SIRIUS XM HOLDINGS INC (SIRI) Stock Fundamental Analysis
NASDAQ:SIRI - Nasdaq - US8299331004 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to SIRI. SIRI was compared to 93 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 cheap, but on the other hand it scores bad on growth.
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.
Of the past 5 years SIRI 4 years were profitable.
Each year in the past 5 years SIRI had a positive operating cash flow.
1.2 Ratios
SIRI's Return On Assets of -7.54% is on the low side compared to the rest of the industry. SIRI is outperformed by 72.41% of its industry peers.
The Return On Equity of SIRI (-18.74%) is worse than 65.52% of its industry peers.
SIRI's Return On Invested Capital of 6.47% is fine compared to the rest of the industry. SIRI outperforms 71.26% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SIRI is significantly above the industry average of 7.01%.
The last Return On Invested Capital (6.47%) 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 | -7.54% | ||
| ROE | -18.74% | ||
| ROIC | 6.47% |
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
The Operating Margin of SIRI (22.26%) is better than 95.40% 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's Gross Margin of 52.53% is fine compared to the rest of the industry. SIRI outperforms 64.37% of its industry peers.
SIRI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.26% | ||
| PM (TTM) | N/A | ||
| GM | 52.53% |
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 just above the Cost of Capital (WACC), so SIRI is still creating some value.
Compared to 1 year ago, SIRI has more shares outstanding
SIRI has less shares outstanding than it did 5 years ago.
SIRI has a worse debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 1.36, SIRI is in line with its industry, outperforming 56.32% of the companies in the same industry.
SIRI has a debt to FCF ratio of 10.24. This is a negative value and a sign of low solvency as SIRI would need 10.24 years to pay back of all of its debts.
SIRI has a Debt to FCF ratio of 10.24. This is comparable to the rest of the industry: SIRI outperforms 56.32% 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.
Looking at the Debt to Equity ratio, with a value of 0.93, SIRI is in line with its industry, outperforming 43.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 10.24 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.88
WACC7.38%
2.3 Liquidity
SIRI has a Current Ratio of 0.42. This is a bad value and indicates that SIRI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.42, SIRI is not doing good in the industry: 94.25% of the companies in the same industry are doing better.
A Quick Ratio of 0.42 indicates that SIRI may have some problems paying its short term obligations.
SIRI has a worse Quick ratio (0.42) than 94.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
SIRI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.00%, which is quite good.
SIRI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.88% yearly.
The Revenue has decreased by -2.84% in the past 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)10%
EPS 3Y3.23%
EPS 5Y10.88%
EPS Q2Q%-7.78%
Revenue 1Y (TTM)-2.84%
Revenue growth 3Y0.01%
Revenue growth 5Y2.22%
Sales Q2Q%-4.33%
3.2 Future
The Earnings Per Share is expected to decrease by -42.02% on average over the next years. This is quite bad
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-10.87%
EPS Next 2Y-4.98%
EPS Next 3Y-2.23%
EPS Next 5Y-42.02%
Revenue Next Year-1.73%
Revenue Next 2Y-0.62%
Revenue Next 3Y-0.28%
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
With a Price/Earnings ratio of 7.03, the valuation of SIRI can be described as very cheap.
Based on the Price/Earnings ratio, SIRI is valued cheaper than 89.66% of the companies in the same industry.
SIRI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
SIRI is valuated cheaply with a Price/Forward Earnings ratio of 7.89.
89.66% of the companies in the same industry are more expensive than SIRI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SIRI to the average of the S&P500 Index (22.68), we can say SIRI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.03 | ||
| Fwd PE | 7.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SIRI indicates a somewhat cheap valuation: SIRI is cheaper than 64.37% of the companies listed in the same industry.
SIRI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SIRI is cheaper than 81.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.28 | ||
| EV/EBITDA | 7.46 |
4.3 Compensation for Growth
The decent profitability rating of SIRI may justify a higher PE ratio.
A cheap valuation may be justified as SIRI's earnings are expected to decrease with -2.23% in the coming years.
PEG (NY)N/A
PEG (5Y)0.65
EPS Next 2Y-4.98%
EPS Next 3Y-2.23%
5. Dividend
5.1 Amount
SIRI has a Yearly Dividend Yield of 4.22%, which is a nice return.
