Latest news with #SiriusXMHoldings
Forbes
23-05-2025
- Business
- Forbes
SiriusXM Holdings Passes Through 5% Yield Mark
In trading on Friday, shares of SiriusXM Holdings were yielding above the 5% mark based on its quarterly dividend (annualized to $1.08), with the stock changing hands as low as $21.59 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the iShares Russell 3000 ETF (IWV) back on 5/31/2000 — you would have paid $78.27 per share. Fast forward to 5/31/2012 and each share was worth $77.79 on that date, a loss of $0.48 or 0.6% decrease over twelve years. But now consider that you collected a whopping $10.77 per share in dividends over the same period, increasing your return to 13.15%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.0%; so by comparison collecting a yield above 5% would appear considerably attractive if that yield is sustainable. SiriusXM Holdings is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets. 10 Stocks Where Yields Got More Juicy » In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of SiriusXM Holdings Inc, looking at the history chart for SIRI below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 5% annual yield. SIRI Special Offer: Receive our best dividend ideas directly to your inbox each afternoon with the Dividend Channel Premium Newsletter
Forbes
07-05-2025
- Business
- Forbes
Now Is Not The Time To Buy Sirius XM Stock
NEW YORK, NEW YORK - APRIL 30: Nick Jonas visits SiriusXM Studios on April 30, 2025 in New York ... More City. (Photo by) Getty Images Sirius XM Holdings stock (NASDAQ: SIRI) has decreased by 7% year-to-date, mirroring the broader market decline, as the S&P 500 also fell by 7%. The company announced Q1 earnings per share of $0.59, indicating a 6% year-over-year (y-o-y) reduction and falling short of analyst predictions of $0.67. Revenue for the quarter amounted to $2.07 billion, a decline of 4% y-o-y and slightly beneath the anticipated $2.08 billion. SiriusXM is still undergoing a strategic transition, concentrating on cost efficiency and digital audio expansion amidst ongoing subscriber losses. The company has achieved significant milestones in its cost-cutting initiatives, with total operating expenses reduced by 4% y-o-y. The most pronounced cuts occurred in Sales & Marketing (down 19%) and Product & Technology (down 15%), indicating a strong focus on operational efficiency. On the subscriber side, self-pay subscriptions decreased by 1% y-o-y to roughly 31.34 million, although this decline reflects a 16% improvement compared to the first quarter of 2024. However, paid promotional subscribers and paid accounts in Canada decreased by a total of 439,000. SIRI stock appears unappealing – rendering it a poor choice to purchase at its current value of around $21. We believe there are several issues with SIRI stock, which makes it comparatively unappealing, despite its current valuation seeming very low. Our conclusion stems from comparing the current valuation of SIRI stock with its operating performance in recent years, along with its present and historical financial status. Our assessment of Sirius based on key metrics of Growth, Profitability, Financial Stability, and Downturn Resilience indicates that the company has a very weak operating performance and financial status, as elaborated below. However, if you are looking for upside with less volatility than individual stocks, Trefis High-Quality portfolio offers an alternative – having outperformed the S&P 500 and generated returns surpassing 91% since its inception. When you consider what you pay per dollar of sales or profit, SIRI stock appears inexpensive in comparison to the broader market. • Sirius XM possesses a price-to-sales (P/S) ratio of 0.9 while the S&P 500 stands at 2.8 • Furthermore, the company's price-to-free cash flow (P/FCF) ratio is 4.3 compared to 17.6 for the S&P 500 Sirius XM's Revenues have experienced a decline over recent years. • Sirius XM's top line has remained stagnant over the last 3 years (in contrast to a 6.2% increase for the S&P 500) • Its revenues have decreased by 2.8% from $9.0 Bil to $8.7 Bil in the last 12 months (versus a growth of 5.3% for the S&P 500) • Additionally, its quarterly revenues dropped 4.4% to $2.1 Bil in the most recent quarter, the same as $2.1 Bil a year prior (in contrast to a 4.9% improvement for the S&P 500) Sirius XM's profit margins are inferior to most companies in the Trefis coverage universe. • Sirius XM's Operating Income over the last four quarters was $1.9 Bil, resulting in a moderate Operating Margin of 22.3% (compared to 13.1% for the S&P 500) • Sirius XM's Operating Cash Flow (OCF) during this period was $1.7 Bil, indicating a moderate OCF Margin of 20.0% (versus 15.7% for the S&P 500) • For the last four-quarter period, Sirius XM's Net Income was $-1.7 Bil – signifying a very poor Net Income Margin of -19.1% (comparatively 11.3% for the S&P 500) Does Sirius XM appear financially stable? Sirius XM's balance sheet seems extremely weak. • Sirius XM's Debt figure stood at $10 Bil at the end of the latest quarter, while its market capitalization is $7.0 Bil (as of 5/2/2025). This results in a very poor Debt-to-Equity Ratio of 140.0% (compared to 21.5% for the S&P 500). [Note: A lower Debt-to-Equity Ratio is preferable] • Cash (including cash equivalents) constitutes $162 Mil of the $28 Bil in Total Assets for Sirius XM. This generates a very poor Cash-to-Assets Ratio of 0.6% (compared to 15.0% for the S&P 500) How resilient is SIRI stock during an economic downturn? SIRI stock has performed worse than the benchmark S&P 500 index during some of the recent downturns. While investors hope for a soft landing of the U.S. economy, how severe could the situation become if another recession occurs? Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks have performed during and following the last six market crashes . Inflation Shock (2022) • SIRI stock declined 49.6% from a peak of $67.80 on 12 August 2022 to $34.20 on 9 May 2023, compared to a peak-to-trough drop of 25.4% for the S&P 500 • The stock fully recovered to its pre-Crisis peak by 20 July 2023 • Since that time, the stock has risen to a peak of $78.10 on 20 July 2023 and is currently trading at approximately $20 Covid Pandemic (2020) • SIRI stock decreased 39.5% from a high of $73.40 on 20 February 2020 to $44.40 on 20 March 2020, relative to a peak-to-trough decrease of 33.9% for the S&P 500 • The stock fully recovered to its pre-Crisis peak by 20 July 2023 Global Financial Crisis (2008) • SIRI stock dropped 98.7% from a peak of $41.50 on 16 January 2007 to $0.55 on 11 February 2009, compared to a peak-to-trough drop of 56.8% for the S&P 500 • The stock fully recovered to its pre-Crisis peak by 4 November 2015 Putting all the pieces together: What it means for SIRI stock To summarize, Sirius XM's performance across the parameters discussed above is as follows: • Growth: Weak • Profitability: Weak • Financial Stability: Extremely Weak • Downturn Resilience: Very Weak • Overall: Very Weak Considering the factors above and keeping in mind the company's very low valuation, we believe that the stock is unappealing, reinforcing our stance that SIRI is a poor stock to buy. Preserve & Grow Wealth With Risk-Focused Quality Portfolios While it would be wise to steer clear of SIRI stock for the time being, you might want to look into the Trefis Reinforced Value (RV) Portfolio , which has surpassed its all-cap stocks benchmark (combining the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to yield strong returns for investors. What is the reason? The quarterly rebalanced mix of large-, mid-, and small-cap RV Portfolio stocks provides a responsive approach to optimize the benefits of positive market conditions while mitigating losses during market downturns, as detailed in RV Portfolio performance metrics .
Yahoo
03-05-2025
- Business
- Yahoo
Sirius XM Holdings First Quarter 2025 Earnings: EPS Misses Expectations
Revenue: US$2.07b (down 4.3% from 1Q 2024). Net income: US$204.0m (down 23% from 1Q 2024). Profit margin: 9.9% (down from 12% in 1Q 2024). EPS: US$0.60 (down from US$0.69 in 1Q 2024). We've discovered 2 warning signs about Sirius XM Holdings. View them for free. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 10%. Looking ahead, revenue is forecast to stay flat during the next 3 years compared to a 2.6% growth forecast for the Media industry in the US. Performance of the American Media industry. The company's shares are down 5.5% from a week ago. You still need to take note of risks, for example - Sirius XM Holdings has 2 warning signs (and 1 which can't be ignored) we think you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
01-05-2025
- Business
- Yahoo
Sirius XM Holdings (NasdaqGS:SIRI) Reports Q1 Revenue Drop To US$2 Billion
Sirius XM Holdings announced its Q1 2025 earnings, reporting a year-over-year decline in revenue to USD 2,068 million and a slight increase in net income to USD 204 million. Despite these mixed results, the company's stock price rose 1.85% over the last week. This movement aligns closely with broader market trends, where the Dow Jones and S&P 500 posted gains amid strong tech earnings and broader economic optimism, as major tech companies like Microsoft and Meta announced significant AI investments. Sirius XM's earnings results would have added weight to these broader positive market movements. We've discovered 2 risks for Sirius XM Holdings (1 can't be ignored!) that you should be aware of before investing here. Find companies with promising cash flow potential yet trading below their fair value. The recent earnings announcement from Sirius XM Holdings, with a reported revenue of US$2.07 billion and net income of US$204 million, plays a significant role in shaping investor sentiment towards the company's future. Despite a year-over-year decline in revenue, the increase in net income coupled with broader market optimism may have contributed to the 1.85% rise in Sirius XM's stock price over the past week. This aligns with the healthy performance of broader indices, as the Dow Jones and S&P 500 have