Formula One Group: Winning Everywhere, Except In The Stock

Bernard Zambonin1.61K FollowersFollow5ShareSavePlay(11min)CommentsSummaryFormula One Group is a high-quality business with robust pricing power and operational leverage but trades at a demanding ~51x forward earnings.Recent growth—FY25 revenues up 14% to $3.9B and operating income up 28%—is offset by a lack of near-term catalysts and tough comps ahead.Team payments, now $1.4B (+11% YoY), structurally limit margin expansion and robust EPS growth despite strong top-line momentum.I assign a Hold rating to FWONK, citing limited asymmetry and little reason for constructive positioning at current valuations. Gareth Cattermole/Getty Images Entertainment I love Formula One as a sport, and I believe we may be living through the peak of sports entertainment hype today. But also, much of this hype (which in fact materialized in strong top- and bottom-line This article was written byBernard Zambonin1.61K FollowersFollowEquity Research Analyst at DM Martins Research.I cover stocks that are often undercovered, focusing primarily on Brazil and Latin America — but I also occasionally write about global large caps. My work can also be found on TipRanks, where I contribute regularly, and on TheStreet, where I was a frequent contributor in the past.- Disclaimer: All views expressed here are my own and do not necessarily reflect the views or official positions of DM Martins Research. My articles and analyses are for educational and informational purposes only and should not be taken as investment advice. Always do your own due diligence before making any investment decisions.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.