SIRIUS XM HOLDINGS INC (SIRI)
US8299331004 - Common Stock
We assign a fundamental rating of 4 out of 10 to SIRI. SIRI was compared to 91 industry peers in the Media industry. While SIRI is still in line with the averages on profitability rating, there are concerns on its financial health. SIRI has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
SIRI had positive earnings in the past year.
SIRI had a positive operating cash flow in the past year.
In the past 5 years SIRI has always been profitable.
Each year in the past 5 years SIRI had a positive operating cash flow.
1.2 Ratios
SIRI's Return On Assets of -7.31% is on the low side compared to the rest of the industry. SIRI is outperformed by 72.09% of its industry peers.
SIRI has a Return On Equity of -18.51%. This is in the lower half of the industry: SIRI underperforms 66.28% of its industry peers.
With a decent Return On Invested Capital value of 6.28%, SIRI is doing good in the industry, outperforming 69.77% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SIRI is significantly above the industry average of 6.90%.
The last Return On Invested Capital (6.28%) for SIRI is well below the 3 year average (22.74%), which needs to be investigated, but indicates that SIRI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.31% | ||
| ROE | -18.51% | ||
| ROIC | 6.28% |
ROA(3y)12.34%
ROA(5y)9.3%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)22.74%
ROIC(5y)21.25%
1.3 Margins
SIRI's Profit Margin has declined in the last couple of years.
The Operating Margin of SIRI (22.00%) is better than 94.19% of its industry peers.
In the last couple of years the Operating Margin of SIRI has declined.
With a decent Gross Margin value of 52.80%, SIRI is doing good in the industry, outperforming 63.95% of the companies in the same industry.
SIRI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22% | ||
| PM (TTM) | N/A | ||
| GM | 52.8% |
OM growth 3Y-0.74%
OM growth 5Y-5.42%
PM growth 3Y105.07%
PM growth 5Y-7.16%
GM growth 3Y-1.52%
GM growth 5Y-2.45%
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.
Compared to 1 year ago, SIRI has less shares outstanding
Compared to 5 years ago, SIRI has less shares outstanding
The debt/assets ratio for SIRI has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that SIRI is in the distress zone and has some risk of bankruptcy.
SIRI's Altman-Z score of 1.28 is in line compared to the rest of the industry. SIRI outperforms 58.14% of its industry peers.
The Debt to FCF ratio of SIRI is 11.41, which is on the high side as it means it would take SIRI, 11.41 years of fcf income to pay off all of its debts.
SIRI has a Debt to FCF ratio of 11.41. This is comparable to the rest of the industry: SIRI outperforms 54.65% of its industry peers.
A Debt/Equity ratio of 0.93 indicates that SIRI is somewhat dependend on debt financing.
SIRI has a Debt to Equity ratio (0.93) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 11.41 | ||
| Altman-Z | 1.28 |
ROIC/WACC1.04
WACC6.05%
2.3 Liquidity
A Current Ratio of 0.37 indicates that SIRI may have some problems paying its short term obligations.
SIRI has a worse Current ratio (0.37) than 95.35% of its industry peers.
A Quick Ratio of 0.37 indicates that SIRI may have some problems paying its short term obligations.
The Quick ratio of SIRI (0.37) is worse than 95.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.19% over the past year.
Measured over the past 5 years, SIRI shows a small growth in Earnings Per Share. The EPS has been growing by 5.92% on average per year.
SIRI shows a decrease in Revenue. In the last year, the revenue decreased by -1.67%.
The Revenue has been growing by 9.18% on average over the past years. This is quite good.
EPS 1Y (TTM)12.19%
EPS 3Y7.17%
EPS 5Y5.92%
EPS Q2Q%32.22%
Revenue 1Y (TTM)-1.67%
Revenue growth 3Y3.65%
Revenue growth 5Y9.18%
Sales Q2Q%-4.4%
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 -34.10% yearly.
Based on estimates for the next years, SIRI will show a small growth in Revenue. The Revenue will grow by 0.35% on average per year.
EPS Next Y-266.59%
EPS Next 2Y0.03%
EPS Next 3Y6.95%
EPS Next 5Y-34.1%
Revenue Next Year-3.04%
Revenue Next 2Y-1.82%
Revenue Next 3Y-0.13%
Revenue Next 5Y0.35%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SIRI is valuated cheaply with a Price/Earnings ratio of 5.94.
SIRI's Price/Earnings ratio is rather cheap when compared to the industry. SIRI is cheaper than 90.70% of the companies in the same industry.
SIRI is valuated cheaply when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.66, the valuation of SIRI can be described as very cheap.
Based on the Price/Forward Earnings ratio, SIRI is valued cheaper than 93.02% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.53. SIRI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.94 | ||
| Fwd PE | 6.66 |
4.2 Price Multiples
SIRI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SIRI is cheaper than 69.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SIRI is valued cheaper than 80.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.69 | ||
| EV/EBITDA | 6.96 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1
EPS Next 2Y0.03%
EPS Next 3Y6.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.94%, SIRI is a good candidate for dividend investing.
In the last 3 months the price of SIRI has falen by -22.82%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SIRI's Dividend Yield is rather good when compared to the industry average which is at 4.36. SIRI pays more dividend than 89.53% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, SIRI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
5.2 History
The dividend of SIRI is nicely growing with an annual growth rate of 31.60%!
