ViaSat (VSAT) AI Stock Analysis

• Market Cap: $1.17B
• Dividend Yield: N/A
• Average Volume (3M): 2.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: 19.02%
• EPS Growth: 76.67%
• Country: US
• Employees: 7,500
• Sector: Technology
• Sector Strength: 62
• Industry: Communication Equipment
• EPS (TTM): -3.27
• Shares Outstanding: 129,120,000
• 10 Day Avg. Volume: 2,030,256
• 30 Day Avg. Volume: 2,535,439
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.28
• Price to Cash Flow (P/CF): 1.40
• P/FCF Ratio: 1.00
• 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: $13.00
• Price Target Upside: 43.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

ViaSat's stock score reflects a mixed outlook. While revenue growth and operating cash flow are positives, profitability struggles and high leverage raise concerns. The technical analysis indicates bearish momentum, and the valuation suggests unattractiveness due to ongoing losses. The earnings call provided a balanced view with growth in specific segments, but highlighted challenges in others, impacting the overall score.

Positive Factors

Customer Retention

Retaining American Airlines as a customer is a significant win for ViaSat, which is the largest global provider of inflight connectivity.

Financial Performance

VSAT reported solid results driven by strength in both IFC and Defense Technology.

Operational Efficiency

A surprising 20% capacity gain from optimization efforts allows VSAT to reduce its planned launch capital expenditure.

Negative Factors

Capacity Constraints

VSAT has experienced delays with its ViaSat-3 satellite constellation, affecting its ability to provide Wi-Fi on most of American Airlines' international fleet.

Competition

SpaceX's Starlink has won Wi-Fi deals with multiple airlines, indicating strong competition for ViaSat.

Competitive Environment

The stock price performance has reflected the deterioration of the competitive environment.

ViaSat Business Overview & Revenue Model

Company Description

Viasat, Inc. provides broadband and communications products and services worldwide. The company's Satellite Services segment offers satellite-based fixed broadband services, including broadband internet access and voice over internet protocol services to consumers and businesses; in-flight entertainment and aviation software services to commercial airlines; community internet services; mobile broadband services, including satellite-based internet services to energy offshore vessels, cruise ships, consumer ferries, and yachts; and energy services, which include ultra-secure solutions IP connectivity, bandwidth-optimized over-the-top applications, industrial internet-of-things big data enablement, and industry-leading machine learning analytics. Its Commercial Networks segment offers fixed broadband satellite communication systems comprising satellite network infrastructure and ground terminals; mobile broadband satellite communication systems; antenna systems for terrestrial and satellite applications, such as earth imaging, remote sensing, mobile satellite communication, Ka-band earth stations, and other multi-band antennas; design and technology services comprising analysis, design, and development of satellites and ground systems; application specific integrated circuit and monolithic microwave integrated circuit chips; and network function virtualization, as well as space system design and development products and services include architectures for GEO, MEO, LEO satellites, and other satellite platforms. The company was incorporated in 1986 and is headquartered in Carlsbad, California.

How the Company Makes Money

ViaSat makes money primarily through its satellite services, which include broadband internet connectivity for residential, commercial, and government customers. A significant portion of revenue is generated from consumer broadband services, particularly in areas with limited access to traditional high-speed internet. The company also earns revenue by providing in-flight Wi-Fi and entertainment services to airlines. Additionally, ViaSat secures revenue through government contracts, supplying secure communications and networking solutions. These revenue streams are complemented by strategic partnerships with satellite operators, airlines, and government entities, which enhance its service offerings and market reach.

ViaSat Financial Statement Overview

Summary

ViaSat demonstrates potential with revenue growth and positive operating cash flows. However, the company faces profitability challenges and high leverage risks. The balance sheet shows moderate leverage with a high debt-to-equity ratio, and cash flow improvements are observed, but volatility remains a concern.

