Sirius XM Holdings Inc (SIRI, Financial) is a prominent player in the Media - Diversified industry. The company's current stock price stands at $5.1, with a market cap of $19.58 billion. As of August 10, 2023, the company's stock price has seen a gain of 4.41% today and a significant increase of 10.85% over the past four weeks. This article aims to provide a comprehensive analysis of Sirius XM Holdings Inc's GF Score and its various components.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus. It uses five aspects of valuation, which have been found to be closely correlated to the long-term performances of stocks. The GF Score ranges from 0 to 100, with 100 as the highest rank. The five key aspects considered in the GF Score are Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank. Each of these components is ranked, and the ranks also have a positive correlation with the long term performances of stocks.
Sirius XM Holdings Inc's GF Score Analysis
Sirius XM Holdings Inc boasts a high GF Score of 88/100, indicating good outperformance potential. This score is significantly higher than its competitors in the Media - Diversified industry, such as Live Nation Entertainment Inc (LYV, Financial) with a GF Score of 65, Liberty Formula One Group (FWONA, Financial) with a GF Score of 71, and Warner Music Group Corp (WMG, Financial) with a GF Score of 77. This suggests that Sirius XM Holdings Inc is a strong contender in its industry.
Financial Strength Analysis of Sirius XM Holdings Inc
The Financial Strength Rank measures how strong a company's financial situation is. Sirius XM Holdings Inc has a Financial Strength Rank of 3/10. This is based on its interest coverage of 4.74, a debt to revenue ratio of 1.09, and an Altman Z score of 1.66. Although the company's financial strength is not its strongest suit, it is still managing to maintain a stable financial situation.
Profitability Rank Analysis of Sirius XM Holdings Inc
The Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. Sirius XM Holdings Inc has a high Profitability Rank of 9/10. This is based on its Operating Margin of 22.70%, a Piotroski F-Score of 6, and a consistent profitability of 10 years over the past decade. This indicates that the company has a strong profitability potential.
Growth Rank Analysis of Sirius XM Holdings Inc
The Growth Rank measures the growth of a company in terms of its revenue and profitability. Sirius XM Holdings Inc has a perfect Growth Rank of 10/10, indicating a strong growth potential. This is based on its 5-year revenue growth rate of 15.50, a 3-year revenue growth rate of 10.20, and a 5-year EBITDA growth rate of 8.90.
GF Value Rank Analysis of Sirius XM Holdings Inc
The GF Value Rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance. Sirius XM Holdings Inc has a GF Value Rank of 10/10, indicating that the company is highly valued.
Momentum Rank Analysis of Sirius XM Holdings Inc
The Momentum Rank is determined using the standardized momentum ratio and other momentum indicators. Sirius XM Holdings Inc has a Momentum Rank of 4/10, suggesting that the company has a moderate momentum.
In conclusion, Sirius XM Holdings Inc is a strong contender in the Media - Diversified industry with a high GF Score, indicating good outperformance potential. Despite its lower Financial Strength Rank, the company's high Profitability Rank, Growth Rank, and GF Value Rank suggest that it has strong profitability and growth potential.
