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The Sirius XM Holdings (NASDAQ:SIRI) Share Price Is Up 30% And Shareholders Are Holding On

It hasn't been the best quarter for Sirius XM Holdings Inc. (NASDAQ:SIRI) shareholders, since the share price has fallen 29% in that time. But the silver lining is the stock is up over five years. However we are not very impressed because the share price is only up 30%, less than the market return of 43%.

See our latest analysis for Sirius XM Holdings

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

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Over half a decade, Sirius XM Holdings managed to grow its earnings per share at 19% a year. The EPS growth is more impressive than the yearly share price gain of 5.4% over the same period. So it seems the market isn't so enthusiastic about the stock these days.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

NasdaqGS:SIRI Past and Future Earnings April 14th 2020
NasdaqGS:SIRI Past and Future Earnings April 14th 2020

Dive deeper into Sirius XM Holdings's key metrics by checking this interactive graph of Sirius XM Holdings's earnings, revenue and cash flow.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Sirius XM Holdings, it has a TSR of 34% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

While the broader market lost about 4.0% in the twelve months, Sirius XM Holdings shareholders did even worse, losing 13% (even including dividends) . However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Longer term investors wouldn't be so upset, since they would have made 6.0%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should be aware of the 3 warning signs we've spotted with Sirius XM Holdings .

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.