Investment Thesis
ViaSat exhibits critical financial distress despite revenue growth and positive free cash flow. An interest coverage ratio of 0.4x indicates the company cannot service its $6.2B debt load from operating income, creating existential solvency risk. Persistent net losses and negative shareholder returns signal a business struggling with unit economics despite heavy capital deployment.
Strengths
- Revenue growth of 5.5% YoY in communications infrastructure
- Strong free cash flow generation of $526.9M with 15.2% FCF margin
- Adequate short-term liquidity with 2.13x current ratio and $1.3B cash
Risks
- Critical: Interest coverage ratio of 0.4x—operating income cannot cover debt service, threatening solvency
- Net income loss of $92.9M with -2.7% net margin and negative ROE/ROA for two consecutive years
- High leverage (1.37x debt-to-equity) combined with thin 3.1% operating margins limits financial flexibility
Key Metrics to Watch
- Interest coverage ratio trending toward 1.0x+ minimum threshold for viability
- Path to net income profitability and positive ROE
- Operating margin expansion and debt reduction pace relative to free cash flow
Financial Metrics
Revenue
3.5B
Net Income
-92.9M
EPS (Diluted)
$-0.69
Free Cash Flow
526.9M
Total Assets
14.9B
Cash
1.3B
Profitability Ratios
Gross Margin
N/A
Operating Margin
3.1%
Net Margin
-2.7%
ROE
-2.0%
ROA
-0.6%
FCF Margin
15.2%
Balance Sheet & Liquidity
Current Ratio
2.13x
Quick Ratio
1.90x
Debt/Equity
1.37x
Debt/Assets
68.9%
Interest Coverage
0.39x
Long-term Debt
6.2B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-18T21:09:31.552126 |
Data as of: 2025-12-31 |
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