SIRIUS XM HOLDINGS INC (SIRI) Stock Fundamental Analysis
NASDAQ:SIRI - Nasdaq - US8299331004 - Common Stock - Currency: USD
SIRI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 97 industry peers in the Media industry. There are concerns on the financial health of SIRI while its profitability can be described as average. SIRI has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
SIRI had positive earnings in the past year.
In the past year SIRI had a positive cash flow from operations.
SIRI had positive earnings in 4 of the past 5 years.
In the past 5 years SIRI always reported a positive cash flow from operatings.
1.2 Ratios
SIRI's Return On Assets of -7.79% is on the low side compared to the rest of the industry. SIRI is outperformed by 67.01% of its industry peers.
Looking at the Return On Equity, with a value of -19.05%, SIRI is doing worse than 61.86% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.33%, SIRI is in the better half of the industry, outperforming 69.07% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SIRI is above the industry average of 7.56%.
The last Return On Invested Capital (6.33%) for SIRI is well below the 3 year average (12.54%), which needs to be investigated, but indicates that SIRI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.79% | ||
| ROE | -19.05% | ||
| ROIC | 6.33% |
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's Operating Margin of 22.15% is amongst the best of the industry. SIRI outperforms 91.75% of its industry peers.
SIRI's Operating Margin has been stable in the last couple of years.
SIRI's Gross Margin of 52.40% is fine compared to the rest of the industry. SIRI outperforms 61.86% of its industry peers.
SIRI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.15% | ||
| PM (TTM) | N/A | ||
| GM | 52.4% |
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.
The number of shares outstanding for SIRI has been increased compared to 1 year ago.
SIRI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SIRI has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.36, we must say that SIRI is in the distress zone and has some risk of bankruptcy.
SIRI's Altman-Z score of 1.36 is in line compared to the rest of the industry. SIRI outperforms 55.67% of its industry peers.
SIRI has a debt to FCF ratio of 11.23. This is a negative value and a sign of low solvency as SIRI would need 11.23 years to pay back of all of its debts.
SIRI's Debt to FCF ratio of 11.23 is fine compared to the rest of the industry. SIRI outperforms 60.82% of its industry peers.
SIRI has a Debt/Equity ratio of 0.93. This is a neutral value indicating SIRI is somewhat dependend on debt financing.
SIRI's Debt to Equity ratio of 0.93 is in line compared to the rest of the industry. SIRI outperforms 44.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 11.23 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.99
WACC6.41%
2.3 Liquidity
A Current Ratio of 0.42 indicates that SIRI may have some problems paying its short term obligations.
SIRI has a worse Current ratio (0.42) than 87.63% of its industry peers.
A Quick Ratio of 0.42 indicates that SIRI may have some problems paying its short term obligations.
The Quick ratio of SIRI (0.42) is worse than 87.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.33% over the past year.
The Earnings Per Share has been growing by 10.88% on average over the past years. This is quite good.
The Revenue has decreased by -4.08% in the past year.
The Revenue has been growing slightly by 2.22% on average over the past years.
EPS 1Y (TTM)3.33%
EPS 3Y3.23%
EPS 5Y10.88%
EPS Q2Q%-15.71%
Revenue 1Y (TTM)-4.08%
Revenue growth 3Y0.01%
Revenue growth 5Y2.22%
Sales Q2Q%-4.35%
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.
The Revenue is expected to grow by 1.21% on average over the next years.
EPS Next Y-17.13%
EPS Next 2Y-7.16%
EPS Next 3Y-2.96%
EPS Next 5Y-42.02%
Revenue Next Year-2.08%
Revenue Next 2Y-1.07%
Revenue Next 3Y-0.61%
Revenue Next 5Y1.21%
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 6.99.
Based on the Price/Earnings ratio, SIRI is valued cheaper than 86.60% of the companies in the same industry.
When comparing the Price/Earnings ratio of SIRI to the average of the S&P500 Index (27.19), we can say SIRI is valued rather cheaply.
A Price/Forward Earnings ratio of 7.86 indicates a rather cheap valuation of SIRI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SIRI indicates a somewhat cheap valuation: SIRI is cheaper than 79.38% of the companies listed 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 35.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.99 | ||
| Fwd PE | 7.86 |
4.2 Price Multiples
SIRI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SIRI is cheaper than 68.04% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SIRI indicates a rather cheap valuation: SIRI is cheaper than 84.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.65 | ||
| EV/EBITDA | 7.46 |
4.3 Compensation for Growth
SIRI's earnings are expected to decrease with -2.96% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.64
EPS Next 2Y-7.16%
EPS Next 3Y-2.96%
5. Dividend
5.1 Amount
SIRI has a Yearly Dividend Yield of 4.34%, which is a nice return.
