SIRIUS XM HOLDINGS INC (SIRI) Stock Fundamental Analysis
USA - NASDAQ:SIRI - US8299331004 - Common Stock
23.12 USD
-0.17 (-0.73%)
23.4 USD
+0.28 (+1.21%)
SIRI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 99 industry peers in the Media industry. SIRI has a medium profitability rating, but doesn't score so well on its financial health evaluation. SIRI has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SIRI was profitable.
SIRI had a positive operating cash flow in the past year.
SIRI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SIRI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -8.28%, SIRI is doing worse than 63.64% of the companies in the same industry.
Looking at the Return On Equity, with a value of -19.97%, SIRI is in line with its industry, outperforming 41.41% of the companies in the same industry.
SIRI has a Return On Invested Capital of 6.40%. This is in the better half of the industry: SIRI outperforms 70.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SIRI is above the industry average of 8.87%.
The 3 year average ROIC (12.54%) for SIRI is well above the current ROIC(6.40%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.28% | ||
| ROE | -19.97% | ||
| ROIC | 6.4% |
ROA(3y)2.92%
ROA(5y)4.56%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.54%
ROIC(5y)16.46%
1.3 Margins
SIRI has a Operating Margin of 22.31%. This is amongst the best in the industry. SIRI outperforms 93.94% of its industry peers.
In the last couple of years the Operating Margin of SIRI has remained more or less at the same level.
SIRI has a Gross Margin of 52.11%. This is comparable to the rest of the industry: SIRI outperforms 59.60% of its industry peers.
In the last couple of years the Gross Margin of SIRI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.31% | ||
| PM (TTM) | N/A | ||
| GM | 52.11% |
OM growth 3Y-1.66%
OM growth 5Y0.04%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.14%
GM growth 5Y-1.28%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SIRI is creating value.
SIRI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SIRI has less shares outstanding
SIRI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that SIRI is in the distress zone and has some risk of bankruptcy.
SIRI has a Altman-Z score (1.35) which is in line with its industry peers.
The Debt to FCF ratio of SIRI is 10.28, which is on the high side as it means it would take SIRI, 10.28 years of fcf income to pay off all of its debts.
SIRI has a better Debt to FCF ratio (10.28) than 60.61% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that SIRI is somewhat dependend on debt financing.
SIRI has a Debt to Equity ratio of 0.89. This is comparable to the rest of the industry: SIRI outperforms 46.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 10.28 | ||
| Altman-Z | 1.35 |
ROIC/WACC1.11
WACC5.75%
2.3 Liquidity
A Current Ratio of 0.41 indicates that SIRI may have some problems paying its short term obligations.
SIRI has a Current ratio of 0.41. This is amonst the worse of the industry: SIRI underperforms 85.86% of its industry peers.
SIRI has a Quick Ratio of 0.41. This is a bad value and indicates that SIRI is not financially healthy enough and could expect problems in meeting its short term obligations.
SIRI's Quick ratio of 0.41 is on the low side compared to the rest of the industry. SIRI is outperformed by 85.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
SIRI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.64%.
The Earnings Per Share has been growing by 10.88% on average over the past years. This is quite good.
Looking at the last year, SIRI shows a decrease in Revenue. The Revenue has decreased by -3.75% in the last year.
SIRI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.22% yearly.
EPS 1Y (TTM)-3.64%
EPS 3Y3.23%
EPS 5Y10.88%
EPS Q2Q%-28.75%
Revenue 1Y (TTM)-3.75%
Revenue growth 3Y0.01%
Revenue growth 5Y2.22%
Sales Q2Q%-1.84%
3.2 Future
SIRI is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -42.02% yearly.
SIRI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.21% yearly.
EPS Next Y-21.23%
EPS Next 2Y-6.25%
EPS Next 3Y-3.1%
EPS Next 5Y-42.02%
Revenue Next Year-1.94%
Revenue Next 2Y-0.99%
Revenue Next 3Y-0.57%
Revenue Next 5Y1.21%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.27, which indicates a rather cheap valuation of SIRI.
Compared to the rest of the industry, the Price/Earnings ratio of SIRI indicates a rather cheap valuation: SIRI is cheaper than 86.87% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SIRI to the average of the S&P500 Index (27.20), we can say SIRI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.47, the valuation of SIRI can be described as very cheap.
79.80% of the companies in the same industry are more expensive than SIRI, based on the Price/Forward Earnings ratio.
SIRI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.27 | ||
| Fwd PE | 7.47 |
4.2 Price Multiples
72.73% of the companies in the same industry are more expensive than SIRI, based on the Enterprise Value to EBITDA ratio.
79.80% of the companies in the same industry are more expensive than SIRI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.85 | ||
| EV/EBITDA | 7.03 |
4.3 Compensation for Growth
A cheap valuation may be justified as SIRI's earnings are expected to decrease with -3.10% in the coming years.
