Sirius XM Holdings Inc.
Sirius XM Holdings Inc. Fundamental Analysis
Sirius XM Holdings Inc. (SIRI) shows weak financial fundamentals with a PE ratio of 8.73, profit margin of 9.41%, and ROE of 7.05%. The company generates $8.6B in annual revenue with weak year-over-year growth of -2.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 29.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SIRI's fundamental strength across five key dimensions:
Efficiency Score
WeakSIRI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSIRI trades at attractive valuation levels.
Growth Score
WeakSIRI faces weak or negative growth trends.
Financial Health Score
ModerateSIRI shows balanced financial health with some risks.
Profitability Score
WeakSIRI struggles to sustain strong margins.
Key Financial Metrics
Is SIRI Expensive or Cheap?
P/E Ratio
SIRI trades at 8.73 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SIRI's PEG of -0.46 indicates potential undervaluation.
Price to Book
The market values Sirius XM Holdings Inc. at 0.61 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.22 times EBITDA. This is generally considered low.
How Well Does SIRI Make Money?
Net Profit Margin
For every $100 in sales, Sirius XM Holdings Inc. keeps $9.41 as profit after all expenses.
Operating Margin
Core operations generate 17.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.05 in profit for every $100 of shareholder equity.
ROA
Sirius XM Holdings Inc. generates $2.96 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sirius XM Holdings Inc. produces operating cash flow of $1.90B, showing steady but balanced cash generation.
Free Cash Flow
Sirius XM Holdings Inc. generates strong free cash flow of $1.25B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.71 in free cash annually.
FCF Yield
SIRI converts 17.66% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.73
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.46
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.84
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How SIRI Stacks Against Its Sector Peers
| Metric | SIRI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.73 | 21.66 | Better (Cheaper) |
| ROE | 7.05% | 1190.00% | Weak |
| Net Margin | 9.41% | -55754.00% (disorted) | Weak |
| Debt/Equity | 0.84 | 1.32 | Strong (Low Leverage) |
| Current Ratio | 0.30 | 1.59 | Weak Liquidity |
| ROA | 2.96% | -202359.00% (disorted) | Weak |
SIRI outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sirius XM Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
48.63%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-342.58%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
14.94%
Industry Style: Growth, Technology, Streaming
High Growth