Sirius XM Holdings (SIRI) AI Stock Analysis

• Market Cap: $7.08B
• Dividend Yield: 5.13%
• Average Volume (3M): 5.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: -2.84%
• EPS Growth: -249.80%
• Country: US
• Employees: 5,515
• Sector: Communication Services
• Sector Strength: 98
• Industry: Entertainment
• EPS (TTM): -4.94
• Shares Outstanding: 338,768,650
• 10 Day Avg. Volume: 5,972,260
• 30 Day Avg. Volume: 5,107,571
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.91
• Price to Cash Flow (P/CF): 2.90
• P/FCF Ratio: 2.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $24.27
• Price Target Upside: 20.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

Sirius XM Holdings faces challenges with declining profitability and high leverage, reflected in low financial performance and valuation scores. The technical analysis indicates bearish trends, while the earnings call and corporate events provide a more balanced view with some positive strategic initiatives. Overall, the stock score reflects caution due to the company's operational and financial risks.

Positive Factors

Financial performance

The company expects approximately 13% growth in free cash flow, supported by its business model.

Investment appeal

Shares offer a 5% dividend yield, providing an attractive return for investors.

Negative Factors

Advertising revenue

Economic uncertainty and concerns around the consumer have impacted advertising sales, with CPG, retail, and travel sectors softening.

Marketing challenges

Pullback from significant streaming marketing, easier cancellations, and shorter discount periods may dampen self-pay additions.

Subscriber trends

Customer convenience changes may spur near term churn: Management expects overall self-pay subscriber trends in the first half to be weaker in part due to the click-to-cancel changes.

Sirius XM Holdings Business Overview & Revenue Model

Company Description

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, as well as connected vehicle services. 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, remote vehicles diagnostic, maintenance and data, 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 was incorporated in 2013 and is headquartered in New York, New York. Sirius XM Holdings Inc. is a subsidiary of Liberty Media Corporation.

How the Company Makes Money

Sirius XM Holdings generates revenue primarily through subscription fees, advertising, and equipment sales. The majority of its income comes from subscription fees paid by its satellite radio and online streaming service subscribers. Additionally, Sirius XM earns money from advertising sales on both its satellite radio and Pandora platforms. The company also sells satellite radio equipment and receives royalties from automakers who integrate Sirius XM services into their vehicles. Strategic partnerships with car manufacturers and exclusive content agreements are significant factors contributing to the company's earnings, enhancing its subscriber base and advertising appeal.

Sirius XM Holdings Financial Statement Overview

Summary

Sirius XM Holdings faces significant operational and profitability challenges, with recent losses in net income and negative EBIT margins. The balance sheet shows improvement in equity but remains highly leveraged. Cash flow generation is a strong point, but declining profitability poses risks.

Income Statement

The income statement shows a significant decline in profitability, with a negative net income for the latest year. Gross profit margin remains reasonable, but both EBIT and EBITDA margins are severely negative, indicating operational challenges. Revenue growth has been inconsistent, showing a decline in the most recent period. These factors highlight potential risks in profitability and revenue stability.

Balance Sheet

The balance sheet reveals a turnaround in stockholders' equity from negative to positive, improving the equity ratio. However, the company still faces high leverage with a significant debt burden relative to equity. This leverage poses financial risk, though the improvement in equity is a positive sign of potential recovery.

