Now trading at a price of $34.34, Liberty Media has moved -0.5% so far today.
As of July 2023, the company's 50-day average price was $30.34. The Liberty SiriusXM Group, through its subsidiaries, engages in the entertainment business in the United States and Canada. The large-cap Industrials company is based in Englewood, CO. Liberty Media has not offered a dividend during the last year.
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 | 20.9% | 21.8% | 22.3% | 22.1% |
| Net Margins | 6.34% | -9.29% | 6.89% | 14.35% |
| Net Income (MM) | $494 | -$747 | $599 | $1,292 |
| Net Interest Expense (MM) | -$435 | -$469 | -$495 | -$511 |
| Depreciation & Amort. (MM) | -$537 | -$573 | -$603 | -$611 |
| Earnings Per Share | $1.48 | -$2.33 | $1.78 | $3.33 |
| EPS Growth | n/a | -257.43% | 176.39% | 87.08% |
| Diluted Shares (MM) | 333 | 336 | 337 | 268 |
| Free Cash Flow (MM) | $1,581 | $1,574 | $1,506 | $1,533 |
| Capital Expenditures (MM) | -$363 | -$350 | -$388 | -$426 |
| Net Current Assets (MM) | -$13,725 | -$17,433 | -$17,960 | -$17,028 |
| Current Ratio | 0.42 | 0.47 | 0.41 | 0.36 |
| Long Term Debt (MM) | $9,244 | $12,525 | $12,078 | $11,600 |
| Net Debt / EBITDA | 5.04 | 29.94 | 7.72 | 4.44 |
Liberty Media benefits from growing revenues and increasing reinvestment in the business, strong margins with a stable trend, and exceptional EPS growth. The company's financial statements show a steady stream of strong cash flows and wider gross margins than its peer group. However, the firm has a highly leveraged balance sheet.
A Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:
Liberty Media has a trailing twelve month P/E ratio of 9.1, compared to an average of 20.49 for the Industrials sector. Based on its EPS guidance of $3.21, the company has a forward P/E ratio of 9.5. According to the 16.7% compound average growth rate of Liberty Media's historical and projected earnings per share, the company's PEG ratio is 0.54. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 9.9%. On this basis, the company's PEG ratio is 0.92. This suggests that its shares are undervalued. Additionally, the market is possibly undervaluing Liberty Media in terms of its equity because its P/B ratio is 1.26 whereas the sector average is 3.78. The company's shares are currently trading 34.5% above their Graham number.
Liberty Media Has an Analyst Consensus of Some Upside Potential:
The 3 analysts following Liberty Media have set target prices ranging from $36.0 to $53.0 per share, for an average of $42.33 with a buy rating. As of April 2023, the company is trading -28.3% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Liberty Media has an average amount of shares sold short because 2.8% of the company's shares are sold short. Institutions own 84.9% of the company's shares, and the insider ownership rate stands at 10.66%, suggesting a large amount of insider shareholders. The largest shareholder is Berkshire Hathaway, Inc, whose 20% stake in the company is worth $1,483,772,719.
