Echostar (SATS) AI Stock Analysis

• Market Cap: $4.81B
• Dividend Yield: N/A
• Average Volume (3M): 3.96M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -23.85%
• EPS Growth: 88.39%
• Country: US
• Employees: 13,700
• Sector: Technology
• Sector Strength: 84
• Industry: Communication Equipment
• EPS (TTM): -0.71
• Shares Outstanding: 156,030,170
• 10 Day Avg. Volume: 5,757,524
• 30 Day Avg. Volume: 3,959,520
• PEG Ratio: -0.21
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.08
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 1.18
• Enterprise Value/Ebitda: 1.04
• 1Y Price Target: $30.50
• Price Target Upside: 76.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 40 Underperform
• Price Target: $16.50 ▼(-4.46%Downside)

EchoStar's overall stock score is heavily influenced by its financial struggles and regulatory challenges. The company's high leverage and negative cash flow are major concerns. Technical indicators suggest bearish momentum, while valuation metrics reflect operational losses. Regulatory issues further compound the risks, leading to a low overall stock score.

Positive Factors

Revenue and Earnings

EchoStar posted mostly good 1Q25 results including in-line revenue, slight upside EBITDA, and record high wireless subscriber adds.

Strategic Optionality

The combination of unencumbered spectrum value and strategic optionality allows for potential wireless wholesale partnerships, time to revisit a DBS deal, debt refinancing, and/or outright asset sales.

Subscriber Growth

Boost added a record high 150K subscribers on solid churn, indicating strong growth potential.

Negative Factors

Financial Uncertainty

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

License Risk

Any increase in risk that EchoStar's licenses might be revoked is considered negative for the company's shares.

Regulatory Challenges

The FCC is planning to investigate EchoStar's compliance with the buildout of its 5G network, introducing potential regulatory challenges for the company.

Echostar Business Overview & Revenue Model

Company Description

EchoStar Corporation (SATS) is a global provider of satellite communication solutions, offering a range of services including satellite broadband, satellite television, and secure communication networks. It operates primarily through its Hughes Network Systems and EchoStar Satellite Services segments, serving both consumer and enterprise markets. The company leverages its fleet of satellites and ground infrastructure to deliver reliable communication services worldwide.

How the Company Makes Money

EchoStar makes money through a variety of revenue streams primarily driven by its two main business segments: Hughes Network Systems and EchoStar Satellite Services. Hughes Network Systems generates revenue by providing broadband satellite technology and services to consumers, businesses, and governments, including satellite internet services and managed network solutions. EchoStar Satellite Services earns revenue by leasing satellite capacity on a full-time and occasional-use basis to media companies, internet service providers, and government agencies. The company also benefits from strategic partnerships with telecommunications and technology firms, which help expand its service offerings and customer base.

Echostar Financial Statement Overview

Summary

Echostar's financial performance is under significant pressure, with challenges in profitability and cash flow generation. The income statement shows negative EBIT and net income, while the balance sheet reflects high leverage with a debt-to-equity ratio of 3.20. The cash flow statement is concerning with negative free cash flow of -584.26 million, indicating liquidity issues. Overall, the financial health suggests a need for strategic adjustments to improve stability.

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
15.68B	15.83B	17.02B	2.00B	1.99B	1.89B
	Gross Profit
4.40B	5.69B	5.07B	1.14B	1.20B	1.14B
	EBIT
-376.96M	-304.07M	-277.91M	189.64M	217.01M	112.47M
	EBITDA
1.80B	2.34B	-247.35M	4.59B	715.19M	746.38M
	Net Income Common Stockholders
-415.74M	-119.55M	-1.70B	177.05M	72.88M	-51.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.23B	5.55B	2.44B	4.31B	1.55B	2.53B
	Total Assets
60.57B	60.94B	57.11B	58.75B	6.05B	7.07B
	Total Debt
63.98B	29.81B	25.89B	25.72B	1.65B	2.52B
	Net Debt
61.28B	25.51B	24.06B	23.23B	1.11B	1.63B
	Total Liabilities
40.51B	40.69B	36.72B	36.70B	2.63B	3.47B
	Stockholders Equity
20.01B	20.19B	19.88B	21.49B	3.35B	3.54B
Cash Flow		Free Cash Flow
-584.26M	-292.18M	-668.27M	180.61M	160.25M	86.94M
	Operating Cash Flow
1.01B	1.25B	2.43B	529.61M	632.23M	534.39M
	Investing Cash Flow
-4.47B	-3.05B	-2.81B	-275.19M	158.93M	-1.14B
	Financing Cash Flow
5.57B	4.48B	-277.12M	-83.11M	-1.15B	-15.62M

Echostar Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.27
• 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 SATS, the sentiment is Negative. The current price of 17.27 is below the 20-day moving average (MA) of 19.51, below the 50-day MA of 21.41, and below the 200-day MA of 24.23, indicating a bearish trend. The MACD of -1.55 indicates Positive momentum. The RSI at 40.79 is Neutral, neither overbought nor oversold. The STOCH value of 36.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SATS.

Echostar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVLT	75 Outperform	$8.26B	111.61	25.23%	―	18.63%	-55.09%
SRAD	75 Outperform	$7.53B	116.01	6.40%	―	21.75%	116.24%
MTSI	69 Neutral	$9.54B	138.48	-7.70%	―	32.63%	-233.25%
CRDO	68 Neutral	$11.64B	246.69	8.54%	―	99.38%	―
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
ASTS	54 Neutral	$11.72B	―	-88.95%	―	―	-85.21%
SATS	40 Underperform	$4.81B	―	-1.08%	―	-23.85%	88.39%

Echostar Corporate Events

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.

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.

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.

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.

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.

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.

FCC Reviews EchoStar’s 5G Compliance Amid Concerns

On May 9, 2025, the FCC began a review of EchoStar’s compliance with its federal obligations to provide 5G service in the U.S., raising questions about a 2024 buildout extension and MSS utilization in the 2GHz band. EchoStar’s Chairman, Charles W. Ergen, emphasized the company’s investment in deploying a nationwide 5G network and its commitment to meeting FCC obligations. Despite past extensions and missed milestones, EchoStar claims to have fulfilled recent commitments, but the FCC is investigating compliance with buildout milestones and seeking public comment on related issues.

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.

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.