Sirius XM logged a 0.1% change during today's morning session, and is now trading at a price of $4.54 per share.
Sirius XM returned losses of -2717.0% last year, with its stock price reaching a high of $6.85 and a low of $3.32. Over the same period, the stock underperformed the S&P 500 index by -4333.0%. As of April 2023, the company's 50-day average price was $3.73. Sirius XM Holdings Inc., an audio entertainment company, operates audio business including subscription entertainment services in the United States. Based in New York, NY, the large-cap Consumer Discretionary company has 5,869 full time employees. Sirius XM has offered a 2.0% dividend yield over the last 12 months.
Exceptional Profitability Overshadowed by Excessive Leverage:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $7,794 | $8,040 | $8,696 | $9,003 |
| Gross Margins | 50.6% | 51.0% | 50.6% | 50.2% |
| Operating Margins | 22.2% | 23.2% | 23.4% | 23.3% |
| Net Margins | 11.73% | 1.63% | 15.11% | 13.47% |
| Net Income (MM) | $914 | $131 | $1,314 | $1,213 |
| Net Interest Expense (MM) | -390 | -394 | -415 | -422 |
| Net Interest Expense (MM) | -$390 | -$394 | -$415 | -$422 |
| Depreciation & Amort. (MM) | -$468 | -$562 | -$583 | -$585 |
| Earnings Per Share | $0.2 | $0.03 | $0.32 | $0.3 |
| EPS Growth | n/a | -85.0% | 966.67% | -6.25% |
| Diluted Shares (MM) | 4,616 | 4,429 | 4,143 | 3,868 |
| Free Cash Flow (MM) | $1,654 | $1,668 | $1,610 | $1,550 |
| Capital Expenditures (MM) | -$363 | -$350 | -$388 | -$426 |
| Net Current Assets (MM) | -$10,882 | -$11,651 | -$11,719 | -$12,335 |
| Current Ratio | 0.3 | 0.31 | 0.4 | 0.35 |
| Long Term Debt (MM) | $7,842 | $8,499 | $8,832 | $9,256 |
| Net Debt / EBITDA | 3.79 | 6.12 | 3.44 | 3.62 |
Sirius XM benefits from growing revenues and increasing reinvestment in the business, strong margins with a stable trend, and a steady stream of strong cash flows. The company's financial statements show wider gross margins than its peer group and a strong EPS growth trend. However, the firm has a highly leveraged balance sheet.
Sirius XM Is Fairly Priced at Current Levels:
Sirius XM has a trailing twelve month P/E ratio of 12.4, compared to an average of 22.33 for the Consumer Discretionary sector. Based on its EPS guidance of $0.32, the company has a forward P/E ratio of 11.7. The 9.9% compound average growth rate of Sirius XM's historical and projected earnings per share yields a PEG ratio of 1.26. This implies that the shares are fairly valued.
Sirius XM Has an Average Rating of Hold:
The 13 analysts following Sirius XM have set target prices ranging from $3.25 to $6.25 per share, for an average of $4.44 with a hold rating. As of April 2023, the company is trading -16.0% away from its average target price, indicating that there is an analyst consensus of little upside potential.
Sirius XM has an unusually large proportion of its shares sold short because 30.5% of the company's shares are sold short. Institutions own 12.0% of the company's shares, and the insider ownership rate stands at 83.44%, suggesting a large amount of insider shareholders. The largest shareholder is the Vanguard Group, Inc., whose 2% stake in the company is worth $282,800,341.
