One-glance verdict
Undervalued
$51.58 our estimate vs market $32.40
Wall Street consensus: $34.31 (-33.5% lower than our fair-value estimate)
37% below our estimate, below the bear case
Fundamentals snapshot
Sirius XM Holdings Inc.
SIRI · NMS · Communication Services · Entertainment
Current price
$32.40
52-week range
$19.77 - $33.76
Market cap
$10.90B
Balance sheet
Watch
4.15x Stretched
Net debt $9.30B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 0.5% last year.
- Reward Returns 7.6% on equity, ahead of 20% of its peers.
- Reward Free cash flow was positive in 10/10 years.
What this company does
Sirius XM Holdings Inc.
Sirius XM Holdings Inc. is like a satellite radio station combined with a music streaming app, offering everything from music and sports to news and podcasts. Most of their money comes from people paying a subscription fee for these services, similar to how you'd pay for a magazine subscription, which is great because it's a predictable income stream (called recurring revenue). This is important because it means they can plan their spending and investments more easily, making the company more stable.
How the company got here
SiriusXM's story began with two separate satellite radio companies, Sirius Satellite Radio (founded in 1990) and XM Satellite Radio (founded in 1988). After a period of competition, they merged in 2008 to form Sirius XM Radio. The company was officially incorporated as SiriusXM Holdings in 2013. A major turning point was the acquisition of Pandora Media in 2018, which expanded SiriusXM's reach into music streaming. More recently, the company has undergone corporate restructuring, including a transaction with Liberty Media in 2024, to refine its structure and focus on its core businesses.
What it actually does
SiriusXM is a North American audio entertainment company. Think of it as a giant provider of audio content, primarily delivered through subscriptions. Its main offering is a wide variety of channels featuring music, sports, news, comedy, and talk shows, accessible via satellite and streaming. Beyond its core radio service, SiriusXM also operates Pandora, a popular music streaming platform, and has a significant presence in the podcasting world and digital advertising solutions.
Sirius XM
This is the heart of SiriusXM's business, primarily focused on its satellite radio service. It offers a vast array of curated channels with music, sports, news, and entertainment, often featuring exclusive content like live sports broadcasts and popular talk shows. Subscribers pay a monthly fee for access, which is delivered both through satellite signals to specially equipped radios (common in cars) and streamed over the internet via apps. This segment also includes services for connected vehicles, such as safety and diagnostic features, and provides music channels to platforms like DISH Network.
Pandora and Off-platform
This segment includes the Pandora music streaming service, which offers personalized listening experiences through mobile devices and connected speakers. Pandora primarily operates on an advertising-supported model, meaning listeners can use it for free in exchange for hearing advertisements, though premium subscription options also exist. This part of the business also encompasses SiriusXM's broader podcasting operations and its digital advertising technology services, which help monetize audio content across various platforms.
What management is betting on now
SiriusXM's current strategy is centered on strengthening its core subscription business, particularly its strong position in cars. Management aims to improve customer retention (keeping subscribers from leaving) and attract new listeners by enhancing the in-car and streaming experience with more personalized content. They are also focused on growing their advertising revenue by leveraging partnerships and improving their ad technology. A key goal is to maintain strong profit margins (the percentage of revenue left after costs) and generate consistent free cash flow (cash left over after operating and investing activities) to pay down debt and return value to shareholders.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$514.00M
FY2025 Q1
$53.00M
FY2025 Q2
$401.00M
FY2025 Q3
$255.00M
FY2025 Q4
$536.00M
FY2026 Q1
$166.00M
FY2026 Q2
$592.00M
FY2026 Q3
$291.00M
Revenue
$2.15B
Net income
$317.00M
Diluted EPS
0.78
Operating cash flow
$457.00M
Free cash flow
$291.00M
Fetching…
Sources
Revenue
$2.16B
Net income
$239.00M
Diluted EPS
0.70
Operating cash flow
$722.00M
Free cash flow
$592.00M
Fetching…
Sources
Revenue
$2.09B
Net income
$245.00M
Diluted EPS
0.72
Operating cash flow
$271.00M
Free cash flow
$166.00M
Fetching…
Sources
Revenue
$2.19B
Net income
$99.00M
Diluted EPS
0.23
Operating cash flow
$680.00M
Free cash flow
$536.00M
Fetching…
Sources
Revenue
$2.16B
Net income
$297.00M
Diluted EPS
0.84
Operating cash flow
$430.00M
Free cash flow
$255.00M
Fetching…
Sources
Revenue
$2.14B
Net income
$205.00M
Diluted EPS
0.57
Operating cash flow
$546.00M
Free cash flow
$401.00M
Fetching…
Sources
Revenue
$2.07B
Net income
$204.00M
Diluted EPS
0.59
Operating cash flow
$242.00M
Free cash flow
$53.00M
Fetching…
Sources
Revenue
$2.19B
Net income
$222.00M
Diluted EPS
2.45
Operating cash flow
$679.00M
Free cash flow
$514.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $51.58 vs current price $32.40
Wall Street consensus is the average analyst price target: $34.31 (-33.5% lower than our fair-value estimate).
Our most-likely fair value is $51.58 a share — about 59.2% above today's price of $32.40, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $9.3B. Interest coverage 4.2x.
Net debt
$9.30B
Interest coverage
4.15x
Sirius XM Holdings Inc.'s profit covers its interest bill about 4.2 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
SIRI
BASELINE
Sirius XM Holdings Inc.
Total debt $9.51B Interest coverage 4.15x This is the baseline the peer rows are being compared against.
Total debt $6.77M Interest coverage -7.74x -100% vs SIRI This peer has almost no interest-payment cushion compared with SIRI.
Total debt $4.92B Interest coverage 5.73x +38% vs SIRI Carries about 1.4x more debt cushion than SIRI.
Total debt $5.76B Interest coverage 0.48x -88% vs SIRI Carries about 8.7x less debt cushion than SIRI.
Total debt $11.91B Interest coverage 3.90x -6% vs SIRI Has roughly the same debt cushion as SIRI.
Total debt $507.52M Interest coverage 70.90x +1,607% vs SIRI Carries about 17.1x more debt cushion than SIRI.
What you should know
The case for and against SIRI
3 Rewards
0 Risks
Rewards
-
Revenue grew 0.5% last year.
-
Returns 7.6% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
12.96x
Forward P/E
9.93x
P/B
0.90x
P/S
1.27x
EV/EBITDA
7.95x
PEG ratio
1.35x
Profitability
How much profit each dollar creates
Gross margin
47.5%
Operating margin
22.7%
Net margin
10.5%
ROE
7.6%
ROA
4.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.78x
Current ratio
0.33x
Quick ratio
0.25x
Total debt
$9.51B
Total cash
$210.00M
Growth
How the business has been compounding
Revenue TTM
$8.60B
Revenue 5Y CAGR
-0.4%
EPS TTM
2.50
EPS 5Y CAGR
-10.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.13B
Free CF TTM
$1.25B
FCF margin
14.5%
Dividend
Shareholder payout
Yield
3.2%
Payout ratio
42.2%
Last ex-div date
2026-11-06