Multibagger #3 Liberty SiriusXM
Name: The Liberty SiriusXM Group
Symbol: LSXMK
Price: $22.46
Release Date: Jun 03, 2024
Forecast: 10-20X price growth in 5-10Years
Theme: Value Investing, Warren Buffett
Story: SiriusXM is the leading audio entertainment company in North America with a portfolio of audio businesses including its flagship subscription entertainment service SiriusXM; the ad-supported and premium music streaming services of Pandora; an expansive podcast network; and a suite of business and advertising solutions. Reaching a combined monthly audience of approximately 150 million listeners, SiriusXM offers a broad range of content for listeners everywhere they tune in with a diverse mix of live, on-demand, and curated programming across music, talk, news, and sports.
Liberty Media Corporation based in Englewood, Colorado own interests in a high-quality portfolio of assets across the media, communications and entertainment industries. Their interests are attributed to three tracking stocks: The Liberty SiriusXM Group, Formula One Group and Liberty Live Group.
Website: https://www.siriusxmmedia.com, https://www.libertymedia.com
Revenue Breakup
Rationale
Liberty Media which also owns announced that it had reached agreement deal with Sirius XM Holdings to combine their stocks and create a new public company called New Sirius XM which will operate under the Sirius XM brand.
Warren Buffet is interested in the Value Unlocking & his holding company Berkshire now owns more than a 21% stake in Liberty Media Sirius XM.
SXM is leader in car segment & Expanding streaming business, Releasing audience based streaming business.
This company is Not traditional Intrinsic Value pick based on past earnings.
Income Statement
The company is showing flat progress for revenue, operating income & net income.
Fundamentals, Valuations, Growth
| Parameter | Value | Legend |
|---|---|---|
| PE Ratio | 12 |  |
| PB Ratio | 1 | |
| PEG Ratio | >2 |  |
| Debt Equity Ratio | -3.5 | |
| Sales Growth Rate | 5% |  |
| Profit Growth Rate | 5% | |
| EPS Growth Rate | -10% | |
| Intrinsic Value Discount | 0% | |
| Economic Moat | Good | |
| Expansions | Yes | |
Threats & Risks
- Global Issues, Pandemics & Wars can adversely affect the business
- Attract & Retain existing customers
- Competitor with cheaper alternatives moving business from Car Manufacturers
- Pandora Ad-business impacted by business slowdowns
Summary
Based on the factors above company is having multibagger properties. Investor can expect 10X returns in a 5-10 year holding period.