SIRIUS XM HOLDINGS INC (SIRI) Stock Fundamental Analysis
NASDAQ:SIRI - Nasdaq - US8299331004 - Common Stock - Currency: USD
Taking everything into account, SIRI scores 5 out of 10 in our fundamental rating. SIRI was compared to 96 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 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.
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 has a Return On Assets of -7.79%. This is in the lower half of the industry: SIRI underperforms 66.67% of its industry peers.
SIRI has a worse Return On Equity (-19.05%) than 61.46% of its industry peers.
SIRI has a better Return On Invested Capital (6.33%) than 69.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SIRI is significantly above the industry average of 6.73%.
The 3 year average ROIC (12.54%) for SIRI is well above the current ROIC(6.33%). The reason for the recent decline needs to be investigated.
| 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 has a better Operating Margin (22.15%) than 92.71% of its industry peers.
SIRI's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 52.40%, SIRI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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 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 1.34, we must say that SIRI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.34, SIRI perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
The Debt to FCF ratio of SIRI is 11.23, which is on the high side as it means it would take SIRI, 11.23 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.23, SIRI is in line with its industry, outperforming 58.33% of the companies in the same industry.
A Debt/Equity ratio of 0.93 indicates that 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 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 11.23 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.9
WACC7.05%
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.
The Current ratio of SIRI (0.42) is worse than 84.38% of its industry peers.
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 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
SIRI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.33%.
Measured over the past years, SIRI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.88% on average per year.
The Revenue has decreased by -4.08% 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)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-17.04%
EPS Next 2Y-7.05%
EPS Next 3Y-2.87%
EPS Next 5Y-42.02%
Revenue Next Year-2.08%
Revenue Next 2Y-1.06%
Revenue Next 3Y-0.6%
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.
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
The Price/Earnings ratio is 6.43, which indicates a rather cheap valuation of SIRI.
88.54% 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 26.03.
Based on the Price/Forward Earnings ratio of 7.21, the valuation of SIRI can be described as very cheap.
Based on the Price/Forward Earnings ratio, SIRI is valued cheaper than 82.29% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SIRI to the average of the S&P500 Index (21.94), we can say SIRI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.43 | ||
| Fwd PE | 7.21 |
4.2 Price Multiples
68.75% of the companies in the same industry are more expensive than SIRI, based on the Enterprise Value to EBITDA ratio.
81.25% of the companies in the same industry are more expensive than SIRI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.97 | ||
| EV/EBITDA | 7.23 |
4.3 Compensation for Growth
The decent profitability rating of SIRI may justify a higher PE ratio.
SIRI's earnings are expected to decrease with -2.87% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y-7.05%
EPS Next 3Y-2.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.76%, SIRI is a good candidate for dividend investing.
SIRI's Dividend Yield is rather good when compared to the industry average which is at 4.91. SIRI pays more dividend than 88.54% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, SIRI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
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-6.18%
EPS Next 2Y-7.05%
EPS Next 3Y-2.87%
21.92
-0.65 (-2.88%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners41.02%
Inst Owner Change-3.31%
Ins Owners2.26%
Ins Owner Change0.24%
Market Cap7.42B
Analysts54
Price Target23.5 (7.21%)
Short Float %15.22%
Short Ratio5.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
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)-5.53%
PT rev (3m)-11.27%
EPS NQ rev (1m)-6.43%
EPS NQ rev (3m)-6.86%
EPS NY rev (1m)-6.74%
EPS NY rev (3m)-6.92%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.43 | ||
| Fwd PE | 7.21 | ||
| P/S | 0.86 | ||
| P/FCF | 7.97 | ||
| P/OCF | 4.43 | ||
| P/B | 0.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.23 |
EPS(TTM)3.41
EY15.56%
EPS(NY)3.04
Fwd EY13.87%
FCF(TTM)2.75
FCFY12.55%
OCF(TTM)4.95
OCFY22.56%
SpS25.41
BVpS33.11
TBVpS-33.47
PEG (NY)N/A
PEG (5Y)0.59
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 | 1.34 |
F-Score5
WACC7.05%
ROIC/WACC0.9
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-17.04%
EPS Next 2Y-7.05%
EPS Next 3Y-2.87%
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-1.06%
Revenue Next 3Y-0.6%
Revenue Next 5Y1.21%
EBIT growth 1Y-2.11%
EBIT growth 3Y-1.65%
EBIT growth 5Y2.26%
EBIT Next Year558.66%
EBIT Next 3Y86.73%
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%