Morgan Stanley Downgrades Formula One Group Stock Rating

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Morgan Stanley has recently downgraded the stock rating of Formula One ($NASDAQ:FWONA) Group, a company that focuses on the world’s most popular and most prestigious motor racing sport, Formula One. It has a portfolio of many of the world’s most recognizable and successful motor racing events which include the British Grand Prix, the United States Grand Prix, the Monaco Grand Prix, and the Italian Grand Prix. Formula One Group also has control over the sport’s commercial rights and it plays a major role in driving the campaigns for Formula One. The company is responsible for business operations such as managing television rights, merchandising, sponsorship, and other marketing activities that help promote the network of teams, drivers, and circuits that compose the sport. The company also owns stakes in several teams and tracks, such as Haas F1 Team and Circuit of The Americas.

The stock rating downgrade by Morgan Stanley reflects a change in the performance of Formula One Group. The company had been enjoying great financial success since its inception, but recently there has been a decline in its profits. Lower television ratings, newer smaller teams, and fewer sponsors have all contributed to this, as well as a general trend of declining revenues for all major sports. With this news, investors should be wary of Formula One Group’s stock, as it may be too risky to invest in at this time.

Market Price

The downgrade comes as the Formula One Group’s share price opened at $59.2, before closing at $59.1, representing a marginal increase of 0.6% from its last closing price of 58.8. Despite this slight rise, Morgan Stanley’s downgrade indicates that the stock may have reached its peak and that investors may want to be more cautious in their approach. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Formula One. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Formula One. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Formula One. More…

Key Ratios Snapshot

Some of the financial key ratios for Formula One are shown below. More…

Analysis

GoodWhale has conducted a financial analysis of FORMULA ONE using its Star Chart. Based on our analysis, the company is strong in dividend and growth, medium in profitability, and weak in asset. We have classified FORMULA ONE as a ‘cheetah’, a type of company that has achieved a high revenue or earnings growth but is considered less stable due to having lower profitability. Given the nature of the company, we suggest that investors who prioritize growth and are willing to accept a higher risk of loss should consider investing. FORMULA ONE has an intermediate health score of 6/10, indicating that the company may be able to sustain future operations in times of crisis. More…

Peers

All four companies provide unique and innovative services to their clients, and have established themselves as leaders in the Formula One industry.

– Alpha Group ($SZSE:002292)

Alpha Group is a diversified industrial services and manufacturing company. The company specializes in a variety of services ranging from energy management and engineering to construction and fleet management. Alpha Group’s current market capitalization is 7.28 billion dollars, an indication of its size and success in the industry. The company also has a negative return on equity of -5.59%, which implies that the company has not been able to generate sufficient returns relative to the amount of invested capital it has. Despite this, Alpha Group continues to make significant investments in its business and is positioned to grow its market share in the industry.

– Linmon Media Ltd ($SEHK:09857)

Linmon Media Ltd is a leading media and entertainment company offering a range of services such as television, radio, digital media, and motion picture production and distribution. The company has a current market cap of 6.92 billion as of 2022, and its return on equity (ROE) stands at 1.18%. This indicates that the company is performing well and generating a healthy return on its shareholders’ equity. Linmon Media continues to remain a leader in the media and entertainment industry and has been able to maintain its strong financial performance over the years.

– Values Cultural Investment Ltd ($SEHK:01740)

Cultural Investment Ltd is a company that is involved in the entertainment industry, creating content and services for customers. As of 2022, the company has a market capitalization of 146.29M and a return on equity of -6.98%. The market cap denotes the total value of the company’s outstanding shares and gives an indication of its size and its ability to generate revenue. The return on equity (ROE) measures the profitability of the company, which in this case is negative, meaning that the company is not profiting from its operations.

Summary

Investment analysts at Morgan Stanley recently downgraded their rating for Formula One Group stock. Despite the company’s strong presence in the global auto racing industry, Morgan Stanley believes that their recent financial results and outlook do not reflect the potential of the business. They have reduced their investment rating from “Equal Weight” to “Underweight”, citing concerns around the company’s lack of growth and their high levels of debt. Investors should consider carefully whether Formula One Group is a wise investment given the current market climate.

Additionally, they should be aware of the risks associated with investing in the company, including any potential financial impacts resulting from the pandemic.