Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
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Highlights from the ratings report include:
- SIRI's revenue growth has slightly outpaced the industry average of 8.3%. Since the same quarter one year prior, revenues rose by 13.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 31.49% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Media industry and the overall market, SIRIUS XM RADIO INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for SIRIUS XM RADIO INC is rather high; currently it is at 63.20%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.50% is above that of the industry average.
- Net operating cash flow has increased to $293.23 million or 36.38% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -6.28%.
Sirius XM Radio Inc. provides satellite radio services in the United States and Canada. The company broadcasts music, sports, entertainment, comedy, talk, news, traffic, and weather channels on subscription fee basis through two satellite radio systems. Sirius XM Radio has a market cap of $20.2 billion and is part of the services sector and media industry. The company has a P/E ratio of 6.00, below the S&P 500 P/E ratio of 18.00. Shares are up 8.5% year to date as of the close of trading on Thursday.
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--Written by a member of TheStreet Ratings Staff.
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