Skip to Content

Sirius XM Holdings Inc SIRI

Morningstar Rating
$4.73 +0.05 (1.07%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Sirius XM Earnings: Pandora Advertising Growth Now Justifying the Acquisition by Sirius

We are maintaining our $7.50 fair value estimate for Sirius XM. While the firm awaits the completion of the deal with Liberty Media, its heavily criticized acquisition of Pandora in 2019 is providing some return. The subscription and advertising sides of its audio broadcasting segment continued to decline during the fourth quarter, but with a bit less uncertainty regarding digital advertising and continuing shift of listener behavior toward streaming, Pandora posted growth.

Price vs Fair Value

SIRI is trading at a 37% discount.
Price
$4.72
Fair Value
$9.60
Uncertainty
Medium
1-Star Price
$89.45
5-Star Price
$8.54
Economic Moat
Bptghp
Capital Allocation
Bcynyksqn

Bulls Say, Bears Say

Bulls

The firm'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-takes-all market.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if SIRI is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$4.68
Day Range
$4.654.75
52-Week Range
$3.327.95
Bid/Ask
$4.73 / $4.74
Market Cap
$18.17 Bil
Volume/Avg
12.0 Mil / 13.3 Mil

Key Statistics

Price/Earnings (Normalized)
12.74
Price/Sales
2.09
Dividend Yield (Trailing)
2.15%
Dividend Yield (Forward)
2.25%
Total Yield
3.66%

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 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 as well as a robust and growing podcast library. Liberty Media owns 81% 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
WMG
Price/Earnings (Normalized)
12.7431.50
Price/Book Value
17.2640.80
Price/Sales
2.093.322.99
Price/Cash Flow
8.97203.4321.45
Price/Earnings
SIRI
SPOT
WMG

Financial Strength

Metric
SIRI
SPOT
WMG
Quick Ratio
0.231.240.52
Current Ratio
0.331.290.70
Interest Coverage
4.71−11.985.74
Quick Ratio
SIRI
SPOT
WMG

Profitability

Metric
SIRI
SPOT
WMG
Return on Assets (Normalized)
14.82%−0.79%6.30%
Return on Equity (Normalized)
−2.65%167.46%
Return on Invested Capital (Normalized)
27.62%−3.06%13.64%
Return on Assets
SIRI
SPOT
WMG
See how this stock stacks up to its competitors with Morningstar Investor

Entertainment Industry Comparables

Sponsor Center