.13×

- FY2023: 1.00×

- FY2024: -8.23×

- FY2025: 1.49×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -0.3% vs 6.5%

- Per-share earnings: 1.09 to 0.78 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -2.9%

- Ordinary dilution, 5-year annual growth: 2.1%

- Market cap gain: $20B

- Cumulative retained earnings: -$10B

- Diluted shares, 10-year annual growth: -2.9%

- Diluted shares, 5-year annual growth: 2.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -4.1%

- Per-share value change: -$0.31

- Per-share value, starting three-year median: $1.09

- Per-share value, ending three-year median: $0.78

- Buybacks concentrated in cheaper years (correlation): -0.03

- Average buyback yield: 0.7%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $16B

- Cumulative net income, 10 years: $605M

- ROIC, first three-year median: -0.3%

- ROIC, last three-year median: 6.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.84

- FY2017: $1.09

- FY2018: -$0.65

- FY2019: -$1.35

- FY2020: -$2.57

- FY2021: -$0.82

- FY2022: $2.39

- FY2023: $0.78

- FY2024: -$0.12

- FY2025: $2.15

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -2.0%

- Receivables to sales index (DSRI): 1.64×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 2.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.57×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.56×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.6%

- FY2017: 2.8%

- FY2018: -3.8%

- FY2019: -5.3%

- FY2020: -4.1%

- FY2021: -5.8%

- FY2022: 0.2%

- FY2023: -4.2%

- FY2024: -5.1%

- FY2025: -2.0%

## Holders

- [Bill Ruane](https://gigainvestors.com/RC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Dennis Hong](https://gigainvestors.com/SP): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Chase Coleman](https://gigainvestors.com/TGM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 20% a year for ten years · "Future Revenue Secured: $14.2 billion under contract as of March 31." (finance.yahoo.com, May 2025) · sales +22.7%

Story as of 2026-10-16T09:58:47.977Z; price observation 2026-10-15.

Price needs cash profits to grow 20% a year for ten years

- 2026-04-15: Liberty Formula One Set for Solid Q1 as Sponsorship Momentum, Margins Improve, UBS Says ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/liberty-formula-one-set-solid-193807555.html))

### Sales · FY2024–2025

sales +22.7%; source https://www.sec.gov/Archives/edgar/data/1560385/000110465926020653/lmca-20251231x10k.htm; observed 2026-02-26.

- FY2016: $5.3B 

- FY2017: $1.8B 

- FY2018: $1.8B 

- FY2019: $2.0B 

- FY2020: $1.1B 

- FY2021: $2.1B 

- FY2022: $2.6B 

- FY2023: $3.2B 

- FY2024: $3.7B 

- FY2025: $4.5B 

### Gross margin · FY2025

gross margin 24.9%; source https://www.sec.gov/Archives/edgar/data/1560385/000110465926020653/lmca-20251231x10k.htm; observed 2026-02-26.

- FY2017: 31.6% 

- FY2018: 30.3% 

- FY2019: 31.1% 

- FY2020: 14.9% 

- FY2021: 30.3% 

- FY2022: 32.0% 

- FY2023: 30.5% 

- FY2024: 31.9% 

- FY2025: 24.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in entertainment; annual sales are USD 4.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1560385/000110465926020653/lmca-20251231x10k.htm (filed 2026-02-26); FY2025: revenue 4482000000; grossProfit 1118000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 24.9% to 31.9% during 2023–25; it earns 0.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 30.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 31.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1560385/000110465926020653/lmca-20251231x10k.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 24.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2016,0.040934419323128766],[2017,-0.0027492604837306422],[2018,-0.007592835299257318],[2019,-0.0024650084692876884],[2020,-0.03164561530133526],[2021,0.0032430213464696225],[2022,0.006889136667728576],[2023,0.0653863319019205],[2024,0.05729422604422604],[2025,0.102293377374484]]; median 0.005066079007099099. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 32% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1560385/000110465926020653/lmca-20251231x10k.htm (filed 2026-02-26); Gross margin observations: [[2021,0.30290262172284643],[2022,0.3198600855033035],[2023,0.3047796399751707]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 6 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2016: growth capex 0; upkeep 2000000; owner earnings 337000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2017: growth capex 0; upkeep 10000000; owner earnings 650000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2018: growth capex 0; upkeep 14000000; owner earnings 296000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2019: growth capex 0; upkeep 44000000; owner earnings 98000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2021: growth capex 0; upkeep 17000000; owner earnings 190000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2022: growth capex 0; upkeep 291000000; owner earnings 629000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: growth capex 57000000; upkeep 369000000; owner earnings 185000000. Growth capex / owner earnings = 0.3081081081081081.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 0; upkeep 75000000; owner earnings 247000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1560385/000110465926020653/lmca-20251231x10k.htm (filed 2026-02-26); FY2025: growth capex 0; upkeep 119000000; owner earnings 829000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,0],[2017,60000000],[2018,59000000],[2019,68000000],[2020,64000000],[2021,58],[2022,249000000],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 1.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FWONK.US SharesStats.PercentInsiders = 1.402 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 20% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Ten-year compound average after fade. Initial solved rate 0.27726656385131243. Price 90.81; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.5061021458730985 → FY2025 3.2131782945736433. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $27.41 per share

