EchoStar CORP (SATS) Stock Analysis
EchoStar CORP (SATS) Stock Analysis
Analysis from 10-Q filed 2025-11-06. Data as of Q4 2025.
Overall Grade: F (Concerning)
EchoStar CORP faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | -35.3% | Below expectations |
| FCF Margin | -806.8% | Cash flow pressure |
| Debt/Equity | 3.2x | Elevated debt |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore EchoStar CORP: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: EchoStar CORP earns -35.3% ROIC, Top 5% in Communication Services
EchoStar CORP's trailing-twelve-month ROIC of -35.3% ranks Top 5% in Communication Services companies (sector median: 1.8%), driven by NOPAT margin of -90.7% combined with asset turnover of 0.3x. Source: 10-Q filed 2025-11-06. Gross margin of 37.1% with operating margin at -118.1% reflects a competitive pricing environment.
| Metric | SATS | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -35.3% | Red flag | Below sector median of 1.8% |
| Return on Equity (ROE) | -97.2% | Red flag | Moderate equity returns |
| Gross Margin | 37.1% | Good | Competitive pricing environment |
| Operating Margin | -118.1% | Warning | Moderate operational efficiency |
Cash Flow: EchoStar CORP generates $-121.1B FCF at -806.8% margin, positive NaN/8 quarters
EchoStar CORP generated $-121.1B in free cash flow (TTM), a -806.8% FCF margin. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-06.
| Metric | SATS | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | -806.8% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-121.1B | Red flag | Cash burn |
| OCF/Net Income | 0.0x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: EchoStar CORP at 3.2x leverage
EchoStar CORP's debt-to-equity ratio of 3.2x reflects high leverage. Total debt of $18.7B offset by $3.3B in cash. Source: 10-Q filed 2025-11-06.
| Metric | SATS | Rating | Context |
|---|---|---|---|
| Debt to Equity | 3.2x | Red flag | Elevated leverage |
| Net Cash Position | $-15.4B | Warning | Net debt position |
Valuation: EchoStar CORP trades at -2.2x earnings
EchoStar CORP trades at a P/E of -2.2x. Free cash flow yield of -387.3% reflects market expectations for growth.
| Metric | SATS | Rating | Context |
|---|---|---|---|
| P/E Ratio | -2.2x | Red flag | Reasonable valuation |
| EV/Sales | 3.3x | Good | Growth premium priced in |
| FCF Yield | -387.3% | Warning | Lower cash yield |
Capital Allocation: EchoStar CORP returns 0.0% shareholder yield
EchoStar CORP's total shareholder yield is 0.0% (dividends + buybacks). Source: 10-Q filed 2025-11-06.
| Metric | SATS | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.0% | Warning | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $0 | Adequate | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -35.3% | Top 5% | -19.6x below |
| Free Cash Flow Margin | -806.8% | Bottom 10% | -149.0x below |
| Gross Margin | 37.1% | Bottom 25% | 0.7x below |
| Operating Margin | -118.1% | Top 5% | -30.2x below |
| Return on Equity (ROE) | -97.2% | Top 5% | -528.7x below |
Financial Scorecard
| Metric | SATS | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -35.3% | Red flag | Top 5% of sector (median: 1.8%) |
| Free Cash Flow Margin | -806.8% | Red flag | Thin cash margins |
| Gross Margin | 37.1% | Good | Bottom 25% of sector (median: 56.8%) |
| Debt to Equity Ratio | 323.6% | Red flag | High financial leverage |
| Free Cash Flow Yield | -387.3% | Red flag | Growth-focused valuation |
Frequently Asked Questions
Q: What is EchoStar CORP's Return on Invested Capital (ROIC)?
EchoStar CORP (SATS) has a trailing twelve-month Return on Invested Capital (ROIC) of -35.3%. This compares below the sector median of 1.8%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is EchoStar CORP's Free Cash Flow Margin?
EchoStar CORP (SATS) has a free cash flow margin of -806.8%, generating $-121.1 billion in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is EchoStar CORP stock overvalued or undervalued?
EchoStar CORP (SATS) trades at a P/E ratio of -2.2x, which is above the sector median of N/A. The EV/Sales multiple is 3.3x.
Q: How much debt does EchoStar CORP have?
EchoStar CORP (SATS) has a debt-to-equity ratio of 3.2x with total debt of $18.7 billion. Net debt position is $15.4 billion.
Q: What is EchoStar CORP's revenue and earnings growth?
EchoStar CORP (SATS) declined revenue by 5.2% year-over-year. Earnings per share decreased by 11077.8% compared to the prior year. Revenue decline may indicate market challenges or industry headwinds.
Q: How does EchoStar CORP compare to competitors in Communication Services?
Compared to other companies in Communication Services, EchoStar CORP (SATS) shows: ROIC of -35.3% is below the sector median of 1.8% (Top -1354%). FCF margin of -806.8% trails the sector median of 5.4%. Gross margin at 37.1% is 19.8 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Communication Services companies with available SEC filings.
Q: What warning signs should I watch for with EchoStar CORP?
Investors in EchoStar CORP (SATS) should monitor these potential warning signs: 1) FCF margin is thin at -806.8%, leaving limited buffer for economic downturns. 2) ROIC has been declining, potentially signaling deteriorating competitive position. 3) Debt-to-equity of 3.2x is elevated. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-06. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.