NYSE:I

Stock Analysis Report

Executive Summary

Intelsat S.A., together with its subsidiaries, provides satellite communications services worldwide.


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has Intelsat's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: I's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.4%

I

2.2%

US Telecom

-0.09%

US Market


1 Year Return

-71.6%

I

16.2%

US Telecom

23.9%

US Market

Return vs Industry: I underperformed the US Telecom industry which returned 12% over the past year.

Return vs Market: I underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

IIndustryMarket
7 Day-9.4%2.2%-0.09%
30 Day-5.5%0.08%3.1%
90 Day-75.1%3.5%10.4%
1 Year-71.6%-71.6%22.0%16.2%26.6%23.9%
3 Year90.1%90.1%20.2%2.7%50.9%41.2%
5 Year-59.6%-59.6%49.5%15.7%78.1%58.5%

Price Volatility Vs. Market

How volatile is Intelsat's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Intelsat undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Intelsat is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Intelsat has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of I’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Intelsat regulatory filings.
  • Explore potentially undervalued companies in the Telecom industry.

Future Growth

How is Intelsat forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

44.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: I is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: I is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: I is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: I's revenue is expected to decline over the next 3 years (-2.7% per year).

High Growth Revenue: I's revenue is forecast to decline over the next 3 years (-2.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if I's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Intelsat performed over the past 5 years?

5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: I is currently unprofitable.

Growing Profit Margin: I is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: I is unprofitable, but has reduced losses over the past 5 years at a rate of 5.4% per year.

Accelerating Growth: Unable to compare I's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: I is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (-43.1%).


Return on Equity

High ROE: I's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Intelsat's financial position?


Financial Position Analysis

Short Term Liabilities: I has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: I has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: I has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: I's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: I has a high level of physical assets or inventory.

Debt Coverage by Assets: I has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable I has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: I is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 101.2% per year.


Next Steps

Dividend

What is Intelsat's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.8%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of I's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Intelsat's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Steve Spengler (59yo)

4.8yrs

Tenure

US$766,012

Compensation

Mr. Stephen Spengler, also known as Steve, has been the Chief Executive Officer of Intelsat S.A. since April 1, 2015 and served as its Interim Chief Financial Officer since December 16, 2015 until January  ...


Management Age and Tenure

4.2yrs

Average Tenure

55yo

Average Age

Experienced Management: I's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

59yo

Average Age

Experienced Board: I's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

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


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.6%.


Management Team

  • Michelle Bryan (62yo)

    Chief Administrative Officer

    • Tenure: 6.8yrs
  • David Tolley (51yo)

    Executive VP & CFO

    • Tenure: 0.6yrs
  • Steve Spengler (59yo)

    CEO & Director

    • Tenure: 4.8yrs
    • Compensation: US$766.01k
  • Dianne VanBeber

    VP of Investor Relations & Corporate Communications

    • Mike DeMarco (48yo)

      Executive VP & Chief Services Officer

      • Tenure: 1yrs
    • Michele Loguidice

      Director of Corporate Communications

      • Tenure: 7yrs
    • Jay Yass

      Vice President of Business Development

      • Tenure: 4.2yrs
    • Bruno Fromont

      Senior Vice President of Strategy & Planning

      • Tenure: 4.8yrs
    • Mark Rasmussen

      Senior Vice President of Global Sales & Distribution

      • Tenure: 1yrs
    • José Toscano

      Head of International Government Affairs

      • Tenure: 2.3yrs

    Board Members

    • Raymond Svider (56yo)

      Director

      • Tenure: 8.5yrs
    • Jackie Reses (49yo)

      Independent Director

      • Tenure: 0.3yrs
    • Ed Kangas (75yo)

      Independent Director

      • Tenure: 7.5yrs
    • Justin Bateman (45yo)

      Director

      • Tenure: 8.5yrs
    • Dave McGlade (58yo)

      Non-Executive Chairman of the Board

      • Tenure: 6.8yrs
      • Compensation: US$2.69m
    • Robert Callahan (67yo)

      Independent Director

      • Tenure: 5.8yrs
    • Steve Spengler (59yo)

      CEO & Director

      • Tenure: 4.8yrs
      • Compensation: US$766.01k
    • John Diercksen (70yo)

      Independent Director

      • Tenure: 6.3yrs
    • Ellen Pawlikowski (62yo)

      Independent Director

      • Tenure: 0.3yrs

    Company Information

    Intelsat S.A.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Intelsat S.A.
    • Ticker: I
    • Exchange: NYSE
    • Founded: 1964
    • Industry: Alternative Carriers
    • Sector: Telecom
    • Market Cap: US$898.170m
    • Shares outstanding: 141.00m
    • Website: https://www.intelsat.com

    Number of Employees


    Location

    • Intelsat S.A.
    • 4 rue Albert Borschette
    • Luxembourg City
    • 1246
    • Luxembourg

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    INYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2013
    IJSADB (Deutsche Boerse AG)YesCommon StockDEEURApr 2013
    0DZ3LSE (London Stock Exchange)YesCommon StockGBUSDApr 2013

    Biography

    Intelsat S.A., together with its subsidiaries, provides satellite communications services worldwide. The company offers a range of communications services to media companies, fixed and wireless telecommunications operators, data networking service providers for enterprise and mobile applications in the air and on the seas, multinational corporations, and Internet service providers; and commercial satellite communication services to the U.S. government and other military organizations and their contractors. It provides various on-network services, including transponder services; managed services that combine satellite capacity, teleport facilities, satellite communications hardware, and other ground facilities to provide managed and monitored broadband, trunking, video, and private network services to customers; and channel services primarily used for providing point-to-point bilateral services to telecommunications providers. The company also offers off-network services comprising transponder, mobile satellite, and other services. In addition, it offers satellite-related consulting and technical services that include the lifecycle of satellite operations and related infrastructure ranging from satellite and launch vehicle procurement through telemetry and commanding services, and related equipment sale services. The company was founded in 1964 and is headquartered in Luxembourg City, Luxembourg. Intelsat S.A. is a subsidiary of Serafina S.A. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/24 01:18
    End of Day Share Price2020/01/23 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    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.