- 2016-11: $31.15 per share

- 2016-12: $31.33 per share

- 2017-01: $28.74 per share

- 2017-02: $30.70 per share

- 2017-03: $34.15 per share

- 2017-04: $35.02 per share

- 2017-05: $33.30 per share

- 2017-06: $36.62 per share

- 2017-07: $35.17 per share

- 2017-08: $39.30 per share

- 2017-09: $38.09 per share

- 2017-10: $38.14 per share

- 2017-11: $36.40 per share

- 2017-12: $34.16 per share

- 2018-01: $37.69 per share

- 2018-02: $32.93 per share

- 2018-03: $30.85 per share

- 2018-04: $29.52 per share

- 2018-05: $31.58 per share

- 2018-06: $37.13 per share

- 2018-07: $35.25 per share

- 2018-08: $36.96 per share

- 2018-09: $37.19 per share

- 2018-10: $33.08 per share

- 2018-11: $29.82 per share

- 2018-12: $30.70 per share

- 2019-01: $31.37 per share

- 2019-02: $31.12 per share

- 2019-03: $35.05 per share

- 2019-04: $38.81 per share

- 2019-05: $37.33 per share

- 2019-06: $37.41 per share

- 2019-07: $39.38 per share

- 2019-08: $41.74 per share

- 2019-09: $41.59 per share

- 2019-10: $42.50 per share

- 2019-11: $45.09 per share

- 2019-12: $45.97 per share

- 2020-01: $46.79 per share

- 2020-02: $39.06 per share

- 2020-03: $27.23 per share

- 2020-04: $32.19 per share

- 2020-05: $34.65 per share

- 2020-06: $31.71 per share

- 2020-07: $35.44 per share

- 2020-08: $38.98 per share

- 2020-09: $36.27 per share

- 2020-10: $36.13 per share

- 2020-11: $41.78 per share

- 2020-12: $42.60 per share

- 2021-01: $40.23 per share

- 2021-02: $43.90 per share

- 2021-03: $43.29 per share

- 2021-04: $46.94 per share

- 2021-05: $44.65 per share

- 2021-06: $48.21 per share

- 2021-07: $46.93 per share

- 2021-08: $50.54 per share

- 2021-09: $51.41 per share

- 2021-10: $55.80 per share

- 2021-11: $60.92 per share

- 2021-12: $63.24 per share

- 2022-01: $60.23 per share

- 2022-02: $60.73 per share

- 2022-03: $69.84 per share

- 2022-04: $62.33 per share

- 2022-05: $62.29 per share

- 2022-06: $63.47 per share

- 2022-07: $67.77 per share

- 2022-08: $63.68 per share

- 2022-09: $58.50 per share

- 2022-10: $57.73 per share

- 2022-11: $60.94 per share

- 2022-12: $59.78 per share

- 2023-01: $70.80 per share

- 2023-02: $67.87 per share

- 2023-03: $74.83 per share

- 2023-04: $72.19 per share

- 2023-05: $70.40 per share

- 2023-06: $75.28 per share

- 2023-07: $72.60 per share

- 2023-08: $68.79 per share

- 2023-09: $62.30 per share

- 2023-10: $64.69 per share

- 2023-11: $63.66 per share

- 2023-12: $63.13 per share

- 2024-01: $67.25 per share

- 2024-02: $72.76 per share

- 2024-03: $65.60 per share

- 2024-04: $69.97 per share

- 2024-05: $74.14 per share

- 2024-06: $71.84 per share

- 2024-07: $80.87 per share

- 2024-08: $78.05 per share

- 2024-09: $77.43 per share

- 2024-10: $79.84 per share

- 2024-11: $88.36 per share

- 2024-12: $92.66 per share

- 2025-01: $95.70 per share

- 2025-02: $96.43 per share

- 2025-03: $90.01 per share

- 2025-04: $88.67 per share

- 2025-05: $96.53 per share

- 2025-06: $104.50 per share

- 2025-07: $100.35 per share

- 2025-08: $99.90 per share

- 2025-09: $104.45 per share

- 2025-10: $99.85 per share

- 2025-11: $95.98 per share

- 2025-12: $98.51 per share

- 2026-01: $87.02 per share

- 2026-02: $91.59 per share

- 2026-03: $85.02 per share

- 2026-04: $85.95 per share

- 2026-05: $90.79 per share

- 2026-06: $95.14 per share

- 2026-07: $98.13 per share

- 2026-08: $99.95 per share

- 2026-09: $92.40 per share

- 2026-10: $94.04 per share

## Annual estimated value (USD per share)

- FY2016: low $20.81 per share, central $23.65 per share, high $27.42 per share

- FY2017: low $6.14 per share, central $6.87 per share, high $7.85 per share

- FY2018: low $5.93 per share, central $6.69 per share, high $7.71 per share

- FY2019: low $7.87 per share, central $8.71 per share, high $9.83 per share

- FY2020: low $8.96 per share, central $9.43 per share, high $10.07 per share

- FY2021: low $15.99 per share, central $17.22 per share, high $18.86 per share

- FY2022: low $16.70 per share, central $18.17 per share, high $20.14 per share

- FY2023: low $14.20 per share, central $15.38 per share, high $16.94 per share

- FY2024: low $21.09 per share, central $22.59 per share, high $24.57 per share

- FY2025: low $20.63 per share, central $22.96 per share, high $26.06 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:34:23.653Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1560385/000110465926020653/lmca-20251231x10k.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.