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Sirius XM Holdings Inc (SIRI)
NASDAQ:SIRI
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Sirius XM Holdings
(NASDAQ:SIRI)45Neutral
Positive Factors
Investment Support
Berkshire Hathaway's ongoing investment supports positive sentiment for SiriusXM.
Technology and Distribution Expansion
SiriusXM is expanding technology innovation and distribution through agreements with major companies like Tesla.
Negative Factors
Economic Volatility and Risks
Economic volatility and specific risks from tariff policies could disrupt vehicle sales, affecting fair valuation.
Sirius XM Holdings (SIRI) vs. S&P 500 (SPY)
Market Cap
$8.01B
Dividend Yield4.53%
Average Volume (3M)5.64M
Price to Earnings (P/E)―
Beta (1Y)1.85
Revenue Growth-2.84%
EPS Growth-249.80%
CountryUS
Employees5,515
SectorCommunication Services
Sector Strength85
IndustryTraditional Media
Share Statistics
EPS (TTM)-4.94
Shares Outstanding338,768,650
10 Day Avg. Volume4,074,759
30 Day Avg. Volume5,635,553
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.92
Price to Cash Flow (P/CF)3.00
P/FCF Ratio3.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$23.85Price Target Upside2.67% Upside
Rating ConsensusHold
Number of Analyst Covering12
Sirius XM Holdings Business Overview & Revenue Model
Company DescriptionNew York-based Sirius XM Holdings, Inc. is a radio company, which provides satellite radio services on a subscription fee basis. The company offers music, sports, entertainment, comedy, talk, news, traffic and weather channels, as well as infotainment services. Its brand channels include SiriusXM Traffic, SiriusXM Travel Link, NavTraffic, NavWeather, SiriusXM Aviation and SiriusXM Marine.
How the Company Makes MoneySirius 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 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 remains strong, but declining profitability poses risks. Investors should be cautious of these risks while noting positive trends in cash flow and equity.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.45
Neutral
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.35
Negative
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.60
Neutral
| 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 | 1.87B | 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
Negative
23.23
Price Trends
23.37
Negative
24.61
Negative
26.66
Negative
Market Momentum
-0.01
Positive
40.04
Neutral
16.79
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 23.23 is below the 20-day moving average (MA) of 25.10, below the 50-day MA of 23.37, and below the 200-day MA of 26.66, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.04 is Neutral, neither overbought nor oversold. The STOCH value of 16.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SIRI.
Sirius XM Holdings Risk Analysis
Sirius XM Holdings disclosed 50 risk factors in its most recent earnings report. Sirius XM Holdings reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sirius XM Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.16T | 37.73 | 24.29% | ― | 10.99% | 91.61% | |
76 Outperform | $3.54T | 37.51 | 136.52% | 0.53% | 2.61% | -2.14% | |
76 Outperform | $188.21B | 17.58 | 10.54% | 4.23% | -0.08% | -24.48% | |
76 Outperform | $117.29B | 96.04 | 28.91% | ― | 18.36% | ― | |
75 Outperform | $416.03B | 49.97 | 38.43% | ― | 15.28% | 65.72% | |
59 Neutral | $30.54B | 0.25 | -13.23% | 4.04% | 2.36% | -49.53% | |
45 Neutral | $8.01B | ― | -37.33% | 4.53% | -2.84% | -249.80% |
* Communication Services Sector Average
Performance Comparison
SIRI
Sirius XM Holdings
23.23
-17.01
-42.27%
AMZN
Amazon
208.36
31.54
17.84%
AAPL
Apple
235.74
67.54
40.15%
T
AT&T
26.18
10.07
62.51%
NFLX
Netflix
990.92
382.41
62.84%
SPOT
Spotify Technology SA
586.83
316.48
117.06%
Sirius XM Holdings Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: 7.50% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced performance with strong financial results and subscriber growth offset by challenges in subscription revenue and conversion rates. The company is optimistic about future opportunities in podcasting and advertising, but anticipates some short-term impacts from strategic adjustments.Highlights
Strong Financial Performance
SiriusXM delivered $8.7 billion in total revenue for 2024, with $2.73 billion in adjusted EBITDA and just over $1 billion in free cash flow, meeting or exceeding their public guidance.
Subscriber Growth and Retention
Added approximately 150,000 self-pay subscribers in Q4, with better-than-expected metrics across acquisition and churn, and significant improvements over 2023.
Podcasting and Advertising Growth
Podcasting revenue grew 24% year-over-year in Q4 2024, contributing to a total 2024 ad sales revenue of $1.8 billion. Programmatic revenue was up 38% in Q4.
Lowlights
Subscription Revenue Decline
Total subscription revenue decreased by 4% year-over-year, primarily driven by slower subscriber growth and challenges in conversion rates.
Pressure on Conversion Rates
Ongoing pressure on conversion rates due to newer trailers, younger consumers, and competition from other services.
Challenges with Streaming Marketing
One-time impacts expected in 2025 due to click to cancel policies and reductions in streaming marketing, affecting subscriber results in the first half of the year.
Company Guidance
During the SiriusXM fiscal year 2024 earnings call, the company reported achieving its financial guidance with $8.7 billion in total revenue, $2.73 billion in adjusted EBITDA, and over $1 billion in free cash flow. They added approximately 150,000 self-pay subscribers in Q4, despite ending the year down less than 300,000 subscribers overall. The introduction of a three-year OEM subscription program contributed to subscriber retention, with significant growth from vehicles equipped with the newest 360L technology. Advertising revenue remained flat at $1.8 billion, but podcasting revenue grew by 24% in Q4, driven by new content and partnerships. The company also highlighted its focus on efficiency, targeting $200 million in annualized savings by the end of 2025. SiriusXM reaffirmed its 2025 guidance with projected revenue of $8.5 billion, adjusted EBITDA of $2.6 billion, and free cash flow of $1.15 billion.Sirius XM Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Sirius XM Appoints Richard N. Baer as General Counsel
Neutral
Feb 18, 2025
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.
Business Operations and StrategyFinancial Disclosures
Sirius XM Reports 2024 Loss, Focuses on Strategy
Negative
Jan 30, 2025
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+.
Executive/Board Changes
Sirius XM Holdings Announces EVP Patrick Donnelly’s Retirement
Neutral
Jan 3, 2025
Patrick L. Donnelly, Executive Vice President, General Counsel, and Secretary of Sirius XM Holdings, has announced his retirement in early 2025. To ensure a smooth transition, Donnelly will continue full-time until April 2025 and then part-time until the end of 2025, assisting in the handover of duties while maintaining his salary and benefits.
Executive/Board ChangesBusiness Operations and Strategy
Sirius XM Appoints New COO and Updates Strategy
Positive
Dec 10, 2024
Sirius XM Holdings announced the appointment of Wayne D. Thorsen as Executive Vice President and Chief Operating Officer, who will oversee product and technology functions, along with commercial activities and corporate strategy, starting December 16, 2024. The company also updated its strategic plan to focus on its core subscription business and enhance stockholder returns, projecting significant savings and revenue targets for 2025, while maintaining its commitment to deleveraging and current dividend payouts.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.