SIRIUS XM HOLDINGS INC (SIRI)
US8299331004 - Common Stock
We assign a fundamental rating of 5 out of 10 to SIRI. SIRI was compared to 92 industry peers in the Media industry. SIRI has a medium profitability rating, but doesn't score so well on its financial health evaluation. SIRI is valued quite cheap, while showing a decent growth score. This is a good combination!
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 each of the past 5 years.
SIRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SIRI's Return On Assets of -6.35% is on the low side compared to the rest of the industry. SIRI is outperformed by 69.23% of its industry peers.
Looking at the Return On Equity, with a value of -16.07%, SIRI is doing worse than 64.84% of the companies in the same industry.
SIRI has a Return On Invested Capital of 7.79%. This is amongst the best in the industry. SIRI outperforms 80.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SIRI is significantly above the industry average of 6.97%.
The 3 year average ROIC (22.74%) for SIRI is well above the current ROIC(7.79%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.35% | ||
| ROE | -16.07% | ||
| ROIC | 7.79% |
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
In the last couple of years the Profit Margin of SIRI has declined.
With an excellent Operating Margin value of 21.90%, SIRI belongs to the best of the industry, outperforming 94.51% of the companies in the same industry.
In the last couple of years the Operating Margin of SIRI has declined.
SIRI has a better Gross Margin (52.65%) than 65.93% of its industry peers.
SIRI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.9% | ||
| PM (TTM) | N/A | ||
| GM | 52.65% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SIRI is creating value.
The number of shares outstanding for SIRI has been reduced compared to 1 year ago.
SIRI has less shares outstanding than it did 5 years ago.
SIRI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.49, we must say that SIRI is in the distress zone and has some risk of bankruptcy.
SIRI's Altman-Z score of 1.49 is in line compared to the rest of the industry. SIRI outperforms 59.34% of its industry peers.
SIRI has a debt to FCF ratio of 11.41. This is a negative value and a sign of low solvency as SIRI would need 11.41 years to pay back of all of its debts.
SIRI has a Debt to FCF ratio (11.41) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.93 indicates that SIRI is somewhat dependend on debt financing.
The Debt to Equity ratio of SIRI (0.93) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 11.41 | ||
| Altman-Z | 1.49 |
ROIC/WACC1.27
WACC6.13%
2.3 Liquidity
A Current Ratio of 0.37 indicates that SIRI may have some problems paying its short term obligations.
The Current ratio of SIRI (0.37) is worse than 95.60% of its industry peers.
SIRI has a Quick Ratio of 0.37. 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 has a Quick ratio of 0.37. This is amonst the worse of the industry: SIRI underperforms 95.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
SIRI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.19%, which is quite good.
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.
Looking at the last year, SIRI shows a very strong growth in Revenue. The Revenue has grown by 22.50%.
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)22.5%
Revenue growth 3Y3.65%
Revenue growth 5Y9.18%
Sales Q2Q%-4.4%
3.2 Future
Based on estimates for the next years, SIRI will show a very negative growth in Earnings Per Share. The EPS will decrease by -34.10% on average per year.
The Revenue is expected to grow by 0.35% on average over the next years.
EPS Next Y-233.91%
EPS Next 2Y-1.06%
EPS Next 3Y6.14%
EPS Next 5Y-34.1%
Revenue Next Year-2.87%
Revenue Next 2Y-1.27%
Revenue Next 3Y0.3%
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.
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
SIRI is valuated cheaply with a Price/Earnings ratio of 7.53.
89.01% of the companies in the same industry are more expensive than SIRI, based on the Price/Earnings ratio.
SIRI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.70.
SIRI is valuated reasonably with a Price/Forward Earnings ratio of 8.62.
Based on the Price/Forward Earnings ratio, SIRI is valued cheaper than 91.21% of the companies in the same industry.
SIRI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.16.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.53 | ||
| Fwd PE | 8.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SIRI is valued cheaply inside the industry as 80.22% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SIRI is valued a bit cheaper than 78.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.75 | ||
| EV/EBITDA | 6.63 |
4.3 Compensation for Growth
SIRI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.27
EPS Next 2Y-1.06%
EPS Next 3Y6.14%
5. Dividend
5.1 Amount
SIRI has a Yearly Dividend Yield of 4.00%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.07, SIRI pays a better dividend. On top of this SIRI pays more dividend than 87.91% 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 2.16.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
5.2 History
The dividend of SIRI is nicely growing with an annual growth rate of 31.60%!
SIRI has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of SIRI decreased 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-5.85%
EPS Next 2Y-1.06%
EPS Next 3Y6.14%
SIRIUS XM HOLDINGS INC
NASDAQ:SIRI (12/3/2024, 12:38:10 PM)
27.015
-0.5 (-1.8%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.53 | ||
| Fwd PE | 8.62 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.35% | ||
| ROE | -16.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.9% | ||
| PM (TTM) | N/A | ||
| GM | 52.65% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)12.19%
EPS 3Y7.17%
EPS 5Y
EPS Q2Q%
EPS Next Y-233.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22.5%
Revenue growth 3Y3.65%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y