EchoStar Corporation (SATS) | Investment Case

1. Company Snapshot

1.a. Company Description

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.

The segment also designs, provides, and installs gateway and terminal equipment to customers for other satellite systems.In addition, it designs, develops, constructs, and provides telecommunication networks comprising satellite ground segment systems and terminals to mobile system operators and enterprise customers.Further, this segment designs, provides, and installs gateway and terminal equipment to customers for other satellite systems, as well as offers satellite ground segment systems and terminals for other satellite systems, including mobile system operators.

The ESS segment provides satellite services using its owned and leased in-orbit satellites and related licenses to offer satellite services on a full-time and/or occasional-use basis to the U.S. government service providers, internet service providers, broadcast news organizations, content providers, and private enterprise customers.It serves customers in North America, South and Central America, Asia, Africa, Australia, Europe, India, and the Middle East.The company was incorporated in 2007 and is headquartered in Englewood, Colorado.

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1.b. Last Insights on SATS

EchoStar Corporation's recent performance was driven by a $23 billion deal with AT&T to sell 50 MHz of nationwide spectrum, alleviating concerns about its substantial debt burden of $30 billion. This transaction, announced on August 26, 2025, provides a crucial lifeline for the company. Additionally, the company's Q2 earnings report, although not detailed, seems to have instilled confidence in investors. According to analysts, the deal has led to increased forecasts for the company. The company's efforts to address its debt and spectrum holdings have been a significant focus for investors.

1.c. Company Highlights

Last Price	82
Change Percentage	10.07%
Open	74.83
Previous Close	74.5
Market Cap ( Millions)	23606
Volume	28524508
Year High	88
Year Low	14.9
M A 50	73.18
M A 200	41.99

FCF Yield	-4.61%
Dividend Yield	0.00%
ROE	-127.18%
Debt / Equity	847.01%
Net Debt / EBIDTA	-378.38%
Price To Book	3.4
Price Earnings Ratio	-1.11
Price To FCF	-21.67
Price To sales	1.56
EV / EBITDA	-5.37

2. EchoStar's Strategic Shift: A New Era Unfolds

EchoStar Corporation reported revenues of $453 million for the third quarter of 2025, a slight decrease from the same period last year. The company's EPS came in at $0.83, significantly beating analyst estimates of -$1.23. The earnings report highlighted the company's progress in resolving the FCC's review of its spectrum utilization, with major transactions signed with AT&T and SpaceX valued at approximately $23 billion and $19 billion, respectively. Hamid Akhavan noted that the proceeds from the sales will be used to maximize value for shareholders, taking advantage of the company's institutional heritage and thesis-driven innovation.

Publication Date: Nov -09

                                    📋 Highlights
                                    Major Transactions::
                                                Signed $23B AT&T and $19B SpaceX deals, plus $2.6B AWS-3 spectrum sale to SpaceX, resolving FCC spectrum review.
Capital Allocation::
                                                All spectrum sale proceeds will fund EchoStar Capital, prioritizing strategic investments and shareholder value, with $2.8B allocated to DBS for C-band.
Tax Liabilities::
                                                Total unoptimized tax liabilities estimated at $7B–$10B; potential Section 1033 tax reduction discussed but not litigation-dependent.
Strategic Investments::
                                                SpaceX stake ($212/share valuation) viewed as key holding due to its 8M broadband customers and 90% launch market share.
Broadcast Transition::
                                                Hughes shifting to 50%+ enterprise revenue by 2026, leveraging aero growth and potential M&A in space, defense, and enterprise sectors.

                                

Financial Performance and Outlook

The company's financial performance was marked by a significant improvement in EPS, driven by the strategic transactions and a focus on long-term thinking. Analysts estimate next year's revenue growth at -1.7%, indicating a continued challenging environment. However, EchoStar's pivot to being a capital-rich, asset-light company is expected to drive future growth. Charles Ergen mentioned that the company will focus on deploying capital to get a return, rather than focusing on short-term metrics like EBITDA.

