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AST SpaceMobile (ASTS)
NASDAQ:ASTS
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AST SpaceMobile
(NASDAQ:ASTS)
48Neutral
AST SpaceMobile (ASTS) vs. S&P 500 (SPY)
Market Cap
$6.75B
Dividend YieldN/A
Average Volume (3M)11.79M
Price to Earnings (P/E)―
Beta (1Y)1.78
Revenue GrowthN/A
EPS Growth-85.21%
CountryUS
Employees578
SectorTechnology
Sector Strength40
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-1.96
Shares Outstanding227,101,460
10 Day Avg. Volume9,057,039
30 Day Avg. Volume11,788,693
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3254.80
Price to Cash Flow (P/CF)-60.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$38.48Price Target Upside89.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
AST SpaceMobile Business Overview & Revenue Model
Company DescriptionAST SpaceMobile, Inc. operates space-based cellular broadband network for mobile phones. Its SpaceMobile service provides mobile broadband services for users traveling in and out of areas without terrestrial mobile services on land, at sea, or in flight. The company is headquartered in Midland, Texas.
How the Company Makes MoneyAST SpaceMobile makes money primarily through partnerships with mobile network operators (MNOs) who pay for access to its satellite network to enhance their service offerings. The company enters into agreements with MNOs, allowing them to use its satellite infrastructure to provide broader and more reliable coverage to their customers. This model allows AST SpaceMobile to earn revenue through service fees or revenue-sharing agreements with these operators. Additionally, the company may explore direct service offerings and strategic partnerships to expand its revenue streams as its network becomes operational.
AST SpaceMobile Financial Statement Overview
Summary
AST SpaceMobile's financial performance shows significant profitability and cash flow challenges. Despite a strong equity base, persistent net losses and negative cash flow indicate operational inefficiencies and reliance on external financing.Income Statement
AST SpaceMobile's income statement reveals significant challenges in profitability. With a consistent negative EBIT and EBITDA, the company struggles with operational efficiency. Revenue growth is volatile, and net profit margins are deeply negative, indicating high expenses relative to revenue. The gross profit margin appears positive for the latest period but is overshadowed by the substantial net losses.35
Negative
Balance Sheet
The balance sheet shows a mixed picture of financial stability. The company has a favorable equity ratio with significant stockholders' equity and low debt levels, but the high net debt position indicates reliance on external financing. The debt-to-equity ratio is relatively low, suggesting manageable leverage. However, the consistent erosion of equity through net losses presents a risk to long-term financial health.50
Neutral
Cash Flow
AST SpaceMobile faces cash flow challenges with persistently negative free cash flow, indicating that operational and capital expenditures exceed cash generated from operations. The operating cash flow to net income ratio is negative, showcasing inefficiencies in converting profits into cash. Despite high financing cash flow, the company's free cash flow remains significantly negative, highlighting cash management issues.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.42M | 0.00 | 13.82M | 12.40M | 5.97M | Gross Profit |
| 4.42M | 0.00 | 7.11M | 4.84M | 2.94M | EBIT |
| -242.76M | -222.37M | -164.88M | -102.51M | -24.26M | EBITDA |
| -442.98M | -166.53M | -97.06M | -83.83M | -23.47M | Net Income Common Stockholders |
| -300.08M | -87.56M | -31.64M | -73.26M | -24.41M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 564.99M | 85.62M | 238.59M | 321.79M | 42.78M | Total Assets |
| 954.56M | 360.89M | 438.37M | 443.94M | 99.64M | Total Debt |
| 173.00M | 72.87M | 12.53M | 13.16M | 7.04M | Net Debt |
| -391.99M | -12.75M | -226.06M | -308.63M | -35.73M | Total Liabilities |
| 285.42M | 147.33M | 78.55M | 91.96M | 19.66M | Stockholders Equity |
| 479.12M | 98.99M | 133.53M | 100.28M | 77.50M |
| Cash Flow | Free Cash Flow | |||
| -300.27M | -267.75M | -213.75M | -134.89M | -53.21M | Operating Cash Flow |
| -126.14M | -148.94M | -156.46M | -80.09M | -22.80M | Investing Cash Flow |
| -174.13M | -118.81M | -31.35M | -54.79M | -30.41M | Financing Cash Flow |
| 779.97M | 116.73M | 102.34M | 416.94M | 69.66M |
AST SpaceMobile Technical Analysis
Neutral
20.30
Price Trends
26.38
Negative
24.77
Negative
23.74
Positive
Market Momentum
-0.95
Positive
38.20
Neutral
6.54
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASTS, the sentiment is Neutral. The current price of 20.3 is below the 20-day moving average (MA) of 24.70, below the 50-day MA of 26.38, and below the 200-day MA of 23.74, indicating a neutral trend. The MACD of -0.95 indicates Positive momentum. The RSI at 38.20 is Neutral, neither overbought nor oversold. The STOCH value of 6.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ASTS.
