NasdaqGS:SIRI

Stock Analysis Report

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Executive Summary

Sirius XM Holdings Inc. provides satellite radio services on a subscription fee basis in the United States.


Snowflake Analysis

Questionable track record with imperfect balance sheet.


Similar Companies

Share Price & News

How has Sirius XM Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SIRI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

SIRI

2.1%

US Media

1.9%

US Market


1 Year Return

0.2%

SIRI

-7.7%

US Media

4.3%

US Market

Return vs Industry: SIRI exceeded the US Media industry which returned -7.7% over the past year.

Return vs Market: SIRI underperformed the US Market which returned 4.3% over the past year.


Shareholder returns

SIRIIndustryMarket
7 Day1.9%2.1%1.9%
30 Day-1.3%-2.2%2.7%
90 Day24.0%20.9%26.4%
1 Year1.0%0.2%-6.2%-7.7%6.5%4.3%
3 Year11.2%8.7%2.7%-1.6%35.1%26.2%
5 Year66.7%61.8%28.8%19.5%67.0%48.4%

Price Volatility Vs. Market

How volatile is Sirius XM Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sirius XM Holdings undervalued compared to its fair value and its price relative to the market?

19.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SIRI ($5.89) is trading below our estimate of fair value ($7.3)

Significantly Below Fair Value: SIRI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SIRI is poor value based on its PE Ratio (25.1x) compared to the Media industry average (10.7x).

PE vs Market: SIRI is poor value based on its PE Ratio (25.1x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: SIRI is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: SIRI has negative assets, so we can't compare its PB Ratio to the US Media industry average.


Next Steps

Future Growth

How is Sirius XM Holdings forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIRI's forecast earnings growth (10.6% per year) is above the savings rate (2.2%).

Earnings vs Market: SIRI's earnings (10.6% per year) are forecast to grow slower than the US market (22.7% per year).

High Growth Earnings: SIRI's earnings are forecast to grow, but not significantly.

Revenue vs Market: SIRI's revenue (4.5% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: SIRI's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SIRI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sirius XM Holdings performed over the past 5 years?

14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIRI has high quality earnings.

Growing Profit Margin: SIRI's current net profit margins (13.1%) are lower than last year (17.1%).


Past Earnings Growth Analysis

Earnings Trend: SIRI's earnings have grown by 14.9% per year over the past 5 years.

Accelerating Growth: SIRI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SIRI had negative earnings growth (-0.4%) over the past year, making it difficult to compare to the Media industry average (6.6%).


Return on Equity

High ROE: SIRI's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Sirius XM Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SIRI has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SIRI has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SIRI has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: SIRI's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: SIRI's debt is well covered by operating cash flow (26%).

Interest Coverage: SIRI's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Sirius XM Holdings's current dividend yield, its reliability and sustainability?

0.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SIRI's dividend (0.9%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: SIRI's dividend (0.9%) is low compared to the top 25% of dividend payers in the US market (4.49%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SIRI has been paying a dividend for less than 10 years.

Growing Dividend: SIRI's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.7%), SIRI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SIRI's dividends in 3 years are forecast to be well covered by earnings (24.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.6yrs

Average management tenure


CEO

Jim Meyer (65yo)

7.58yrs

Tenure

US$18,778,831

Compensation

Mr. James E. Meyer, also known as Jim, has been the Chief Executive Officer of Sirius XM Radio Inc. Mr. Meyer serves as a Director at Charter Communications, Inc. since July 24, 2018. He has a strong track ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD18.78M) is above average for companies of similar size in the US market ($USD11.49M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Meyer
CEO & Director7.58yrsUS$18.78m0.079% $20.4m
Scott Greenstein
President & Chief Content Officer16.17yrsUS$4.56m0.021% $5.3m
David Frear
Senior EVP & CFO5.08yrsUS$4.22m0.029% $7.4m
Jennifer Witz
President of Sales1.33yrsUS$16.08m0.026% $6.7m
Patrick Donnelly
Executive VP22.17yrsUS$10.92m0.0086% $2.2m
Christopher Phillips
Chief Product Officer & Head of Technologyno datano datano data
Dara Altman
Executive VP & Chief Administrative Officer11.83yrsUS$7.53m0.014% $3.7m
Hooper Stevens
Vice President of IR & Financeno datano datano data
Patrick Reilly
Senior Vice President of Corporate Communicationsno datano datano data
Denise Karkos
Chief Marketing Officer0.75yrno datano data

7.6yrs

Average Tenure

60yo

Average Age

Experienced Management: SIRI's management team is seasoned and experienced (7.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Meyer
CEO & Director7.58yrsUS$18.78m0.079% $20.4m
James Holden
Independent Director18.92yrsUS$284.14k0.0059% $1.5m
John Malone
Chairman of The Board of Liberty Media Corporationno dataUS$120.00k0.000010% $2.6k
Eddy Hartenstein
Lead Independent Director7.25yrsUS$326.83k0.0010% $265.7k
Gregory Maffei
Chairman of the Board7.25yrsUS$326.83k0.0086% $2.2m
Carl Vogel
Independent Director9.25yrsUS$296.83k0.00086% $221.8k
James Mooney
Independent Director17yrsUS$296.64k0.0049% $1.3m
Joan Lordi Amble
Independent Director12yrsUS$306.83k0.0095% $2.4m
George Bodenheimer
Director6.83yrsUS$276.83k0.00086% $221.8k
Evan Malone
Director7.17yrsUS$276.83k0.00096% $247.6k

7.5yrs

Average Tenure

65yo

Average Age

Experienced Board: SIRI's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sirius XM Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sirius XM Holdings Inc.
  • Ticker: SIRI
  • Exchange: NasdaqGS
  • Founded:
  • Industry: Cable and Satellite
  • Sector: Media
  • Market Cap: US$25.793b
  • Shares outstanding: 4.38b
  • Website: https://www.siriusxm.com

Number of Employees


Location

  • Sirius XM Holdings Inc.
  • 1221 Avenue of the Americas
  • 35th Floor
  • New York
  • New York
  • 10020
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SIRINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 1994
A1W8XEDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1994
SIRIWBAG (Wiener Boerse AG)YesCommon StockATEURSep 1994
0L6ZLSE (London Stock Exchange)YesCommon StockGBUSDSep 1994
SRXM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 1 COM USD0.001BRBRLMay 2019

Biography

Sirius XM Holdings Inc. provides satellite radio services on a subscription fee basis in the United States. It broadcasts music, sports, entertainment, comedy, talk, news, traffic, and weather channels, including various music genres, such as rock, pop and hip-hop, country, dance, jazz, Latin, and classical; live play-by-play sports from various leagues and colleges; various talk and entertainment channels for a range of audiences; national, international, and financial news; and limited run channels. The company also provides streaming service that includes a range of music and non-music channels, and podcasts, as well as channels that are not available on its satellite radio service; and offers applications to allow consumers to access its streaming service on smartphones, tablets, computers, home devices, and other consumer electronic equipment. In addition, it distributes satellite radios through automakers and retailers, as well as its Website. Further, the company provides location-based services through two-way wireless connectivity, including safety, security, convenience, maintenance and data services, remote vehicles diagnostics, and stolen or parked vehicle locator services. Additionally, it offers satellite television services, which offer music channels on the DISH Network satellite television service as a programming package; Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedule and scores, and movie listings; and real-time traffic and weather services. The company is headquartered in New York, New York. Sirius XM Holdings Inc. operates as a subsidiary of Liberty Media Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/01 23:50
End of Day Share Price2020/07/01 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.