Valuation and Metrics

EchoStar's current valuation metrics indicate a mixed picture. The P/E Ratio is not meaningful due to the company's negative earnings, while the P/B Ratio stands at 3.04, and the P/S Ratio is 1.39. The EV/EBITDA ratio is -5.2, and the Free Cash Flow Yield is -5.15%. The company's ROE and ROIC are also negative, at -127.18% and -53.24%, respectively. These metrics suggest that the market is pricing in significant challenges, but also potential for future growth.

Strategic Investments and Future Plans

EchoStar's investment in SpaceX is seen as a strategic holding, with Hamid Akhavan expressing excitement about the growth opportunities. The company is also exploring opportunities in the Boost business, with a focus on using technology to differentiate itself. Charles Ergen mentioned that the goal is to think differently and not just mimic other carriers. The company's plans to transition the Hughes business from a consumer to an enterprise business are also on track, with expectations to cross the 50% mark on enterprise revenue next year.

Tax Implications and Regulatory Environment

The company's tax implications from the asset sales are estimated to be in the range of $7 billion to $10 billion. Hamid Akhavan noted that the company is exploring ways to reduce taxes, including the possibility of using Section 1033. The regulatory environment is also being navigated, with discussions ongoing with the FCC regarding the AWS-3 auction and the company's liability.

3. NewsRoom

7,826 Shares in EchoStar Corporation $SATS Acquired by Envestnet Asset Management Inc.

Nov -29

Source: defenseworld.net

Ameritas Investment Partners Inc. Has $1.11 Million Stake in EchoStar Corporation $SATS

Nov -28

Source: defenseworld.net

Can AT&T Benefit From EchoStar's Mid-Band Spectrum Deployment?

Nov -27

Source: zacks.com

Boost Mobile is Saving You Money This Holiday Season with Great Deals on 5G Phones and a Low Rate for Life

Nov -25

Source: prnewswire.com

Commonwealth of Pennsylvania Public School Empls Retrmt SYS Purchases 5,594 Shares of EchoStar Corporation $SATS

Nov -24

Source: defenseworld.net

Hedge Fund Billionaire Carl Icahn's Q3: The Activist Goes Defensive, Dumps A Disaster, And Loads Up On EchoStar

Nov -17

Source: benzinga.com

AT&T Boosts 5G Capacity Nationwide with New Spectrum, Giving Customers a Stronger, Faster Connection

Nov -17

Source: prnewswire.com

EchoStar Corporation (NASDAQ:SATS) Given Average Rating of “Hold” by Analysts

Nov -16

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.24%)

6. Segments

Pay-TV

Expected Growth: 4.6%

EchoStar's Pay-TV segment growth of 4.6% is driven by increasing demand for premium content, expansion into new markets, and strategic partnerships. Additionally, the company's focus on improving customer experience through advanced set-top boxes and enhanced user interfaces has contributed to subscriber growth. Furthermore, EchoStar's ability to offer competitive pricing and bundled services has helped to attract and retain customers.

Retail Wireless

Expected Growth: 10.27%

EchoStar Corporation's Retail Wireless segment growth of 10.27% is driven by increasing demand for high-speed data services, expansion of 5G network coverage, and strategic partnerships with major carriers. Additionally, growing adoption of IoT devices and rising need for reliable connectivity in rural areas contribute to the segment's growth.

Broadband and Satellite Services

Expected Growth: 8.38%

EchoStar's Broadband and Satellite Services segment growth of 8.38% is driven by increasing demand for high-speed internet and data services, expansion into new markets, and strategic partnerships. Additionally, the company's focus on improving network infrastructure and enhancing customer experience has contributed to the growth.

All Other and Eliminations

Expected Growth: 4.83%

EchoStar's All Other and Eliminations segment growth of 4.83% is driven by increased demand for its satellite-based services, expansion of its Hughes Network Systems business, and strategic partnerships. Additionally, the company's focus on cost optimization and operational efficiencies have contributed to the segment's growth.

