SIRI  Sirius Xm Radio Inc.

Exchange

NASDAQ

Sector

Consumer Services

Industry

Broadcasting

Market Cap.

23.34B

Vuru Grade

35.95/100

Current Price

$4.95
-0.07 (-1.39%)

Growth Price

$3.62
Overvalued by 26.96%

Stability Price

$0.07
Overvalued by 98.61%

Company Metrics

  • P/E 33
  • P/S 4.72
  • P/B 297.5
  • EPS 0.15
  • Cash ROIC 19.21%
  • Cash Ratio 0.08
  • Dividend 0.04 / 0.78%
  • Avg. Vol. 26.33M
  • Shares 4.72B
  • Market Cap. 23.34B

Company Description

Sirius XM Radio Inc. provides satellite radio services in the United States and Canada. It broadcasts a programming lineup of approximately 135 channels of commercial-free music, sports, news and information, talk and entertainment, traffic, and weather on subscription fee basis through two satellite radio systems in the United States; and holds an interest in the satellite radio services offered ... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Sirius XM meets 1Q profit forecasts
New York Daily News - Mar 4, 2015
NEW YORK (AP) - Sirius XM Holdings Inc. (SIRI) on Thursday reported first-quarter profit of $207.1 million. On a per-share basis, the New York-based company said it had profit of 4 cents.
A Brief Look At The Automatic Labs Acquisition By Sirius XM Holdings
Seeking Alpha - 5 hours ago
The "little over $100 million" was shown as $115 million in the Sirius 10-Q, but that's not particularly important and investors should be aware of other factors.
UPS Shares Rise On Earnings Beat, Sirius XM Holdings Inc. Falls On In-Line Results
ValueWalk - Apr 27, 2017
UPS and Sirius XM released their latest earnings reports before opening bell this morning. UPS reported earnings of $1.32 per share on $15.3 billion in revenue, against the Wall Street consensus estimates of $1.29 per share and $15.2 billion.
Sirius XM Holdings Inc. Q1 Earnings Rise 20%
Nasdaq - Apr 27, 2017
(RTTNews.com) - Sirius XM Holdings Inc. ( SIRI ) released a profit for its first quarter that rose compared to the same period last year.
Sirius XM Stock Has a Lot to Prove on Thursday - Motley Fool
SIRIUS XM (SIRI) Meets Q1 Earnings Estimates - Yahoo Finance
SiriusXM Reports First Quarter 2017 Results
PR Newswire (press release) - Apr 27, 2017
"During the first quarter, we spent approximately $300 million to repurchase 62 million shares of our common stock. SiriusXM's average share count in the quarter declined by 6% from the first quarter of 2016 as a result of our share repurchase program.
SiriusXM Declares Quarterly Cash Dividend
PR Newswire (press release) - Apr 25, 2017
NEW YORK, April 25, 2017 /PRNewswire/ -- SiriusXM today announced that its Board of Directors declared a regular quarterly cash dividend of $0.01 per share of common stock, payable in cash on May 31, 2017 to stockholders of record at the close of ...
Sirius XM Acquires Automatic Labs - Quick Facts
Nasdaq - Apr 27, 2017
(RTTNews.com) - Sirius XM Holdings Inc. ( SIRI ) said it has acquired Automatic Labs Inc., a San Francisco-based provider of connected vehicle services for consumers and enterprises.
SiriusXM Acquires Automatic Labs Inc. - PR Newswire (press release)
Signature First Quarter Financial Results for SiriusXM - Radio World
Berkshire Buys $250M In Sirius Tracking Stock
Barron's - Apr 28, 2017
The tracking stocks in their present form have only been trading since April 18, 2016, but Sirius XM stock itself has been on the rise as well.
Sirius XM Holdings Inc
Normangee Star - Apr 28, 2017
According to 15 analysts, Sirius XM Holdings Inc. (SIRI) is at 48.83. They hope that the stock price will fall or that the company will fail and go bankrupt, leading the equity holders to ruin.
Active Volume Stock Update: Sirius XM Holdings Inc. (NASDAQ:SIRI) - HugoPress
2 Things I Don't Like in Sirius XM Radio's Earnings Report - Motley Fool
Rightway Automotive Customers Get 3-Month SiriusXM Subscription on Vehicles ...
PR Newswire (press release) - Apr 11, 2017
Sirius XM Holdings Inc. (NASDAQ: SIRI) is the world's largest radio company measured by revenue and has approximately 31.3 million subscribers.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for SIRI to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate SIRI's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$4.95 Current Price

$3.62 Growth Price (DCF)

Overvalued by 26.96%


Growth Rate Assumed by Market: 22.22%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$0.07 Stability Price (EPV)

Overvalued by 98.61%


Discount Rate: 15.0%

$-3.11 Book Price

Overvalued by 162.78%


Excellent Cash Return on Invested Capital over the past 5 years

SIRI has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. Annual Reports can be useful in identifying the cause of one-time events and future sustainability.

