SATS

EchoStar Corp

TMT


Presented:12/19/2018
Price:$35.99
Cap:$3.46B
Current Price:$25.79
Cap:$7.01B

Presented

Date12/19/2018
Price$35.99
Market Cap$3.46B
Ent Value$4.68B
P/E Ratio9.06x
Book Value$44.10
Div Yield0%
Shares O/S96.24M
Ave Daily Vol454,241
Short Int4.59%

Current

Price$25.79
Market Cap$7.01B
EchoStar Corp. engages in the design, development, and distribution of digital set-top boxes and products for direct-to-home satellite service providers. It operates through the following business segments: Hughes, and EchoStar Satellite Services. The Hughes segment provides broadband satellite technologies and broadband services to home and small office customers and network technologies, managed services, and communication solutions. The ESS segment owns and leases in-orbit satellites and licenses to lease capacity on a full time and occasional use. The company was founded by Charlie William Ergen in October 2007 and is headquartered in Englewood, CO.

Publicly traded companies mentioned herein: DISH Network Corp (DISH), EchoStar Corp (SATS), Loral Space & Communications Inc (LORL), Telesat Canada (private with public debt)

Highlights

The presenter is long shares of EchoStar Corp (SATS), a global provider of satellite services for homes and businesses. The stock experienced a major sell-off this year, leaving it down ~40% YTD despite nothing changing fundamentally. At ~$36/share, he sees large pockets of “hidden value” and “several ways to win.” He is optimistic about EBITDA growth, and using a SOTP analysis he views the current valuation of 4.2x 2018 EBITDA as a substantial discount to his fair value estimate. The presenter sees an upside of ~$70 and minimal fundamental downside over the next year, while noting it is a volatile security.

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Idea Discussion

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