Eutelsat Communications (ETL) AI Stock Analysis

• Market Cap: €1.53B
• Dividend Yield: N/A
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: 2.53%
• EPS Growth: -192.60%
• Country: FR
• Employees: 1,514
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.44
• Shares Outstanding: 475,178,380
• 10 Day Avg. Volume: 795,517
• 30 Day Avg. Volume: 1,105,646
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 1.42
• P/FCF Ratio: -314.53
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €3.25
• Price Target Upside: -12.22% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.47
• Revenue Forecast (FY): €1.22B

• Rating: 45 Neutral
• Price Target: €3.50 ▼(-5.41% Downside)

Eutelsat Communications' overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues, high leverage, and negative profitability. Technical analysis suggests bearish momentum, further weighing on the score. The poor valuation, with a negative P/E ratio and no dividend yield, also contributes to the low score. The absence of earnings call insights and notable corporate events leaves these areas unaddressed.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates efficient cost management in core operations, providing a buffer against revenue fluctuations and supporting long-term profitability.

Stable Income from Long-term Contracts

Long-term contracts ensure a reliable revenue stream, reducing volatility and enhancing financial stability, which is crucial for strategic planning and investment.

Growing Demand for Satellite Services

Increasing demand for satellite services in underserved areas supports revenue growth potential, positioning the company to capitalize on expanding market needs.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities and weather economic downturns.

Declining Revenue

Declining revenue signals potential challenges in market competitiveness and demand, which could hinder long-term growth and profitability.

Negative Profitability

Negative profitability reflects operational inefficiencies and financial strain, necessitating strategic improvements to achieve sustainable financial health.

Eutelsat Communications Business Overview & Revenue Model

Company Description

Eutelsat Communications (ETL) is a leading satellite operator based in France, providing satellite communication services to a diverse range of sectors including telecommunications, broadcasting, and broadband. With a fleet of satellites in geostationary and low Earth orbit, Eutelsat offers a variety of services such as direct-to-home broadcasting, data connectivity, and internet access, catering to both consumer and enterprise clients. The company is committed to enhancing connectivity and accessibility across different regions, particularly in remote and underserved areas.

How the Company Makes Money

Eutelsat generates revenue primarily through the leasing of satellite capacity to telecommunications operators, broadcasters, and internet service providers. Its core revenue streams include fixed and mobile broadband services, video broadcasting services, and data services. The company also benefits from long-term contracts with key clients, which provide stable income. Additionally, Eutelsat engages in partnerships with technology providers and telecom companies to expand its service offerings and improve customer reach. Factors contributing to its earnings include the growing demand for high-speed internet access, particularly in rural and underserved markets, and the increasing reliance on satellite technology for broadcasting and communication services.

Eutelsat Communications Financial Statement Overview

Summary

Eutelsat Communications faces significant financial challenges, with declining revenues, high leverage, and negative profitability. While the company maintains a strong gross profit margin, the overall financial health is weakened by substantial losses and cash flow issues. The high debt levels pose additional risks, requiring strategic adjustments to improve financial stability and performance.

Income Statement

Eutelsat Communications has experienced declining revenue growth, with a significant drop of 23.3% in the latest year. The gross profit margin remains strong at 80.56%, but the net profit margin is deeply negative at -86.99%, indicating substantial losses. The EBIT margin is also negative, reflecting operational challenges. Despite a decent EBITDA margin of 48.22%, the overall profitability is concerning.

Balance Sheet

The company has a high debt-to-equity ratio of 1.22, indicating significant leverage. Return on equity is negative at -41.71%, reflecting poor returns for shareholders. The equity ratio stands at 37.08%, suggesting moderate financial stability but potential risks due to high leverage.

Cash Flow

Free cash flow has drastically declined by 95.51%, and the free cash flow to net income ratio is negative, highlighting cash flow challenges. The operating cash flow to net income ratio is 0.33, indicating limited cash generation relative to net losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.24B	1.24B	1.21B	1.13B	1.15B	1.23B
Gross Profit	627.30M	1.00B	1.01B	572.50M	1.06B	1.14B
EBITDA	500.80M	599.70M	525.80M	1.08B	911.80M	833.00M
Net Income	-1.08B	-1.08B	-309.90M	314.90M	230.80M	214.10M
Balance Sheet
Total Assets	7.00B	7.00B	8.52B	7.41B	7.57B	7.28B
Cash, Cash Equivalents and Short-Term Investments	574.60M	574.60M	843.90M	482.20M	680.50M	861.10M
Total Debt	3.17B	3.17B	3.38B	3.23B	3.44B	3.54B
Total Liabilities	4.34B	4.34B	4.57B	4.34B	4.71B	4.59B
Stockholders Equity	2.59B	2.59B	3.85B	2.98B	2.78B	2.61B
Cash Flow
Free Cash Flow	-72.80M	-5.60M	42.40M	438.60M	545.40M	625.60M
Operating Cash Flow	315.90M	383.10M	505.60M	639.60M	722.60M	809.00M
Investing Cash Flow	-410.10M	-410.10M	90.40M	-348.40M	-583.00M	-192.10M
Financing Cash Flow	-113.20M	-113.20M	-242.20M	-487.20M	-335.00M	-581.30M

