Echostar (SATS) AI Stock Analysis

• Market Cap: $22.09B
• Dividend Yield: N/A
• Average Volume (3M): 8.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• 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: 5,132,478
• 30 Day Avg. Volume: 8,319,547
• 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: 1.50
• Enterprise Value/Revenue: 2.15
• Enterprise Value/Gross Profit: 7.77
• Enterprise Value/Ebitda: 13.91
• 1Y Price Target: $92.00
• Price Target Upside: 22.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 54 Neutral
• Price Target: $82.00 ▲(9.07% Upside)

Echostar's overall stock score is primarily impacted by its weak financial performance and unattractive valuation. Despite strong technical momentum and strategic corporate events, financial instability and regulatory challenges present significant risks.

Positive Factors

Strategic Spectrum Sale

The sale of spectrum licenses to SpaceX resolves FCC inquiries, provides significant capital for debt reduction, and funds growth initiatives, enhancing long-term financial stability and strategic positioning.

Subscriber Growth

Strong subscriber growth in the wireless segment indicates successful market penetration and service adoption, supporting revenue stability and potential expansion in the competitive telecommunications market.

LEO Constellation Development

The development of a LEO satellite constellation positions EchoStar for future growth in global wideband services, enhancing its competitive edge in satellite communications and expanding its service offerings.

Negative Factors

Declining Revenue

The decline in revenue reflects challenges in maintaining market share and profitability, potentially impacting long-term financial health and limiting resources for strategic investments.

Negative Free Cash Flow

Negative free cash flow indicates cash generation issues, which can constrain operational flexibility and hinder the company's ability to invest in growth opportunities or manage debt effectively.

High Leverage

High leverage poses financial risks by increasing interest obligations and reducing financial flexibility, potentially impacting the company's ability to navigate economic downturns or invest in strategic initiatives.

Echostar Business Overview & Revenue Model

Company Description

EchoStar Corporation, together with its subsidiaries, provides networking technologies and services worldwide. The company operates in two segments, Hughes and EchoStar Satellite Services (ESS). The Hughes segment offers broadband network technologies, managed services, equipment, hardware, satellite services, and communications solutions to government and enterprise customers. The segment also designs, provides, and installs gateway and terminal equipment to customers for other satellite systems. In addition, it designs, develops, constructs, and provides telecommunication networks comprising satellite ground segment systems and terminals to mobile system operators and enterprise customers. Further, this segment designs, provides, and installs gateway and terminal equipment to customers for other satellite systems, as well as offers satellite ground segment systems and terminals for other satellite systems, including mobile system operators. The ESS segment provides satellite services using its owned and leased in-orbit satellites and related licenses to offer satellite services on a full-time and/or occasional-use basis to the U.S. government service providers, internet service providers, broadcast news organizations, content providers, and private enterprise customers. It serves customers in North America, South and Central America, Asia, Africa, Australia, Europe, India, and the Middle East. The company was incorporated in 2007 and is headquartered in Englewood, Colorado.

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: 75.18
• 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 75.18 is above the 20-day moving average (MA) of 74.66, above the 50-day MA of 54.32, and above the 200-day MA of 32.42, indicating a bullish trend. The MACD of 5.65 indicates Positive momentum. The RSI at 63.06 is Neutral, neither overbought nor oversold. The STOCH value of 54.41 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	69 Neutral	$912.42M	35.08	7.49%	―	19.67%	12.32%
AMPG	61 Neutral	$91.96M	―	-30.53%	―	58.04%	21.09%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SATS	54 Neutral	$22.09B	―	-1.60%	―	-35.86%	85.81%
ASTS	54 Neutral	$26.34B	―	-69.70%	―	249.43%	-50.21%
VSAT	52 Neutral	$4.43B	―	-12.48%	―	-1.43%	43.14%
CMTL	44 Neutral	$85.83M	―	-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.

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.

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.

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.

EchoStar Faces FCC Inquiry and Financial Strategy Shift

EchoStar Corporation, along with its subsidiary DISH DBS Corporation, is facing regulatory uncertainty due to inquiries by the Federal Communications Commission (FCC) that began in May 2025. This uncertainty has led the company to reassess its financial strategies, including the decision not to make certain interest payments on senior notes due in 2026 and 2028, which could lead to a default if not resolved within a 30-day grace period. Despite this, EchoStar has made other scheduled interest payments within their respective grace periods, following discussions with the FCC and encouragement from the President of the United States to find an amicable resolution. These actions aim to extend the timeline for resolving the FCC’s concerns and minimize disruption to EchoStar’s operations.