SIRIUS XM HOLDINGS INC (SIRI) Stock Fundamental Analysis
USA - NASDAQ:SIRI - US8299331004 - Common Stock
23.275 USD
+0.67 (+2.99%)
23.38 USD
+0.11 (+0.45%)
We assign a fundamental rating of 4 out of 10 to SIRI. SIRI was compared to 98 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 it does not seem to be growing.
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.
SIRI had positive earnings in 4 of the past 5 years.
SIRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SIRI has a worse Return On Assets (-8.28%) than 64.29% of its industry peers.
SIRI has a Return On Equity (-19.97%) which is comparable to the rest of the industry.
SIRI has a better Return On Invested Capital (6.40%) than 70.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SIRI is above the industry average of 8.86%.
The last Return On Invested Capital (6.40%) 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 | -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 93.88% of its industry peers.
In the last couple of years the Operating Margin of SIRI has remained more or less at the same level.
The Gross Margin of SIRI (52.11%) is comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SIRI is creating value.
Compared to 1 year ago, SIRI has more shares outstanding
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's Altman-Z score of 1.35 is in line compared to the rest of the industry. SIRI outperforms 55.10% of 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's Debt to FCF ratio of 10.28 is fine compared to the rest of the industry. SIRI outperforms 61.22% 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 46.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 10.28 | ||
| Altman-Z | 1.35 |
ROIC/WACC1.03
WACC6.24%
2.3 Liquidity
SIRI has a Current 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.
With a Current ratio value of 0.41, SIRI is not doing good in the industry: 87.76% of the companies in the same industry are doing better.
A Quick Ratio of 0.41 indicates that SIRI may have some problems paying its short term obligations.
SIRI has a Quick ratio of 0.41. This is amonst the worse of the industry: SIRI underperforms 87.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
The earnings per share for SIRI have decreased by -3.64% in the last year.
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 -3.75% in the past year.
The Revenue has been growing slightly by 2.22% on average over the past years.
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.
Based on estimates for the next years, SIRI will show a small growth in Revenue. The Revenue will grow by 1.21% on average per year.
EPS Next Y-20.11%
EPS Next 2Y-5.82%
EPS Next 3Y-2.63%
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.
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
Based on the Price/Earnings ratio of 7.32, the valuation of SIRI can be described as very cheap.
85.71% of the companies in the same industry are more expensive than SIRI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.86. SIRI is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.45, which indicates a rather cheap valuation of SIRI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SIRI indicates a rather cheap valuation: SIRI is cheaper than 81.63% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, SIRI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.32 | ||
| Fwd PE | 7.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SIRI is valued a bit cheaper than the industry average as 74.49% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SIRI indicates a somewhat cheap valuation: SIRI is cheaper than 79.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.9 | ||
| EV/EBITDA | 6.96 |
4.3 Compensation for Growth
A cheap valuation may be justified as SIRI's earnings are expected to decrease with -2.63% in the coming years.
PEG (NY)N/A
PEG (5Y)0.67
EPS Next 2Y-5.82%
EPS Next 3Y-2.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.71%, SIRI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.60, SIRI pays a better dividend. On top of this SIRI pays more dividend than 89.80% 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.71% |
5.2 History
On average, the dividend of SIRI grows each year by 77.68%, which is quite nice.
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-5.35%
EPS Next 2Y-5.82%
EPS Next 3Y-2.63%
23.275
+0.67 (+2.99%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners39.01%
Inst Owner Change-0.56%
Ins Owners1.86%
Ins Owner Change0.04%
Market Cap7.84B
Analysts54
Price Target24.25 (4.19%)
Short Float %14.45%
Short Ratio6.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.71% |
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)0.82%
EPS NQ rev (3m)3.88%
EPS NY rev (1m)1.42%
EPS NY rev (3m)-3.71%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.32 | ||
| Fwd PE | 7.45 | ||
| P/S | 0.92 | ||
| P/FCF | 7.9 | ||
| P/OCF | 4.59 | ||
| P/B | 0.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.96 |
EPS(TTM)3.18
EY13.66%
EPS(NY)3.12
Fwd EY13.41%
FCF(TTM)2.95
FCFY12.66%
OCF(TTM)5.07
OCFY21.78%
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
WACC6.24%
ROIC/WACC1.03
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-20.11%
EPS Next 2Y-5.82%
EPS Next 3Y-2.63%
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 Year558.84%
EBIT Next 3Y88.69%
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%