ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Sirius XM Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 5.00%.
As of today (2026-07-05), Sirius XM Holdings's WACC % is 6.81%. Sirius XM Holdings's ROIC % is 5.27% (calculated using TTM income statement data).
Sirius XM Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Sirius XM Holdings (FRA:3HY) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Sirius XM Holdings's WACC % is 6.81%. Sirius XM Holdings's ROIC % is 5.27% (calculated using TTM income statement data).
Sirius XM Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Sirius XM Holdings ROIC % Related Terms
Sirius XM Holdings ROIC % Historical Data
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The historical data trend for Sirius XM Holdings's ROIC % 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.
For the Entertainment subindustry, Sirius XM Holdings's ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Sirius XM Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Sirius XM Holdings's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 (FRA:3HY) has a ROIC % of 5.00% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Sirius XM Holdings and its competitors.
Is Sirius XM Holdings' ROIC % too high?
Sirius XM Holdings' current ROIC % is 5.00%. The Media - Diversified industry median ROIC % is 1.39. Sirius XM Holdings' value of 5.00% is 259.7% above this industry median. Overall, Sirius XM Holdings has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sirius XM Holdings' ROIC % compare to MSGS and LLYVA?
Sirius XM Holdings' ROIC % of 5.00% can be compared against companies in the Media - Diversified industry. The industry median ROIC % is 1.39. Sirius XM Holdings' value of 5.00% is 259.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Media - Diversified company?
The median ROIC % among Media - Diversified companies is 1.39, based on 1,008 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sirius XM Holdings's current ROIC % of 5.00% is 259.7% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Sirius XM Holdings and its competitors. For the Media - Diversified industry, the median ROIC % is 1.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sirius XM Holdings's current ROIC % is 5.00%. 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 (FRA:3HY) is currently considered Modestly Overvalued. The stock's GF Value™ is €22.98, compared to a current price of €26.60 — trading 15.8% above its estimated fair value. The current ROIC % is 5.00% and 259.7% above the Media - Diversified industry median of 1.39. Sirius XM Holdings' overall GF Score™ is 71/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Sirius XM Holdings (FRA:3HY), the current ROIC % is 5.00% 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 (FRA:3HY) Overvalued in 2026?
Based on GuruFocus' analysis, Sirius XM Holdings stock appears to be overvalued.
The current stock price of €26.60 is trading 15.8% above its estimated GF Value™ of €22.98.
GuruFocus considers Sirius XM Holdings to be Modestly Overvalued.
Key valuation signals for FRA:3HY:
ROIC %: 5.00%
GF Value™: €22.98 vs. price of €26.60 (15.8% above fair value)
Industry Position: 259.7% above the Media - Diversified median
No single metric tells the full story. See the FRA:3HY 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.
71GF Score
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