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Can Sirius XM Holdings Inc. (NASDAQ: SIRI) meet your expectations?

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We are going to take a close look at Sirius XM Holdings Inc. (NASDAQ: SIRI) today to get a better sense of the company and its current status, as well as the opportunity it may offer for prospective investors. Today?s focus will be a fundamental evaluation of the stock from top to bottom.

As such, let?s start with the top line: Revenue trends.

Last quarter, the company saw its overall sales move to 1.35B in total revenues. That represents an overall change in revenues, on a quarterly year/year basis of 0.08%. If we translate that into sequential terms, the company saw sales grow by 0.04% from quarter to quarter.

It?s important to closely track the top line data. There?s no better way to measure the end market?s reception of a company?s products. But no one truly wins without bottom line success, which is what we need to look at next.

Sirius XM Holdings Inc. NASDAQ: SIRI is intriguing when broken down to its core data. The cost of selling goods last quarter was 712.12M, yielding a gross basic income of 635.45M. For shareholders, given the total diluted outstanding shares of 4.74B, this means overall earnings per share of 0.04 . Note, this compares with a consensus analyst forecast of 0.04 in earnings per share for its next fiscal quarterly report.

Given that data, we now turn to a more thorough glance across analyst expectations for the company going forward.

At present, analysts hold a consensus average recommendation of Overweight. This is based on a total of 17 analysts. While we don?t suggest taking analyst recommendations at face value plans for action in a portfolio, we do think it is important to note where consensus is on a stock to understand what basic assumptions are perhaps already discounted into the market pricing of shares of the stock.

As far as price targets, analysts currently have an average target on shares at 5.76. In addition, if we turn to next year, we see estimates of a fiscal year forecast to bring about 0.21 in total earnings per share. On a median price to earnings ratio basis, that outlook adds up to a valuation of 25.65 times earnings.

At this point, we?ve taken a thorough look at this company from top to bottom and gotten a sense of what analysts are expecting. But underneath it all, when push comes to shove, companies make it through tough times on balance sheet strength. With that in mind, we should take a look under the hood here.

As the reader is no doubt aware, for any company, balance sheet health sits at the heart of the company?s capacity to stand up to the demands and obligations incurred by normal and contingency operations, which in turn lies at the core of a company?s ability to retain the faith of investors in the marketplace. For (NASDAQ: SIRI), the company presently holds about 42.74M in cash in the coffers. That cash is balanced against 5.16M about in total current liabilities.

It?s important to consider both a static and dynamic picture, particularly where debt levels are concerned. This means we need to take into account any trends. In this case, the company?s debt has been growing . The company also has 8.35B in total assets, balanced by 9.39B in total liabilities, which suggests where this story might go under adverse economic or financial conditions.

As far as cash flows, the company saw a free cash flow last quarter of 417.06M, representing a quarterly net change in cash of (187.75M).On a net operating level, the company saw about 483.21M in cash flow.

We will update the interesting story of Sirius XM Holdings Inc. NASDAQ: SIRI as new events transpire.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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T-Mobile US, Inc. (TMUS) could lose another bull

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Stock of T-Mobile US, Inc. (TMUS) opened at $59.74 and last traded at $59.85 x 400. More than 1,831,973 shares exchanged hands compared to an average daily volume of 4,314,260 shares. At the current pps, the market capitalization stands at 49.7B.

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. T-Mobile US, Inc. (TMUS) currently has a Beta value of 0.95 . Beta is a measurement of a stock’s price fluctuations, which is often called volatility and is used by investors to gauge how quickly a stock’s price will rise or fall. A stock with a beta of greater than 1.0 is riskier and has greater price fluctuations, while stocks with beta values of less than 1.0 are steadier and generally larger companies. Beta is often measured against the S&P; 500 index. An S&P; 500 stock with a beta of 2.0 produced a 20 percent increase in returns during a period of time when the S&P; 500 Index grew only 10 percent. This same measurement also means the stock would lose 20 percent when the market dropped by only 10 percent. Next, let’s take a look at T-Mobile US, Inc current P/E ratio. T-Mobile US, Inc. (TMUS) currently has a PE ratio of 25.31. PE ratio is an important parameter to look at when trading a stock mostly because it is easy to calculate. There are a couple of ways to calculate PE ratio either by dividing share price by earnings per share or dividing the market cap by net income. It is important to note that the earnings are usually taken from the trailing twelve months (TTM). Nevertheless, P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings. Another useful way to look at this: Turn the P/E ratio around to look at the E/P ratio, which when expressed as a percentage gives us the earnings yield. For instance: 1/15 gives us an earnings yield of 6.67%.

While we have already looked at T-Mobile US, Inc beta and P/E ratio, the EPS cannot be ignored. T-Mobile US, Inc EPS for the trailing twelve months was 2.36. Traders and investors often use earnings per share (TTM) to determine a company’s profitability for the past year. So in essence, EPS is the amount of a company’s net income per share of common stock. Earnings per share equal the company’s net income less any dividends paid on preferred stock divided by the weighted average number of common stock shares outstanding during the year. T-Mobile US, Inc is estimated to release its next earnings report on 12 / 2017 (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

The Analyst Chirp:

T-Mobile US, Inc. (TMUS) has received an average target price from analysts of $71.93 amounting to a recommendation rating of Buy. That comes from 31 different analysts. Perhaps, the driver for that assessment comes from the company’s valuations. Right now, we are looking at a median price-to-earnings ratio for this calendar year of 22.75. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 20.56 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 22.00. That shift to 16.00 heading into next quarter.

