It hasn't been a great morning session for EchoStar investors, who have watched their shares sink by -1.1% to a price of $76.2. Some of you might be wondering if it's time to buy the dip. If you are considering this, make sure to check the company's fundamentals first to determine if the shares are fairly valued at today's prices.
EchoStar Has an Attractive P/B Ratio but a Worrisome P/E Ratio:
EchoStar Corporation, together with its subsidiaries, provides networking technologies and services in the United States and internationally. The company belongs to the Consumer Discretionary sector, which has an average price to earnings (P/E) ratio of 20.93 and an average price to book (P/B) ratio of 2.93. In contrast, EchoStar has a trailing 12 month P/E ratio of -71.9 and a P/B ratio of 1.11.
EchoStar has moved 217.4% over the last year compared to 17.1% for the S&P 500 — a difference of 200.3%. EchoStar has a 52 week high of $85.37 and a 52 week low of $14.9.
The Business Is Unprofitable and Its Balance Sheet Is Highly Leveraged:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $1,886 | $1,888 | $19,819 | $18,634 | $17,016 | $15,826 |
| Operating Margins | 4% | 6% | 17% | 12% | -2% | -2% |
| Net Margins | -3% | -3% | 13% | 14% | -10% | -1% |
| Net Income (M) | -$63 | -$52 | $2,521 | $2,537 | -$1,635 | -$125 |
| Net Interest Expense (M) | $251 | $148 | $96 | $57 | $14 | $1,430 |
| Depreciation & Amort. (M) | $491 | $525 | $491 | $458 | $1,598 | $1,930 |
| Diluted Shares (M) | 97 | 98 | 31 | 31 | 27 | 274 |
| Earnings Per Share | -$0.65 | -$0.41 | $7.94 | $8.05 | -$6.28 | -$0.44 |
| EPS Growth | n/a | 36.92% | 2036.59% | 1.39% | -178.01% | 92.99% |
| Avg. Price | $26.58 | $29.84 | $25.18 | $23.43 | $16.57 | $77.04 |
| P/E Ratio | -40.89 | -72.78 | 2.79 | 2.56 | -2.64 | -175.09 |
| Free Cash Flow (M) | $238 | $126 | $3,036 | $571 | -$668 | -$292 |
| CAPEX (M) | $419 | $409 | $1,619 | $3,050 | $3,101 | $1,545 |
| EV / EBITDA | 10.28 | 6.93 | 0.85 | 0.38 | 29.54 | 27.22 |
| Total Debt (M) | $4,779 | $2,393 | $1,496 | $1,497 | $39,435 | $27,643 |
| Net Debt / EBITDA | 5.78 | 2.35 | 0.25 | -0.37 | 28.49 | 14.35 |
| Current Ratio | 5.72 | 2.04 | 4.19 | 1.05 | 0.61 | 1.39 |
