Stock Alert for Sirius XM Radio Inc. (SIRI)
  • Stock Alert for Sirius XM Radio Inc. (SIRI)
  • Stock Alert for Sirius XM Radio Inc. (SIRI)
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    Stock Alert for Sirius XM Radio Inc. (SIRI)

    Sirius XM Radio Inc. (SIRI) is a New York-based satellite radio company that broadcasts more than 135 channels of commercial-free music, and premier sports, news, talk, entertainment, traffic, weather and data services to more than 21 million subscribers. The Company offers an array of content from many of the biggest names in entertainment, as well as from professional sports leagues, major colleges, and national news and talk providers. SiriusXM programming is available on more than 800 devices, including pre-installed and after-market radios in cars, trucks, boats and aircraft, smartphones and mobile devices, and consumer electronics products for homes and offices. SIRI programming is also available at, and on Apple, BlackBerry and Android-powered mobile devices. It has arrangements with every major automaker and its radio products are available for sale at as well as retail locations nationwide.

    Share Statistics (23-Mar-12)   FY












    Symbol SIRI Revenue, $Mn 2,816.99 3,014.52 7.0% 735.90 783.74 6.5%
    Current price $2.26 Gross marg. 51.5% 53.7% 4.3% 50.0% 53.0% 6.0%
    52wk Range: $1.27-$2.44 Oper. margin 22.2% 19.7%
    Avg Vol (3m): 51,333,800 Net margin 1.5% 14.2% 846.7% -11.1% 9.1% -182.0%
    Market Cap. 8.49B              
    Shares Outstanding 3.76B EPS, $ 0.03 0.07 133.3% 0.00 0.01

    Source:, SEC Filings.

    Investment Highlights

    Sirius XM Radio Inc. (SIRI) shares slipped 0.44% to close Friday trade at $2.26. The stock saw volume of over 15 million shares, versus the 10-day average of over 25 million.

    SIRI share have gained 7.6% in the last month and 35.4% year-to-date.

    SIRI and Toyota Motor Sales last week announced that they will offer a free three-month trial subscription to Sirius XM Satellite Radio with the purchase of Toyota and Scion Certified Used cars, giving customers access to commercial-free music, sports, news, talk entertainment and traffic and weather information.

    “This offer gives customers buying Toyota Certified Used Vehicles and Scion Certified Pre-Owned Vehicles the world’s best audio entertainment available on the road, and we look forward to working with Toyota and Scion dealers to provide even more of their customers the opportunity to listen to SiriusXM when buying any Certified Used Vehicle equipped with a satellite radio from Toyota,” commented Joe Verbrugge, SIRI’s senior VP for automotive remarketing division.

    The satellite radio giant also recently announced a partnership with Ashbury Automotive Group (NYSE: ABG) to provide the latter’s customers a three-month SiriusXM subscription on pre-owned vehicles with factory-installed satellite radios.

    Ryun Pavlicek, Ashbury Automotive Group’s director of retail strategy, said Ashbury customers purchasing pre-owned vehicles with factory-installed satellite radio will have access to commercial-free music, and premier sports, news, talk, entertainment plus traffic and weather information broadcast by SIRI. “Enabling our customers to drive off our lots with 3 months of satellite radio is a value-added service we are excited to provide.”

    Verbugge said SIR looks forward to working with Asbury’s 79 dealerships to further enhance the pre-owned vehicle buying experience.


    Financial Summary

    SIRI reported revenue of $784 million for the fourth quarter of 2011, up 7% from $736 million for the fourth quarter of 2010.  Adjusted EBITDA came in at $167 million, an increase of 16% from $144 million reported in the comparable period of the previous year.

    The Company posted a GAAP net income of $71 million, or $0.01 per diluted share, for the quarter, reversing the year-ago loss of $81 million, $0.02 per diluted share.

    SIRI’s net subscriber additions in the quarter were 542,966, up 65% compared to the fourth quarter of 2010.  Net self-pay subscriber additions were 374,432, an increase of 7% versus the fourth quarter of 2010.

    Subscriber acquisition cost (SAC) per gross subscriber addition was $55, a 5% improvement from the $58 reported in the fourth quarter of 2010.  Average self-pay monthly customer churn was 1.9%, in-line with the 1.9% reported in the fourth quarter of 2010.  New vehicle consumer conversion rate was 44%, compared to 45% in the fourth quarter of 2010.

    SIRI generated free cash flow of $192 million for the last three months of 2011, an increase of 15% compared to $167 million reported in the comparable quarter of 2010.

    SIRI in February backed its 2012 revenue guidance of about $3.3 billion and free cash flow of about $700 million. It expects its subscriber base to grow by nearly 1.3 million net subscribers and end the year at about 23.2 million.


    Financial Strength (23-Mar-2011)




    Quick Ratio (MRQ) 0.55 0.67 1.10
    Current Ratio (MRQ) 0.57 0.86 1.34
    LT Debt to Equity (MRQ) 427.80 30.45 54.21
    Total Debt to Equity (MRQ) 428.03 32.17 90.27
    Interest Coverage (TTM) 1.15 0.75 0.42

    Source:, SEC Filings.

    Technical Analysis

    SIRI is within its Bollinger Bands. This is a normal condition suggesting that it is neither overbought nor oversold relative to the recent levels.

    SIRI’s MACD is indicating a weak bearish signal. Although the indicator is above the critical level of 0, which implies that the underlying moving averages are bullish, the MACD has crossed below its 9minute moving average or signal line. This suggests that positive momentum has begun to slow.


    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Mar23-2012 symbol Share, $ $ Mn 2012 2013 2012 2013
    Cumulus Media Inc. CMLS 3.62 548.82M 12.93 10.97 0.47 0.47
    Pandora Media Inc. P 10.56 1.74B n/a n/a n/a 1.11
    Broadcasting – Radio Median       12.52 n/a 1.01 n/a
    Sirius XM Radio Inc. SIRI 2.26 8.49B 32.29 20.55 2.53 2.25

    Source: Thomson Financial

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