EchoStar Corporation Fundamental Analysis (NASDAQ: ECHO)
EchoStar Corporation Fundamental Analysis (NASDAQ: ECHO)
EchoStar Corporation (NASDAQ: ECHO) shows strong financial fundamentals with a PE ratio of 3.02, profit margin of 81.29%, and ROE of 92.99%. The company generates $6.7B in annual revenue with weak year-over-year growth of -5.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ECHO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentECHO demonstrates superior asset utilization.
Valuation Score
ExcellentECHO trades at attractive valuation levels.
Growth Score
WeakECHO faces weak or negative growth trends.
Financial Health Score
ExcellentECHO maintains a strong and stable balance sheet.
Profitability Score
ModerateECHO maintains healthy but balanced margins.
Key Financial Metrics
Is ECHO Expensive or Cheap?
P/E Ratio
ECHO trades at 3.02 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ECHO's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values EchoStar Corporation at 1.77 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.40 times EBITDA. This is generally considered low.
How Well Does ECHO Make Money?
Net Profit Margin
For every $100 in sales, EchoStar Corporation keeps $81.29 as profit after all expenses.
Operating Margin
Core operations generate 11.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $92.99 in profit for every $100 of shareholder equity.
ROA
EchoStar Corporation generates $27.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
EchoStar Corporation generates limited operating cash flow of $-46.10M, signaling weaker underlying cash strength.
Free Cash Flow
EchoStar Corporation generates weak or negative free cash flow of $-292.52M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.83 in free cash annually.
FCF Yield
ECHO converts -3.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
3.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.007
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.57
vs 25 benchmark
Current Ratio
Current assets to current liabilities
10.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.93
vs 25 benchmark
ROA
Return on assets percentage
0.27
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How ECHO Stacks Against Its Sector Peers
| Metric | ECHO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 3.02 | 18.71 | Better (Cheaper) |
| ROE | 92.99% | 905.00% | Weak |
| Net Margin | 81.29% | 1010.00% | Weak |
| Debt/Equity | 0.57 | -0.06 (disorted) | Distorted |
| Current Ratio | 10.16 | 1.82 | Strong Liquidity |
| ROA | 27.24% | 295.00% | Weak |
ECHO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews EchoStar Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
170.62%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-12194.11%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-106.33%
Industry Style: Growth, Technology, Streaming
Declining