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SATS

EchoStar NasdaqGS:SATS Stock Report

Last Price

US$16.52

Market Cap

US$1.4b

7D

3.5%

1Y

-35.2%

Updated

29 Sep, 2022

Data

Company Financials +
SATS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health5/6
Dividends0/6

SATS Stock Overview

EchoStar Corporation, together with its subsidiaries, provides networking technologies and services worldwide.

EchoStar Competitors

Price History & Performance

Summary of all time highs, changes and price drops for EchoStar
Historical stock prices
Current Share PriceUS$16.52
52 Week HighUS$30.90
52 Week LowUS$15.26
Beta0.71
1 Month Change-11.23%
3 Month Change-15.76%
1 Year Change-35.24%
3 Year Change-56.45%
5 Year Change-70.73%
Change since IPO-12.27%

Recent News & Updates

Sep 14
EchoStar Corporation (NASDAQ:SATS) Shares Could Be 24% Below Their Intrinsic Value Estimate

EchoStar Corporation (NASDAQ:SATS) Shares Could Be 24% Below Their Intrinsic Value Estimate

Does the September share price for EchoStar Corporation ( NASDAQ:SATS ) reflect what it's really worth? Today, we will...

Shareholder Returns

SATSUS TelecomUS Market
7D3.5%-1.4%-2.0%
1Y-35.2%-34.3%-20.3%

Return vs Industry: SATS matched the US Telecom industry which returned -34.3% over the past year.

Return vs Market: SATS underperformed the US Market which returned -20.3% over the past year.

Price Volatility

Is SATS's price volatile compared to industry and market?
SATS volatility
SATS Average Weekly Movement4.3%
Telecom Industry Average Movement5.8%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: SATS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SATS's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20072,500Hamid Akhavanhttps://www.echostar.com

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.

EchoStar Fundamentals Summary

How do EchoStar's earnings and revenue compare to its market cap?
SATS fundamental statistics
Market CapUS$1.37b
Earnings (TTM)US$62.36m
Revenue (TTM)US$2.00b

22.0x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SATS income statement (TTM)
RevenueUS$2.00b
Cost of RevenueUS$836.20m
Gross ProfitUS$1.17b
Other ExpensesUS$1.11b
EarningsUS$62.36m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.75
Gross Margin58.28%
Net Profit Margin3.11%
Debt/Equity Ratio42.8%

How did SATS perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is SATS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SATS?

Other financial metrics that can be useful for relative valuation.

SATS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.8x
Enterprise Value/EBITDA4x
PEG Ratio-0.5x

Price to Earnings Ratio vs Peers

How does SATS's PE Ratio compare to its peers?

SATS PE Ratio vs Peers
The above table shows the PE ratio for SATS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.5x
CCOI Cogent Communications Holdings
55.3x23.0%US$2.4b
SIFY Sify Technologies
20.8x14.8%US$305.2m
LUMN Lumen Technologies
3.8x-29.5%US$7.6b
LBTY.A Liberty Global
2x-50.2%US$8.0b
SATS EchoStar
22x-44.3%US$1.4b

Price-To-Earnings vs Peers: SATS is expensive based on its Price-To-Earnings Ratio (22x) compared to the peer average (20.5x).


Price to Earnings Ratio vs Industry

How does SATS's PE Ratio compare vs other companies in the Global Telecom Industry?

Price-To-Earnings vs Industry: SATS is expensive based on its Price-To-Earnings Ratio (22x) compared to the Global Telecom industry average (15.5x)


Price to Earnings Ratio vs Fair Ratio

What is SATS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SATS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22x
Fair PE Ratio7.6x

Price-To-Earnings vs Fair Ratio: SATS is expensive based on its Price-To-Earnings Ratio (22x) compared to the estimated Fair Price-To-Earnings Ratio (7.6x).


Share Price vs Fair Value

What is the Fair Price of SATS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SATS ($16.52) is trading below our estimate of fair value ($22.44)

Significantly Below Fair Value: SATS is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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Future Growth

How is EchoStar forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-44.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SATS's earnings are forecast to decline over the next 3 years (-44.3% per year).

Earnings vs Market: SATS's earnings are forecast to decline over the next 3 years (-44.3% per year).

High Growth Earnings: SATS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SATS's revenue (1.6% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: SATS's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SATS's Return on Equity is forecast to be low in 3 years time (0.4%).


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Past Performance

How has EchoStar performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-13.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SATS has a large one-off loss of $37.5M impacting its June 30 2022 financial results.

Growing Profit Margin: SATS's current net profit margins (3.1%) are lower than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: SATS's earnings have declined by 13.8% per year over the past 5 years.

Accelerating Growth: SATS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SATS had negative earnings growth (-55.9%) over the past year, making it difficult to compare to the Telecom industry average (-34.4%).


