Sirius XM Stock Analysis, Valuation (NASDAQ:SIRI)

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$6.94 $0.04 (0.58%) SIRI stock closing price Aug 16, 2018 (Closing)

Investors can watch the Amigobulls Sirius XM stock analysis video here. Our SIRI analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Sirius XM Holdings Inc. Stock Rating 3.2/5

Amigobulls SIRI stock analysis takes into account various financial ratios like relative valuation, Sirius XM revenue, growth and return on equity based on latest quarter 2018 Q2 financial statements. We also check Sirius XM dividend performance. We compare Sirius XM valuation with its sector peers to gauge relative attractiveness of SIRI stock. Based on a company's historical fundamentals we arrive at Sirius XM stock rating which is indicative of the company's financial performance.

Should you buy SIRI stock?

  • Sirius XM had a healthy average operating margin of 28.9 over the last 4 quarters.
  • Net margins came in at average 14.7% for Sirius XM over the last twelve months.
  • The company has an operating cash flow which is 1.9819 times the net income. We see this as a positive signal.
  • Sirius XM has an attractive ROIC (Return on Invested Capital) of 18.2
  • Sirius XM has a healthy FCF (Free Cash Flow) margin of 34.

Should you sell SIRI stock?

  • SIRI stock is trading at a PE ratio of 30.2, which is worse than the sector average multiple of 21.
  • SIRI stock is trading at a PS multiple of 5.6, which is a negative when compared to the Consumer Discretionary sector average multiple of 1.6.

Comments on this video and Sirius XM stock

Amigobulls Sirius XM stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of SIRI stock. Company's fundamentals remain one of the key driver of SIRI stock and helps investors in making good buy and sell decision.

While doing a study of the company financials, Sirius XM revenue growth and profit or net income are two main metrics which help in identifying whether SIRI stock is overvalued or undervalued. Investors could make use of SIRI technical analysis to check whether the fundamental story is reflected in the market sentiment.