SIRI has created $19.21 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 709.47M 929.22M 1.13B 1.11B 1.51B
divided by
Invested Capital 6.22B 5.97B 5.91B 5.44B 5.12B
Cash ROIC 11.41% 15.56% 19.13% 20.40% 29.55%

Varying Return on Equity over the past 5 years

SIRI has generated strong profits with money shareholders have invested. However, there is a substantial variation in their Return on Equity from year-to-year. This may reflect management's inability to generate consistent returns or may be caused by one-time events. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

SIRI has generated $27.47 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 3.47B 377.22M 493.24M 509.72M 745.93M
divided by
Stockholders' Equity 4.04B 2.75B 1.31B -166.49M -792.02M
Return on Equity 85.97% 13.74% 37.66% - -

Good Business Performance over the past 10 years

It's likely SIRI has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is SIRI has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

SIRI has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow -214.03M -283.35M 185.32M 201.03M 406.20M 709.47M 929.22M 1.13B 1.11B 1.51B

Very Weak Balance Sheet

SIRI is in a poor financial position. This could be due to a slowdown in sales, indulging in debt-fuelled growth, or the nature of SIRI's business. If it is highly capital intensive (see Economic Moat), they likely have to outlay significant capital just to stay competitive. This habit often destroys more value than it creates.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 439.29M 380.45M 383.49M 586.69M 773.99M 520.95M 134.81M 147.72M 111.84M 213.94M
Current Assets 678.86M 793.01M 859.78M 991.78M 1.28B 1.83B 1.42B 1.55B 561.89M 642.65M
Total Assets 1.69B 7.49B 7.26B 7.38B 7.50B 9.05B 8.84B 8.38B 8.05B 8.00B
Current Liabilities 1.07B 2.41B 2.08B 2.35B 2.25B 2.31B 2.74B 2.31B 2.50B 2.67B
Total Liabilities 2.49B 7.48B 7.23B 7.18B 6.79B 5.02B 6.10B 7.07B 8.21B 8.80B
Stockholder' Equity -792.74M 8.54M 37.43M 207.64M 704.15M 4.04B 2.75B 1.31B -166.49M -792.02M
Current Ratio 0.63 0.33 0.41 0.42 0.57 0.79 0.52 0.67 0.23 0.24
TL-to-TA 1.47 1.00 0.99 0.97 0.91 0.55 0.69 0.84 1.02 1.10

Low or No Reinvestment of Profits over the past 10 years

SIRI has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to SIRI operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings -4.40B -9.71B -10.24B -10.21B -9.78B -6.31B -5.93B -5.44B -4.93B -3.89B
Retained Earnings Growth - -120.78% -5.45% 0.29% 4.18% 35.49% 5.98% 8.31% 9.37% 21.09%

Erratic Net Profit Margins over the past 10 years

SIRI has had highly erratic net profit margins which are a great cause for concern. This company may operate in a highly volatile industry, or it may just have poor performance. Look at reasons for this inconsistency to understand if there is any reason to look past it.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income -565.25M -5.31B -342.79M 43.06M 426.96M 3.47B 377.22M 493.24M 509.72M 745.93M
divided by
Revenue 922.07M 1.66B 2.47B 2.82B 3.01B 3.40B 3.80B 4.18B 4.57B 5.02B
Net Profit Margin -61.30% -319.31% -13.86% 1.53% 14.16% 102.08% 9.93% 11.80% 11.15% 14.87%

Varying Pricing Power over the past 10 years

SIRI has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$63.86 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 372.11M 800.55M 2.04B 1.72B 2.96B 2.17B 2.40B 2.57B 2.73B 3.02B
divided by
Revenue 922.07M 1.66B 2.47B 2.82B 3.01B 3.40B 3.80B 4.18B 4.57B 5.02B
Gross Margin 40.36% 48.11% 82.31% 60.98% 98.23% 63.86% 63.29% 61.53% 59.67% 60.27%

High Capital Intensity over the past 10 years

SIRI spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

126.30% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 65.26M 130.55M 248.51M 311.87M 137.43M 97.29M 173.62M 121.65M 134.89M 205.83M
divided by
Net Income -565.25M -5.31B -342.79M 43.06M 426.96M 3.47B 377.22M 493.24M 509.72M 745.93M
Capital Expenditure Ratio -11.55% -2.46% -72.50% 724.35% 32.19% 2.80% 46.03% 24.66% 26.46% 27.59%

No Dividend History over the past 10 years

SIRI has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 1.46B 2.17B 3.59B 6.39B 6.50B 6.87B 6.38B 5.86B 5.44B 4.96B
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 3.06 0.12 0.58 1.63 1.82 2.89 3.51 3.52 4.07 4.45
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

SIRI has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 1.46B 2.17B 3.59B 6.39B 6.50B 6.87B 6.38B 5.86B 5.44B 4.96B
Stock Bought Back - -32.57% -39.50% -43.89% -1.69% -5.43% 7.66% 8.92% 7.85% 9.48%
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