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Stock impact report

Sirius XM: The Toll Road in the Sky [Yahoo! Finance]

Liberty Live Holdings, Inc. - Series C Liberty Live Group (LLYVK) 
Company Research Source: Yahoo! Finance
Every once in a while, a company looks ordinary until you bother to do the arithmetic. Sirius XM is one of those. It beams hundreds of channels of music, talk and sports from satellites that cover the entire U.S. and parts of Canada. It sounds old-fashioned, but the business underneath is remarkably modern: prepaid, capital-light at the margin and fiercely cash-generative. Warning! GuruFocus has detected 4 Warning Signs with SIRI. Is SIRI fairly valued? Test your thesis with our free DCF calculator. Today, just over 33 million subscribers pay between $15 and $20 a month. That works out to roughly $9 billion in annual revenue and about $1.2 billion of free cash flow on a market value near $7.5 billion (at roughly $21.70 a share). No accounting alchemy there; it's cash left after interest, capex and taxes. With most satellite investments already behind it and no major launches expected until at least 2027, capital spending should ease further, increasing per-subscriber cash-flow. Show less Read more
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