Overall Score

Profitability Returns

Returns remain weak, with ROIC at 0.05%, ROE at -0.64%, and ROA at -0.19%.

Operating profitability is modest, with EBIT margin at 10.1% and operating margin at 2.35%, but net margin is still slightly negative at -0.64%.

Gross margin is 30.4%, indicating some pricing power, but not enough to translate into durable bottom-line returns.

Cash Generation Capital Efficiency

Free cash flow remains positive, with FCF yield at 4.9% and FCF of $598.9M TTM.

Cash conversion is acceptable, with operating cash flow of $1.65B and a current ratio of 1.68.

Capital intensity is meaningful, with capex at 21.9% of revenue and capex consuming 63.7% of operating cash flow.

Balance Sheet Resilience

Liquidity is adequate, with a current ratio of 1.68 and quick ratio of 1.52.

Leverage remains elevated, with net debt to EBITDA at 2.89x and debt to equity at 1.49x.

Interest coverage is weak at 0.33x, limiting financial flexibility despite solid cash balances of $12.75 per share.

Competitive Positioning

VSAT appears to have some scale and recurring infrastructure characteristics, but the moat is not clearly reflected in returns.

Revenue per share of $33.97 and gross margin of 30.4% suggest a stable business model, though not a dominant one.

The company’s valuation is not distressed, with EV/sales at 3.68x and EV/EBITDA at 9.49x, implying the market still assigns some franchise value.