Globalstar (GSAT) AI Stock Analysis

• Market Cap: $2.58B
• Dividend Yield: N/A
• Average Volume (3M): 580.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: 11.86%
• EPS Growth: -140.69%
• Country: US
• Employees: 389
• Sector: Communication Services
• Sector Strength: 81
• Industry: Telecommunications Services
• EPS (TTM): -0.59
• Shares Outstanding: 126,582,090
• 10 Day Avg. Volume: 388,546
• 30 Day Avg. Volume: 580,869
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 16.24
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $42.50
• Price Target Upside: 108.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Globalstar's stock score is impacted by financial challenges and technical weakness. While there is potential growth from strategic initiatives, current profitability issues and market pressure weigh heavily on the stock's performance. However, the positive earnings call guidance suggests potential future improvements.

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 Business Overview & Revenue Model

Company Description

Globalstar, 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 Money

Globalstar 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 is struggling financially with negative net income and high debt, despite some improvements in cash flow and revenue growth. The company faces challenges in profitability and financial stability.

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.

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.

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.

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
250.35M	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
537.68M	392.55M	162.50M	269.67M	400.47M
	Net Debt
146.51M	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
439.19M	-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

• Technical Analysis Sentiment: Neutral
• Last Price: 20.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GSAT, the sentiment is Neutral. The current price of 20.4 is above the 20-day moving average (MA) of 19.39, below the 50-day MA of 20.73, and below the 200-day MA of 22.32, indicating a neutral trend. The MACD of -0.34 indicates Negative momentum. The RSI at 53.32 is Neutral, neither overbought nor oversold. The STOCH value of 61.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GSAT.

Globalstar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRDM	72 Outperform	$2.64B	25.83	18.01%	2.22%	6.64%	403.10%
Sector *	59 Neutral	$13.76B	7.65	-2.18%	3.85%	2.32%	-36.56%
SBGI	58 Neutral	$1.07B	3.27	71.43%	6.53%	13.21%	―
GOGO	54 Neutral	$1.02B	78.95	24.98%	―	11.85%	-90.54%
ATUS	52 Neutral	$1.07B	―	21.93%	―	-3.06%	-290.86%
GSAT	46 Neutral	$2.58B	―	-17.12%	―	11.86%	-140.69%
LILAK	45 Neutral	$1.07B	―	-45.55%	―	-1.31%	-1163.93%

Globalstar Corporate Events

Globalstar Unveils Strategic Growth Plans and Updates

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.