Cash Flow

The cash flow statement indicates strong operating cash flow relative to net income, with positive free cash flow. However, free cash flow has declined recently, suggesting a potential challenge in sustaining cash-generating activities. Despite this, the ability to maintain positive cash flow amidst declining net income is a strength.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.70B	8.95B	9.00B	8.70B	8.04B
	Gross Profit
4.44B	4.38B	4.52B	4.40B	4.10B
	EBIT
-1.52B	1.95B	2.04B	2.02B	858.00M
	EBITDA
-747.00M	2.54B	2.61B	2.52B	1.39B
	Net Income Common Stockholders
-1.67B	1.26B	1.21B	1.31B	131.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
162.00M	216.00M	57.00M	191.00M	71.00M
	Total Assets
27.52B	10.37B	10.02B	10.27B	10.33B
	Total Debt
61.00M	9.53B	9.82B	9.24B	8.97B
	Net Debt
-101.00M	9.32B	9.77B	9.05B	8.90B
	Total Liabilities
16.45B	12.94B	13.37B	12.90B	12.62B
	Stockholders Equity
11.07B	-2.56B	-3.35B	-2.63B	-2.29B
Cash Flow		Free Cash Flow
1.01B	1.20B	1.55B	1.61B	1.67B
	Operating Cash Flow
1.74B	1.85B	1.98B	2.00B	2.02B
	Investing Cash Flow
-970.00M	-686.00M	-548.00M	-200.00M	-741.00M
	Financing Cash Flow
-916.00M	-1.00B	-1.56B	-1.68B	-1.31B

Sirius XM Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIRI, the sentiment is Negative. The current price of 20.08 is below the 20-day moving average (MA) of 22.24, below the 50-day MA of 23.64, and below the 200-day MA of 26.13, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 38.36 is Neutral, neither overbought nor oversold. The STOCH value of 13.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SIRI.

Sirius XM Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXA	82 Outperform	$22.46B	11.02	20.09%	1.05%	4.29%	177.70%
DIS	77 Outperform	$165.30B	29.69	5.54%	1.04%	3.97%	89.53%
NWSA	65 Neutral	$15.62B	36.11	5.23%	0.83%	-1.51%	82.74%
ROKU	63 Neutral	$9.32B	―	-5.37%	―	18.03%	82.15%
Sector *	58 Neutral	$26.94B	3.15	-10.67%	4.32%	2.14%	-43.11%
WBD	58 Neutral	$22.73B	―	-28.54%	―	-4.91%	-259.71%
SIRI	48 Neutral	$7.08B	―	-37.33%	5.13%	-2.84%	-249.80%

Sirius XM Holdings Corporate Events

Sirius XM Appoints Anjali Sud to Board of Directors

On March 20, 2025, Sirius XM Holdings Inc. announced the appointment of Anjali Sud as an independent director to its Board of Directors, effective March 31, 2025, following the resignation of Vice Chairman James E. Meyer. Sud, currently the CEO of Tubi and former CEO of Vimeo, brings extensive experience in media and technology to the board, which is expected to strengthen SiriusXM’s strategic positioning as it aims for future growth. Meyer’s resignation, effective March 17, 2025, was not due to any disagreement with the company, and he expressed confidence in the company’s continued success under current leadership.

Sirius XM Appoints Richard N. Baer as General Counsel

Sirius XM Holdings Inc. announced that Richard N. Baer will assume the role of Executive Vice President, General Counsel, and Secretary effective March 3, 2025, succeeding Patrick Donnelly who is retiring. Baer brings over 40 years of legal experience from leading roles in major companies such as Airbnb and Liberty Media, and his appointment aligns with SiriusXM’s strategic goals to enhance legal, compliance, and governance frameworks. This significant leadership transition is anticipated to reinforce SiriusXM’s operational foundation and support its strategic priorities, potentially impacting its market positioning and stakeholder engagement.

Sirius XM Reports 2024 Loss, Focuses on Strategy

Sirius XM Holdings announced its financial results for the fourth quarter and full-year 2024, reporting a net loss of $2.08 billion due to a non-cash charge, despite achieving revenues of $8.70 billion. The company saw a decline in subscriber numbers and revenues, with a decrease in adjusted EBITDA and free cash flow compared to the previous year, while maintaining a stable adjusted EBITDA margin of 31%. The company reaffirmed its 2025 financial guidance and highlighted strategic initiatives, including prioritizing in-car subscriptions, enhancing streaming capabilities, and expanding partnerships, such as a new agreement with ESPN+.