Sirius XM Holdings (SIRI) AI Stock Analysis

• Market Cap: $6.99B
• Dividend Yield: 5.2%
• Average Volume (3M): 3.44M
• Price to Earnings (P/E): 7.5
• Beta (1Y): 1.20
• Revenue Growth: -2.80%
• EPS Growth: N/A
• Country: US
• Employees: 5,515
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.84
• Shares Outstanding: 336,561,650
• 10 Day Avg. Volume: 3,631,099
• 30 Day Avg. Volume: 3,441,101
• PEG Ratio: 0.02
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 7.61
• Enterprise Value/Market Cap: 2.62
• Enterprise Value/Revenue: 2.14
• Enterprise Value/Gross Profit: 4.49
• Enterprise Value/Ebitda: 7.81
• 1Y Price Target: $23.13
• Price Target Upside: 11.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 2.78
• Revenue Forecast (FY): $8.54B

• Rating: 64 Neutral
• Price Target: $23.50 ▲(13.14% Upside)

Sirius XM Holdings' overall stock score reflects a solid valuation and strong cash flow management, which are offset by challenges in revenue growth and technical indicators suggesting potential resistance. The earnings call highlights strategic initiatives that could drive future growth, but current subscriber metrics remain a concern.

Positive Factors

Cash Flow Management

Strong free cash flow growth indicates robust cash management, providing financial flexibility for strategic investments and debt reduction.

Podcast Ad Revenue Growth

Significant growth in podcast ad revenue showcases the company's ability to capitalize on emerging digital trends, enhancing long-term revenue streams.

New CFO Appointment

The appointment of an experienced CFO is expected to strengthen financial leadership, aiding in strategic focus and transformation efforts.

Negative Factors

Decline in Subscriber Revenue

A decline in subscriber revenue suggests challenges in subscriber retention and growth, potentially impacting long-term revenue stability.

Flat Total Revenue

Flat revenue growth indicates potential stagnation in core business segments, necessitating strategic initiatives to drive future growth.

Negative Self-Pay Net Adds

Negative self-pay net additions highlight difficulties in attracting new subscribers, which could hinder future revenue expansion.

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 generates revenue primarily through subscription fees from its satellite radio and streaming services. The company offers various subscription plans, including basic and premium packages, which provide access to a wide range of channels and exclusive content. Additionally, Sirius XM earns revenue from advertising on its streaming service, Pandora, which operates on a freemium model that allows users to listen for free with ads or subscribe to an ad-free experience. Other key revenue streams include partnerships with automotive manufacturers, where Sirius XM provides integrated satellite radio services in new vehicles, as well as content licensing agreements. The company's ability to attract and retain subscribers is bolstered by its extensive library of exclusive shows, live events, and partnerships with well-known personalities and brands in the entertainment industry.

Sirius XM Holdings Financial Statement Overview

Summary

Sirius XM Holdings shows a mixed financial performance. While the company maintains profitability with a reasonable gross profit margin of 47.64% and a net profit margin of 11.61%, revenue growth has declined by 14%. The balance sheet is stable with low leverage, but shareholder returns are modest. Strong cash flow growth of 22.42% indicates robust cash management.

Income Statement

Sirius XM Holdings shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 14%, which is concerning. However, the company maintains a reasonable gross profit margin of 47.64% and a net profit margin of 11.61%, indicating profitability. The EBIT and EBITDA margins are also positive at 14.93% and 22.55%, respectively, showing operational efficiency. Despite the revenue decline, the company remains profitable, which is a positive sign.

Balance Sheet

The balance sheet reveals a stable financial position with a low debt-to-equity ratio of 0.09 in the TTM period, indicating low leverage. However, the return on equity is modest at 8.79%, suggesting limited returns for shareholders. The equity ratio is not directly available, but the overall asset base is substantial. The company's financial stability is supported by its low leverage, but the return metrics could be improved.

Cash Flow

The cash flow statement shows strong free cash flow growth of 22.42% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.55, and the free cash flow to net income ratio is 0.64, both reflecting efficient cash conversion. The positive cash flow metrics suggest robust cash management and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.55B	8.70B	8.95B	9.00B	8.70B	8.04B
Gross Profit	4.08B	4.20B	4.38B	4.52B	4.40B	4.10B
EBITDA	2.34B	-747.00M	2.54B	2.61B	2.52B	1.39B
Net Income	993.00M	-1.67B	1.26B	1.21B	1.31B	131.00M
Balance Sheet
Total Assets	27.40B	27.52B	30.06B	10.02B	10.27B	10.33B
Cash, Cash Equivalents and Short-Term Investments	79.00M	162.00M	306.00M	57.00M	191.00M	71.00M
Total Debt	10.08B	10.42B	11.49B	9.82B	9.24B	8.97B
Total Liabilities	15.85B	16.45B	16.95B	13.37B	12.90B	12.62B
Stockholders Equity	11.56B	11.07B	10.08B	-3.35B	-2.63B	-2.29B
Cash Flow
Free Cash Flow	1.22B	1.01B	1.18B	1.55B	1.61B	1.67B
Operating Cash Flow	1.90B	1.74B	1.83B	1.98B	2.00B	2.02B
Investing Cash Flow	-766.00M	-970.00M	-696.00M	-548.00M	-200.00M	-741.00M
Financing Cash Flow	-1.18B	-916.00M	-1.19B	-1.56B	-1.68B	-1.31B

Sirius XM Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.77
• 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 20.77 is below the 20-day moving average (MA) of 21.39, below the 50-day MA of 21.38, and below the 200-day MA of 21.78, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.72 is Neutral, neither overbought nor oversold. The STOCH value of 17.01 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
SPOT	66 Neutral	$119.86B	75.56	22.10%	―	14.10%	102.32%
SIRI	64 Neutral	$6.99B	7.49	8.86%	5.20%	-2.80%	―
WMG	64 Neutral	$15.33B	42.32	61.97%	2.52%	4.37%	-16.22%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
LION	52 Neutral	$2.41B	-11.99	―	―	97.19%	-21.46%
IQ	51 Neutral	$1.78B	-32.69	-2.91%	―	-10.68%	-127.54%
ANGH	41 Neutral	$16.58M	-0.22	―	―	88.72%	-85.54%

Sirius XM Holdings Corporate Events

Sirius XM Appoints New CFO Zac Coughlin

Sirius XM Holdings Inc. announced the appointment of Zac Coughlin as the new Chief Financial Officer, effective January 1, 2026, succeeding Tom Barry who will step down on December 31, 2025. Coughlin, with nearly 30 years of financial experience, is expected to bring significant expertise to SiriusXM’s finance organization, aiding in the company’s strategic focus and transformation efforts. The transition aims to maintain a strong balance sheet and optimize cash flows, ultimately increasing shareholder value.

Sirius XM Reports Q3 2025 Financial Results

Sirius XM Holdings reported its third quarter 2025 financial results, showing a revenue of $2.16 billion, a slight decrease from the previous year, but a significant improvement in net income to $297 million compared to a loss in 2024. The company increased its financial guidance for 2025, reflecting confidence in its strategy to enhance subscriber experience and expand its digital advertising and podcasting businesses. Despite a decrease in subscriber revenue and adjusted EBITDA, SiriusXM maintained strong margins and continued to innovate in programming and advertising, including launching new subscription plans and expanding its podcast network.