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Sirius XM Holdings (SIRI) is drawing attention after SiriusXM Media was named the exclusive U.S. representative for YouTube audio advertising inventory, giving brands a single point of access to large scale audio ad buying.
See our latest analysis for Sirius XM Holdings.
The Google partnership headlines come as SIRI’s share price has moved sharply higher, with a 7 day share price return of 13.22% and a 30 day gain of 25.22%. The 1 year total shareholder return of 37.87% contrasts with weaker 3 and 5 year total shareholder returns, suggesting that recent momentum has picked up after a tougher longer term period.
If this kind of digital audio push has your attention, it could be worth widening your watchlist to see which other media names are gaining traction across audio and streaming 17 top founder-led companies
With SIRI trading at $28.00 and an intrinsic value estimate that implies a 67% discount, plus a regular cash dividend and fresh Google partnership headlines, the key question is whether there is still a buying opportunity here or whether the market is already pricing in future growth.
ValueMan’s narrative sets a fair value of $50.00 per share versus the recent $28.00 close, framing SIRI as materially discounted in the current market.
This is a negative equity company…..its debt load is not a burden but an investment vehicle. You CAN argue that if a catastrophic event happens SIRI is underwater (like covid). However, looking forward SIRI’s revenue has maintained steady even with the advent of streaming services. Communication companies often have high debt loads and significant competitive advantages. Consider the scale required to build, launch, and maintain a satellite. Their debt is a cost of operation, which on average per year is a reasonable ratio of their operating income. Everything that is left over is returned to shareholders. They retain no excess capital and keep shareholders clearly in mind.
Read the complete narrative.
Curious how a company with negative equity still lands on an undervalued call? The narrative focuses on revenue resilience, cash generation and a premium on hard-to-replace satellite assets.
Result: Fair Value of $50.00 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this depends on SIRI continuing to manage its debt and maintaining revenue at current levels, and any disruption here could quickly challenge the 44% undervalued case.
