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Echostar Corp. (SATS)
NASDAQ:SATS
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Echostar
(NASDAQ:SATS)51Neutral
Positive Factors
Liquidity Position
EchoStar enters with its strongest liquidity position in years.
Spectrum Holdings
The company is sitting on a large pile of unencumbered spectrum, believed to be worth over $10 billion, which is underappreciated in equity value.
Negative Factors
EBITDA Performance
EchoStar posted downside results with EBITDA misses in each segment, leading to a poor start.
Echostar (SATS) vs. S&P 500 (SPY)
Market Cap
$8.89B
Dividend YieldN/A
Average Volume (3M)1.90M
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue Growth-6.99%
EPS Growth91.98%
CountryUS
Employees15,300
SectorTechnology
Sector Strength48
IndustryHardware & Equipment
Share Statistics
EPS (TTM)-0.50
Shares Outstanding155,094,310
10 Day Avg. Volume2,273,342
30 Day Avg. Volume1,896,519
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.56
Price to Cash Flow (P/CF)48.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$26.50Price Target Upside-13.93% Downside
Rating ConsensusHold
Number of Analyst Covering2
Echostar Business Overview & Revenue Model
Company DescriptionEchoStar Corp. engages in the design, development, and distribution of digital set-top boxes and products for direct-to-home satellite service providers. It operates through the following business segments: Hughes, and EchoStar Satellite Services. The Hughes segment provides broadband satellite technologies and broadband services to home and small office customers and network technologies, managed services, and communication solutions. The ESS segment owns and leases in-orbit satellites and licenses to lease capacity on a full time and occasional use. The company was founded by Charlie William Ergen, Candy Ergen, and James DeFranco in 1980 and is headquartered in Englewood, CO.
How the Company Makes MoneyEchoStar makes money primarily through its Hughes Network Systems and EchoStar Satellite Services segments. Hughes Network Systems generates revenue by providing broadband satellite internet services to consumers and enterprise customers, selling satellite networking equipment, and offering managed network services. The EchoStar Satellite Services segment earns revenue by leasing satellite capacity to media companies, internet service providers, and government organizations. Key revenue streams include subscription fees from consumers, service contracts with enterprises, and long-term leasing agreements with other communication service providers. Strategic partnerships and technological advancements in satellite communications further contribute to the company's earnings.
Echostar Financial Statement Overview
Summary
Echostar's financial performance is concerning, marked by declining revenue, high leverage, and negative profitability. The income statement shows significant challenges with negative net income, and the cash flow statement reveals issues with cash generation.Income Statement
Echostar's income statement reveals significant challenges with profitability. The company reported negative net income for multiple years, with a slight improvement in the latest period. The gross profit margin in 2024 was approximately 35.95%, indicating some ability to manage cost of goods sold, but the negative EBIT and EBITDA margins reflect operational inefficiencies. Revenue has declined over the past year, indicating growth challenges.35
Negative
Balance Sheet
Echostar's balance sheet shows a high debt-to-equity ratio, indicating significant leverage and potential financial risk. The equity ratio is relatively strong at around 33.13%, suggesting a stable asset base. However, the return on equity is negative, reflecting poor profitability. The high level of total debt compared to stockholders' equity is a concern.40
Negative
Cash Flow
The cash flow statement indicates issues with cash generation and capital management. The company has negative free cash flow, which has worsened recently. Operating cash flow is insufficient to cover net income, leading to a negative free cash flow to net income ratio. The company's ability to generate cash from operations needs improvement.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 15.83B | 17.02B | 2.00B | 1.99B | 1.89B | Gross Profit |
| 5.69B | 5.07B | 1.14B | 1.20B | 1.14B | EBIT |
| -304.07M | -277.91M | 189.64M | 217.01M | 112.47M | EBITDA |
| 1.37B | -247.35M | 4.59B | 715.19M | 746.38M | Net Income Common Stockholders |
| -26.63M | -1.70B | 177.05M | 72.88M | -51.90M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 5.70B | 2.44B | 1.68B | 1.55B | 2.53B | Total Assets |
| 60.94B | 57.11B | 6.20B | 6.05B | 7.07B | Total Debt |
| 64.68B | 25.89B | 1.65B | 1.65B | 2.52B | Net Debt |
| 60.22B | 24.06B | 946.02M | 1.11B | 1.63B | Total Liabilities |
| 40.69B | 36.72B | 2.60B | 2.63B | 3.47B | Stockholders Equity |
| 20.19B | 19.88B | 3.50B | 3.35B | 3.54B |
| Cash Flow | Free Cash Flow | |||
| -292.18M | -668.27M | 180.61M | 160.25M | 86.94M | Operating Cash Flow |
| 1.25B | 2.43B | 529.61M | 632.23M | 534.39M | Investing Cash Flow |
| -3.05B | -2.81B | -275.19M | 158.93M | -1.14B | Financing Cash Flow |
| 4.48B | -277.12M | -83.11M | -1.15B | -15.62M |
Echostar Technical Analysis
Positive
30.79
Price Trends
26.79
Positive
25.62
Positive
22.80
Positive
Market Momentum
1.05
Negative
65.07
Neutral
64.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SATS, the sentiment is Positive. The current price of 30.79 is above the 20-day moving average (MA) of 29.63, above the 50-day MA of 26.79, and above the 200-day MA of 22.80, indicating a bullish trend. The MACD of 1.05 indicates Negative momentum. The RSI at 65.07 is Neutral, neither overbought nor oversold. The STOCH value of 64.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SATS.
