SIRIUS XM HOLDINGS INC (SIRI) Stock Fundamental Analysis
USA - NASDAQ:SIRI - US8299331004 - Common Stock
21.69 USD
-1.5 (-6.47%)
21.72 USD
+0.03 (+0.14%)
We assign a fundamental rating of 4 out of 10 to SIRI. SIRI was compared to 94 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 valued correctly, but it does not seem to be growing.
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 4 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 -8.28% is on the low side compared to the rest of the industry. SIRI is outperformed by 65.96% of its industry peers.
SIRI's Return On Equity of -19.97% is in line compared to the rest of the industry. SIRI outperforms 40.43% of its industry peers.
With a decent Return On Invested Capital value of 6.40%, SIRI is doing good in the industry, outperforming 70.21% of the companies in the same industry.
SIRI had an Average Return On Invested Capital over the past 3 years of 12.54%. This is above the industry average of 8.50%.
The 3 year average ROIC (12.54%) for SIRI is well above the current ROIC(6.40%). The reason for the recent decline needs to be investigated.
| 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 95.74% of its industry peers.
SIRI's Operating Margin has been stable in the last couple of years.
SIRI has a Gross Margin (52.11%) which 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
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.
The debt/assets ratio for SIRI is higher compared to a year ago.
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 has a Altman-Z score (1.35) which is comparable to the rest of the industry.
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 in line compared to the rest of the industry. SIRI outperforms 58.51% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that SIRI is somewhat dependend on debt financing.
The Debt to Equity ratio of SIRI (0.89) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 10.28 | ||
| Altman-Z | 1.35 |
ROIC/WACC1.02
WACC6.28%
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.
SIRI has a Current ratio of 0.41. This is amonst the worse of the industry: SIRI underperforms 86.17% of its industry peers.
SIRI has a Quick 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.
SIRI has a Quick ratio of 0.41. This is amonst the worse of the industry: SIRI underperforms 86.17% 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.
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 -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
Based on estimates for the next years, SIRI will show a very negative growth in Earnings Per Share. The EPS will decrease by -42.02% on average per year.
The Revenue is expected to grow by 1.21% on average over the next years.
EPS Next Y-20.11%
EPS Next 2Y-5.81%
EPS Next 3Y-2.68%
EPS Next 5Y-42.02%
Revenue Next Year-1.93%
Revenue Next 2Y-0.98%
Revenue Next 3Y-0.56%
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 6.82.
Compared to the rest of the industry, the Price/Earnings ratio of SIRI indicates a rather cheap valuation: SIRI is cheaper than 82.98% of the companies listed in the same industry.
SIRI is valuated cheaply when we compare the Price/Earnings ratio to 26.10, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.95 indicates a rather cheap valuation of SIRI.
Based on the Price/Forward Earnings ratio, SIRI is valued a bit cheaper than 77.66% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.52, SIRI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.82 | ||
| Fwd PE | 6.95 |
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 70.21% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SIRI is valued a bit cheaper than the industry average as 75.53% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.36 | ||
| EV/EBITDA | 7.22 |
4.3 Compensation for Growth
A cheap valuation may be justified as SIRI's earnings are expected to decrease with -2.68% in the coming years.
PEG (NY)N/A
PEG (5Y)0.63
EPS Next 2Y-5.81%
EPS Next 3Y-2.68%
5. Dividend
5.1 Amount
SIRI has a Yearly Dividend Yield of 5.05%, which is a nice return.
Compared to an average industry Dividend Yield of 4.43, SIRI pays a better dividend. On top of this SIRI pays more dividend than 91.49% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, SIRI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.05% |
5.2 History
On average, the dividend of SIRI grows each year by 77.68%, which is quite nice.
SIRI has been paying a dividend for at least 10 years, so it has a reliable track record.
SIRI has decreased its dividend 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-5.35%
EPS Next 2Y-5.81%
EPS Next 3Y-2.68%
21.69
-1.5 (-6.47%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners39.01%
Inst Owner Change-0.08%
Ins Owners1.86%
Ins Owner Change0.04%
Market Cap7.30B
Revenue(TTM)8.56B
Net Income(TTM)-2262000000
Analysts54
Price Target24.27 (11.89%)
Short Float %13.6%
Short Ratio7.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.05% |
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)0.54%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)3.5%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-3.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.82 | ||
| Fwd PE | 6.95 | ||
| P/S | 0.85 | ||
| P/FCF | 7.36 | ||
| P/OCF | 4.28 | ||
| P/B | 0.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.22 |
EPS(TTM)3.18
EY14.66%
EPS(NY)3.12
Fwd EY14.4%
FCF(TTM)2.95
FCFY13.58%
OCF(TTM)5.07
OCFY23.37%
SpS25.44
BVpS33.64
TBVpS-33.22
PEG (NY)N/A
PEG (5Y)0.63
Graham Number49.06
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%
ROICexgc growth 3Y-29.15%
ROICexgc 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 | 4.09 | ||
| Cap/Depr | 125.44% | ||
| Cap/Sales | 8.35% | ||
| Interest Coverage | 3.8 | ||
| Cash Conversion | 68.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 1.35 |
F-Score4
WACC6.28%
ROIC/WACC1.02
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)-3.64%
EPS 3Y3.23%
EPS 5Y10.88%
EPS Q2Q%-28.75%
EPS Next Y-20.11%
EPS Next 2Y-5.81%
EPS Next 3Y-2.68%
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-1.93%
Revenue Next 2Y-0.98%
Revenue Next 3Y-0.56%
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%
SIRIUS XM HOLDINGS INC / SIRI FAQ
Can you provide the ChartMill fundamental rating for SIRIUS XM HOLDINGS INC?
ChartMill assigns a fundamental rating of 4 / 10 to SIRI.
What is the valuation status of SIRIUS XM HOLDINGS INC (SIRI) stock?
ChartMill assigns a valuation rating of 6 / 10 to SIRIUS XM HOLDINGS INC (SIRI). This can be considered as Fairly Valued.
What is the profitability of SIRI stock?
SIRIUS XM HOLDINGS INC (SIRI) has a profitability rating of 5 / 10.
Can you provide the financial health for SIRI stock?
The financial health rating of SIRIUS XM HOLDINGS INC (SIRI) is 2 / 10.
What is the expected EPS growth for SIRIUS XM HOLDINGS INC (SIRI) stock?
The Earnings per Share (EPS) of SIRIUS XM HOLDINGS INC (SIRI) is expected to decline by -20.11% in the next year.