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Globalstar (GSAT)
NASDAQ:GSAT
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Globalstar
(NASDAQ:GSAT)
42Neutral
Positive Factors
Financial Performance
The company delivered solid results and a reiteration of its outlook.
Partnerships
The recent announcements of partnerships with Parsons, Peiker Holding and Liquid Intelligent Technologies all attack very different markets.
Revenue Growth
Revenue of $61.2M in the quarter was up 17% year over year driven by increased Wholesale revenue, which notably was up 34% on a year-over-year basis.
Negative Factors
Competitive Concerns
Some investors have expressed concerns over recent reports that Apple has been working with SpaceX to enable Starlink service on iPhones.
Stock Performance
The stock fell 31% in a quick reaction to the news, recovering some of the move but remains down 21% from prior to the announcement.
Globalstar (GSAT) vs. S&P 500 (SPY)
Market Cap
$2.23B
Dividend YieldN/A
Average Volume (3M)587.30K
Price to Earnings (P/E)―
Beta (1Y)1.68
Revenue Growth14.55%
EPS Growth-81.21%
CountryUS
Employees389
SectorCommunication Services
Sector Strength81
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.13
Shares Outstanding126,583,120
10 Day Avg. Volume542,385
30 Day Avg. Volume587,305
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)6.19
Price to Sales (P/S)0.00
P/FCF Ratio5.55
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue2.53
Enterprise Value/Gross Profit16.67
Enterprise Value/Ebitda7.27
Forecast
1Y Price Target
$42.50Price Target Upside141.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Globalstar Business Overview & Revenue Model
Company DescriptionGlobalstar, Inc. provides mobile satellite services worldwide. The company offers duplex two-way voice and data products, including mobile voice and data satellite communications services and equipment for remote business continuity, recreational usage, safety, emergency preparedness and response, and other applications; fixed voice and data satellite communications services and equipment at industrial, commercial, and residential sites, as well as rural villages and ships; and data modem services and equipment. It also provides SPOT consumer retail products, such as SPOT satellite GPS messenger for personal tracking, emergency location, and messaging solutions; and SPOT Trace, an anti-theft and asset tracking device. In addition, the company offers commercial Internet of Things one-way transmission products to track cargo containers and rail cars, as well as to monitor utility meters, and oil and gas assets. Further, it sells wholesale minutes to independent gateway operators (IGOs); and provides engineering services, such as hardware and software designs to develop specific applications; and installation of gateways and antennas. The company distributes its products directly, as well as through independent agents, dealers and resellers, retailers, IGOs, and sales force and e-commerce Website. As of December 31, 2020, it had approximately 745,000 subscribers. The company primarily serves recreation and personal, government, public safety and disaster relief, oil and gas, maritime and fishing, construction, utilities, and transportation, as well as natural resources, mining, and forestry markets. Globalstar, Inc. has a strategic alliance with XCOM Labs to jointly commercialize XCOM's capacity-multiplying technology with Globalstar's Band n53 for 5G deployments in the United States and other countries where Globalstar has terrestrial rights. The company was founded in 1993 and is headquartered in Covington, Louisiana.
How the Company Makes MoneyGlobalstar generates revenue through a variety of streams, primarily from providing satellite-based communication services. The company's revenue model includes the sale of airtime for satellite voice and data services, which customers subscribe to on a monthly or annual basis. Equipment sales, including satellite phones and other communication devices, also contribute to revenue. Additionally, Globalstar earns money from partnerships and agreements with other telecommunications companies that use its satellite infrastructure to enhance their service offerings. A significant portion of its earnings is also derived from providing satellite solutions to government entities and emergency responders, who require reliable communication in remote or disaster-stricken areas.
Globalstar Financial Statement Overview
Summary
Globalstar's financial performance is weak, characterized by negative net income and high leverage, despite some revenue growth and improvements in cash flow.Income Statement
Globalstar's income statement reveals a struggling financial performance with negative net income in recent years. The gross profit margin is strong, but consistent negative net profit margins indicate profitability issues. Revenue growth is positive but volatile, suggesting some operational challenges.35
Negative
Balance Sheet
The balance sheet shows a high debt-to-equity ratio, indicating potential leverage risk. While there is some improvement in equity, overall financial stability remains a concern. Return on equity is also negative due to net losses, highlighting profitability challenges.40
Negative
Cash Flow
Cash flow analysis shows improvement in operating cash flow, indicating better cash management. However, the free cash flow growth rate is inconsistent, and the company relies on external financing, raising concerns about sustainability.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 250.35M | 223.81M | 148.50M | 124.30M | 128.49M | Gross Profit |
| 167.57M | 154.34M | 83.48M | 72.33M | 79.81M | EBIT |
| -949.00K | -165.00K | 118.13M | -60.77M | -60.50M | EBITDA |
| 88.59M | 88.39M | 37.58M | 30.98M | 38.15M | Net Income Common Stockholders |
| -63.16M | -24.72M | -256.92M | -112.63M | -109.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 391.16M | 56.74M | 32.08M | 14.30M | 13.33M | Total Assets |
| 1.71B | 924.31M | 833.39M | 814.11M | 888.09M | Total Debt |
| 541.93M | 392.55M | 162.50M | 269.67M | 400.47M | Net Debt |
| 150.76M | 335.80M | 130.41M | 255.37M | 387.14M | Total Liabilities |
| 1.35B | 545.33M | 518.62M | 448.68M | 465.03M | Stockholders Equity |
| 358.88M | 378.98M | 314.77M | 365.43M | 423.06M |
| Cash Flow | Free Cash Flow | |||
| 320.29M | -101.27M | 23.85M | 86.34M | 15.00M | Operating Cash Flow |
| 439.19M | 74.34M | 63.80M | 131.88M | 22.21M | Investing Cash Flow |
| -260.57M | -175.61M | -39.95M | -45.19M | -14.54M | Financing Cash Flow |
| 157.18M | 125.79M | -6.05M | -140.28M | 1.16M |
Globalstar Technical Analysis
Negative
17.58
Price Trends
20.55
Negative
23.47
Negative
22.36
Negative
Market Momentum
-0.34
Negative
45.07
Neutral
45.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GSAT, the sentiment is Negative. The current price of 17.58 is below the 20-day moving average (MA) of 19.49, below the 50-day MA of 20.55, and below the 200-day MA of 22.36, indicating a bearish trend. The MACD of -0.34 indicates Negative momentum. The RSI at 45.07 is Neutral, neither overbought nor oversold. The STOCH value of 45.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GSAT.
