This stock is dirt cheap.
But is it undervalued ?
For the past seven years, Dish has maintained a profit margin between 10% and 14%. And for the same period, they managed to grow equity from 5B to 18B dollars. Very good.
But, at the same time, the lowest debt/equity was 1.15 in 2020, which is too high. All the other years it was higher, with the highest 3.57 in 2016. They managed their cash well, except in 2022 when free cash flow went negative, which probably means more debt to come. All in all, with their debt going up and down, it's as if they're on a rollercoaster of leverage.
Dish has decent margins, but I think they need far bigger chunk of their revenue to get their debt under control.
To make things trickier, Dish's price ratios such as price/earnings and price/sales are at historic lows, which is usually an indicator of undervaluation, but is it valid in this case ?
Honestly, it's hard to say. With all the company's struggles, the most appropriate answer would be - I don't know.
But is it undervalued ?
For the past seven years, Dish has maintained a profit margin between 10% and 14%. And for the same period, they managed to grow equity from 5B to 18B dollars. Very good.
But, at the same time, the lowest debt/equity was 1.15 in 2020, which is too high. All the other years it was higher, with the highest 3.57 in 2016. They managed their cash well, except in 2022 when free cash flow went negative, which probably means more debt to come. All in all, with their debt going up and down, it's as if they're on a rollercoaster of leverage.
Dish has decent margins, but I think they need far bigger chunk of their revenue to get their debt under control.
To make things trickier, Dish's price ratios such as price/earnings and price/sales are at historic lows, which is usually an indicator of undervaluation, but is it valid in this case ?
Honestly, it's hard to say. With all the company's struggles, the most appropriate answer would be - I don't know.