Technical chart:



 

 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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How Texas Instruments Incorporated (TXN) Recent News Could Be A Double Edged Sword

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Stock of Texas Instruments Incorporated (TXN) opened at $97.81 and last traded at $98.65 x 400. More than 1,124,776 shares exchanged hands compared to an average daily volume of 4,046,329 shares. At the current pps, the market capitalization stands at 97.3B.

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. Texas Instruments Incorporated (TXN) currently has a Beta value of 1.19 . Beta is a measurement of a stock’s price fluctuations, which is often called volatility and is used by investors to gauge how quickly a stock’s price will rise or fall. A stock with a beta of greater than 1.0 is riskier and has greater price fluctuations, while stocks with beta values of less than 1.0 are steadier and generally larger companies. Beta is often measured against the S&P; 500 index. An S&P; 500 stock with a beta of 2.0 produced a 20 percent increase in returns during a period of time when the S&P; 500 Index grew only 10 percent. This same measurement also means the stock would lose 20 percent when the market dropped by only 10 percent. Next, let’s take a look at Texas Instruments Incorporated (TXN) current P/E ratio. Texas Instruments Incorporated (TXN) currently has a PE ratio of 24.69. PE ratio is an important parameter to look at when trading a stock mostly because it is easy to calculate. There are a couple of ways to calculate PE ratio either by dividing share price by earnings per share or dividing the market cap by net income. It is important to note that the earnings are usually taken from the trailing twelve months (TTM). Nevertheless, P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings. Another useful way to look at this: Turn the P/E ratio around to look at the E/P ratio, which when expressed as a percentage gives us the earnings yield. For instance: 1/15 gives us an earnings yield of 6.67%.

While we have already looked at Texas Instruments Incorporated (TXN) beta and P/E ratio, the EPS cannot be ignored. Texas Instruments Incorporated (TXN) EPS for the trailing twelve months was 4.00. Traders and investors often use earnings per share (TTM) to determine a company’s profitability for the past year. So in essence, EPS is the amount of a company’s net income per share of common stock. Earnings per share equal the company’s net income less any dividends paid on preferred stock divided by the weighted average number of common stock shares outstanding during the year. Texas Instruments Incorporated (TXN) is estimated to release its next earnings report on 12 / 2017 (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

The Analyst Chirp:

Texas Instruments Incorporated (TXN) has received an average target price from analysts of $100.43 amounting to a recommendation rating of Overweight. That comes from 32 different analysts. Perhaps, the driver for that assessment comes from the company’s valuations. Right now, we are looking at a median price-to-earnings ratio for this calendar year of 22.31. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 21.37 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 27.00. That shift to 27.00 heading into next quarter.

Technical chart:



 

 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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Business

Are Investors flocking towards Western Digital Corporation (WDC)?

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Stock of Western Digital Corporation (WDC) opened at $90.50 and last traded at $90.56 x 600. More than 1,393,047 shares exchanged hands compared to an average daily volume of 3,924,503 shares. At the current pps, the market capitalization stands at 26.8B.

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. Western Digital Corporation (WDC) currently has a Beta value of 1.45 . Beta is a measurement of a stock’s price fluctuations, which is often called volatility and is used by investors to gauge how quickly a stock’s price will rise or fall. A stock with a beta of greater than 1.0 is riskier and has greater price fluctuations, while stocks with beta values of less than 1.0 are steadier and generally larger companies. Beta is often measured against the S&P; 500 index. An S&P; 500 stock with a beta of 2.0 produced a 20 percent increase in returns during a period of time when the S&P; 500 Index grew only 10 percent. This same measurement also means the stock would lose 20 percent when the market dropped by only 10 percent. Next, let’s take a look at Western Digital Corporation (WDC) current P/E ratio. Western Digital Corporation (WDC) currently has a PE ratio of 67.60. PE ratio is an important parameter to look at when trading a stock mostly because it is easy to calculate. There are a couple of ways to calculate PE ratio either by dividing share price by earnings per share or dividing the market cap by net income. It is important to note that the earnings are usually taken from the trailing twelve months (TTM). Nevertheless, P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings. Another useful way to look at this: Turn the P/E ratio around to look at the E/P ratio, which when expressed as a percentage gives us the earnings yield. For instance: 1/15 gives us an earnings yield of 6.67%.

While we have already looked at Western Digital Corporation (WDC) beta and P/E ratio, the EPS cannot be ignored. Western Digital Corporation (WDC) EPS for the trailing twelve months was 1.34. Traders and investors often use earnings per share (TTM) to determine a company’s profitability for the past year. So in essence, EPS is the amount of a company’s net income per share of common stock. Earnings per share equal the company’s net income less any dividends paid on preferred stock divided by the weighted average number of common stock shares outstanding during the year. Western Digital Corporation (WDC) is estimated to release its next earnings report on 6 / 2018 (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

The Analyst Chirp:

Western Digital Corporation (WDC) has received an average target price from analysts of $115.31 amounting to a recommendation rating of Overweight. That comes from 29 different analysts. Perhaps, the driver for that assessment comes from the company’s valuations. Right now, we are looking at a median price-to-earnings ratio for this calendar year of 6.76. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 7.64 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 25.00. That shift to 25.00 heading into next quarter.

Technical chart:



 

 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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