One-glance verdict
Within fair range
$32.46 our estimate vs market $75.32
Wall Street consensus: $103.94 (220.2% higher than our fair-value estimate)
132% above our estimate
Fundamentals snapshot
Viasat, Inc.
VSAT · NMS · Technology · Communication Equipment
Current price
$75.32
52-week range
$26.10 - $93.03
Market cap
$10.38B
Balance sheet
Distressed
0.30x Concerning
Net debt $5.19B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Returns 0.2% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 1/10 years.
- Risk Net debt grew 262.1% over 3 years.
- Risk Insider ownership is only 4.8% (peer median: 9.9%).
What this company does
Viasat, Inc.
Viasat provides internet and communication services using its own network of satellites, much like a cable company that operates from space. The company makes money by selling internet plans to homes and businesses, providing in-flight Wi-Fi to major airlines, and offering secure communication technology to government and military clients. Because building and launching satellites is very expensive, Viasat's success depends on signing large, long-term contracts to cover these costs and make a profit.
How the company got here
Viasat was founded in 1986 by three engineers who initially focused on providing engineering and proposal support for defense companies. For many years, the company was primarily known for its defense products, developing secure communication systems for the U.S. military. A major turning point came in 2011 with the launch of its own high-capacity satellite, ViaSat-1, which shifted the company's focus toward providing satellite internet services directly to consumers, especially in rural areas. This was followed by the even more powerful ViaSat-2 in 2017. A landmark event was the acquisition of British satellite operator Inmarsat in 2023, which significantly expanded Viasat's global reach and capabilities, particularly in providing connectivity to airplanes and ships.
What it actually does
Viasat is a global communications company that provides high-speed internet and secure networking services from space. Think of them as an internet service provider that uses satellites instead of cables to connect people and devices, especially in places where traditional internet is hard to get, like on an airplane, a ship at sea, or in a rural home. They design, build, and operate their own network, which includes the satellites in orbit, the antennas on the ground that talk to the satellites, and the equipment a customer uses, like a modem in a home or an antenna on a plane. This allows them to provide internet access, in-flight Wi-Fi for major airlines, secure communications for the military, and connectivity for businesses operating in remote locations.
Communication Services
This is Viasat's largest business segment, making up the majority of its revenue. It provides satellite-based internet and communication services to a wide range of customers who pay for connectivity. This includes providing in-flight Wi-Fi to passengers on commercial airlines and business jets, internet access for ships at sea and for businesses in energy or other remote industries, and home internet for people in rural areas. Following the acquisition of Inmarsat, this segment has a much larger global footprint, especially in the aviation and maritime markets.
Defense and Advanced Technologies
This segment is the foundation of Viasat's original business and remains a significant part of the company. It focuses on providing highly secure and reliable communication products and services to the U.S. government, allied foreign governments, and commercial customers. This includes things like encrypted data links for military aircraft, secure networking equipment for battlefield communications, and cybersecurity products to protect sensitive information. Instead of selling a monthly internet plan, this segment typically earns money through long-term government contracts for developing and supplying specialized, rugged communication technology.
What management is betting on now
Viasat's main focus is on integrating the recently acquired Inmarsat to create a single, powerful global communications network. A key part of this strategy is to combine the strengths of both companies' satellite fleets to offer more reliable and flexible services to customers, especially in high-value areas like in-flight and maritime connectivity. The company is also investing heavily in its next-generation ViaSat-3 satellites, which are designed to provide massive amounts of internet capacity across the globe. Management is also focused on expanding its services to governments and military customers by leveraging its combined commercial and defense technologies to provide secure and resilient communications.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$1.16B
Net income
$-51.74M
Diluted EPS
-0.38
Operating cash flow
$260.55M
Free cash flow
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Revenue
$1.17B
Net income
$58.82M
Diluted EPS
0.45
Operating cash flow
$322.30M
Free cash flow
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Revenue
$1.16B
Net income
$24.97M
Diluted EPS
0.18
Operating cash flow
$726.89M
Free cash flow
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Revenue
$1.14B
Net income
$-61.44M
Diluted EPS
-0.45
Operating cash flow
$282.24M
Free cash flow
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Revenue
$1.17B
Net income
$-56.43M
Diluted EPS
-0.43
Operating cash flow
$258.46M
Free cash flow
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Sources
Revenue
$1.15B
Net income
$-246.05M
Diluted EPS
-1.92
Operating cash flow
$298.44M
Free cash flow
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Revenue
$1.12B
Net income
$-158.41M
Diluted EPS
-1.23
Operating cash flow
$219.46M
Free cash flow
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Revenue
$1.12B
Net income
$-137.58M
Diluted EPS
-1.07
Operating cash flow
$239.19M
Free cash flow
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Is it cheap or expensive?
Fair value $32.46 vs current price $75.32
Wall Street consensus is the average analyst price target: $103.94 (220.2% higher than our fair-value estimate).
Our most-likely fair value is $32.46 a share — about 56.9% away from today's price of $75.32, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $5.2B. Interest coverage 0.3x.
Net debt
$5.19B
Interest coverage
0.30x
Viasat, Inc.'s profit covers its interest bill about 0.3 times over. and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
VSAT
BASELINE
Viasat, Inc.
Total debt $6.93B Interest coverage 0.30x This is the baseline the peer rows are being compared against.
Total debt $1.79B Interest coverage 2.67x +791% vs VSAT Carries about 8.9x more debt cushion than VSAT.
Total debt $419.15M Interest coverage 0.36x +19% vs VSAT Carries about 1.2x more debt cushion than VSAT.
Total debt $9.62M Interest coverage 2.89x +864% vs VSAT Carries about 9.6x more debt cushion than VSAT.
Total debt $2.99B Interest coverage -7.98x -100% vs VSAT This peer has almost no interest-payment cushion compared with VSAT.
What you should know
The case for and against VSAT
2 Rewards
2 Risks
Rewards
-
Returns 0.2% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 1/10 years.
Risks
-
Net debt grew 262.1% over 3 years.
-
Insider ownership is only 4.8% (peer median: 9.9%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
451.91x
P/B
2.21x
P/S
2.24x
EV/EBITDA
11.24x
PEG ratio
0.26x
Profitability
How much profit each dollar creates
Gross margin
33.2%
Operating margin
4.4%
Net margin
-0.6%
ROE
0.2%
ROA
0.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.47x
Current ratio
1.68x
Quick ratio
1.34x
Total debt
$6.93B
Total cash
$1.74B
Growth
How the business has been compounding
Revenue TTM
$4.63B
Revenue 5Y CAGR
17.7%
EPS TTM
-0.20
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$1.59B
Free CF TTM
$597.11M
FCF margin
12.9%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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