Globalstar Risk Analysis
Globalstar disclosed 40 risk factors in its most recent earnings report. Globalstar reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Globalstar Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.86B | 24.84 | 18.01% | 2.12% | 6.64% | 403.10% | |
65 Neutral | $1.45B | 76.11 | -6.47% | ― | 41.51% | -103.22% | |
60 Neutral | $1.06B | 7.72 | 34.07% | 6.56% | 11.62% | ― | |
60 Neutral | $13.44B | 7.15 | -2.73% | 3.79% | 2.11% | -39.64% | |
52 Neutral | $1.23B | ― | 21.93% | ― | -3.06% | -290.86% | |
43 Neutral | $902.80M | ― | -57.56% | ― | -1.56% | -10914.21% | |
42 Neutral | $2.23B | ― | -18.66% | ― | 14.55% | -81.21% |
* Communication Services Sector Average
Performance Comparison
GSAT
Globalstar
19.05
1.50
8.55%
IRDM
Iridium Communications
26.45
-3.23
-10.88%
SBGI
Sinclair Broadcast
15.90
1.84
13.09%
GOGO
Gogo
12.36
2.22
21.89%
LILAK
Liberty LiLAC Group
4.56
-3.79
-45.39%
ATUS
Altice Usa
2.69
0.59
28.10%
Globalstar Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -12.93%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The call highlighted strong revenue growth, significant advancements in satellite and IoT solutions, strategic leadership appointments, and promising partnerships. However, these positives were offset by increased costs impacting EBITDA and a prolonged sales cycle for a major customer. Despite these challenges, the company remains optimistic about its long-term growth prospects.Q1-2025 Updates
Positive Updates
Revenue Growth
Total revenue increased by 6% to $60 million compared to the prior year period of $56.5 million. Service revenue increased by 7%, driven primarily by wholesale capacity services.
Increase in Adjusted Free Cash Flow
Adjusted free cash flow rose significantly to $47.6 million compared to $19.9 million in the prior year's first quarter.
Successful Launch of Two-Way Satellite IoT Solution
Globalstar launched a two-way satellite IoT solution via its low earth orbiting satellite constellation, marking a significant expansion beyond traditional one-way tracking capabilities.
New State-of-the-Art Satellite Operations Control Center
Opened a new satellite operations control center in Covington, Louisiana, enhancing satellite fleet management capabilities and improving network performance.
Strategic Leadership Appointments
Appointed Dr. Tamer Kadous as Vice President and General Manager of Terrestrial Network Business, and Daaman Hejmadi as Vice President and General Manager of Wholesale Consumer Business, strengthening the leadership team.
Technological Breakthrough at Mobile World Congress
Demonstrated XCOM RAN technology using n53 spectrum, achieving speeds of 400 megabits per second and showcasing advancements in robotics, autonomous vehicles, and augmented reality.
Partnership with MDA Space
Signed a C$1.1 billion contract with MDA Space to build more than 50 satellites for Globalstar's next-generation LEO constellation, marking a significant milestone for the company's extended MSS network plans.
Negative Updates
Higher Costs Impacting EBITDA
Higher cash costs to support XCOM RAN negatively impacted adjusted EBITDA by $1.3 million and adjusted EBITDA margin by approximately 200 basis points compared to the prior year.
Long Sales Cycle for Major Customer
Sales cycle with a primary initial customer, a large retailer, remains long, delaying potential revenue generation from the XCOM RAN business.
Company Guidance
During the Globalstar First Quarter 2025 Earnings Conference Call, the company provided several financial metrics and guidance. Total revenue increased by 6% to $60 million compared to the prior year, while service revenue rose by 7%, largely due to wholesale capacity services. Adjusted EBITDA grew by 3% to $30.4 million despite higher cash costs, including a $1.3 million increase to support the XCOM RAN product. The adjusted EBITDA margin was adversely impacted by approximately 200 basis points. Globalstar ended the fiscal period with $241.4 million in cash, while net cash flows from operations were $51.9 million, and adjusted free cash flow was $47.6 million, a significant improvement from the previous year. The company reiterated its full-year 2025 revenue guidance of $260 million to $285 million, with an anticipated adjusted EBITDA margin of around 50%.Globalstar Corporate Events
Business Operations and StrategyFinancial Disclosures
Globalstar Unveils Strategic Growth Plans and Updates
Positive
Dec 12, 2024
Globalstar has announced plans for an analyst and investor day, revealing strategic updates and growth opportunities, including reaffirming financial guidance for 2024 and introducing forecasts for 2025. The company highlighted its recent achievements, such as expanded terrestrial spectrum authority in Mexico and the commercial availability of its XCOM RAN 5G network, signifying its strengthened market position and commitment to innovation in satellite communications.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.