9 Best Satellite Communications for February 2026
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Market Overview & Selection Criteria
The satellite communications sector is experiencing dynamic shifts driven by expanding global connectivity demands, IoT proliferation, and advancements in low-earth orbit (LEO) networks. This watchlist features 9 satellite communications stock picks selected using ValueSense's proprietary intrinsic value methodology, focusing on undervalued stocks with high quality ratings, positive 1Y returns where applicable, and potential for margin improvement. Criteria emphasize discrepancies between current market prices and intrinsic value estimates, alongside metrics like ROIC, FCF margins, revenue growth, and debt levels. These top stocks to buy now span large-cap leaders like Intel to smaller innovators, offering investment opportunities in a high-growth niche projected for sustained expansion.
Featured Stock Analysis
Stock #1: Intel Corporation (INTC)
| Metric | Value |
|---|---|
| Market Cap | $233.1B |
| Quality Rating | 4.7 |
| Intrinsic Value | $76.4 |
| 1Y Return | 132.2% |
| Revenue | $52.9B |
| Free Cash Flow | ($4,949.0M) |
| Revenue Growth | (0.5%) |
| FCF margin | (9.4%) |
| Gross margin | 35.1% |
| ROIC | (1.2%) |
| Total Debt to Equity | 36.9% |
Investment Thesis
Intel Corporation (INTC) stands out in the satellite communications ecosystem with a Quality rating of 4.7 and an intrinsic value of $76.4, suggesting significant undervaluation relative to its $233.1B market cap. Despite recent challenges, including $4,949.0M free cash flow and 0.5% revenue growth on $52.9B revenue, the company's 132.2% 1Y return highlights resilience. Gross margin at 35.1% and manageable 36.9% total debt to equity provide a foundation for recovery, positioning INTC as a foundational player in chip technology critical for satellite infrastructure. ValueSense analysis reveals potential for ROIC improvement from 1.2%, driven by strategic pivots in foundry services and AI-enabled comms.
Key Catalysts
- Strong 1Y return of 132.2% indicating momentum recovery
- High intrinsic value $76.4 vs. market perception for re-rating
- Solid gross margin 35.1% supporting scalability in satellite tech
Risk Factors
- Negative free cash flow $4,949.0M straining liquidity
- Declining revenue growth (0.5%) amid competition
- Low ROIC (1.2%) signaling efficiency challenges
Stock #2: EchoStar Corporation (SATS)
| Metric | Value |
|---|---|
| Market Cap | $32.4B |
| Quality Rating | 5.6 |
| Intrinsic Value | $69.8 |
| 1Y Return | 312.2% |
| Revenue | $15.2B |
| Free Cash Flow | ($1,089.2M) |
| Revenue Growth | (45.0%) |
| FCF margin | (7.2%) |
| Gross margin | 30.0% |
| ROIC | (74.3%) |
| Total Debt to Equity | 840.3% |
Investment Thesis
EchoStar Corporation (SATS), with a $32.4B market cap, earns a 5.6 Quality rating and $69.8 intrinsic value, bolstered by a remarkable 312.2% 1Y return. Operating on $15.2B revenue, it faces headwinds like 45.0% revenue growth and $1,089.2M free cash flow, with FCF margin at 7.2% and ROIC at 74.3%. However, 30.0% gross margin and its Dish Network integration offer pathways to satellite broadband dominance. ValueSense data underscores SATS as an undervalued stock in comms, where debt management from 840.3% total debt to equity could unlock value.
Key Catalysts
- Exceptional 1Y return 312.2% from strategic mergers
- Intrinsic value $69.8 pointing to upside potential
- Revenue scale $15.2B in pay-TV to satellite transition
Risk Factors
- Sharp revenue decline (45.0%) pressuring operations
- High debt load (840.3% total debt to equity)
- Negative ROIC (74.3%) and FCF ($1,089.2M)
Stock #3: Suzano S.A. (SUZ)
| Metric | Value |
|---|---|
| Market Cap | $11.9B |
| Quality Rating | 6.6 |
| Intrinsic Value | $16.6 |
| 1Y Return | -12.4% |
| Revenue | R$51.2B |
| Free Cash Flow | R$5,427.4M |
| Revenue Growth | 17.4% |
| FCF margin | 10.6% |
| Gross margin | 34.4% |
| ROIC | 0.4% |
| Total Debt to Equity | 220.5% |
Investment Thesis
Suzano S.A. (SUZ), a $11.9B market cap commodities-linked player, boasts a top-tier 6.6 Quality rating and $16.6 intrinsic value. Positive metrics include R$51.2B revenue, R$5,427.4M free cash flow (10.6% FCF margin), and 17.4% revenue growth, with 34.4% gross margin and 0.4% ROIC. Despite -12.4% 1Y return and 220.5% total debt to equity, its pulp production ties into satellite-enabled supply chains make it a unique value stock pick. ValueSense highlights SUZ's cash generation as a buffer for sector volatility.
