Sirius XM Holdings Inc (SIRI, Financial), a prominent player in the diversified media industry, is currently trading at $5.11 with a market capitalization of $19.75 billion. The company's stock price has seen a gain of 6.13% today and an impressive 20.26% over the past four weeks. According to GuruFocus, Sirius XM Holdings Inc has a GF Score of 83 out of 100, indicating good outperformance potential. The GF Score is a comprehensive ranking system that evaluates a company's financial strength, profitability, growth, value, and momentum, providing investors with a holistic view of the company's performance.
Financial Strength Analysis
Sirius XM Holdings Inc has a Financial Strength Rank of 4 out of 10. This rank is determined by several factors, including the company's debt burden, debt to revenue ratio, and Altman Z-Score. Sirius XM's interest coverage is 4.77, indicating its ability to cover interest expenses with operating profits. However, its debt to revenue ratio of 1.10 and Altman Z-Score of 1.70 suggest a relatively high debt burden, which could impact its financial stability.
Profitability Rank Analysis
The company's Profitability Rank is 9 out of 10, reflecting its strong profitability. Sirius XM's operating margin is 22.69%, and its Piotroski F-Score is 5, indicating a healthy operating efficiency. The company has also demonstrated consistent profitability over the past 10 years. However, the 5-year average trend of the operating margin is -5.60%, suggesting some volatility in profitability.
Growth Rank Analysis
Sirius XM Holdings Inc boasts a perfect Growth Rank of 10 out of 10. This high rank is driven by its 5-year revenue growth rate of 15.50%, 3-year revenue growth rate of 10.20%, and 5-year EBITDA growth rate of 8.90%. These figures indicate a strong and consistent growth trajectory for the company.
GF Value Rank Analysis
The company's GF Value Rank is 5 out of 10, suggesting that the stock is fairly valued. This rank is determined by the price-to-GF-Value ratio, a proprietary metric that adjusts historical multiples based on past returns, growth, and future business performance estimates.
Momentum Rank Analysis
With a Momentum Rank of 2 out of 10, Sirius XM Holdings Inc's stock performance does not exhibit strong momentum. This rank is determined by the standardized momentum ratio and other momentum indicators, reflecting the stock's price performance over the past 12 months.
Competitor Analysis
When compared to its competitors in the same industry, Sirius XM Holdings Inc holds its ground. Fox Corp (FOXA, Financial) has a GF Score of 85, Warner Music Group Corp (WMG, Financial) has a GF Score of 75, and Liberty Formula One Group (FWONA, Financial) has a GF Score of 72. These scores suggest that Sirius XM is competitive within its industry.
Conclusion
In conclusion, Sirius XM Holdings Inc's GF Score of 83 indicates good outperformance potential. Despite its relatively high debt burden, the company demonstrates strong profitability and growth, making it a compelling choice for investors. However, its low momentum rank suggests that investors should monitor the stock's performance closely. Overall, Sirius XM Holdings Inc presents a promising investment opportunity in the diversified media industry.
