Sirius XM Holdings (SIRI) AI Stock Analysis

• Market Cap: $7.36B
• Dividend Yield: 4.92%
• Average Volume (3M): 4.83M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• Revenue Growth: -4.08%
• EPS Growth: -248.39%
• Country: US
• Employees: 5,515
• Sector: Communication Services
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): 0.59
• Shares Outstanding: 337,924,530
• 10 Day Avg. Volume: 5,162,972
• 30 Day Avg. Volume: 4,827,042
• PEG Ratio: 2.40
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.76
• Enterprise Value/Market Cap: 2.39
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 4.27
• Enterprise Value/Ebitda: 121.55
• 1Y Price Target: $22.38
• Price Target Upside: 2.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

Sirius XM's overall stock score reflects its current financial and operational challenges, particularly with negative profitability and mixed technical signals. Although there is some strength in cash management and strategic cost reductions, the stock's valuation and recent earnings call suggest caution. The company's efforts to improve subscription performance and efficiency are promising, but the risks associated with revenue declines and negative earnings weigh heavily on the overall outlook.

Positive Factors

Cash Flow

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

Financial Performance

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

Product Development

SIRI is introducing new pricing and packaging options, such as a post-trial extension and lower-priced subscription packages, to re-ignite subscriber growth.

Negative Factors

Economic Conditions

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

Streaming Challenges

SIRI faces numerous challenges, particularly related to streaming-only subscribers, as the company attempts to re-ignite subscriber growth.

Subscriber Trends

Customer convenience changes may spur near-term churn as a result of 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 faces financial challenges with a negative net profit margin and inconsistent revenue growth. Despite operational losses, the company maintains a stable balance sheet with improved debt-to-equity ratios and healthy cash flow, indicating good cash management. Overall, the financials reflect a company needing strategic improvements, particularly in profitability.

Income Statement

The income statement reveals a concerning decline in net income, with the latest TTM (Trailing-Twelve-Months) showing a negative net profit margin of -19.16%. While previous years showed profitability, the recent downturn poses significant challenges. Revenue growth has been inconsistent, and current negative EBIT and EBITDA margins suggest operational inefficiencies.

Balance Sheet

Despite the negative net income, the balance sheet shows a reasonable debt-to-equity ratio improvement due to a reduction in total debt. The equity ratio is stable, but the financial health is somewhat undermined by fluctuating stockholder equity, which recently turned positive. This indicates moderate financial stability but potential risks from past negative equity.

Cash Flow

The cash flow statement shows a healthy operating cash flow, with a positive free cash flow despite the net income losses. The free cash flow to net income ratio is strong, indicating efficient cash generation from operations. However, the decline in free cash flow growth is a concern, reflecting challenges in sustaining cash reserves.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.61B	8.70B	8.95B	9.00B	8.70B	8.04B
	Gross Profit
4.13B	4.20B	4.38B	4.52B	4.40B	4.10B
	EBIT
-1.50B	-1.52B	1.95B	2.04B	2.02B	858.00M
	EBITDA
-864.00M	-747.00M	2.54B	2.61B	2.52B	1.39B
	Net Income Common Stockholders
-1.65B	-1.67B	1.26B	1.21B	1.31B	131.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
162.00M	162.00M	216.00M	57.00M	191.00M	71.00M
	Total Assets
27.52B	27.52B	10.37B	10.02B	10.27B	10.33B
	Total Debt
10.38B	10.38B	9.53B	9.82B	9.24B	8.97B
	Net Debt
10.21B	10.21B	9.32B	9.77B	9.05B	8.90B
	Total Liabilities
16.45B	16.45B	12.94B	13.37B	12.90B	12.62B
	Stockholders Equity
11.07B	11.07B	-2.56B	-3.35B	-2.63B	-2.29B
Cash Flow		Free Cash Flow
939.00M	1.01B	1.20B	1.55B	1.61B	1.67B
	Operating Cash Flow
1.70B	1.74B	1.85B	1.98B	2.00B	2.02B
	Investing Cash Flow
-849.00M	-970.00M	-686.00M	-548.00M	-200.00M	-741.00M
	Financing Cash Flow
-807.00M	-916.00M	-1.00B	-1.56B	-1.68B	-1.31B

Sirius XM Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.88
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIRI, the sentiment is Positive. The current price of 21.88 is above the 20-day moving average (MA) of 20.92, above the 50-day MA of 21.60, and below the 200-day MA of 24.41, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 55.49 is Neutral, neither overbought nor oversold. The STOCH value of 83.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SIRI.

Sirius XM Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXA	80 Outperform	$23.86B	13.73	16.89%	0.98%	15.70%	26.73%
DIS	78 Outperform	$200.23B	22.75	8.75%	0.85%	5.33%	431.28%
NWSA	73 Outperform	$16.85B	33.06	5.88%	0.71%	-5.43%	135.46%
ROKU	65 Neutral	$10.47B	―	-4.34%	―	17.30%	81.72%
Sector *	60 Neutral	$13.88B	7.03	-2.76%	3.71%	2.20%	-43.04%
SIRI	54 Neutral	$7.36B	―	-37.30%	4.92%	-4.08%	-248.39%
WBD	53 Neutral	$22.71B	―	-27.69%	―	-5.58%	-254.85%

Sirius XM Holdings Corporate Events

Sirius XM Holdings Q1 2025 Financial Results Overview

Sirius XM Holdings reported its first quarter 2025 financial results, showing a 4% decrease in revenue to $2.07 billion and a net income decline to $204 million. Despite these declines, the company maintained a stable adjusted EBITDA margin of 30% and continued to focus on cost reductions and efficiency improvements. SiriusXM expanded its podcast business and automotive partnerships, including a new agreement with Mitsubishi for its 360L platform. The company reaffirmed its full-year 2025 financial guidance, highlighting its strong recurring revenue model and disciplined capital allocation strategy.

Spark’s Take on SIRI Stock

According to Spark, TipRanks’ AI Analyst, SIRI is a Neutral.

Sirius XM Holdings faces significant financial and operational challenges, reflected in negative profitability and a heavily leveraged balance sheet. Despite strong cash flow and some strategic initiatives, technical indicators and valuation metrics signal caution. The earnings call and corporate events provide mixed insights, suggesting potential but also highlighting key risks that weigh heavily on the stock’s overall score.

To see Spark’s full report on SIRI stock, click here.

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.