PEG (NY)N/A
PEG (5Y)0.67
EPS Next 2Y-6.25%
EPS Next 3Y-3.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.47%, SIRI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.58, SIRI pays a better dividend. On top of this SIRI pays more dividend than 89.90% of the companies listed in the same industry.
SIRI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
5.2 History
The dividend of SIRI is nicely growing with an annual growth rate of 77.68%!
SIRI has paid a dividend for at least 10 years, which is a reliable track record.
SIRI has decreased its dividend recently.
Dividend Growth(5Y)77.68%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SIRI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-5.35%
EPS Next 2Y-6.25%
EPS Next 3Y-3.1%
23.12
-0.17 (-0.73%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners38.73%
Inst Owner Change-0.56%
Ins Owners1.85%
Ins Owner Change0.04%
Market Cap7.79B
Analysts54
Price Target24.25 (4.89%)
Short Float %14.5%
Short Ratio6.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
Yearly Dividend0.91
Dividend Growth(5Y)77.68%
DP-5.35%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-18.86%
Min EPS beat(2)-24.99%
Max EPS beat(2)-12.73%
EPS beat(4)2
Avg EPS beat(4)9.59%
Min EPS beat(4)-24.99%
Max EPS beat(4)50.81%
EPS beat(8)6
Avg EPS beat(8)8.45%
EPS beat(12)8
Avg EPS beat(12)3.79%
EPS beat(16)10
Avg EPS beat(16)4.55%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-2.45%
Max Revenue beat(2)-1.47%
Revenue beat(4)0
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-2.78%
Max Revenue beat(4)-1.17%
Revenue beat(8)0
Avg Revenue beat(8)-1.96%
Revenue beat(12)0
Avg Revenue beat(12)-2.11%
Revenue beat(16)0
Avg Revenue beat(16)-1.76%
PT rev (1m)0%
PT rev (3m)1.77%
EPS NQ rev (1m)2.11%
EPS NQ rev (3m)3.88%
EPS NY rev (1m)-4.96%
EPS NY rev (3m)-5.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.27 | ||
| Fwd PE | 7.47 | ||
| P/S | 0.91 | ||
| P/FCF | 7.85 | ||
| P/OCF | 4.56 | ||
| P/B | 0.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.03 |
EPS(TTM)3.18
EY13.75%
EPS(NY)3.09
Fwd EY13.38%
FCF(TTM)2.95
FCFY12.74%
OCF(TTM)5.07
OCFY21.93%
SpS25.44
BVpS33.64
TBVpS-33.22
PEG (NY)N/A
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.28% | ||
| ROE | -19.97% | ||
| ROCE | 7.72% | ||
| ROIC | 6.4% | ||
| ROICexc | 6.42% | ||
| ROICexgc | 73.76% | ||
| OM | 22.31% | ||
| PM (TTM) | N/A | ||
| GM | 52.11% | ||
| FCFM | 11.58% |
ROA(3y)2.92%
ROA(5y)4.56%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.54%
ROIC(5y)16.46%
ROICexc(3y)12.64%
ROICexc(5y)16.68%
ROICexgc(3y)262.2%
ROICexgc(5y)250.11%
ROCE(3y)15.13%
ROCE(5y)19.86%
ROICexcg growth 3Y-29.15%
ROICexcg growth 5Y-24.82%
ROICexc growth 3Y-35.02%
ROICexc growth 5Y-18.85%
OM growth 3Y-1.66%
OM growth 5Y0.04%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.14%
GM growth 5Y-1.28%
F-Score4
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 10.28 | ||
| Debt/EBITDA | 3.98 | ||
| Cap/Depr | 112.6% | ||
| Cap/Sales | 8.35% | ||
| Interest Coverage | 3.8 | ||
| Cash Conversion | 67.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 1.35 |
F-Score4
WACC5.75%
ROIC/WACC1.11
Cap/Depr(3y)97.89%
Cap/Depr(5y)87.13%
Cap/Sales(3y)6.79%
Cap/Sales(5y)5.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.64%
EPS 3Y3.23%
EPS 5Y10.88%
EPS Q2Q%-28.75%
EPS Next Y-21.23%
EPS Next 2Y-6.25%
EPS Next 3Y-3.1%
EPS Next 5Y-42.02%
Revenue 1Y (TTM)-3.75%
Revenue growth 3Y0.01%
Revenue growth 5Y2.22%
Sales Q2Q%-1.84%
Revenue Next Year-1.94%
Revenue Next 2Y-0.99%
Revenue Next 3Y-0.57%
Revenue Next 5Y1.21%
EBIT growth 1Y-3.63%
EBIT growth 3Y-1.65%
EBIT growth 5Y2.26%
EBIT Next Year557.09%
EBIT Next 3Y88.34%
EBIT Next 5Y51.2%
FCF growth 1Y-25.19%
FCF growth 3Y-14.31%
FCF growth 5Y-9.34%
OCF growth 1Y-9.63%
OCF growth 3Y-4.49%
OCF growth 5Y-2.9%