Analysis Of Sirius XM Holdings Inc
Analysis of Sirius XM Holdings Inc. (SIRI) 2013 Annual Report/10k Filing
Preface: SIRI began to be publically traded in August of 1994 at $4.125. The company flourished in the 90’s reaching an all-time high stock value of $61 in February of 2000. Since 2001, terrestrial radio revenues have been declining year over year (90% of SIRI revenue). Their stock value crashed to $2.49 in September of 2001. The 2009 recession demolished SIRI’s trade value even further to a penny stock. In the last decade the company only saw long term growth in the year 2005 most notably due to a merger with XM
Most notable factors Analyzed from the 2013 report:
ITEM 1A. RISK FACTORS
Competition:
“Out of 250 million cars on the road, those with satellite radios will reach a target of more than 100 million in 2017. Currently, this number stands at only 57 million cars. This shows the percentage of cars with satellite radios will increase from 23% to 40%.”
A rather uplifting quote from their Annual Report, but with more analysis proves to be rather insignificant due to all the complications they have with competition. A direct quote from their 10k Filing, “Apple, Pandora and Clear Channel, make high fidelity digital streams available through the Internet for free or, in some cases, for a fraction of the cost of a satellite radio subscription. These services compete directly with our services, at home, in the automobile, and wherever audio entertainment is consumed.” The list goes on and on discussing traditional AM/FM radio (that generates billions of dollars in advertising), third party media sources and various other radio methods
ITEM 6. SELECTED FINANCIAL DATA
When analyzing the basic reporting’s of profit, total assets, paid dividends and other various indications of growth, it is evident that this company is heading in no clear direction for long-term growth. While revenue grows at a miniscule steady rate, profits show no indication of life. Shareholders have seen only one paid
Preface: SIRI began to be publically traded in August of 1994 at $4.125. The company flourished in the 90’s reaching an all-time high stock value of $61 in February of 2000. Since 2001, terrestrial radio revenues have been declining year over year (90% of SIRI revenue). Their stock value crashed to $2.49 in September of 2001. The 2009 recession demolished SIRI’s trade value even further to a penny stock. In the last decade the company only saw long term growth in the year 2005 most notably due to a merger with XM
Most notable factors Analyzed from the 2013 report:
ITEM 1A. RISK FACTORS
Competition:
“Out of 250 million cars on the road, those with satellite radios will reach a target of more than 100 million in 2017. Currently, this number stands at only 57 million cars. This shows the percentage of cars with satellite radios will increase from 23% to 40%.”
A rather uplifting quote from their Annual Report, but with more analysis proves to be rather insignificant due to all the complications they have with competition. A direct quote from their 10k Filing, “Apple, Pandora and Clear Channel, make high fidelity digital streams available through the Internet for free or, in some cases, for a fraction of the cost of a satellite radio subscription. These services compete directly with our services, at home, in the automobile, and wherever audio entertainment is consumed.” The list goes on and on discussing traditional AM/FM radio (that generates billions of dollars in advertising), third party media sources and various other radio methods
ITEM 6. SELECTED FINANCIAL DATA
When analyzing the basic reporting’s of profit, total assets, paid dividends and other various indications of growth, it is evident that this company is heading in no clear direction for long-term growth. While revenue grows at a miniscule steady rate, profits show no indication of life. Shareholders have seen only one paid