# Sirius XM Holdings,  Inc (SIRI) — Stock CV

Sirius XM Holdings,  Inc is a $8.94B communication services company. Revenue grew 0.4% over the last year, it keeps 10¢ of every dollar of sales as profit, and its net debt equals ~6.2 years of free cash flow. It trades at 10.2× earnings — in the cheapest third of its own history.

> Sirius XM operates almost exclusively in the US through its SiriusXM and Pandora audio services. SiriusXM is primarily a satellite radio service that offers nationwide coverage and mostly ad-free listening, with proprietary channels and exclusive content.

## Identity

- **Ticker**: SIRI
- **Sector**: Communication Services
- **Industry**: Radio Broadcasting Stations
- **Headquarters**: NEW YORK, NY
- **Employees**: 5 119
- **Website**: https://www.siriusxm.com
- **Market cap**: $8.94B
- **Last price**: $26.51
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $8.60B
- **Net income**: $880M
- **Free cash flow**: $1.55B
- **Net debt**: $9.61B
- **P/E**: 10.2
- **Revenue growth (YoY)**: 0.4%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 95 |
| Growth | 45 |
| Profitability | 50 |
| Health | 18 |
| Quality | 85 |
| Moat | 51 |

## Qualifications (beginner checklist) — 8 of 11 passed

- [x] Revenue growing — +0.4% YoY
- [x] Profitable — $880M TTM
- [ ] Profit growing — -9.5% YoY
- [x] Generates cash — $1.55B TTM
- [ ] Debt under control — ~6.2y of cash flow to repay
- [x] Established company — $8.94B market cap
- [x] Not printing shares — -91.9% shares over ~5y
- [x] Proven track record — 9/10 profitable years
- [ ] Financially stable — Altman Z 1.2 — distress
- [x] Pays a dividend — yield 4.07%
- [x] Valuation not extreme — P/E 10.2

## Experience (career milestones)

- **FY2021** — Best year on record: $1.31B net income
- **Feb 1, 2019** — The company agreed to purchase the streaming music service Pandora
- **FY2016** — First recorded profitable year: $746M net income
- **FY2016** — Revenue already above $1B: $5.02B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **May 21, 2013** — SiriusXM Holdings, Inc. was incorporated, and in January 2020, SiriusXM reorganized their corporate…
- **Jul 29, 2008** — Federal Communications Commission (FCC) approved the merger of XM Satellite Radio Holdings Inc
- **2004** — Mel Karmazin, former president of Viacom, became CEO in November 2004 and remained in that position through the…
- **Feb 14, 2002** — Having secured installation deals with automakers, including BMW, Chrysler and Ford, Sirius launched the initial…
- **2000** — Margolese renamed the company CD Radio, and spent the next five years lobbying the FCC to allow satellite radio to…
- **1997** — After Margolese had obtained regulatory clearance and "effectively created the industry", the FCC also…
- **1992** — AMSC established a unit called the American Mobile Radio Corporation, dedicated to developing a…

## Strengths

- High gross margin (52.2%)
- Strong cash conversion — FCF is 18.0% of revenue

## Watch-outs

- Altman Z-Score 1.17 — elevated financial-distress risk
- Net debt would take ~6.1 years of free cash flow to repay
- Loss-making in 1 of the recent years
- Net debt equals ~6.2 years of free cash flow

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $8.70B | $1.31B | $1.61B |
| FY2022 | $9.00B | $1.21B | $1.55B |
| FY2023 | $8.95B | $1.26B | $1.20B |
| FY2024 | $8.70B | -$1.67B | $1.01B |
| FY2025 | $8.56B | $805M | $1.25B |

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Source: https://stockcv.com/SIRI — derived from company filings; may be delayed or incomplete. Information, not investment advice.