5G Network Deployment

Expected Growth: 11.88%

EchoStar Corporation's 11.88% growth in 5G network deployment is driven by increasing demand for high-speed, low-latency connectivity, government initiatives for rural broadband expansion, and strategic partnerships with telecom operators. Additionally, the company's focus on satellite-based 5G infrastructure and its ability to provide cost-effective solutions for remote and underserved areas are key growth catalysts.

7. Detailed Products

HughesNet

HughesNet is a high-speed satellite internet service that provides reliable and secure connectivity to individuals and businesses in rural and underserved areas.

EchoStar Mobile

EchoStar Mobile is a next-generation satellite-based network that provides mobile broadband services to consumers, enterprises, and governments.

EchoStar XXI

EchoStar XXI is a S-band satellite designed to provide mobile satellite services (MSS) to European governments and commercial customers.

EchoStar XXIV

EchoStar XXIV is a high-power, all-electric propulsion satellite designed to provide broadcast and network services to customers in the Americas.

Satellite Operations

EchoStar's satellite operations provide telemetry, tracking, and command (TT&C) services, as well as satellite maintenance and repair services.

Hosted Payload Solutions

EchoStar's hosted payload solutions provide customers with a cost-effective way to launch and operate payloads on EchoStar's satellites.

8. EchoStar Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

EchoStar Corporation faces moderate threat from substitutes, as customers have limited alternatives for satellite-based services. However, the increasing adoption of fiber-optic and 5G networks may pose a threat to the company's services.

Bargaining Power Of Customers

EchoStar Corporation's customers have limited bargaining power due to the company's strong brand presence and limited alternatives in the satellite-based services market.

Bargaining Power Of Suppliers

EchoStar Corporation's suppliers have moderate bargaining power, as the company relies on a few key suppliers for satellite components and launch services. However, the company's strong relationships with suppliers mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low for EchoStar Corporation, as the satellite-based services market has high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry in the satellite-based services market is high, with several established players competing for market share. EchoStar Corporation faces intense competition from companies like Intelsat and SES.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	53.79%
Debt Cost	3.95%
Equity Weight	46.21%
Equity Cost	7.02%
WACC	5.36%
Leverage	116.39%

11. Quality Control: EchoStar Corporation passed 2 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Ubiquiti

A-Score: 5.0/10

Value: 0.0

Growth: 8.1

Quality: 8.4

Yield: 1.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

Credo Technology Group Holding

A-Score: 4.8/10

Value: 0.0

Growth: 9.4

Quality: 8.1

Yield: 0.0

Momentum: 10.0

Volatility: 1.3

1-Year Total Return ->

Belden

A-Score: 4.3/10

Value: 3.6

Growth: 6.0

Quality: 5.3

Yield: 0.0

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

EchoStar

A-Score: 4.0/10

Value: 7.1

Growth: 4.2

Quality: 1.8

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

Zebra Technologies

A-Score: 3.8/10

Value: 3.4

Growth: 5.4

Quality: 6.6

Yield: 0.0

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

Lumentum

A-Score: 3.5/10

Value: 2.2

Growth: 4.0

Quality: 2.3

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

32.35%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.36%

EchoStar Corporation - US2787681061

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SATS

1.c. Company Highlights

Lower Quality

Cheaper

Medium Volatility

Earnings Miss

Revenues Miss

Stable Momentum

Lower Growth

Strong Momentum

Earnings Beats

More Volatile

Fairly Valued

2. EchoStar's Strategic Shift: A New Era Unfolds

Financial Performance and Outlook

Valuation and Metrics

Strategic Investments and Future Plans

Tax Implications and Regulatory Environment

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.24%)

6. Segments

Pay-TV

Expected Growth: 4.6%

Retail Wireless

Expected Growth: 10.27%

Broadband and Satellite Services

Expected Growth: 8.38%

All Other and Eliminations

Expected Growth: 4.83%

5G Network Deployment

Expected Growth: 11.88%

7. Detailed Products

HughesNet

EchoStar Mobile

EchoStar XXI

EchoStar XXIV

Satellite Operations

Hosted Payload Solutions

8. EchoStar Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: EchoStar Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

82.0$

Current Price

82$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA