EchoStar ECHO
EchoStar Corporation is a telecommunications company that provides satellite and terrestrial connectivity services, including broadband and network solutions for consumers and businesses. EchoStar shows fragile financial health with net debt of 8.59x EBITDA and negative free cash flow conversion (-948.72%), reflecting a cash-burning business model. Its valuation (EV/EBITDA 21.77x) is demanding for a business with declining revenue (-4.0%), although positive momentum (18.23%) suggests recovery expectations.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
EchoStar Corporation is a telecommunications company that provides satellite and terrestrial connectivity services, including broadband and network solutions for consumers and businesses. EchoStar shows fragile financial health with net debt of 8.59x EBITDA and negative free cash flow conversion (-948.72%), reflecting a cash-burning business model. Its valuation (EV/EBITDA 21.77x) is demanding for a business with declining revenue (-4.0%), although positive momentum (18.23%) suggests recovery expectations.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.6 |
| Quality / Moat | 2.5 |
| Valuation | 3.0 |
| Growth | 3.0 |
| Dividend | 1.4 |
| Momentum | 7.0 |
| Risk & Context | 5.8 |
OVERALL SCORE: 3.7/10
Context and risks
EchoStar has net debt of 8.59x EBITDA, highly leveraged, and the rise in 10-year yields (5.17%) makes refinancing its debt more expensive. Additionally, its satellite telecom business has a long duration, reducing the present value of its future cash flows.
News considered in the analysis
- Is EchoStar Stock Underperforming the Nasdaq? — Listículo comparativo sin información nueva sobre la empresa.
- What EchoStar (ECHO)'s NIGCOMSAT JUPITER Gateway Win Means For Shareholders — Ganar un contrato de gateway con NIGCOMSAT amplía su red de conectividad, un avance moderado en su negocio de servicios satelitales.
- Morgan Stanley sees 45% upside in this SpaceX-linked stock — Upgrade de analista con potencial alcista; es una opinión, no un hecho, y el mercado ya lo ha descontado parcialmente.
- Two Telecom Giants, Two Big Dividends. Which One Can Investors Actually Count On? — Comparativa genérica de dividendos sin información específica sobre EchoStar.
- AT&T Sees Fiber, Spectrum Deals Fueling Accelerated Growth and Shareholder Returns — Noticia sobre un competidor (AT&T) sin impacto directo en los fundamentales de EchoStar.
Verdict: Hold; high leverage and cash burn are significant risks that limit attractiveness despite positive momentum.
Main risk: Extreme leverage (Net Debt/EBITDA of 8.59x) combined with negative free cash flow conversion (-948.72%) jeopardizes its ability to fund operations and refinance debt if rates remain high.
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