Echostar (SATS) AI Stock Analysis

• Market Cap: $6.85B
• Dividend Yield: N/A
• Average Volume (3M): 1.92M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: -6.99%
• EPS Growth: 91.98%
• Country: US
• Employees: 13,700
• Sector: Technology
• Sector Strength: 65
• Industry: Communication Equipment
• EPS (TTM): 1.24
• Shares Outstanding: 155,202,640
• 10 Day Avg. Volume: 1,301,867
• 30 Day Avg. Volume: 1,923,612
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 4.57
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.51
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $28.00
• Price Target Upside: 15.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Echostar's overall stock score reflects significant financial and operational challenges, particularly in profitability and cash flow management. While technical analysis and valuation further suggest caution, positive notes from the earnings call, such as strategic financing and network achievements, offer some optimism for future improvement.

Positive Factors

Financial Performance

EchoStar enters 2025 with a healthy cash balance and positive wireless subscriber momentum.

Liquidity

EchoStar enters 2025 with its strongest liquidity position in years.

Network Expansion

EchoStar's 5G network currently covers a significant portion of the population, with plans for further expansion following the new FCC timeline.

Negative Factors

Business Plan Risks

There is a wide range of equity outcomes, especially given a still unfunded business plan.

Debt Challenges

Bondholders are not satisfied with the terms of the DBS debt exchange offer and could reject the offer, posing a challenge for closing the PayTV deal.

Revenue Growth Uncertainty

EchoStar's ability to sustain long-term wireless revenue growth is uncertain given continued expected cash burn and the need for more capital.

Echostar Business Overview & Revenue Model

Company Description

EchoStar Corporation (SATS) is a global provider of satellite communication solutions. The company operates through its Hughes Network Systems and EchoStar Satellite Services segments, delivering innovative broadband satellite technologies and services for home and enterprise customers. EchoStar's offerings include satellite internet, enterprise networking solutions, managed services, and equipment sales, serving diverse markets such as government, commercial, and direct-to-consumer sectors.

How the Company Makes Money

EchoStar 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 faces significant financial challenges with negative profitability, high leverage, and declining revenues. The income statement shows negative net income, the balance sheet is burdened by high debt, and cash flow is negative, indicating issues in financial stability and growth.

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.

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.

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.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 24.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SATS, the sentiment is Neutral. The current price of 24.25 is above the 20-day moving average (MA) of 22.70, below the 50-day MA of 25.02, and above the 200-day MA of 24.09, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 55.67 is Neutral, neither overbought nor oversold. The STOCH value of 85.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SATS.

Echostar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVLT	76 Outperform	$7.59B	103.14	25.23%	―	18.63%	-55.09%
SRAD	74 Outperform	$7.37B	190.31	3.92%	―	26.10%	0.16%
MTSI	73 Outperform	$8.23B	138.48	-9.49%	―	26.40%	-234.22%
CRDO	68 Neutral	$8.09B	3,479.56	0.89%	―	99.38%	―
Sector *	60 Neutral	$10.77B	10.41	-6.71%	2.99%	7.69%	-13.12%
ASTS	54 Neutral	$8.22B	―	-103.82%	―	―	-85.21%
SATS	42 Neutral	$6.85B	―	-0.60%	―	-6.99%	91.98%

Echostar Corporate Events

EchoStar Holds 2025 Annual Shareholders Meeting

On May 2, 2025, EchoStar conducted its 2025 Annual Meeting of Shareholders, where key decisions were made regarding the company’s leadership and financial oversight. The meeting resulted in the election of several directors to serve until the 2026 annual meeting, and the ratification of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

Spark’s Take on SATS Stock

According to Spark, TipRanks’ AI Analyst, SATS is a Neutral.

Echostar’s overall stock score reflects significant financial and operational challenges, particularly in profitability and cash flow management. While technical analysis and valuation further suggest caution, positive notes from the earnings call, such as strategic financing and network achievements, offer some optimism for future improvement.

To see Spark’s full report on SATS stock, click here.