Sirius XM Stock Analysis, Valuation (NASDAQ:SIRI)
Sirius XM Stock Analysis
View Sirius XM stock analysis video. This is our analyst opinion covering the buy and sell arguments for SIRI stock.
Sirius XM Holdings Inc. Stock Rating 3/5
Our Sirius XM stock opinion is based on fundamentals of the company. This Sirius XM stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.
Should you buy SIRI stock?
- Sirius XM had a healthy average operating margin of 29.3% over the last 4 quarters.
- Net margins stood at a healthy 15.5% (average) for Sirius XM in the Trailing Twelve Months.
- The company has an operating cash flow which is 2.4 times the net income.
- Sirius XM's return on invested capital of 20.8% is good.
- The company has a good Free Cash Flow (FCF) margin of 30.9%.
Should you sell SIRI stock?
- Trading at a PE ratio of 34.3, SIRI stock is overvalued in comparison to industry average multiple of 21.
- The company is trading at a price to sales multiple of 4.9, which is overvalued in comparison to the Broadcasting-Radio-TV industry average multiple of 1.6.