Compared to an average industry Dividend Yield of 4.48, SIRI pays a better dividend. On top of this SIRI pays more dividend than 86.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, SIRI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
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.
The dividend of SIRI decreased 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-6.89%
EPS Next 2Y-4.98%
EPS Next 3Y-2.23%
24.75
-0.44 (-1.75%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners41.02%
Inst Owner Change-2.48%
Ins Owners2.26%
Ins Owner Change-2.88%
Market Cap8.38B
Analysts52.63
Price Target24.87 (0.48%)
Short Float %10.23%
Short Ratio3.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
Yearly Dividend0.91
Dividend Growth(5Y)77.68%
DP-6.89%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)40.03%
Min EPS beat(2)29.24%
Max EPS beat(2)50.81%
EPS beat(4)4
Avg EPS beat(4)21.59%
Min EPS beat(4)1.62%
Max EPS beat(4)50.81%
EPS beat(8)7
Avg EPS beat(8)13.09%
EPS beat(12)8
Avg EPS beat(12)5.8%
EPS beat(16)12
Avg EPS beat(16)7.99%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-2.78%
Max Revenue beat(2)-1.08%
Revenue beat(4)0
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-2.78%
Max Revenue beat(4)-0.23%
Revenue beat(8)0
Avg Revenue beat(8)-2.04%
Revenue beat(12)0
Avg Revenue beat(12)-1.93%
Revenue beat(16)2
Avg Revenue beat(16)-1.32%
PT rev (1m)-0.59%
PT rev (3m)-14.77%
EPS NQ rev (1m)-3.5%
EPS NQ rev (3m)867.61%
EPS NY rev (1m)-2.02%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)-1.39%
Revenue NQ rev (3m)-3.28%
Revenue NY rev (1m)-1.15%
Revenue NY rev (3m)-2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.03 | ||
| Fwd PE | 7.89 | ||
| P/S | 0.96 | ||
| P/FCF | 8.28 | ||
| P/OCF | 4.82 | ||
| P/B | 0.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.46 |
EPS(TTM)3.52
EY14.22%
EPS(NY)3.14
Fwd EY12.68%
FCF(TTM)2.99
FCFY12.08%
OCF(TTM)5.14
OCFY20.76%
SpS25.68
BVpS32.69
TBVpS-33.96
PEG (NY)N/A
PEG (5Y)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.54% | ||
| ROE | -18.74% | ||
| ROCE | 7.81% | ||
| ROIC | 6.47% | ||
| ROICexc | 6.51% | ||
| ROICexgc | 78.3% | ||
| OM | 22.26% | ||
| PM (TTM) | N/A | ||
| GM | 52.53% | ||
| FCFM | 11.65% |
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 Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 10.24 | ||
| Debt/EBITDA | 4.1 | ||
| Cap/Depr | 125.95% | ||
| Cap/Sales | 8.37% | ||
| Interest Coverage | 4.09 | ||
| Cash Conversion | 69.25% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 1.36 |
F-Score5
WACC7.38%
ROIC/WACC0.88
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)10%
EPS 3Y3.23%
EPS 5Y10.88%
EPS Q2Q%-7.78%
EPS Next Y-10.87%
EPS Next 2Y-4.98%
EPS Next 3Y-2.23%
EPS Next 5Y-42.02%
Revenue 1Y (TTM)-2.84%
Revenue growth 3Y0.01%
Revenue growth 5Y2.22%
Sales Q2Q%-4.33%
Revenue Next Year-1.73%
Revenue Next 2Y-0.62%
Revenue Next 3Y-0.28%
Revenue Next 5Y1.21%
EBIT growth 1Y0.52%
EBIT growth 3Y-1.65%
EBIT growth 5Y2.26%
EBIT Next Year561.11%
EBIT Next 3Y87.57%
EBIT Next 5Y51.2%
FCF growth 1Y-14.08%
FCF growth 3Y-14.31%
FCF growth 5Y-9.34%
OCF growth 1Y-4.81%
OCF growth 3Y-4.49%
OCF growth 5Y-2.9%