SIRI's Dividend Yield is rather good when compared to the industry average which is at 4.61. SIRI pays more dividend than 88.66% of the companies in the same industry.
SIRI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
5.2 History
The dividend of SIRI is nicely growing with an annual growth rate of 77.68%!
SIRI has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of SIRI decreased recently.
Dividend Growth(5Y)77.68%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
The earnings of SIRI are negative and hence is the payout ratio. SIRI will probably not be able to sustain this dividend level.
DP-6.18%
EPS Next 2Y-7.16%
EPS Next 3Y-2.96%
23.85
-0.45 (-1.85%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners38.58%
Inst Owner Change0%
Ins Owners1.85%
Ins Owner Change0.29%
Market Cap8.06B
Analysts54
Price Target23.83 (-0.08%)
Short Float %15.53%
Short Ratio8.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
Yearly Dividend0.91
Dividend Growth(5Y)77.68%
DP-6.18%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.26%
Min EPS beat(2)-12.73%
Max EPS beat(2)29.24%
EPS beat(4)3
Avg EPS beat(4)17.24%
Min EPS beat(4)-12.73%
Max EPS beat(4)50.81%
EPS beat(8)7
Avg EPS beat(8)12.78%
EPS beat(12)8
Avg EPS beat(12)5%
EPS beat(16)11
Avg EPS beat(16)6.48%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-2.45%
Max Revenue beat(2)-1.08%
Revenue beat(4)0
Avg Revenue beat(4)-2.26%
Min Revenue beat(4)-2.78%
Max Revenue beat(4)-1.08%
Revenue beat(8)0
Avg Revenue beat(8)-1.95%
Revenue beat(12)0
Avg Revenue beat(12)-2.11%
Revenue beat(16)1
Avg Revenue beat(16)-1.49%
PT rev (1m)0%
PT rev (3m)-4.18%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-6.55%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-7.04%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.99 | ||
| Fwd PE | 7.86 | ||
| P/S | 0.94 | ||
| P/FCF | 8.65 | ||
| P/OCF | 4.81 | ||
| P/B | 0.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.46 |
EPS(TTM)3.41
EY14.3%
EPS(NY)3.03
Fwd EY12.72%
FCF(TTM)2.76
FCFY11.56%
OCF(TTM)4.96
OCFY20.78%
SpS25.46
BVpS33.18
TBVpS-33.55
PEG (NY)N/A
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.79% | ||
| ROE | -19.05% | ||
| ROCE | 7.64% | ||
| ROIC | 6.33% | ||
| ROICexc | 6.36% | ||
| ROICexgc | 69.52% | ||
| OM | 22.15% | ||
| PM (TTM) | N/A | ||
| GM | 52.4% | ||
| FCFM | 10.83% |
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-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 11.23 | ||
| Debt/EBITDA | 4.18 | ||
| Cap/Depr | 127.66% | ||
| Cap/Sales | 8.63% | ||
| Interest Coverage | 3.87 | ||
| Cash Conversion | 67.32% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 1.36 |
F-Score5
WACC6.41%
ROIC/WACC0.99
Cap/Depr(3y)103.2%
Cap/Depr(5y)90.31%
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)3.33%
EPS 3Y3.23%
EPS 5Y10.88%
EPS Q2Q%-15.71%
EPS Next Y-17.13%
EPS Next 2Y-7.16%
EPS Next 3Y-2.96%
EPS Next 5Y-42.02%
Revenue 1Y (TTM)-4.08%
Revenue growth 3Y0.01%
Revenue growth 5Y2.22%
Sales Q2Q%-4.35%
Revenue Next Year-2.08%
Revenue Next 2Y-1.07%
Revenue Next 3Y-0.61%
Revenue Next 5Y1.21%
EBIT growth 1Y-2.11%
EBIT growth 3Y-1.65%
EBIT growth 5Y2.26%
EBIT Next Year559.36%
EBIT Next 3Y86.77%
EBIT Next 5Y51.2%
FCF growth 1Y-35.14%
FCF growth 3Y-14.31%
FCF growth 5Y-9.34%
OCF growth 1Y-15.02%
OCF growth 3Y-4.49%
OCF growth 5Y-2.9%