Liberty Media Corp (FWONA) Stock Analysis
Liberty Media Corp (FWONA) Stock Analysis
Overall Grade: F (Concerning)
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Liberty Media Corp faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | 3.7% | Below expectations |
| FCF Margin | -2.7% | Cash flow pressure |
| Debt/Equity | 0.7x | Moderate leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
What is Liberty Media Corp's Profitability and ROIC?
Liberty Media Corp's return on invested capital of 3.7% is below the typical cost of capital.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 3.7% | Red flag | Below cost of capital |
| Return on Equity (ROE) | 7.6% | Warning | Moderate equity returns |
| Operating Margin | 12.9% | Good | Moderate operational efficiency |
How Strong is Liberty Media Corp's Cash Flow Quality?
Liberty Media Corp generated $-119.0M in free cash flow over the trailing twelve months, representing a -2.7% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | -2.7% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-119.0M | Red flag | Cash burn |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is Liberty Media Corp's Financial Health?
Liberty Media Corp's debt-to-equity ratio of 0.7x indicates conservative leverage.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 0.7x | Good | Moderate leverage |
| Net Cash Position | $-4.0B | Warning | Net debt position |
Is Liberty Media Corp Stock Overvalued or Undervalued?
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| EV/Sales | 0.6x | Excellent | Attractive revenue multiple |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 3.7% | Top 50% | 2.7x above |
| Free Cash Flow Margin | -2.7% | Bottom 10% | -0.4x below |
| Operating Margin | 12.9% | Top 50% | 4.4x above |
| Return on Equity (ROE) | 7.6% | Top 50% | - |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: 3.7% (Red flag - Top 50% of sector (median: 1.4%))
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: -2.7% (Red flag)
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 65.7% (Good)
Frequently Asked Questions
Q: What is Liberty Media Corp's Return on Invested Capital (ROIC)?
Liberty Media Corp (FWONA) has a trailing twelve-month Return on Invested Capital (ROIC) of 3.7%. This compares above the sector median of 1.4%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is Liberty Media Corp's Free Cash Flow Margin?
Liberty Media Corp (FWONA) has a free cash flow margin of -2.7%, generating $-119.0 million in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is Liberty Media Corp stock overvalued or undervalued?
Liberty Media Corp (FWONA) The EV/Sales multiple is 0.6x.
Q: How much debt does Liberty Media Corp have?
Liberty Media Corp (FWONA) has a debt-to-equity ratio of 0.7x with total debt of $5.1 billion. Net debt position is $4.0 billion.
Q: What is Liberty Media Corp's revenue and earnings growth?
Liberty Media Corp (FWONA) grew revenue by 22.7% year-over-year. Double-digit revenue growth indicates strong demand and market share gains.
Q: How does Liberty Media Corp compare to competitors in Communication Services?
Compared to other companies in Communication Services, Liberty Media Corp (FWONA) shows: ROIC of 3.7% is above the sector median of 1.4% (Top 42%). FCF margin of -2.7% trails the sector median of 6.7%. These rankings are based on MetricDuck's analysis of all Communication Services companies with available SEC filings.
Q: What warning signs should I watch for with Liberty Media Corp?
Investors in Liberty Media Corp (FWONA) should monitor these potential warning signs: 1) FCF margin is thin at -2.7%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-05. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.