Skip to Content

EchoStar Corp Class A SATS

Morningstar Rating
$14.25 +0.24 (1.71%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

EchoStar Earnings: Still No Clarity Around Financing

EchoStar’s fourth-quarter results and management commentary, which oddly excluded remarks from chairman Charlie Ergen, offer little additional clarity concerning its future financing plans and strategy. The firm claims it is holding discussions with multiple potential partners but feels no immediate pressure to secure additional capital, despite looming debt maturities in November. We reiterate our Extreme Uncertainty Rating, and our fair value estimate remains $25.

Price vs Fair Value

SATS is trading at a 45% discount.
Price
$13.65
Fair Value
$45.00
Uncertainty
Extreme
1-Star Price
$534.00
5-Star Price
$4.24
Economic Moat
Gbjq
Capital Allocation
Wcrd

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.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if SATS is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$14.01
Day Range
$13.9214.46
52-Week Range
$9.5324.80
Bid/Ask
$13.20 / $14.24
Market Cap
$3.87 Bil
Volume/Avg
1.3 Mil / 3.0 Mil

Key Statistics

Price/Earnings (Normalized)
9.18
Price/Sales
0.23
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 7 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 8 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

Competitors

Valuation

Metric
SATS
TMUS
T
Price/Earnings (Normalized)
9.1820.387.30
Price/Book Value
0.193.021.22
Price/Sales
0.232.491.04
Price/Cash Flow
1.697.653.13
Price/Earnings
SATS
TMUS
T

Financial Strength

Metric
SATS
TMUS
T
Quick Ratio
0.440.680.33
Current Ratio
0.610.910.71
Interest Coverage
−22.674.303.96
Quick Ratio
SATS
TMUS
T

Profitability

Metric
SATS
TMUS
T
Return on Assets (Normalized)
1.55%4.58%4.17%
Return on Equity (Normalized)
4.01%14.49%16.72%
Return on Invested Capital (Normalized)
1.45%6.73%8.19%
Return on Assets
SATS
TMUS
T
See how this stock stacks up to its competitors with Morningstar Investor

Communication Equipment Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
CSCO
Cisco Systems IncZkjbsxqkfzVqdb$202.1 Bil
MSI
Motorola Solutions IncYdztnxsrKjb$59.0 Bil
HPE
Hewlett Packard Enterprise CoRwmymbxSsck$23.0 Bil
NOKBF
Nokia OyjBwynp$19.7 Bil
NOK
Nokia Oyj ADRSdjcllfbmHgkz$19.7 Bil
ERIXF
Telefonaktiebolaget L M Ericsson Class BZFMzhj$18.1 Bil
ERIC
Telefonaktiebolaget L M Ericsson ADRFwgdcrhhpMrw$18.1 Bil
ZTCOF
ZTE Corp Class HLtsq$16.8 Bil
ZBRA
Zebra Technologies Corp Class AYkdbhtcQsqsdw$15.5 Bil

Sponsor Center