Key Catalysts
- Robust revenue growth 17.4% and positive FCF R$5,427.4M
- High quality rating 6.6 with strong gross margin 34.4%
- Intrinsic value $16.6 amid commodity demand
Risk Factors
- Negative 1Y return -12.4% from market cycles
- Elevated debt (220.5% total debt to equity)
- Modest ROIC 0.4% limiting near-term expansion
Stock #4: Globalstar, Inc. (GSAT)
| Metric | Value |
|---|---|
| Market Cap | $7,911.8M |
| Quality Rating | 6.8 |
| Intrinsic Value | $5.1 |
| 1Y Return | 177.6% |
| Revenue | $262.2M |
| Free Cash Flow | $827.0M |
| Revenue Growth | 8.5% |
| FCF margin | 315.4% |
| Gross margin | 38.3% |
| ROIC | (0.0%) |
| Total Debt to Equity | 154.8% |
Investment Thesis
Globalstar, Inc. (GSAT) features a $7,911.8M market cap, 6.8 Quality rating, and $5.1 intrinsic value, with standout 177.6% 1Y return. On $262.2M revenue and 8.5% growth, it generates $827.0M free cash flow (315.4% FCF margin) and 38.3% gross margin, though ROIC is 0.0% and debt at 154.8%. This satellite stock pick excels in IoT connectivity, per ValueSense, with exceptional margins signaling operational leverage potential despite scale constraints.
Key Catalysts
- Phenomenal FCF margin 315.4% and positive FCF $827.0M
- Strong 1Y return 177.6% and revenue growth 8.5%
- High quality rating 6.8 for niche leadership
Risk Factors
- Neutral ROIC (0.0%) indicating capital inefficiencies
- Debt levels (154.8% total debt to equity)
- Smaller revenue base $262.2M vs. peers
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Stock #5: Viasat, Inc. (VSAT)
| Metric | Value |
|---|---|
| Market Cap | $5,930.6M |
| Quality Rating | 6.7 |
| Intrinsic Value | $96.5 |
| 1Y Return | 388.9% |
| Revenue | $4,582.8M |
| Free Cash Flow | $1,340.7M |
| Revenue Growth | 1.2% |
| FCF margin | 29.3% |
| Gross margin | 38.3% |
| ROIC | (1.4%) |
| Total Debt to Equity | 99.7% |
Investment Thesis
Viasat, Inc. (VSAT), at $5,930.6M market cap, holds a 6.7 Quality rating and compelling $96.5 intrinsic value, fueled by 388.9% 1Y return. With $4,582.8M revenue, 1.2% growth, $1,340.7M FCF (29.3% margin), and 38.3% gross margin, it navigates 1.4% ROIC and 99.7% debt. ValueSense positions VSAT as a top satellite communications stock due to broadband expansion and acquisition synergies.
Key Catalysts
- Massive 1Y return 388.9% from growth initiatives
- Positive FCF $1,340.7M and solid margins (29.3% FCF)
- Attractive intrinsic value $96.5 for revaluation
Risk Factors
- Negative ROIC (1.4%) amid integration costs
- Moderate revenue growth 1.2%
- Debt ratio (99.7% total debt to equity)
Stock #6: Iridium Communications Inc. (IRDM)
| Metric | Value |
|---|---|
| Market Cap | $2,147.4M |
| Quality Rating | 7.2 |
| Intrinsic Value | $48.9 |
| 1Y Return | -29.9% |
| Revenue | $871.7M |
| Free Cash Flow | $305.2M |
| Revenue Growth | 7.3% |
| FCF margin | 35.0% |
| Gross margin | 75.5% |
| ROIC | 9.7% |
| Total Debt to Equity | 401.7% |
Investment Thesis
Iridium Communications Inc. (IRDM) has a $2,147.4M market cap, leading 7.2 Quality rating, and $48.9 intrinsic value. Despite -29.9% 1Y return, $871.7M revenue shows 7.3% growth, $305.2M FCF (35.0% margin), 75.5% gross margin, and positive 9.7% ROIC, offset by 401.7% debt. ValueSense analysis flags IRDM's network reliability as key for undervalued stocks in global satcom.
Key Catalysts
- Highest quality rating 7.2 and positive ROIC 9.7%
- Strong gross 75.5% and FCF margins 35.0%
- Steady revenue growth 7.3% in certified networks
Risk Factors
- Recent 1Y decline -29.9%
- High debt (401.7% total debt to equity)
- Scale limitations ($871.7M revenue)
Stock #7: Gilat Satellite Networks Ltd. (GILT)
| Metric | Value |
|---|---|
| Market Cap | $1,107.0M |
| Quality Rating | 6.5 |
| Intrinsic Value | $13.1 |
| 1Y Return | 173.6% |
| Revenue | $314.7M |
| Free Cash Flow | $33.3M |
| Revenue Growth | 3.9% |
| FCF margin | 10.6% |
| Gross margin | 30.2% |
| ROIC | 3.5% |
| Total Debt to Equity | 16.6% |
Investment Thesis
Gilat Satellite Networks Ltd. (GILT), with $1,107.0M market cap, scores 6.5 Quality rating and $13.1 intrinsic value, plus 173.6% 1Y return. $314.7M revenue grows 3.9%, yielding $33.3M FCF (10.6% margin), 30.2% gross margin, 3.5% ROIC, and low 16.6% debt. This makes GILT a balanced stock watchlist contender per ValueSense, emphasizing ground equipment efficiency.
