EchoStar Corp. (SATS) Company Overview & Stock Price Forecast
This article provides a brief analysis and stock rating for EchoStar Corp. (SATS) including an updated stock price target. Additional data on the company’s earnings yield, price/earnings ratio, return on invested capital for SATS stock and YTD performance are discussed as well.
EchoStar Fundamentals
Stock Price Target: $39.17
In the section below, we discuss the earnings yield, P/E, return on invested capital and YTD performance for EchoStar in comparison to the Telecom Equipment industry and the S&P 500.
EchoStar is a Small Cap company with a Market Cap of $2.31B.
The current earnings yield for EchoStar is 37.03%, in comparison to 2.94% for the S&P 500 and 1.61% for the 10-year treasury bond. The median earnings yield for the Telecom Equip industry is 6.89%.
EchoStar is currently trading at a P/E of 16.94. The P/E for the Telecom Equip industry is 12.65 and the P/E for the S&P 500 is 34.01.
EchoStar is currently trading at a P/S of 1.32. The P/S for the Telecom Equip industry is 3.29 and the P/S for the S&P 500 is 3.09.
EchoStar is currently trading at a P/B of 0.69. The P/B for the Telecom Equip industry is 4.84 and the P/B for the S&P 500 is 4.58.
Return on Invested Capital (ROIC)
EchoStar ROIC is currently 2.76% in comparison to 6.28% for the Telecom Equip industry and 8.6% for the S&P 500.
The YTD performance for EchoStar is 20.91%. The Telecom Equip industry has a YTD performance of -9.67% in comparison to the YTD S&P 500 performance of 16.26%.
Recent Financial Results
- Revenue increased $40.4M YoY driven by higher equipment sales ($26.1M to enterprise customers and higher sales of broadband services of $12.4M)
- EBITDA increased 16% to $25.8M YoY
- Net income increased to $35.0M primarily due to higher operating income
- Total Hughes broadband subscribers of approximately 1.5M as of June 2021 (US subscribers decreased by 20K and Latin America by 9K)
- In Q2 2021 67% of Hughes segment revenue was from consumer customers and 33% from enterprise customers
- Cash and cash equivalents of $1.6B as of June 2021
- Repurchased 2.3M shares of common stock
Stock Price Target: $39.17
EchoStar Company Overview
EchoStar Corporation provides broadband satellite technology and broadband Internet services. It operates in two primary segments: Hughes and EchoStar Satellite Services (ESS).
The Hughes segment provides broadband satellite technologies and internet services for home and small to medium-sized businesses as well as satellite services to service providers and enterprise customers. This segment also provides telecom networks of satellite ground systems and terminals for enterprise customers.
The ESS segment provides satellite services using its owned and leased in-orbit satellites to internet service providers, broadcast news organizations, content providers and private enterprise customers worldwide.
EchoStar was incorporated in 2007 and is headquartered in Englewood, Colorado. The current CEO is Michael Dugan.
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This material is provided for informational purposes only and is not financial advice. The information contained herein should not solely be used for the formation of an investment decision, whether you are a long term or short term investor.