U.S. Markets closed
  • S&P Futures

    3,435.75
    -16.00 (-0.46%)
     
  • Dow Futures

    28,064.00
    -125.00 (-0.44%)
     
  • Nasdaq Futures

    11,625.75
    -37.75 (-0.32%)
     
  • Russell 2000 Futures

    1,623.60
    -12.00 (-0.73%)
     
  • Crude Oil

    39.29
    -0.56 (-1.41%)
     
  • Gold

    1,902.20
    -3.00 (-0.16%)
     
  • Silver

    24.48
    -0.19 (-0.79%)
     
  • EUR/USD

    1.1846
    -0.0022 (-0.1895%)
     
  • 10-Yr Bond

    0.8410
    -0.0070 (-0.83%)
     
  • Vix

    27.55
    -0.56 (-1.99%)
     
  • GBP/USD

    1.3034
    -0.0004 (-0.0326%)
     
  • USD/JPY

    104.8410
    +0.1510 (+0.1442%)
     
  • BTC-USD

    13,107.04
    +86.14 (+0.66%)
     
  • CMC Crypto 200

    263.70
    +2.24 (+0.86%)
     
  • FTSE 100

    5,860.28
    +74.63 (+1.29%)
     
  • Nikkei 225

    23,522.88
    +6.29 (+0.03%)
     

Reflecting on EchoStar's (NASDAQ:SATS) Share Price Returns Over The Last Three Years

Simply Wall St
·3 mins read

If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. But the long term shareholders of EchoStar Corporation (NASDAQ:SATS) have had an unfortunate run in the last three years. Sadly for them, the share price is down 50% in that time. And the ride hasn't got any smoother in recent times over the last year, with the price 24% lower in that time. On the other hand the share price has bounced 9.1% over the last week.

See our latest analysis for EchoStar

EchoStar wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last three years, EchoStar saw its revenue grow by 1.9% per year, compound. That's not a very high growth rate considering it doesn't make profits. It's likely this weak growth has contributed to an annualised return of 15% for the last three years. It can be well worth keeping an eye on growth stocks that disappoint the market, because sometimes they re-accelerate. Keep in mind it isn't unusual for good businesses to have a tough time or a couple of uninspiring years.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
earnings-and-revenue-growth

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. If you are thinking of buying or selling EchoStar stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

Investors in EchoStar had a tough year, with a total loss of 24%, against a market gain of about 24%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 7% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand EchoStar better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with EchoStar , and understanding them should be part of your investment process.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.