Echostar (SATS) AI Stock Analysis

• Market Cap: $6.72B
• Dividend Yield: N/A
• Average Volume (3M): 2.88M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: -23.85%
• EPS Growth: 88.39%
• Country: US
• Employees: 13,700
• Sector: Technology
• Sector Strength: 77
• Industry: Communication Equipment
• EPS (TTM): -0.71
• Shares Outstanding: 156,030,170
• 10 Day Avg. Volume: 4,698,493
• 30 Day Avg. Volume: 2,884,500
• PEG Ratio: -0.39
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.92
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $26.67
• Price Target Upside: 14.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

EchoStar's overall stock score reflects the company's current financial challenges, particularly in profitability and cash flow. While there are some positive developments from recent corporate actions, such as the merger with Dish Network and growth in certain segments, these are counterbalanced by high leverage and declining revenue. Technical indicators suggest mixed trends, and valuation metrics point to difficulties in generating earnings. The earnings call provided some optimism, but significant hurdles remain. As a result, the stock has a moderate score, indicating potential risks and opportunities.

Positive Factors

Financial Performance

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

Strategic Opportunities

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.

Operational Risks

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, 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 makes money primarily through its Hughes Network Systems and EchoStar Satellite Services segments. Hughes Network Systems generates revenue by providing broadband satellite internet services to consumers and enterprise customers, selling satellite networking equipment, and offering managed network services. The EchoStar Satellite Services segment earns revenue by leasing satellite capacity to media companies, internet service providers, and government organizations. Key revenue streams include subscription fees from consumers, service contracts with enterprises, and long-term leasing agreements with other communication service providers. Strategic partnerships and technological advancements in satellite communications further contribute to the company's earnings.

Echostar Financial Statement Overview

Summary

Echostar faces significant financial challenges with negative profitability, high leverage, and declining revenues. The income statement shows negative net income, the balance sheet is burdened by high debt, and cash flow is negative, indicating issues in financial stability and growth.

Income Statement

Echostar's income statement reveals significant challenges with profitability. The company reported negative net income for multiple years, with a slight improvement in the latest period. The gross profit margin in 2024 was approximately 35.95%, indicating some ability to manage cost of goods sold, but the negative EBIT and EBITDA margins reflect operational inefficiencies. Revenue has declined over the past year, indicating growth challenges.

Balance Sheet

Echostar's balance sheet shows a high debt-to-equity ratio, indicating significant leverage and potential financial risk. The equity ratio is relatively strong at around 33.13%, suggesting a stable asset base. However, the return on equity is negative, reflecting poor profitability. The high level of total debt compared to stockholders' equity is a concern.

Cash Flow

The cash flow statement indicates issues with cash generation and capital management. The company has negative free cash flow, which has worsened recently. Operating cash flow is insufficient to cover net income, leading to a negative free cash flow to net income ratio. The company's ability to generate cash from operations needs improvement.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
15.83B	17.02B	2.00B	1.99B	1.89B
	Gross Profit
5.69B	5.07B	1.14B	1.20B	1.14B
	EBIT
-304.07M	-277.91M	189.64M	217.01M	112.47M
	EBITDA
1.37B	-247.35M	4.59B	715.19M	746.38M
	Net Income Common Stockholders
-26.63M	-1.70B	177.05M	72.88M	-51.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.70B	2.44B	1.68B	1.55B	2.53B
	Total Assets
60.94B	57.11B	6.20B	6.05B	7.07B
	Total Debt
64.68B	25.89B	1.65B	1.65B	2.52B
	Net Debt
60.22B	24.06B	946.02M	1.11B	1.63B
	Total Liabilities
40.69B	36.72B	2.60B	2.63B	3.47B
	Stockholders Equity
20.19B	19.88B	3.50B	3.35B	3.54B
Cash Flow		Free Cash Flow
-292.18M	-668.27M	180.61M	160.25M	86.94M
	Operating Cash Flow
1.25B	2.43B	529.61M	632.23M	534.39M
	Investing Cash Flow
-3.05B	-2.81B	-275.19M	158.93M	-1.14B
	Financing Cash Flow
4.48B	-277.12M	-83.11M	-1.15B	-15.62M

Echostar Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 23.39 is above the 20-day moving average (MA) of 22.72, below the 50-day MA of 23.80, and below the 200-day MA of 24.19, indicating a bearish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 45.43 is Neutral, neither overbought nor oversold. The STOCH value of 67.41 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	76 Outperform	$7.86B	105.53	25.23%	―	18.63%	-55.09%
SRAD	75 Outperform	$7.46B	113.27	6.40%	―	21.75%	116.24%
MTSI	69 Neutral	$9.18B	138.48	-7.70%	―	32.63%	-233.25%
CRDO	68 Neutral	$10.21B	4,389.05	0.89%	―	99.38%	―
Sector *	60 Neutral	$11.58B	10.33	-7.23%	2.94%	7.47%	-10.84%
ASTS	54 Neutral	$8.75B	―	-88.95%	―	―	-85.21%
SATS	52 Neutral	$6.72B	―	-1.08%	―	-23.85%	88.39%

Echostar Corporate Events

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.

Spark’s Take on SATS Stock

According to Spark, TipRanks’ AI Analyst, SATS is a Neutral.

Echostar’s overall stock score reflects significant financial challenges, including negative profitability and cash flow issues, which weigh heavily on its performance. The technical indicators suggest a bearish trend, further impacting the score. Despite some positive developments from the earnings call, such as strategic mergers and subscriber growth, the overall sentiment remains cautious due to persistent financial risks and valuation concerns.

To see Spark’s full report on SATS stock, click here.

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.

Spark’s Take on SATS Stock

According to Spark, TipRanks’ AI Analyst, SATS is a Neutral.

Echostar’s overall stock score reflects significant financial and operational challenges, particularly in profitability and cash flow management. While technical analysis and valuation further suggest caution, positive notes from the earnings call, such as strategic financing and network achievements, offer some optimism for future improvement.

To see Spark’s full report on SATS stock, click here.