Echostar (SATS) AI Stock Analysis

• Market Cap: $21.33B
• Dividend Yield: N/A
• Average Volume (3M): 4.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -35.86%
• EPS Growth: 85.81%
• Country: US
• Employees: 13,700
• Sector: Communication Services
• Sector Strength: 97
• Industry: Communication Equipment
• EPS (TTM): -1.06
• Shares Outstanding: 156,367,970
• 10 Day Avg. Volume: 2,434,183
• 30 Day Avg. Volume: 4,045,293
• PEG Ratio: 0.56
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.40
• P/FCF Ratio: -21.48
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 2.15
• Enterprise Value/Gross Profit: 7.77
• Enterprise Value/Ebitda: 13.91
• 1Y Price Target: $94.50
• Price Target Upside: 27.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 51 Neutral
• Price Target: $74.00 ▼(-0.52% Downside)

Echostar's overall stock score is primarily influenced by its financial performance challenges, including declining revenue and profitability, and high leverage. Technical analysis shows some positive trends, but valuation remains a concern due to negative earnings. The earnings call provided a balanced outlook with future growth potential but highlighted current financial and regulatory challenges.

Positive Factors

Strategic Acquisition

The acquisition of Anderson Connectivity expands EchoStar's capabilities in aerospace, enhancing its technology and engineering talent, which positions the company for growth in aviation, space, and defense markets.

Subscriber Growth

Strong subscriber growth in the wireless segment indicates increasing market penetration and customer base expansion, which can drive future revenue growth and enhance competitive positioning.

LEO Constellation Initiative

The LEO constellation project represents a significant long-term investment in satellite technology, aiming to enhance global services and potentially open new revenue streams in the future.

Negative Factors

Declining Revenue

A decline in revenue reflects challenges in maintaining market share and competitiveness, which can impact profitability and long-term financial health if not addressed.

High Leverage

High leverage indicates financial risk and can limit the company's ability to invest in growth opportunities, potentially impacting its long-term strategic initiatives and financial stability.

Negative Free Cash Flow

Negative free cash flow suggests challenges in cash generation, which can limit operational flexibility and the ability to fund new projects or service debt, affecting long-term sustainability.

Echostar Business Overview & Revenue Model

Company Description

Echostar Corporation (NASDAQ: SATS) is a global provider of satellite communication solutions and services, primarily focused on broadband satellite services, video distribution, and satellite technology. The company operates through two main segments: Hughes Network Systems, which delivers satellite broadband services to residential and enterprise customers, and EchoStar Satellite Services, which provides satellite capacity and services to media, telecommunications, and government sectors. Echostar leverages its advanced satellite technology and infrastructure to cater to a diverse range of communication needs across the globe.

How the Company Makes Money

Echostar generates revenue primarily through its broadband satellite services offered by Hughes Network Systems, which includes subscription fees from residential and business customers for internet access. Additionally, the company earns revenue from leasing satellite capacity and providing satellite transmission services through EchoStar Satellite Services. Key revenue streams include long-term contracts with telecommunications and media companies for satellite capacity, as well as government contracts for secure communications solutions. Strategic partnerships with major telecommunications providers further enhance its revenue by expanding service offerings and customer reach.

Echostar Financial Statement Overview

Summary

Echostar faces significant financial challenges, particularly with profitability and cash flow generation. High leverage and declining revenues contribute to a risky financial profile. While there are certain operational efficiencies, as seen in the EBITDA margin, the overall financial health of the company is under pressure, requiring strategic adjustments to improve stability and growth potential.

Income Statement

Echostar's income statement reveals challenges with profitability as indicated by negative EBIT and net income figures in the TTM (Trailing-Twelve-Months). The TTM gross profit margin stands at 28.05%, but continued revenue decline and negative net profit margin of -2.65% indicate financial pressure. Despite these issues, the EBITDA margin of 11.46% suggests some operational efficiency, albeit under strain.

Balance Sheet

Echostar's balance sheet reflects a high leverage situation with a debt-to-equity ratio of 3.20 in the TTM, indicating significant financial risk. The equity ratio of 33.04% suggests moderate stability, but the high debt levels may constrain future growth. The return on equity is negative at -2.08%, highlighting profitability challenges.

Cash Flow

The cash flow statement indicates negative free cash flow, with a TTM free cash flow of -584.26 million. The operating cash flow to net income ratio is -2.43, reflecting inefficiencies in converting income to cash. Free cash flow has declined significantly, raising concerns about liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.45B	15.83B	17.02B	2.00B	1.99B	1.89B
Gross Profit	4.27B	5.69B	5.07B	1.14B	1.20B	1.14B
EBITDA	2.38B	2.34B	-247.35M	4.59B	715.19M	746.38M
Net Income	-387.69M	-119.55M	-1.70B	177.05M	72.88M	-51.90M
Balance Sheet
Total Assets	59.88B	60.94B	57.11B	58.75B	6.05B	7.07B
Cash, Cash Equivalents and Short-Term Investments	4.33B	5.55B	2.44B	4.31B	1.55B	2.53B
Total Debt	29.63B	29.81B	25.89B	25.72B	1.65B	2.52B
Total Liabilities	40.09B	40.69B	36.72B	36.70B	2.63B	3.47B
Stockholders Equity	19.74B	20.19B	19.88B	21.49B	3.35B	3.54B
Cash Flow
Free Cash Flow	-1.46B	-292.18M	-668.27M	180.61M	160.25M	86.94M
Operating Cash Flow	535.98M	1.25B	2.43B	529.61M	632.23M	534.39M
Investing Cash Flow	-4.00B	-3.05B	-2.81B	-275.19M	158.93M	-1.14B
Financing Cash Flow	5.56B	4.48B	-277.12M	-83.11M	-1.15B	-15.62M