Echostar Risk Analysis
Echostar disclosed 61 risk factors in its most recent earnings report. Echostar reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Echostar Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $3.27B | 31.91 | 19.56% | 1.78% | 5.05% | 632.38% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
51 Neutral | $8.89B | ― | -0.60% | ― | -6.99% | 91.98% | |
49 Neutral | $1.10B | ― | -8.28% | ― | 19.02% | 76.67% | |
46 Neutral | $2.73B | ― | -17.12% | ― | 11.86% | -140.69% | |
35 Underperform | $56.01M | ― | -160.12% | ― | -11.65% | -1042.58% |
* Technology Sector Average
Performance Comparison
SATS
Echostar
30.79
16.87
121.19%
CMTL
Comtech Telecommunications
1.84
-4.23
-69.69%
GSAT
Globalstar
23.09
3.59
18.41%
IRDM
Iridium Communications
30.59
2.73
9.80%
VSAT
ViaSat
9.63
-9.62
-49.97%
Echostar Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 6.14% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments and challenges. Significant achievements include the merger with Dish Network, growth in Boost Mobile subscribers, successful financing, and industry recognition. However, there were notable challenges such as declines in PayTV and Hughes subscribers, reduced OIBDA, and continued negative free cash flow.Highlights
Merger with Dish Network
EchoStar Corporation successfully merged with Dish Network, combining satellite technology, video services, and a nationwide 5G network, enhancing their competitive edge in the global telecommunications market.
Boost Mobile Growth
Boost Mobile achieved net positive subscriber growth for consecutive quarters since Q1 2024, with a 28% improvement in churn year-over-year and the highest ARPU across the wireless prepaid market.
Successful Financing Transactions
EchoStar raised $5.6 billion in net proceeds from financing transactions, increasing total cash and marketable securities to $5.7 billion, a $3 billion increase from the prior quarter.
Recognition in the Industry
Hughes was recognized for the second year in a row as a leader in the Gartner Magic Quadrant for Managed Network Services and named the 2024 Managed Security Service Provider of the Year by Cybersecurity Breakthrough.
Network Expansion Achievements
Boost Mobile met its FCC milestone by extending 5G broadband coverage to over 80% of Americans, totaling over 23,000 sites on air and achieving the best overall mobile network in New York City according to a third-party benchmark.
Lowlights
Decline in PayTV and Hughes Subscribers
Revenue declined by 5% year-over-year in Q4 2024, primarily due to fewer subscribers in the PayTV and Hughes segments.
OIBDA Reduction
For the full year 2024, OIBDA was $1.6 billion, down from $2.1 billion in 2023, driven by lower average subscribers and higher wireless network spend.
Free Cash Flow Challenges
Free cash flow, including debt service, was a negative $1.2 billion in 2024, despite an improvement of approximately $500 million compared to the prior year.
Company Guidance
In the recent call, EchoStar Corporation provided comprehensive guidance with several key metrics. The company reported that its total cash and marketable securities stood at $5.7 billion by the end of the fourth quarter, an impressive increase driven by financing transactions that raised $5.6 billion. The Pay TV segment saw improvements in churn, ARPU, and SAC, with DISH TV ending the year with 5.7 million subscribers and a churn rate of 1.46%, marking a 23 basis point improvement. Boost Mobile achieved consecutive quarter-over-quarter net positive subscriber growth, concluding 2024 with approximately 7 million wireless subscribers and a 28% improvement in churn. The company's full-year revenue was $15.8 billion, down 7% year-over-year, while OIBDA decreased to $1.6 billion from $2.1 billion in 2023. EchoStar also highlighted its progress in network deployment, reaching 80% 5G broadband coverage and achieving recognition for its network performance in New York City. Looking ahead, EchoStar plans to focus on expanding market share and accelerating value creation through its vast portfolio of telecom, media, and space assets.Echostar Corporate Events
Executive/Board Changes
EchoStar Executive Appointed to DISH DBS Board
Neutral
Dec 30, 2024
James DeFranco has resigned from the board of directors of DISH DBS Corporation, while continuing his role at EchoStar Corporation. Following his resignation, Jeffrey H. Blum, an Executive Vice President at EchoStar, has been appointed as a director of DISH DBS, signaling a continuation of strategic alignment between the two entities.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.