FWONAFormula One Group
Is the business good?
The checks split: earnings fully cash-backed (2.6×), but margins compressing.
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 5% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is FWONA?
Formula One Group earns 3.7% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 5.3 points below what the capital costs: growth destroys value
- Operating margin
- 12%
Operating margin · Entertainment median 4.3% · 12 months to Q2 2026
- Cash conversion
- 2.55×
Cash conversion · operating cash flow covers the operating profit after tax
| Year | Operating margin |
|---|---|
| FY2020 | 1.9% |
| FY2021 | 17% |
| FY2022 | 4.6% |
| FY2023 | 7.4% |
| FY2024 | 7.9% |
| FY2025 | 13% |
Details›
- Operating margin12 months to Q2 2026
- 12%
- Net margin12 months to Q2 2026
- 9.4%
- Free cash flow margin
- 19%
- Revenue, trailing twelve months
- $4.34B
- Free cash flow, trailing twelve months
- $823M
- Net income, trailing twelve months
- $408M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 3.7%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.