SATS
EchoStar Corp
TMT
03/20/2017
Presented
| Date | 03/16/2017 |
| Price | $55.17 |
| Market Cap | $5.27B |
| Ent Value | $5.56B |
| P/E Ratio | 28.59x |
| Book Value | $41.53 |
| Div Yield | 0% |
| Shares O/S | 95.56M |
| Ave Daily Vol | 180,091 |
| Short Int | 2.00% |
Current
| Price | $25.79 |
| Market Cap | $7.01B |
| EchoStar Corp. is engaged in the design, development, and distribution of digital set-top boxes and related products for direct-to-home satellite service providers. The company operates through the following business segments: EchoStar Technologies, Hughes and EchoStar Satellite Services. The EchoStar Technologies segment designs, develops and distributes digital set-top boxes and related products and technology, for satellite TV service providers, telecommunication companies and international cable companies. It also provides digital broadcast operations, including satellite uplinking/downlinking, transmission services, signal processing, conditional access management and other services. The Hughes segment provides satellite broadband internet access to North American consumers and broadband network services and equipment to domestic and international enterprise markets. It also provides managed services to large enterprises and solutions to customers for mobile satellite systems. The EchoStar Satellite Services segment owns and leases in-orbit satellites and related FCC licenses to lease capacity on a full time and occasional use basis primarily to DISH Network, and secondarily to Dish Mexico, the Unites States government service providers, state agencies, Internet service providers, broadcast news organizations, programmers and private enterprise customers. EchoStar was founded by Charlie Ergen on October, 2007 and is headquartered in Englewood, CO. |
Publicly traded companies mentioned herein: Dish Network Corp (DISH), EchoStar Corp (SATS), Inmarsat PLC (ISAT LN), ViaSat Inc (VSAT)
Highlights
The presenter is long shares EchoStar (SATS) at $55 and said he has held the position for just under one year. His bullishness is based on the optionality he sees in some of SATS’ “hidden assets”, as well as a sum-of-the-parts analysis that yields a $67 fair value using reasonable multiples on the core business segments. With imminent subscriber growth at Hughes following the successful launch of EchoStar XIX (aka Jupiter 2), over $3 billion of cash on the balance sheet, and the potential for numerous catalysts to play out over the next 12-24 months (including M&A, and positive developments with either S-band spectrum or Dish Mexico), he sees limited downside risk and upside to at least the $75-80 range in his base case. In a best-case scenario, the stock could be worth $100 or more.
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