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Sirius XM Holdings Inc SIRI

Morningstar Rating
$3.12 +0.07 (2.30%)
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Company Report

SiriusXM Earnings: Decent Results With Plan for Technology and Content Investment to Drive Growth

SiriusXM's first quarter was not bad, but revenue remains stagnant, and the SiriusXM subscriber base has continued to contract. With investment in content and technology to improve the SiriusXM streaming app and integration into vehicles, management expects subscriber growth to pick up. However, we are now forecasting slower long-term growth, and we're reducing our fair value estimate from $7.50 to $5.

Price vs Fair Value

SIRI is trading at a 38% discount.
Price
$3.12
Fair Value
$2.00
Uncertainty
Medium
1-Star Price
$3.34
5-Star Price
$7.90
Economic Moat
Twymt
Capital Allocation
Tyrwtpzhlv

Bulls Say, Bears Say

Bulls

Sirius XM's satellite radio service and 360L platform have in-car technological advantages over streaming services that the rollout of 5G will not offset.

Bears

Pandora is well behind market leaders Spotify and Apple Music, and music streaming may be a winner-take-all market.

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Trading Information

Previous Close Price
$3.05
Day Range
$3.073.14
52-Week Range
$2.927.95
Bid/Ask
$3.12 / $3.14
Market Cap
$12.00 Bil
Volume/Avg
15.4 Mil / 17.1 Mil

Key Statistics

Price/Earnings (Normalized)
8.00
Price/Sales
1.35
Dividend Yield (Trailing)
3.26%
Dividend Yield (Forward)
3.41%
Total Yield
5.02%

Company Profile

Sirius XM Holdings is composed of two businesses: SiriusXM and Pandora. SiriusXM transmits music, talk shows, sports, and news via its two satellite radio networks, primarily to consumers in vehicles who pay a subscription fee. The firm’s radios come preinstalled on a wide range of light vehicles in the US and Canada. The firm acquired Pandora Media in February 2019 via an all-stock transaction. Pandora is a streaming music platform that offers an ad-supported radio option and a paid on-demand service; it has a robust and growing podcast library. Liberty Media owns 84% of Sirius XM, traded through its Liberty Sirius XM Group tracking stock.
Sector
Communication Services
Industry
Entertainment
Stock Style Box
Mid Value
Total Number of Employees
5,680

Competitors

Valuation

Metric
SIRI
SPOT
LYV
Price/Earnings (Normalized)
8.00406.4148.06
Price/Book Value
16.49
Price/Sales
1.353.890.93
Price/Cash Flow
5.57103.5016.23
Price/Earnings
SIRI
SPOT
LYV

Financial Strength

Metric
SIRI
SPOT
LYV
Quick Ratio
0.221.380.78
Current Ratio
0.351.420.92
Interest Coverage
4.69−2.142.72
Quick Ratio
SIRI
SPOT
LYV

Profitability

Metric
SIRI
SPOT
LYV
Return on Assets (Normalized)
14.48%3.49%4.24%
Return on Equity (Normalized)
11.24%
Return on Invested Capital (Normalized)
26.99%5.13%9.38%
Return on Assets
SIRI
SPOT
LYV
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