The stock market was having a strong day on Thursday, but Sirius XM (NASDAQ: SIRI) was an outperformer. As of 10:10 a.m. ET, the stock was higher by about 6% for the day.

Sirius XM reported its fourth-quarter and full-year 2024 results on Thursday morning, and the short explanation is this is the driving force behind the move in the stock. The company beat expectations on both the top and bottom lines, but looking beyond the headlines, there's a lot to like.

Strong results, especially for profitability

For one thing, self-paying subscriber additions were strong. While the total number of self-pay subscribers declined year over year, the company added 149,000 in the fourth quarter, significantly more than in the same quarter in 2023.

Additional highlights include:

Sirius looks extremely cheap

Sirius XM also confirmed its full-year 2025 guidance for $8.5 billion in revenue and $1.15 billion in free cash flow. At the current price, this means that Sirius XM is trading for less than 7 times expected free cash flow, a remarkably low valuation. With several exciting initiatives designed to reinvigorate growth, this stock has attracted a big investment from Warren Buffett-led Berkshire Hathaway , which owns a 35% stake. It could be a steal if management can execute on its strategy and can achieve its goal of $1.5 billion in free cash flow by 2027.

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