Eutelsat Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ETL, the sentiment is Negative. The current price of 3.7 is above the 20-day moving average (MA) of 3.30, above the 50-day MA of 3.42, and above the 200-day MA of 3.45, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 45.08 is Neutral, neither overbought nor oversold. The STOCH value of 52.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ETL.

Eutelsat Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PARRO	53 Neutral	€267.32M	-19.54	-37.49%	―	26.59%	32.48%
ATEME	52 Neutral	€63.47M	-152.65	-1.34%	―	3.26%	95.41%
ETL	45 Neutral	€1.53B	―	-32.71%	―	2.53%	-192.60%
EKI	43 Neutral	€38.44M	―	-7.69%	―	1.56%	-910.94%
ALBPK	41 Neutral	€29.22M	-27.90	―	―	15.01%	79.05%

Eutelsat Communications Corporate Events

Eutelsat Communications Releases 2024-25 Universal Registration Document

Eutelsat Communications has filed its universal registration document for the year 2024-25 with the Autorité des Marchés Financiers, making it available to the public. This document includes the annual financial report, statutory auditors’ reports, and information on fees paid to auditors. The filing reflects Eutelsat’s transparency and regulatory compliance, potentially impacting its market position by reinforcing investor confidence and stakeholder trust.

Eutelsat Prepares for Upcoming Shareholder Meeting with Document Release

Eutelsat Communications has announced the availability of preparatory documents for its Combined General Meeting of Shareholders scheduled for November 20, 2025. The meeting will be held in Paris and will be webcast live, offering shareholders the opportunity to access documents and information online or at the company’s registered office. This announcement underscores Eutelsat’s commitment to transparency and shareholder engagement, potentially impacting its industry positioning by reinforcing trust and accessibility for its stakeholders.

Eutelsat Communications Reports Q1 2025-26 Revenue Growth Driven by LEO

Eutelsat Communications reported its first-quarter 2025-26 revenues, highlighting a 70.7% increase in LEO revenues, which drove overall connectivity growth despite a 1.2% decline in operating verticals revenues. The company confirmed its financial objectives, with a €1.5 billion capital increase approved by shareholders, and maintained a stable backlog of €3.5 billion, indicating a strong market position and future revenue potential.

Eutelsat Approves Board Appointments and Capital Increase at General Meeting

Eutelsat’s General Shareholders’ Meeting on September 30, 2025, approved all resolutions, including key appointments to the Board of Directors and a significant capital increase. The capital increase involves issuing ordinary shares without preferential subscription rights for existing shareholders, benefiting entities such as the French State, Bharti Space Limited, and the UK Government. This strategic move is expected to strengthen Eutelsat’s financial position and enhance its market presence, potentially impacting stakeholders positively by expanding its operational capabilities.

Eutelsat Prepares for Key Shareholder Meeting in September 2025

Eutelsat Communications has announced the availability of preparatory documents for its upcoming Ordinary and Extraordinary General Meeting of Shareholders scheduled for September 30, 2025. The meeting will be held in Paris and will be webcast live. Shareholders can access the agenda and draft resolutions on the company’s website. This meeting is crucial for stakeholders as it will address important resolutions that could impact the company’s strategic direction and operations.

Eutelsat Chairman Acquires Shares, Signaling Confidence in Future Prospects

Eutelsat Communications announced a notification regarding transactions by Eric Labaye, the Chairman of the Board, who acquired shares of the company. This move signifies confidence in the company’s future prospects and may influence market perceptions positively, potentially impacting stakeholders and the company’s position in the satellite communications industry.

Eutelsat Communications Reports Strong LEO Revenue Growth

Eutelsat Communications is a global leader in satellite communications, providing connectivity and broadcast services through a combination of geostationary and low Earth orbit satellites.

Eutelsat Achieves Financial Goals with Strong LEO Growth

Eutelsat Communications reported its financial results for the fiscal year 2024-25, achieving its financial objectives with a 2.5% increase in total revenues to €1,244 million. The company saw significant growth in its Low Earth Orbit (LEO) revenues, which rose by over 80% and now account for 15% of total revenues. Eutelsat’s strategic initiatives include a €1.5 billion capital raise to support its long-term ambitions and a €1 billion framework agreement with the French Armed Forces Ministry, positioning it as a key player in the evolving satellite industry.