EchoStar Corporation (ECHO)
Valuation Overview•Is EchoStar Corporation Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Fragile underlying quality score of 12/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
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Verdict: Highly distressed profile flashing severe fundamental warning signs.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
ECHO struggles with subpar profitability and pressured margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company is facing top-line contraction (-7.0% 3Y CAGR) paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 11.2%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $1.1B | -5.2% | -7.0% | +51.4% | +16.9% | |
| EBITDA | $234.1M | — | -24.0% | — | — | |
| Net Income | $2.8B | -12026.9% | — | — | — | |
| EPS (Diluted) | $7.97 | -11356.8% | — | — | — | |
| Free Cash Flow | $48.1M | -264.5% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 29.8% | 30.5% | 32.6% | 44.7% |
| Operating Margin | 11.2% | -1.4% | 5.0% | 6.6% |
| Net Margin | 81.3% | -35.8% | -16.3% | -6.2% |
| FCF Margin | -4.4% | -4.3% | -1.8% | 2.1% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q4'26Latest | $3.07 | — | — | ||
| Q3'26 | $-0.95 | $-3.65 | -284.2% | ||
| Q2'26 | $-2.69 | $-4.53 | -68.1% | ||
| Q1'26 | $-0.02 | $-4.71 | -23450.0% | ||
| Q4'25 | — | $-0.28 | — | ||
| Q3'25 | — | $-0.17 | — | ||
| Q3'25 | $-0.93 | $-1.06 | -13.4% | ||
| Q2'25 | $-0.90 | $-0.71 | +21.1% |
Total return is +34.7% (1Y), outperforming the benchmark by +25.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -15.2% | -22.8% | — |
| 1Y | +34.7% | +25.0% | +1.2% |
| 3YCAGR | +107.8% | +88.9% | +8.2% |
| 5YCAGR | +29.5% | +20.2% | +3.3% |
| 10YCAGR | +7.5% | -5.6% | — |
The S&P 500 is at 29.9x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about EchoStar Corporation (ECHO) valuation, health, and returns.
EchoStar Corporation is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Limited: Expensive versus peers compared to industry peers. trading near fair value (DCF: $77.84)
EchoStar Corporation has multiple valuation anchors: DCF Intrinsic Value: $77.84 | Peer Relative Fair Value: $4.56 | Wall Street Analyst Target: $160.00 (implying +69.7% upside). A convergence of these signals offers higher conviction.
EchoStar Corporation displays poor financial health with a composite quality score of 12/100, supported by a Altman Z-Score of -0.2 (distress zone), Piotroski F-Score of 2/9, Return on Invested Capital (ROIC) of -0.2%.
EchoStar Corporation does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
EchoStar Corporation's current growth trajectory is Stable. The company achieved -5.2% 1Y revenue growth and -11356.8% 1Y EPS growth, compared to its 3Y revenue CAGR of -7.0%.
Wall Street consensus is Buy based on 8 analysts, beating EPS expectations in 33% of recent quarters with a -4-quarter streak. The consensus price target represents a +69.7% change from current levels.
Investment risks for EchoStar Corporation include: -40.8% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 1.26x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.