Income Statement

ViaSat's revenue has seen some growth over the years, with a TTM revenue of approximately $4.52 billion. However, the company has been struggling with profitability, as indicated by negative net income in the most recent periods, leading to a negative net profit margin. The gross profit margin is reasonable at around 35.2% TTM, but EBIT and EBITDA margins remain low, with EBIT margin at 1.25% TTM. The negative net profit margin and volatile EBIT figures suggest ongoing challenges in achieving stable profitability.

Balance Sheet

ViaSat's balance sheet shows a relatively high level of debt with a debt-to-equity ratio of approximately 0.96 TTM. The equity ratio stands at 30.5% TTM, indicating moderate leverage. Return on equity is negative due to losses, which is a concern for investors. The company has a substantial asset base, but the high debt levels could pose risks if not managed properly.

Cash Flow

The cash flow statement reveals some positive trends, with an operating cash flow to net income ratio indicating a strong conversion of earnings into cash. Free cash flow improved significantly in the TTM period, turning positive at $463.8 million from a negative position previously. However, the volatility in free cash flow growth rates over the years highlights potential uncertainties in cash generation.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
4.52B	4.28B	2.56B	2.79B	2.26B	2.31B
	Gross Profit
1.36B	1.38B	721.40M	847.51M	691.82M	699.55M
	EBIT
56.60M	-889.81M	-155.96M	12.45M	58.23M	38.42M
	EBITDA
1.32B	363.98M	365.03M	386.93M	351.59M	382.25M
	Net Income Common Stockholders
-394.00M	-1.07B	-211.57M	-2.20M	16.55M	9.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
53.78M	1.90B	1.35B	310.46M	295.95M	304.31M
	Total Assets
1.33B	16.33B	7.73B	6.39B	5.35B	4.88B
	Total Debt
47.70M	7.64B	2.73B	2.81B	2.15B	2.14B
	Net Debt
-6.08M	5.74B	1.38B	2.50B	1.85B	1.83B
	Total Liabilities
531.89M	11.26B	3.87B	3.71B	2.96B	2.83B
	Stockholders Equity
797.86M	5.03B	3.82B	2.63B	2.35B	2.03B
Cash Flow		Free Cash Flow
463.83M	-851.19M	-796.46M	-484.67M	-158.06M	-324.14M
	Operating Cash Flow
841.73M	688.20M	367.86M	505.64M	727.22M	436.94M
	Investing Cash Flow
-364.22M	-1.29B	768.04M	-1.13B	-885.27M	-758.80M
	Financing Cash Flow
-547.62M	1.12B	-66.13M	643.63M	149.69M	365.19M

ViaSat Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.05
• 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 VSAT, the sentiment is Neutral. The current price of 9.05 is above the 20-day moving average (MA) of 8.87, below the 50-day MA of 9.31, and below the 200-day MA of 11.48, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 50.71 is Neutral, neither overbought nor oversold. The STOCH value of 73.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VSAT.

ViaSat Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIEN	67 Neutral	$9.37B	122.16	2.76%	―	-7.29%	-64.31%
VIAV	59 Neutral	$2.33B	―	-5.53%	―	-0.67%	-856.71%
Sector *	59 Neutral	$10.72B	10.22	-6.67%	3.02%	7.42%	-11.38%
LITE	53 Neutral	$4.15B	―	-48.63%	―	-1.72%	-94.98%
VSAT	51 Neutral	$1.17B	―	-8.49%	―	19.02%	76.67%
SATS	42 Neutral	$6.46B	―	-0.60%	―	-6.99%	91.98%
BOXL	37 Underperform	$3.45M	―	-93.10%	―	-23.10%	28.58%

ViaSat Corporate Events

ViaSat Announces Senior Executive Team Reorganization

On January 22, 2025, Viasat announced a reorganization of its senior executive team, with Kumara Guru Gowrappan stepping down as President and transitioning to an advisory role until April 30, 2025. Girish Chandran, the Chief Technology Officer, will assume additional responsibilities as President of Global Space Networks, while Craig Miller transitions to Senior Vice President, Strategic Initiatives. This restructuring aims to position the company for long-term growth following the successful integration of Inmarsat, reaffirming its fiscal year 2025 financial guidance.