Is the business good?
How good a business is SIRI?
Sirius XM Holdings Inc. earns 6.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
6.1%
Return on invested capital · cost of capital 9.0% · 2.9 points below what the capital costs: growth destroys value
- Operating margin
- 19%
Operating margin · Entertainment median 12% · 12 months to Q2 2026
- Cash conversion
- 1.76×
Cash conversion · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −4.2%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 11% |
| FY2021 | 23% |
| FY2022 | 21% |
| FY2023 | 20% |
| FY2024 | −17% |
| FY2025 | 17% |
Details›
- Gross margin12 months to Q2 2026
- 53%
- Operating margin12 months to Q2 2026
- 19%
- Net margin12 months to Q2 2026
- 10%
- Free cash flow margin
- 18%
- R&D as % of revenue
- 3.0%
- Revenue, trailing twelve months
- $8.60B
- Free cash flow, trailing twelve months
- $1.55B
- Net income, trailing twelve months
- $880M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.