Sirius XM HoldingsSIRI -0.50%74 Operating Margin % is 22.00% as of Mar. 2026, which is 3% below its 10-year median of 22.72. GuruFocus rates SIRI with a GF Score™ of 74/100 and a GF Value™ of $26.33 (Fairly Valued). The stock has 11 warning signs investors should review. Among 1,023 Media - Diversified companies, Sirius XM Holdings ranks better than 93.45% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Sirius XM Holdings Operating Margin % Related Terms
Sirius XM Holdings Operating Margin % Historical Data
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The historical data trend for Sirius XM Holdings's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SIRI vs LLYVA, MSGS, PSKY: Operating Margin % Comparison
For the Entertainment subindustry, Sirius XM Holdings's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sirius XM Holdings Operating Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Sirius XM Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sirius XM Holdings's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Sirius XM Holdings's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Sirius XM Holdings (SIRI) has a Operating Margin % of 22.00% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sirius XM Holdings and its competitors. This is near median its historical median of 22.72. Over the past decade, Sirius XM Holdings' Operating Margin % has ranged from 21.22 to 30.25. According to the industry distribution chart, Sirius XM Holdings ranks #67 out of 1023 companies in the Media - Diversified industry, placing it in the top 6.5%.
Is Sirius XM Holdings' Operating Margin % too high?
Sirius XM Holdings' current Operating Margin % of 22.00% is near median its 10-year median of 22.72. Over the past 10 years, this metric has ranged from a low of 21.22 to a high of 30.25. The Media - Diversified industry median Operating Margin % is 2.51. Sirius XM Holdings' value of 22.00% is 776.5% above this industry median. Based on the distribution chart, Sirius XM Holdings ranks #67 out of 1023 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, Sirius XM Holdings has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sirius XM Holdings' Operating Margin % compare to LLYVA and MSGS?
According to the Media - Diversified industry distribution chart, Sirius XM Holdings ranks #67 out of 1023 companies for Operating Margin %. This places Sirius XM Holdings in the top 7% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 2.51. Sirius XM Holdings' value of 22.00% is 776.5% above this benchmark. Historically, Sirius XM Holdings' own Operating Margin % has ranged from 21.22 to 30.25 over the past decade. While the company's 10-year median is 22.72 vs. the industry median of 2.51, Sirius XM Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Media - Diversified company?
The median Operating Margin % among Media - Diversified companies is 2.51, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sirius XM Holdings's current Operating Margin % of 22.00% is 776.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Sirius XM Holdings and its competitors. For the Media - Diversified industry, the median Operating Margin % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sirius XM Holdings's current Operating Margin % is 22.00%, which is near median its own 10-year median of 22.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sirius XM Holdings stock overvalued right now?
Based on GuruFocus' analysis, Sirius XM Holdings (SIRI) is currently considered Fairly Valued. The stock's GF Value™ is $26.33, compared to a current price of $27.76 — trading 5.4% above its estimated fair value. The current Operating Margin % is 22.00%, which is near median its 10-year median of 22.72 and 776.5% above the Media - Diversified industry median of 2.51. Sirius XM Holdings' overall GF Score™ is 74/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Sirius XM Holdings (SIRI), the current Operating Margin % is 22.00% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sirius XM Holdings (SIRI) Overvalued in 2026?
Based on GuruFocus' analysis, Sirius XM Holdings stock appears to be overvalued.
The current stock price of $27.76 is trading 5.4% above its estimated GF Value™ of $26.33.
GuruFocus considers Sirius XM Holdings to be Fairly Valued.
Key valuation signals for SIRI:
Operating Margin %: 22.00% (near median its 10-year median of 22.72)
GF Value™: $26.33 vs. price of $27.76 (5.4% above fair value)
Industry Position: 776.5% above the Media - Diversified median (#67 of 1023)
No single metric tells the full story. See the SIRI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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. It makes agreements with automakers to install its radios in vehicles and give trial services to vehicle buyers, which have traditionally fed its subscriber base. The company provides the service via a fleet of geostationary satellites it owns and operates and now offers a streaming SiriusXM option. Pandora, which accounts for a much smaller portion of revenue and profit, offers a subscription and ad-supported streaming music service that competes with industry giants such as Spotify, Apple Music, and YouTube Music.
74GF Score
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