surged due to strong tech earnings and economic optimism driven by AI investments in companies like Microsoft and Meta. Over the past year, Sirius XM's total return, including both share price and dividends, experienced a 27.05% decline. In contrast, over the same period, the US Media industry posted a slight decline of 2.9% and the overall US Market returned 9.6%. This underperformance may signal challenges in Sirius XM's current positioning and execution in the competitive media landscape. Despite these hurdles, the price movement should be viewed with caution, as the current trading price of US$21.42 remains below the analyst consensus price target of US$24.1, indicating a potential 9.8% upside. The news of Sirius XM's vehicle partnerships with Tesla and Rivian highlights their efforts to bolster subscriber acquisition and engagement. This could positively influence revenue and earnings forecasts. The US$200 million cost-saving initiatives may also aid in improving profit margins and operational efficiency. However, the company needs to address potential risks such as rising competition and fluctuating conversion rates, which could impact long-term growth and stability in subscription and advertising revenues. Analysts expect the company to become profitable within the next three years, but the company's ability to align with or exceed these expectations remains uncertain. Review our historical performance report to gain insights into Sirius XM Holdings' track record. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:SIRI. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
18-04-2025
- Business
- Yahoo
Prediction: 5 Surefire Stocks That Can Generate Life-Changing Wealth by 2035
Over the last eight weeks, investors have been taken on quite the ride. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have respectively logged some of their largest single-day nominal point gains and declines in their storied histories. While red arrows on Wall Street can be unnerving over short periods, especially to newer investors, they're actually a blessing in disguise. They allow patient investors to buy into amazing businesses at a discounted price. Even though we'll never know ahead of time when these downturns will begin, how long they'll last, or where the ultimate bottom will be, we do know the Dow, S&P 500, and Nasdaq Composite eventually (keyword!) reach new highs over long periods. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » With the Dow Jones and S&P 500 dipping into correction territory, and the Nasdaq Composite falling into its first bear market since 2022, the time to pounce has arrived. What follows are five surefire stocks that have the ability to generate life-changing wealth for investors by 2035. The first unrivaled stock trading at a discount that has all the necessary tools to make its patient shareholders richer over the next decade is satellite-radio operator Sirius XM Holdings (NASDAQ: SIRI). Sirius XM is one of the few publicly traded companies that can say it's a legal monopoly. Though it fights for listeners with online and terrestrial radio companies, it's the only licensed satellite-radio operator. The advantage of being a legal monopoly can often be seen in its subscription pricing power. The ability to increase prices every so often ensures that it stays ahead of the inflationary curve. Sirius XM also enjoys a degree of revenue diversity not found at traditional radio companies. While most terrestrial and online radio companies generate their revenue almost exclusively from advertising, Sirius XM brought in 76% of its net sales last year from subscriptions, compared to only 20% from ads. Subscribers are far more likely to remain with the company through periods of economic turbulence, which leads to a level of operating cash flow transparency that ad-driven businesses can't match. Sirius XM's valuation is jaw-droppingly cheap, as well. The company's forward price-to-earnings (P/E) ratio is below 7, and its stock is currently yielding 5.3%. Even modest subscriber growth, coupled with strong pricing power, can lead to triple-digit gains for Sirius XM stock come 2035. A second sensational stock that can deliver life-altering returns over the next decade is robotic-assisted surgical systems developer Intuitive Surgical (NASDAQ: ISRG). One of the bigger competitive advantages Intuitive Surgical brings to the table is its unparalleled market share in the robotic-assisted surgical space. Through the end of 2024, it had installed just over 9,900 of its surgical systems worldwide. While this might not sound like a big number, take into consideration the cost of these machines (often $0.5 million to $2.5 million), as well as the time that goes into training surgeons how to use them. Once Intuitive Surgical lands a hospital or surgical center as a customer, it tends to keep them for a long time. However, what makes this company such a slam-dunk long-term investment is its ongoing sales shift toward higher-margin segments. When it began selling its da Vinci surgical system