Echostar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 74.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 74.39 is below the 20-day moving average (MA) of 75.09, above the 50-day MA of 67.14, and above the 200-day MA of 36.01, indicating a neutral trend. The MACD of 1.47 indicates Positive momentum. The RSI at 56.70 is Neutral, neither overbought nor oversold. The STOCH value of 49.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SATS.

Echostar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GILT	―	$954.83M	37.00	7.49%	―	19.67%	12.32%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
VSAT	―	$5.12B	―	-12.48%	―	-1.43%	43.14%
ASTS	―	$26.79B	―	-69.70%	―	249.43%	-50.21%
SATS	―	$21.33B	―	-1.60%	―	-35.86%	85.81%
AMPG	―	$69.95M	―	-30.53%	―	58.04%	21.09%
CMTL	―	$98.47M	―	-43.88%	―	-12.02%	-615.33%

Echostar Corporate Events

FCC Concludes Investigation into EchoStar’s 5G Compliance

On September 8, 2025, the FCC concluded its investigation into EchoStar’s compliance with federal obligations related to its 5G service provision in the U.S., which began on May 9, 2025. While this resolves the FCC’s inquiries, EchoStar’s transactions with AT&T and SpaceX still require FCC approval, highlighting ongoing regulatory scrutiny in the telecommunications sector.

The most recent analyst rating on (SATS) stock is a Hold with a $82.00 price target. To see the full list of analyst forecasts on Echostar stock, see the SATS Stock Forecast page.

EchoStar Sells Spectrum Licenses to SpaceX for $17B

On September 7, 2025, EchoStar Corporation entered into a License Purchase Agreement with SpaceX to sell its AWS-4 and H-block spectrum licenses for approximately $17 billion. This transaction, expected to close by November 30, 2027, involves a combination of cash and SpaceX stock and includes a long-term commercial agreement enabling EchoStar’s Boost Mobile subscribers to access SpaceX’s Starlink Direct to Cell service. The proceeds will be used to retire debt and fund EchoStar’s growth initiatives, while its current operations remain unaffected. This strategic move aims to enhance SpaceX’s Starlink capabilities and resolve FCC inquiries, potentially impacting the telecommunications industry by advancing satellite-based direct-to-cell connectivity.

The most recent analyst rating on (SATS) stock is a Hold with a $63.00 price target. To see the full list of analyst forecasts on Echostar stock, see the SATS Stock Forecast page.

EchoStar Sells Spectrum Licenses to AT&T for $22.65B

On August 25, 2025, EchoStar Corporation entered into a License Purchase Agreement with AT&T Mobility II LLC, a subsidiary of AT&T Inc., to sell spectrum licenses for $22.65 billion, with conditions for potential price adjustments. The transaction is expected to close in the first half of 2026, subject to regulatory approvals and other conditions. Simultaneously, DISH Wireless L.L.C., a subsidiary of EchoStar, and AT&T Mobility LLC amended their Network Services Agreement, introducing new terms for DISH’s transition to a hybrid MNO model, effective from January 1, 2026, with potential extensions through 2035.

The most recent analyst rating on (SATS) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Echostar stock, see the SATS Stock Forecast page.

EchoStar’s Earnings Call: Strategic Wins Amid Challenges

EchoStar’s recent earnings call painted a mixed picture of the company’s current standing and future prospects. The call highlighted significant achievements in strategic projects like the LEO satellite constellation and growth in the Wireless segment. However, these were offset by challenges such as the FCC review impacting the 5G network, revenue and OIBDA declines, and significant negative free cash flow.

EchoStar Reports Revenue Decline and Net Loss in Q2 2025

EchoStar Corporation is a technology and telecommunications company that provides services such as television entertainment, broadband, and wireless communication solutions under various brand names including EchoStar, Boost Mobile, and HughesNet. The company operates in the Pay-TV, Wireless, and Broadband and Satellite Services sectors.

EchoStar Subsidiary Avoids Default with Interest Payment

On July 30, 2025, DISH DBS Corporation, a subsidiary of EchoStar, made scheduled interest payments on its senior notes within the grace period, avoiding an event of default. The company is addressing concerns raised by the FCC in May 2025, working cooperatively to resolve these issues while exploring alternative solutions, although no resolution has been achieved yet.

The most recent analyst rating on (SATS) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Echostar stock, see the SATS Stock Forecast page.