Echostar (SATS) AI Stock Analysis

• Market Cap: $8.52B
• Dividend Yield: N/A
• Average Volume (3M): 2.42M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: -35.86%
• EPS Growth: 85.81%
• Country: US
• Employees: 13,700
• Sector: Communication Services
• Sector Strength: 92
• Industry: Communication Equipment
• EPS (TTM): -1.06
• Shares Outstanding: 156,367,970
• 10 Day Avg. Volume: 1,703,686
• 30 Day Avg. Volume: 2,416,983
• 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: 3.89
• Enterprise Value/Revenue: 2.15
• Enterprise Value/Gross Profit: 7.77
• Enterprise Value/Ebitda: 13.91
• 1Y Price Target: $30.10
• Price Target Upside: 0.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 46 Neutral
• Price Target: $27.00 ▼(-9.64% Downside)

Echostar's overall stock score is primarily impacted by its weak financial performance and valuation, compounded by regulatory challenges and financial strategy shifts. While there are positive developments in subscriber growth and strategic initiatives, these are overshadowed by the company's financial instability and regulatory uncertainties.

Positive Factors

Investment Initiatives

EchoStar announced a new $5 billion investment to build a mobile wideband satellite network, showing commitment to expand its business.

Partnerships

EchoStar announced a new foray into a LEO Satellite DtD Wideband service with MDA Space, which seems compelling enough to help global wireless carriers.

Spectrum Value

The substantial private market value of EchoStar's spectrum holdings is a key positive factor.

Negative Factors

FCC Compliance

The FCC is contemplating actions that may negatively impact EchoStar’s spectrum portfolio.

Financial Stability

The unfunded business plan poses a risk to the company's financial stability.

Regulatory Risks

The uncertainty over the integrity of its FCC licenses is a significant concern given the FCC review.

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: 29.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 29.88 is above the 20-day moving average (MA) of 28.32, above the 50-day MA of 28.19, and above the 200-day MA of 25.28, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 59.48 is Neutral, neither overbought nor oversold. The STOCH value of 78.83 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	74 Outperform	$535.85M	23.94	7.49%	―	19.67%	12.32%
Sector *	60 Neutral	$43.67B	3.93	-13.01%	4.05%	1.89%	-42.25%
VSAT	60 Neutral	$3.75B	―	-12.48%	―	-1.43%	43.14%
AMPG	60 Neutral	$66.04M	―	-30.53%	―	58.04%	21.09%
ASTS	54 Neutral	$16.88B	―	-69.70%	―	249.43%	-50.21%
SATS	46 Neutral	$8.52B	―	-1.60%	―	-35.86%	85.81%
CMTL	45 Neutral	$59.67M	―	-43.88%	―	-12.02%	-615.33%

Echostar Corporate Events

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.

EchoStar Delays $183 Million Interest Payments Amid FCC Review

EchoStar Corporation has decided not to make approximately $183 million in cash interest payments due on June 2, 2025, for its DISH DBS Corporation secured and unsecured notes. This decision is due to the uncertainty surrounding the Federal Communications Commission’s review. EchoStar has a 30-day grace period to make these payments before it is considered an Event of Default, and the company is awaiting relief from the FCC within this period.

EchoStar Delays $326M Payment Amid FCC Review

On May 9, 2025, EchoStar Corporation received a letter from the FCC indicating a review of their compliance with federal obligations related to 5G services and MSS utilization. This has led to uncertainty regarding their spectrum rights, impacting their business decisions and prompting them to withhold a $326 million interest payment due on May 30, 2025, to allow time for FCC relief.

EchoStar Challenges FCC Review Amidst 5G Concerns

On May 9, 2025, the FCC initiated a review of EchoStar’s compliance with its federal obligations related to 5G services and raised questions about its September 2024 buildout extension and MSS utilization. EchoStar responded on May 27, 2025, detailing the importance of its services and the potential negative impact of interrupting its deployment. The FCC’s actions have created uncertainty over EchoStar’s spectrum rights, affecting its 5G network buildout. EchoStar requested the FCC to deny a petition for reconsideration and reaffirm its licenses and milestones. EchoStar disclosed having 1.3 million subscribers and adding 88,000 wireless subscribers in April.