The market, in any case, doubts it. This is evidenced by a market capitalization which, at $26 per share, is equivalent to a multiple of just seven times last year's free cash flow.

It's true that debt is substantial and must be taken into account: on the basis of its enterprise value, i.e. by adding net debt to market capitalization, Sirius is currently valued at fifteen times last year's free cash flow.

It should be noted, however, that annual free cash flow has fallen sharply over the past four years. It should reach $1.2 billion in 2024, compared with $1.7 billion in 2020. As you can see, the bleeding had better stop soon.

Things remain open to interpretation. Sirius' radio and podcast services, installed as standard in all new vehicles in North America, are available on a subscription basis, ensuring good visibility of revenues - despite the recent drop in profits. Debt, meanwhile, is inexpensive and well-distributed.

Following Sirius's merger with Liberty Media, Berkshire Hathaway now controls almost a third of Sirius's capital. In addition to the attraction of Warren Buffett's group's presence in the deal, it also reduces any refinancing risk.

Sirius generates $7 billion in sales from its broadcasting activities, and $2 billion from its advertising activities. Among its paid services, Sirius claims the longest listening time in the US, ahead of YouTube and Spotify.

Its economic parameters are generally superior to those of streaming services: revenue per subscriber similar to Netflix's, churn half that of Spotify's, gross margin twice that of Spotify's, and a very high user satisfaction rate.

Present in 160 million vehicles in North America, Sirius sees the car interior as the new horizon for digital advertising - after the more or less complete monetization of the home, office and telephone. The argument seems sound.

That said, in addition to debt, the market's pessimism doesn't seem entirely unjustified either. Younger audiences are making less use of Sirius' service, while new car sales in the USA are still a quarter lower than before the pandemic.

Despite its good sustainability credentials, this puts the brakes on management's ambitions. It has set itself the target of reaching fifty million subscribers in the long term, compared with forty million today, and of achieving $1.8 billion in free cash flow by the end of the year, compared with $1.2 billion today; but no date has been given.

On the other hand, following the capital reorganization and the merger with Liberty Media, readability is much better, and the free float enlarged. This development is likely to attract the interest of institutional investors, as is the inclusion of Sirius shares in index funds.

In addition to a potentially attractive valuation, optimists will see this as an interesting technical configuration.