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Sirius XM Holdings Inc SIRI

Rating as of

Morningstar’s Analysis

Valuation
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

SiriusXM Ends 2020 With Strong Net Adds; Lockdown Restrictions Not Impacting Conversions

Neil Macker, CFA Senior Equity Analyst

Analyst Note

| Neil Macker, CFA |

SiriusXM ended 2020 on a high note despite continued shutdowns across the U.S. as revenue and EBITDA exceeded FactSet consensus expectations. The company added 407,000 self-pay SiriusXM customers in the quarter, taking the total over the last nine months to an impressive 840,000 given the drop in commuting and travel. The strong net adds along with improvement in churn despite the shutdown demonstrates the underlying strength of and demand for SiriusXM content, which bodes well for the service even as its streaming competitors gain more traction in and out of cars. We are maintaining our narrow moat rating and plan to modestly raise our $5.90 fair value estimate.

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Company Profile

Business Description

Sirius XM Holdings Inc is now 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 U.S. 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. Liberty Media owns 68% of SiriusXM, traded through its Liberty SiriusXM Group tracking stock.

Contact
1221 Avenue of the Americas, 35th Floor
New York, NY, 10020
T +1 212 584-5100
Sector Communication Services
Industry Broadcasting
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2021
Stock Type Slow Growth
Employees 5,726

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