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ViaSat (VSAT)
NASDAQ:VSAT
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ViaSat
(NASDAQ:VSAT)
56Neutral
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
Reduced capital expenditures are likely to meaningfully improve cash flow.
Operational Efficiency
A surprising 20% capacity gain from optimization efforts allows VSAT to reduce its planned launch capital expenditure.
Negative Factors
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.
Market Competition
Concerns over Starlink encroachment remain elevated given traction in fixed-broadband, maritime, and recent airline deals.
ViaSat (VSAT) vs. S&P 500 (SPY)
Market Cap
$1.21B
Dividend YieldN/A
Average Volume (3M)2.53M
Price to Earnings (P/E)―
Beta (1Y)0.42
Revenue Growth19.02%
EPS Growth76.67%
CountryUS
Employees7,500
SectorTechnology
Sector Strength67
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-3.27
Shares Outstanding129,120,000
10 Day Avg. Volume2,037,644
30 Day Avg. Volume2,532,323
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap5.90
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit5.17
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.20Price Target Upside43.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
ViaSat Business Overview & Revenue Model
Company DescriptionViasat, 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 MoneyViaSat 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's revenue growth and positive operating cash flows are promising. However, challenges remain due to ongoing profitability issues and high leverage, as evidenced by negative net income and a high debt-to-equity ratio.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.50
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 | ||||
| Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.28B | 2.56B | 2.79B | 2.26B | 2.31B | Gross Profit |
| 1.38B | 721.40M | 847.51M | 691.82M | 699.55M | EBIT |
| -889.81M | -155.96M | 12.45M | 58.23M | 38.42M | EBITDA |
| 363.98M | 365.03M | 386.93M | 351.59M | 382.25M | Net Income Common Stockholders |
| -1.07B | -211.57M | -2.20M | 16.55M | 9.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.90B | 1.35B | 310.46M | 295.95M | 304.31M | Total Assets |
| 16.33B | 7.73B | 6.39B | 5.35B | 4.88B | Total Debt |
| 7.64B | 2.73B | 2.81B | 2.15B | 2.14B | Net Debt |
| 5.74B | 1.38B | 2.50B | 1.85B | 1.83B | Total Liabilities |
| 11.26B | 3.87B | 3.71B | 2.96B | 2.83B | Stockholders Equity |
| 5.03B | 3.82B | 2.63B | 2.35B | 2.03B |
| Cash Flow | Free Cash Flow | |||
| -851.19M | -796.46M | -484.67M | -158.06M | -324.14M | Operating Cash Flow |
| 688.20M | 367.86M | 505.64M | 727.22M | 436.94M | Investing Cash Flow |
| -1.29B | 768.04M | -1.13B | -885.27M | -758.80M | Financing Cash Flow |
| 1.12B | -66.13M | 643.63M | 149.69M | 365.19M |
ViaSat Technical Analysis
Neutral
9.20
Price Trends
9.32
Negative
9.35
Negative
11.29
Negative
Market Momentum
-0.03
Negative
51.45
Neutral
71.11
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 9.2 is above the 20-day moving average (MA) of 8.67, below the 50-day MA of 9.32, and below the 200-day MA of 11.29, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 51.45 is Neutral, neither overbought nor oversold. The STOCH value of 71.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VSAT.
ViaSat Risk Analysis
ViaSat disclosed 33 risk factors in its most recent earnings report. ViaSat 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 0 New Risks
ViaSat Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $10.36B | 134.96 | 2.76% | ― | -7.29% | -64.31% | |
60 Neutral | $2.07B | 444.76 | 0.71% | ― | 3.34% | ― | |
60 Neutral | $10.93B | 10.46 | -6.70% | 2.99% | 7.54% | -12.22% | |
56 Neutral | $1.21B | ― | -8.49% | ― | 19.02% | 76.67% | |
55 Neutral | $4.35B | ― | -48.63% | ― | -1.72% | -94.98% | |
42 Neutral | $6.89B | ― | -0.60% | ― | -6.99% | 91.98% | |
38 Underperform | $3.41M | ― | -93.10% | ― | -23.10% | 28.58% |
* Technology Sector Average
Performance Comparison
VSAT
ViaSat
9.20
-8.44
-47.85%
CIEN
Ciena
72.91
23.96
48.95%
SATS
Echostar
23.88
6.32
35.99%
LITE
Lumentum Holdings
63.17
19.06
43.21%
VIAV
Viavi Solutions
9.03
1.67
22.69%
BOXL
Boxlight
1.54
-1.64
-51.57%
ViaSat Earnings Call Summary
Earnings Call Date:Feb 06, 2025
(Q3-2025)
| % Change Since: -3.36%|
Next Earnings Date:May 21, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with notable growth in aviation and defense segments, cost efficiencies, and strong cash flow, but also highlighted challenges in fixed broadband and maritime revenue. Overall, the sentiment is cautiously optimistic with strategic focus on debt reduction and cash flow generation.Q3-2025 Updates
Positive Updates
Aviation Growth and Backlog Increase
Commercial in-flight connectivity aircraft in service grew about 13% year-over-year, business jets grew about 18%, and backlog grew 22% year-over-year.