in the 2000s, much of its revenue came from these pricey but also costly to-build systems. As time has passed, revenue tied to instruments and accessories sold with each procedure, along with system servicing, has comprised an increasingly higher percentage of sales. These segments offer substantially better margins, which will allow the company's earnings growth rate to handily outpace its sales growth rate for the foreseeable future. Although Intuitive Surgical stock isn't cheap, its earnings growth rate should remain steady in the mid-teens. The third cutting-edge stock that can deliver eye-popping investment returns by 2035 is stay-and-hosting platform Airbnb (NASDAQ: ABNB). Though Airbnb has been around for more than a decade, it's still in its relative infancy in terms of expanding its stay-and-hosting platform. While the company claims to have over 5 million hosts offering stays on its online marketplace, this represents just a small fraction of residences around the globe. A steady expansion in the number of hosts should conservatively result in sustained double-digit sales growth on an annual basis. Perhaps what's most exciting about Airbnb is the company's push into experiences. While it's already leaning on local experts to take travelers on adventures, Airbnb has the opportunity to lean into transportation and/or restaurant partnerships in the coming years to garner a bigger slice of the more than $11 trillion global travel market. Shares of Airbnb are also trading at a clear discount. Following two months of tumultuous trading on Wall Street, Airbnb stock can be picked up for just shy of 23 times forward-year earnings. This is an inexpensive price to pay for a company that's revolutionizing the travel experience. Beaten-down adtech juggernaut The Trade Desk (NASDAQ: TTD) is the fourth unique stock that investors can confidently buy with the expectation of outsized returns over the next 10 years. The Trade Desk finds itself at the center of the fastest-growing aspect of the advertising space: digital advertising. It's a demand-side platform with a clear focus on connected TV (i.e., streaming content), video, and other digital channels that can deliver superior growth, compared to traditional forms of advertising, such as billboard and print. Ongoing cord-cutting by consumers and their shift to streaming services are what's helped The Trade Desk sustain annual sales growth of around 20%. To make matters even better, most businesses in the digital ad arena have adopted its Unified ID 2.0 (UID2) technology. For security reasons, companies are moving away from third-party cookie tracking technology and replacing it with UID2, which still allows businesses a way to track and target users with their message(s). In other words, The Trade Desk is an integral component of the growth we're witnessing in digital advertising. To round things out, The Trade Desk stock is historically cheap. A forward P/E ratio of a little over 22 is well below its average forward P/E of nearly 89 over the trailing-five-year period. As more consumers opt for ad-supported streaming services, The Trade Desk's importance will only grow. The fifth surefire stock that can generate life-changing wealth by 2035 is none other than the kingpin of payment processing, Visa (NYSE: V). What Visa brings to the table is a virtually insurmountable market share lead in the payment-processing landscape. In 2023, Visa accounted for about $6.45 trillion in credit card network purchase volume in the U.S., which works out to around a 61% share among the four biggest payment processors. It's the clear go-to for merchants and a direct beneficiary of the ongoing push away from cash-based payments. Visa should also be able to sustain a double-digit growth rate throughout this decade (if not well beyond) thanks to international expansion opportunities. Cross-border payment volume surged 16% during the fiscal first quarter (ended Dec. 31, 2024), with the company having the ability to organically or acquisitively enter chronically underbanked emerging markets with its payment infrastructure. This no-brainer financial stock is also trading at the lower-end of its average forward P/E ratio over the last half-decade. Investors buying right now can snag Visa shares at a 7% discount to its average forward earnings multiple since 2019. Before you buy stock in Sirius XM, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Sirius XM wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $518,599!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $640,429!* Now, it's worth noting Stock Advisor's total average return is 791% — a market-crushing outperformance compared to 152% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 14, 2025 Sean Williams has positions in Sirius XM and Visa. The Motley Fool has positions in and recommends Airbnb, Intuitive Surgical, The Trade Desk, and Visa. The Motley Fool has a disclosure policy. Prediction: 5 Surefire Stocks That Can Generate Life-Changing Wealth by 2035 was originally published by The Motley Fool