Return on Equity

High ROE: SATS's Return on Equity (1.4%) is considered low.


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Financial Health

How is EchoStar's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SATS's short term assets ($2.0B) exceed its short term liabilities ($434.4M).

Long Term Liabilities: SATS's short term assets ($2.0B) do not cover its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: SATS has more cash than its total debt.

Reducing Debt: SATS's debt to equity ratio has reduced from 87.2% to 42.8% over the past 5 years.

Debt Coverage: SATS's debt is well covered by operating cash flow (38.4%).

Interest Coverage: SATS's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


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Dividend

What is EchoStar current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

EchoStar Dividend Yield vs Market
How does EchoStar dividend yield compare to the market?
SegmentDividend Yield
Company (EchoStar)n/a
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.6%
Industry Average (Telecom)6.9%
Analyst forecast in 3 Years (EchoStar)0%

Notable Dividend: Unable to evaluate SATS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SATS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SATS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SATS's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SATS has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

9.8yrs

Average management tenure


CEO

Hamid Akhavan (61 yo)

0.50yr

Tenure

Mr. Hamid Akhavan serves as Chief Executive Officer and President at EchoStar Corporation since April 2022. Mr. Akhavan serves as a Partner at Twin Point Capital LLC since April 2018 to January 2020. He ha...


Leadership Team

Experienced Management: SATS's management team is seasoned and experienced (9.8 years average tenure).


Board Members

Experienced Board: SATS's board of directors are seasoned and experienced ( 12.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NasdaqGS:SATS Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
10 Mar 22BuyUS$495,485R. DodgeIndividual20,500US$24.17
02 Dec 21BuyUS$11,974William WadeIndividual443US$27.03

Ownership Breakdown

What is the ownership structure of SATS?
Owner TypeNumber of SharesOwnership Percentage
Private Companies20,630,86024.7%
Individual Insiders29,379,44535.2%
Institutions33,545,81140.1%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 89.86% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
35.19%
Charles Ergen
29,272,332$483.6m17.22%no data
24.8%
Ergen Family Trust
20,630,860$340.8m-17.25%no data
4.16%
The Vanguard Group, Inc.
3,458,488$57.1m-2.5%no data
3.92%
BlackRock, Inc.
3,260,771$53.9m2.1%no data
2.52%
Dimensional Fund Advisors LP
2,099,816$34.7m24.35%0.01%
2.38%
Renaissance Technologies LLC
1,981,504$32.7m-0.77%0.04%
1.91%
Brown Advisory Incorporated
1,587,038$26.2m-1.92%0.05%
1.87%
Quaker Capital Investments, LLC
1,554,283$25.7m0%11%
1.31%
Toronto-Dominion Bank, Banking Investments
1,093,318$18.1m-22.24%0.04%
1.27%
State Street Global Advisors, Inc.
1,055,646$17.4m-1.45%no data
1.14%
Thompson, Siegel & Walmsley LLC
951,075$15.7m8.56%0.2%
1.09%
GAMCO Investors, Inc.
903,796$14.9m-1.19%0.06%
0.92%
Millennium Management LLC
768,082$12.7m46.39%0.02%
0.9%
J.P. Morgan Asset Management, Inc.
748,728$12.4m56.12%no data
0.9%
Geode Capital Management, LLC
748,688$12.4m2.38%no data
0.75%
FMR LLC
621,497$10.3m35.68%no data
0.68%
Charles Schwab Investment Management, Inc.
564,210$9.3m3%no data
0.6%
Two Sigma Advisers, LP
499,900$8.3m32.49%0.02%
0.6%
Hudson Bay Capital Management LP
495,061$8.2m44.55%0.1%
0.56%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
469,854$7.8m-21.01%no data
0.55%
Norges Bank Investment Management
461,138$7.6m0%no data
0.53%
Jupiter Fund Management Plc
441,125$7.3m337.43%0.02%
0.47%
Bridgeway Capital Management, LLC
393,800$6.5m0%0.15%
0.43%
Morgan Stanley, Investment Banking and Brokerage Investments
354,721$5.9m20.21%no data
0.39%
Northern Trust Global Investments
323,242$5.3m-8.58%no data

Company Information

EchoStar Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: EchoStar Corporation
  • Ticker: SATS
  • Exchange: NasdaqGS
  • Founded: 2007
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Implied Market Cap: US$1.374b
  • Shares outstanding: 83.17m
  • Website: https://www.echostar.com

Number of Employees


Location

  • EchoStar Corporation
  • 100 Inverness Terrace East
  • Englewood
  • Colorado
  • 80112-5308
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SATSNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDDec 2007
E20DB (Deutsche Boerse AG)YesClass A Common StockDEEURDec 2007

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.