EchoStar Corporation (ECHO)

Conclusion

EchoStar Corporation provides pay-TV, wireless and broadband and satellite services in the United States and several other markets. At 101.19 USD on 9 November 2026, the shares carry a market capitalisation of 16.15 billion USD and an enterprise value of 11.86 billion USD.

The verdict is fair. Enterprise value to EBITDA is 0.8x against a ten-year median of 5.7x, a premium of -85.5%, and price to sales is 1.3x against a median of 1.5x, a premium of -9.3%. Price to book is 0.95x against a median of 0.77x, a premium of 23.3%. The fair value band runs from 89.23 to 133.84 USD with a midpoint of 111.54 USD, which is also the fair value from historical multiples. The margin of safety is 10.2% at the current price. A discounted cash flow value is not available because free cash flow is negative, and no reverse DCF is given, so the growth the price implies cannot be set against the growth delivered. Revenue grew at a compound 16.9% over ten years but fell at 7.0% over three.

What holds the case up is a net cash position, with net debt to EBITDA at -0.30, a current ratio of 10.16, and a TTM return on invested capital of 85.7% against a WACC of 9.7%. What would break it is weak cash generation: free cash flow conversion is -5.4% on a trailing basis, the share count rose 24.1% a year over five years, and the Piotroski score is 2 out of 9. The Ohlson model also estimates insolvency risk as high, at about 22.0%.

Financial health

Financial strength is green, held up by net cash (net debt to EBITDA of -0.30) and a current ratio of 10.16, with interest coverage of 6.88 on watch. The quick ratio is 9.90 and debt to equity is 0.57, all as of 30 September 2026. The Altman Z-score is 2.85, in the grey zone. The Altman model was designed for manufacturers, and EchoStar is a telecom services company, so this reading is indicative only. Insolvency risk: high, about 22.0% by the estimate of the Ohlson model over one to two years. That estimate uses annual figures as of 31 December 2025, while the ratios above are as of 30 September 2026, so the two are not directly comparable.

Earnings quality

Earnings quality is red, pulled down by weak cash conversion, dilution and a low Piotroski score. Trailing free cash flow conversion is -5.4%, and free cash flow after stock-based compensation is -567.0 million USD. The five-year free cash flow conversion is not available. The accrual ratio is -0.28 as of 2025, which is a favourable sign. Stock-based compensation is 0.3% of revenue. The share count grew at a compound 24.1% a year over five years, so there were no net buybacks. The Piotroski score is 2 out of 9. The Beneish M-score is -3.89, a reading that points to unlikely earnings manipulation. Over the last eight quarters the company beat estimates five times and missed twice, with an average surprise of 252.9%. Estimates for the current year rose 2.7% over 90 days, while next year's estimates fell 19.8% over the same period.

Profitability

Profitability is green. The TTM operating margin is 11.2% against a ten-year median of 7.4%, and the gross margin is 29.8% against a median of 40.1%. The TTM net margin is 81.3% against a median of -1.4%. Operating margin stability is 94.7%. Return on invested capital is 85.7% against a WACC of 9.7%, a ROIC minus WACC value of 76.0%, which creates value. Its five-year median is 0.7%. The DuPont split for 2025 shows a net margin of -96.6%, an asset turnover of 0.35 and an equity multiplier of 7.46. Return on equity is 58.4% on a trailing basis, and leverage supports it, so that figure should not be read alone. The annual DuPont net margin differs sharply from the trailing figure, and the data do not explain the difference.

Growth

Growth is red. Revenue compounded at 16.9% over ten years and at 51.4% over five, but at -7.0% over three years. Revenue grew in only 3 of the 10 comparable years. The EPS growth rate is not available. Next year's EPS estimate is down 71.4% from the current year, which is the weakest growth signal in the data. The company's medium-term record is volatile and recent growth has reversed.

Valuation

Valuation is yellow, with a fair verdict and a margin of safety of 10.2%. The price to earnings ratio is 1.6x and the earnings yield is 61.2%, but the ten-year median for this multiple is not available. Enterprise value to EBITDA (0.8x) and price to sales (1.3x) sit below their medians, while price to book (0.95x) sits above its median of 0.77x. Free cash flow is negative, so the current price to free cash flow is not available, against a historical median of 25.6x. The discounted cash flow value is not available. The model uses a discount rate of 10.4% and a long-term growth rate of 2.5%. The fair value band of 89.23 to 133.84 USD is an order-of-magnitude estimate built on fixed assumptions, including a 5% equity risk premium and capped growth. It is not a price target. The company pays no dividend, so the forward yield is 0%.

Risks

Negative free cash flow means the business is consuming cash, and a lasting shortfall would erode the net cash position that now supports the financial health assessment. Continued dilution, with the share count up 24.1% a year, would reduce each shareholder's claim on future earnings. The Ohlson estimate of high insolvency risk, about 22.0%, and the grey Altman zone both signal balance-sheet pressure that the net cash figure does not resolve. A further cut in next year's EPS estimate, down 71.4% already, would weaken the earnings base behind the fair value. The tax rate of 21% is assumed rather than reported. Not available: the discounted cash flow value, the reverse DCF, the EPS growth rate, the earnings multiple median, the current price to free cash flow, and five-year free cash flow conversion. This analysis also lacks a debt maturity schedule and revenue by segment, so the timing of obligations and the source of growth cannot be assessed.