Defense and Advanced Technologies Surge
Revenues in the Defense and Advanced Technologies segment grew almost 20% year-over-year, with backlog up 26% and awards up 49%.
Cost Efficiency and Capital Reduction
Achieved $200 million reduction from prior CapEx guidance, with fiscal 2025 CapEx expected at approximately $1.1 billion.
Strong Cash Flow and EBITDA Performance
Operating cash flow was $219 million, up more than 60%, and adjusted EBITDA was $393 million with a 35% margin.
Positive Customer Feedback and New Contracts
Expanding global partnerships and customer base, notably with a full fleet contract from STARLUX in Asia Pacific.
Negative Updates
U.S. Fixed Broadband Revenue Decline
U.S. fixed broadband revenue and subscribers continue to decline, impacting overall revenue performance.
Maritime Revenue Challenges
Maritime revenue declined 8% due to ARPU pressure and legacy L-band offering decline.
Net Loss Increase
Net loss increased to $158 million from $124 million a year ago, largely due to a $97 million non-cash loss on debt refinancing.
Company Guidance
During Viasat's third-quarter fiscal year 2025 earnings call, the company provided guidance indicating strong performance and an optimistic outlook for the rest of the year. The company's revenue for the quarter was $1.12 billion with an adjusted EBITDA of $393 million, reflecting a 35% adjusted EBITDA margin. Viasat reported growth in key areas, such as a 13% year-over-year increase in commercial in-flight connectivity aircraft in service and an 18% growth in business jets. The backlog for aviation grew by 22% year-over-year. The Defense and Advanced Technologies segment also showed robust performance with a 20% revenue increase year-over-year and an awards increase of 49%. Viasat is on track to meet its full-year guidance, focusing on capital efficiency, cash generation, and debt reduction. The company also announced a $200 million reduction in capital expenditure guidance for the fiscal year. Looking ahead, Viasat anticipates fiscal 2026 to be a pivotal year, with expectations of revenue growth and modest adjusted EBITDA growth driven by the launch of ViaSat-3 satellites and the rollout of the NexusWave service.ViaSat Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Viasat Redeems $442.55M Senior Notes Early
Positive
May 2, 2025
On May 2, 2025, Viasat, Inc. redeemed all $442,550,000 of its outstanding 5.625% Senior Notes due 2025, ahead of their September 15, 2025 maturity date, using cash on hand. This strategic move involved satisfying and discharging the indenture governing the Notes, potentially strengthening Viasat’s financial position and operational flexibility.
Spark’s Take on VSAT Stock
According to Spark, TipRanks’ AI Analyst, VSAT is a Neutral.
ViaSat’s overall stock score reflects its revenue growth and strong cash flow potential. However, high debt levels and negative profitability weigh on the score. The positive outlook from the earnings call, driven by growth in key business areas, provides some optimism, but valuation challenges persist due to the negative P/E ratio.
To see Spark’s full report on VSAT stock, click here.
Executive/Board Changes
Viasat Announces EVP Kevin Harkenrider’s Retirement
Neutral
Apr 28, 2025
On April 28, 2025, Viasat, Inc. announced the upcoming retirement of Kevin Harkenrider, the Executive Vice President and Chief Corporate Officer, effective June 30, 2025, or potentially later, but no later than December 31, 2025. Post-retirement, Mr. Harkenrider will remain as a non-executive employee until the end of 2025, which may impact the company’s leadership structure and operational continuity.
Spark’s Take on VSAT Stock
According to Spark, TipRanks’ AI Analyst, VSAT is a Neutral.
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.
To see Spark’s full report on VSAT stock, click here.
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.