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Echostar Corp. (SATS)
NASDAQ:SATS

Echostar (SATS) AI Stock Analysis

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Echostar

(NASDAQ:SATS)

Rating:40Underperform
Price Target:
$16.50
▲(3.19%Upside)
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 (SATS) vs. SPDR S&P 500 ETF (SPY)

Echostar Business Overview & Revenue Model

Company DescriptionEchoStar 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 MoneyEchoStar 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 Earnings Call Summary

Earnings Call Date:May 09, 2025
(Q4-2024)
|
% Change Since: -32.96%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments and challenges. Significant achievements include the merger with Dish Network, growth in Boost Mobile subscribers, successful financing, and industry recognition. However, there were notable challenges such as declines in PayTV and Hughes subscribers, reduced OIBDA, and continued negative free cash flow.
Q4-2024 Updates
Positive Updates
Merger with Dish Network
EchoStar Corporation successfully merged with Dish Network, combining satellite technology, video services, and a nationwide 5G network, enhancing their competitive edge in the global telecommunications market.
Boost Mobile Growth
Boost Mobile achieved net positive subscriber growth for consecutive quarters since Q1 2024, with a 28% improvement in churn year-over-year and the highest ARPU across the wireless prepaid market.
Successful Financing Transactions
EchoStar raised $5.6 billion in net proceeds from financing transactions, increasing total cash and marketable securities to $5.7 billion, a $3 billion increase from the prior quarter.
Recognition in the Industry
Hughes was recognized for the second year in a row as a leader in the Gartner Magic Quadrant for Managed Network Services and named the 2024 Managed Security Service Provider of the Year by Cybersecurity Breakthrough.
Network Expansion Achievements
Boost Mobile met its FCC milestone by extending 5G broadband coverage to over 80% of Americans, totaling over 23,000 sites on air and achieving the best overall mobile network in New York City according to a third-party benchmark.
Negative Updates
Decline in PayTV and Hughes Subscribers
Revenue declined by 5% year-over-year in Q4 2024, primarily due to fewer subscribers in the PayTV and Hughes segments.
OIBDA Reduction
For the full year 2024, OIBDA was $1.6 billion, down from $2.1 billion in 2023, driven by lower average subscribers and higher wireless network spend.
Free Cash Flow Challenges
Free cash flow, including debt service, was a negative $1.2 billion in 2024, despite an improvement of approximately $500 million compared to the prior year.
Company Guidance
In the recent call, EchoStar Corporation provided comprehensive guidance with several key metrics. The company reported that its total cash and marketable securities stood at $5.7 billion by the end of the fourth quarter, an impressive increase driven by financing transactions that raised $5.6 billion. The Pay TV segment saw improvements in churn, ARPU, and SAC, with DISH TV ending the year with 5.7 million subscribers and a churn rate of 1.46%, marking a 23 basis point improvement. Boost Mobile achieved consecutive quarter-over-quarter net positive subscriber growth, concluding 2024 with approximately 7 million wireless subscribers and a 28% improvement in churn. The company's full-year revenue was $15.8 billion, down 7% year-over-year, while OIBDA decreased to $1.6 billion from $2.1 billion in 2023. EchoStar also highlighted its progress in network deployment, reaching 80% 5G broadband coverage and achieving recognition for its network performance in New York City. Looking ahead, EchoStar plans to focus on expanding market share and accelerating value creation through its vast portfolio of telecom, media, and space assets.

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
42
Neutral
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
55
Neutral
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
38
Negative
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
15.68B15.83B17.02B2.00B1.99B1.89B
Gross Profit
4.40B5.69B5.07B1.14B1.20B1.14B
EBIT
-376.96M-304.07M-277.91M189.64M217.01M112.47M
EBITDA
1.80B2.34B-247.35M4.59B715.19M746.38M
Net Income Common Stockholders
-415.74M-119.55M-1.70B177.05M72.88M-51.90M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.46B5.55B2.44B4.31B1.55B2.53B
Total Assets
7.15B60.94B57.11B58.75B6.05B7.07B
Total Debt
2.50B29.81B25.89B25.72B1.65B2.52B
Net Debt
981.82M25.51B24.06B23.23B1.11B1.63B
Total Liabilities
3.41B40.69B36.72B36.70B2.63B3.47B
Stockholders Equity
3.67B20.19B19.88B21.49B3.35B3.54B
Cash FlowFree Cash Flow
-584.26M-292.18M-668.27M180.61M160.25M86.94M
Operating Cash Flow
1.01B1.25B2.43B529.61M632.23M534.39M
Investing Cash Flow
-4.47B-3.05B-2.81B-275.19M158.93M-1.14B
Financing Cash Flow
5.57B4.48B-277.12M-83.11M-1.15B-15.62M

Echostar Technical Analysis

Technical Analysis Sentiment
Negative
Last Price15.99
Price Trends
50DMA
21.74
Negative
100DMA
24.83
Negative
200DMA
24.25
Negative
Market Momentum
MACD
-1.59
Positive
RSI
35.05
Neutral
STOCH
40.40
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 15.99 is below the 20-day moving average (MA) of 19.81, below the 50-day MA of 21.74, and below the 200-day MA of 24.25, indicating a bearish trend. The MACD of -1.59 indicates Positive momentum. The RSI at 35.05 is Neutral, neither overbought nor oversold. The STOCH value of 40.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SATS.

Echostar Risk Analysis

Echostar disclosed 51 risk factors in its most recent earnings report. Echostar reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Future issuances of our Class A common stock and hedging activities may depress the trading price of our Class A common stock. Q4, 2024
2.
Our Class A common stock price and trading volume has been and may continue to be volatile or may decline regardless of our operating performance, which could cause purchasers of our Class A common stock to incur substantial losses. Q4, 2024
3.
We depend upon our subsidiaries' earnings to make payments on our indebtedness. Q4, 2024

Echostar Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$8.32B111.7725.23%18.63%-55.09%
75
Outperform
$7.49B113.846.40%21.75%116.24%
69
Neutral
$9.30B138.48-7.70%32.63%-233.25%
68
Neutral
$12.39B262.638.54%99.38%
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
54
Neutral
$10.24B-88.95%-85.21%
40
Underperform
$5.02B-1.08%-23.85%88.39%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SATS
Echostar
15.99
-1.84
-10.32%
CVLT
CommVault Systems
190.99
76.33
66.57%
MTSI
MACOM Technology Solutions Holdings
126.30
24.09
23.57%
ASTS
AST SpaceMobile
34.82
26.34
310.61%
SRAD
Sportradar Group AG
24.12
13.34
123.75%
CRDO
Credo Technology Group Holding Ltd
71.09
42.52
148.83%

Echostar Corporate Events

Legal ProceedingsRegulatory Filings and Compliance
EchoStar Delays $183 Million Interest Payments Amid FCC Review
Negative
Jun 2, 2025

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.

Legal ProceedingsRegulatory Filings and Compliance
EchoStar Delays $326M Payment Amid FCC Review
Negative
May 30, 2025

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.

Legal ProceedingsRegulatory Filings and Compliance
EchoStar Challenges FCC Review Amidst 5G Concerns
Negative
May 28, 2025

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.

Business Operations and StrategyRegulatory Filings and Compliance
FCC Reviews EchoStar’s 5G Compliance Amid Concerns
Neutral
May 13, 2025

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.

Executive/Board ChangesShareholder Meetings
EchoStar Holds 2025 Annual Shareholders Meeting
Neutral
May 6, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.