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TheStreet Open House
Sirius XM Holdings Inc
SIRI : NASDAQ : Services
$3.36 0.04 | 1.05%
Today's Range: 3.33 - 3.37
Avg. Daily Volume: 40,350,400
10/23/14 - 3:26 PM ET

Financial Analysis


SIRIUS XM HOLDINGS INC's gross profit margin for the second quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. SIRIUS XM HOLDINGS INC has very weak liquidity. Currently, the Quick Ratio is 0.13 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 54.12% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q2 FY14 Q2 FY13
Net Sales ($mil)1035.35940.11
EBITDA ($mil)351.78335.15
EBIT ($mil)284.58267.74
Net Income ($mil)119.96125.52


Balance Sheet Q2 FY14 Q2 FY13
Cash & Equiv. ($mil)169.98651.77
Total Assets ($mil)8624.538951.19
Total Debt ($mil)4624.293249.78
Equity ($mil)1485.893238.85


Profitability Q2 FY14 Q2 FY13
Gross Profit Margin62.0264.74
EBITDA Margin33.9735.65
Operating Margin27.4928.48
Sales Turnover0.460.4
Return on Assets3.965.36
Return on Equity23.0114.81
Debt Q2 FY14 Q2 FY13
Current Ratio0.490.88
Debt/Capital0.760.5
Interest Expense67.7357.77
Interest Coverage4.24.63


Share Data Q2 FY14 Q2 FY13
Shares outstanding (mil)5706.356247.22
Div / share0.00.0
EPS0.020.02
Book value / share0.260.52
Institutional Own % n/a n/a
Avg Daily Volume4.0597944E74.8968244E7

Valuation


BUY. SIRIUS XM HOLDINGS INC's P/E ratio indicates a significant premium compared to an average of 21.12 for the Media industry and a significant premium compared to the S&P 500 average of 18.06. For additional comparison, its price-to-book ratio of 12.56 indicates a significant premium versus the S&P 500 average of 2.49 and a significant premium versus the industry average of 5.50. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, SIRIUS XM HOLDINGS INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SIRI 54.50 Peers 21.12   SIRI 15.29 Peers 32.28

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

SIRI is trading at a significant premium to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SIRI is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SIRI 27.25 Peers 25.05   SIRI 1.64 Peers 2.29

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

SIRI is trading at a significant premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SIRI trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SIRI 12.56 Peers 5.50   SIRI -14.29 Peers -2.98

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SIRI is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, SIRI is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SIRI 4.67 Peers 2.85   SIRI 11.04 Peers 20.45

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SIRI is trading at a significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SIRI significantly trails its peers on the basis of sales growth

 

 

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