SIRI has been paying a dividend for at least 10 years, so it has a reliable track record.
SIRI has decreased its dividend recently.
Dividend Growth(5Y)31.6%
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-5.07%
EPS Next 2Y0.03%
EPS Next 3Y6.95%
SIRIUS XM HOLDINGS INC
NASDAQ:SIRI (1/14/2025, 8:05:27 PM)
After market: 21.39 +0.08 (+0.38%)21.31
+0.41 (+1.96%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners9.59%
Inst Owner Change0.01%
Ins Owners2.12%
Ins Owner Change-3.99%
Market Cap7.23B
Analysts52.63
Price Target26.64 (25.01%)
Short Float %9.8%
Short Ratio3.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
Dividend Growth(5Y)31.6%
DP-5.07%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.22%
Min EPS beat(2)1.62%
Max EPS beat(2)50.81%
EPS beat(4)4
Avg EPS beat(4)18.03%
Min EPS beat(4)1.62%
Max EPS beat(4)50.81%
EPS beat(8)7
Avg EPS beat(8)11%
EPS beat(12)8
Avg EPS beat(12)4.29%
EPS beat(16)12
Avg EPS beat(16)40.76%
Revenue beat(2)0
Avg Revenue beat(2)-2.75%
Min Revenue beat(2)-2.78%
Max Revenue beat(2)-2.72%
Revenue beat(4)0
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-2.78%
Max Revenue beat(4)-0.23%
Revenue beat(8)0
Avg Revenue beat(8)-2.32%
Revenue beat(12)0
Avg Revenue beat(12)-1.87%
Revenue beat(16)3
Avg Revenue beat(16)-1.01%
PT rev (1m)-9.84%
PT rev (3m)-23%
EPS NQ rev (1m)-1.88%
EPS NQ rev (3m)718.57%
EPS NY rev (1m)-24.4%
EPS NY rev (3m)-1815.6%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-2.38%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.94 | ||
| Fwd PE | 6.66 | ||
| P/S | 0.82 | ||
| P/FCF | 7.69 | ||
| P/OCF | 4.43 | ||
| P/B | 0.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.96 |
EPS(TTM)3.59
EY16.85%
EPS(NY)3.2
Fwd EY15.03%
FCF(TTM)2.77
FCFY13%
OCF(TTM)4.81
OCFY22.59%
SpS25.94
BVpS32.01
TBVpS-34.61
PEG (NY)N/A
PEG (5Y)1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.31% | ||
| ROE | -18.51% | ||
| ROCE | 7.93% | ||
| ROIC | 6.28% | ||
| ROICexc | 6.31% | ||
| ROICexgc | 90.49% | ||
| OM | 22% | ||
| PM (TTM) | N/A | ||
| GM | 52.8% | ||
| FCFM | 10.68% |
ROA(3y)12.34%
ROA(5y)9.3%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)22.74%
ROIC(5y)21.25%
ROICexc(3y)23.23%
ROICexc(5y)21.64%
ROICexgc(3y)219.95%
ROICexgc(5y)240.92%
ROCE(3y)28.7%
ROCE(5y)26.82%
ROICexcg growth 3Y-3.95%
ROICexcg growth 5Y-4.55%
ROICexc growth 3Y3.69%
ROICexc growth 5Y-2.07%
OM growth 3Y-0.74%
OM growth 5Y-5.42%
PM growth 3Y105.07%
PM growth 5Y-7.16%
GM growth 3Y-1.52%
GM growth 5Y-2.45%
F-Score5
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 11.41 | ||
| Debt/EBITDA | 3.99 | ||
| Cap/Depr | 114.74% | ||
| Cap/Sales | 7.88% | ||
| Interest Coverage | 4.56 | ||
| Cash Conversion | 64.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 1.28 |
F-Score5
WACC6.05%
ROIC/WACC1.04
Cap/Depr(3y)89.87%
Cap/Depr(5y)83.27%
Cap/Sales(3y)5.48%
Cap/Sales(5y)5.09%
Profit Quality(3y)115.23%
Profit Quality(5y)359.99%
High Growth Momentum
Growth
EPS 1Y (TTM)12.19%
EPS 3Y7.17%
EPS 5Y5.92%
EPS Q2Q%32.22%
EPS Next Y-266.59%
EPS Next 2Y0.03%
EPS Next 3Y6.95%
EPS Next 5Y-34.1%
Revenue 1Y (TTM)-1.67%
Revenue growth 3Y3.65%
Revenue growth 5Y9.18%
Sales Q2Q%-4.4%
Revenue Next Year-3.04%
Revenue Next 2Y-1.82%
Revenue Next 3Y-0.13%
Revenue Next 5Y0.35%
EBIT growth 1Y-1.48%
EBIT growth 3Y2.89%
EBIT growth 5Y3.27%
EBIT Next Year35.36%
EBIT Next 3Y9.96%
EBIT Next 5Y8.67%
FCF growth 1Y-37.5%
FCF growth 3Y-10.4%
FCF growth 5Y-4.68%
OCF growth 1Y-15.26%
OCF growth 3Y-2.86%
OCF growth 5Y-0.33%