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EchoStar Corp Class A SATS

Morningstar Rating
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Stock XNAS Rating as of
$17.94 +0.11 (0.62%)
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As of Cboe BZX Real-Time Price Open
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Company Report

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EchoStar Earnings: The Future Keeps Getting Cloudier After Another Quarter Without New Financing

Michael Hodel

EchoStar delivered relatively weak first-quarter results as its wireless business again lost customers, the Hughes segment posted a big drop in revenue and margins, and the television business continued to decline. Critically, the firm has yet to secure financing, again stating that it is evaluating multiple offers. We are reducing our fair value estimate to $20 from $25, which assumes EchoStar can raise additional capital. However, we reiterate our Extreme Uncertainty Rating, which reflects the high probability that the firm is unable to secure capital on acceptable terms.

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Price vs Fair Value

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SATS is trading at a 43% premium.
Price
$17.83
Fair Value
$22.00
Uncertainty
Extreme
1-Star Price
$94.00
5-Star Price
$1.00
Economic Moat
Bfm
Capital Allocation
Wjczy

Bulls Say, Bears Say

Bulls

Additional wireless spectrum will be needed to meet exploding demand for wireless data services. As carriers struggle to add capacity efficiently, the value of EchoStar's largely fallow spectrum will increase.

Bears

After more than a decade, EchoStar has yet to put a viable wireless network or business strategy in place.

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News

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Trading Information

Previous Close Price
$17.83
Day Range
$17.44–18.17
52-Week Range
$9.54–24.75
Bid/Ask
$17.94 / $17.96
Market Cap
$4.87 Bil
Volume/Avg
498,428 / 1.5 Mil

Key Statistics

Price/Earnings (Normalized)
81.87
Price/Sales
0.25
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
—

Company Profile

Following the Dish Network merger, satellite television provides the bulk of EchoStar’s revenue. The firm serves about 6 million U.S. customers, about 10% of the traditional television market. It launched an internet-based television offering under the Sling brand in 2015 and serves about 2 million customers on this platform. EchoStar’s future, however, hinges primarily on the wireless business. The firm has amassed an extensive portfolio of spectrum licenses over the past 15 years and is building a nationwide wireless network. It acquired Sprint's prepaid business and serves about 7 million customers, primarily under the Boost brand. EchoStar’s legacy businesses provide satellite telecom services and equipment to businesses and consumers, including about 1 million internet customers.
Sector
Technology
Industry
Communication Equipment
Stock Style Box
Small Value
Total Number of Employees
15,300
Website
https://www.echostar.com

Competitors

Valuation

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Metric
SATS
TMUS
T
Price/Earnings (Normalized)
 81.8721.897.57
Price/Book Value
 0.263.431.22
Price/Sales
 0.252.741.05
Price/Cash Flow
 1.948.183.12
Price/Earnings
SATS
TMUS
T

Financial Strength

Metric
SATS
TMUS
T
Quick Ratio
 0.440.730.29
Current Ratio
 0.610.940.68
Interest Coverage
 −22.674.423.82
Quick Ratio
SATS
TMUS
T

Profitability

Metric
SATS
TMUS
T
Return on Assets (Normalized)
 −4.30%4.83%4.10%
Return on Equity (Normalized)
 −11.23%15.54%16.15%
Return on Invested Capital (Normalized)
 −5.41%7.04%8.01%
Return on Assets
SATS
TMUS
T
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