Key Catalysts
- Impressive 1Y return 173.6% and positive ROIC 3.5%
- Healthy FCF $33.3M with low debt 16.6%
- Intrinsic value $13.1 supporting growth
Risk Factors
- Smaller scale revenue $314.7M
- Modest growth 3.9%
- Competitive pressures in networks
Stock #8: SES AI Corporation (SES)
| Metric | Value |
|---|---|
| Market Cap | $782.9M |
| Quality Rating | 5.8 |
| Intrinsic Value | $1.2 |
| 1Y Return | 93.3% |
| Revenue | $18.5M |
| Free Cash Flow | ($63.3M) |
| Revenue Growth | 135.2% |
| FCF margin | (342.4%) |
| Gross margin | 97.3% |
| ROIC | (181.6%) |
| Total Debt to Equity | 3.7% |
Investment Thesis
SES AI Corporation (SES), a $782.9M market cap innovator, has 5.8 Quality rating and $1.2 intrinsic value, with 93.3% 1Y return. Early-stage $18.5M revenue surges 135.2%, but $63.3M FCF shows 342.4% margin, 97.3% gross margin, and 181.6% ROIC, with minimal 3.7% debt. ValueSense sees battery tech for satellites as high-upside in this investment idea.
Key Catalysts
- Explosive revenue growth 135.2% and high gross margin 97.3%
- Positive 1Y return 93.3%
- Low debt (3.7% total debt to equity)
Risk Factors
- Severe negative FCF and margins (342.4%)
- Poor ROIC (181.6%)
- Pre-scale revenue $18.5M
Stock #9: Telesat Corporation (TSAT)
| Metric | Value |
|---|---|
| Market Cap | $439.8M |
| Quality Rating | 5.5 |
| Intrinsic Value | $809.5 |
| 1Y Return | 51.2% |
| Revenue | CA$451.9M |
| Free Cash Flow | (CA$119.1M) |
| Revenue Growth | (25.8%) |
| FCF margin | (26.3%) |
| Gross margin | 83.5% |
| ROIC | (2.6%) |
| Total Debt to Equity | 147.2% |
Investment Thesis
Telesat Corporation (TSAT) caps the list at $439.8M market cap, 5.5 Quality rating, and standout $809.5 intrinsic value. CA$451.9M revenue faces 25.8% growth and CA$119.1M FCF (26.3% margin), but 83.5% gross margin and 2.6% ROIC with 147.2% debt suggest turnaround potential via LEO investments, as analyzed by ValueSense.
Key Catalysts
- Exceptional intrinsic value $809.5 for massive upside
- Strong gross margin 83.5%
- 51.2% 1Y return momentum
Risk Factors
- Revenue contraction (25.8%) and negative FCF
- Negative ROIC (2.6%)
- Debt burden (147.2% total debt to equity)
Portfolio Diversification Insights
These 9 best stocks cluster in satellite communications, with INTC and SATS providing large-cap tech stability, SUZ adding commodities diversification, and mid/small-caps like GSAT, VSAT, IRDM, GILT, SES, TSAT offering high-beta growth exposure. Sector allocation leans 80% tech/satcom, 20% adjacent (commodities), balancing quality ratings (avg. ~6.2) and intrinsic value uplifts. High 1Y returns (e.g., VSAT 388.9%) complement steadier profiles like IRDM's ROIC, reducing correlation risks while targeting best value stocks across market caps from $233.1B to $439.8M.
Market Timing & Entry Strategies
Consider positions during sector dips tied to capex cycles or rate hikes, favoring stocks with positive FCF like GSAT and VSAT for entry below intrinsic values. Scale in on revenue growth inflection (e.g., SES's 135.2%), monitoring debt metrics; use dollar-cost averaging for volatile names like SATS. Pair with broader tech rallies, exiting on ROIC peaks.
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FAQ Section
How were these stocks selected?
These satellite communications stock picks were chosen via ValueSense's intrinsic value model, prioritizing high quality ratings (4.7-7.2), intrinsic value gaps, and key metrics like FCF margins and ROIC for best value stocks.
What's the best stock from this list?
IRDM leads with the highest 7.2 quality rating and positive 9.7% ROIC, though GSAT's 315.4% FCF margin offers standout cash generation among these top stocks to buy now.
Should I buy all these stocks or diversify?
Diversify across large-caps (INTC, SATS) and high-growth small-caps (GSAT, VSAT) to balance risks in this stock watchlist, aligning with sector allocation for optimal exposure.
What are the biggest risks with these picks?
Key concerns include high debt (e.g., SATS 840.3%), negative FCF/ROIC in several (INTC, SES), and revenue volatility, common in satellite capex-heavy models.
When is the best time to invest in these stocks?
Target entries below intrinsic values during market pullbacks or positive catalyst news like revenue beats, using investment ideas from ValueSense for timing.