AST SpaceMobile Risk Analysis
AST SpaceMobile disclosed 63 risk factors in its most recent earnings report. AST SpaceMobile 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
AST SpaceMobile Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $891.48M | 24.13 | 6.29% | ― | -4.49% | 119.80% | |
66 Neutral | $7.85B | 100.09 | 2.76% | ― | -7.29% | -64.31% | |
57 Neutral | $18.45B | 9.41 | -13.97% | 2.74% | 5.04% | -23.56% | |
54 Neutral | $1.08B | ― | -8.49% | ― | 19.02% | 76.67% | |
50 Neutral | $3.62B | ― | -48.63% | ― | -1.72% | -94.98% | |
48 Neutral | $6.75B | ― | -103.82% | ― | ― | -85.21% | |
43 Neutral | $6.08B | ― | -0.60% | ― | -6.99% | 91.98% |
* Technology Sector Average
Performance Comparison
ASTS
AST SpaceMobile
24.14
22.00
1028.04%
CIEN
Ciena
61.99
15.25
32.63%
DGII
Digi International
26.47
-4.53
-14.61%
SATS
Echostar
23.44
10.01
74.53%
VSAT
ViaSat
8.82
-8.07
-47.78%
LITE
Lumentum Holdings
59.81
14.47
31.91%
AST SpaceMobile Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: -20.77% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with significant achievements in financial positioning, strategic partnerships, manufacturing expansion, and government contracts. However, high capital expenditures and pending regulatory approvals present challenges. Overall, the highlights significantly outweigh the lowlights.Highlights
Record Financial Position
AST SpaceMobile completed a $460 million convertible senior note offering, resulting in nearly $1 billion in cash on the balance sheet, significantly reducing the cost of capital with a 4.25% coupon.
Strategic Partnerships and Expansion
The company has agreements with approximately 50 mobile network operators globally, covering nearly three billion subscribers, including partnerships with major telcos like AT&T, Verizon, Vodafone, and Rakuten.
Satellite Manufacturing and Launch
AST SpaceMobile is scaling its satellite manufacturing effort with plans for 40 Block 2 Bluebird satellites, expanding production facilities globally, and securing launch capacity for approximately 60 satellites during 2025 and 2026.
Government Contracts
Secured a $43 million contract with the US Space Development Agency, marking the company's fifth contract with the US government and highlighting dual-use capabilities for commercial and government applications.
Regulatory and Spectrum Achievements
Received special temporary authority (STA) approval from the FCC to commence service with AT&T and Verizon, and signed an agreement for long-term access to up to 45 MHz of lower mid-band spectrum in the US.
Lowlights
High Capital Expenditures
Fourth-quarter capital expenditures were approximately $86 million, with projections for further increases in the range of $150 to $175 million in Q1 2025 due to satellite production and launch commitments.
Ongoing Regulatory Challenges
The company is still awaiting full FCC authorization for operating a commercial constellation, indicating potential delays in full commercial rollout.
Company Guidance
During the call, AST SpaceMobile, Inc. provided extensive guidance on their progress and future plans. The company aims to leverage its expansive IP portfolio of over 3,500 patents to establish a global cellular broadband network in space. They have already signed agreements with approximately 50 mobile network operators, representing nearly three billion subscribers. The company has solidified its balance sheet with a $460 million convertible senior note offering, resulting in nearly $1 billion in cash. They are accelerating the production of 40 Block 2 Bluebird satellites and have secured launch capacity for approximately 60 satellites during 2025 and 2026. Their technology, capable of delivering voice, data, and video calls, has been validated by partners AT&T, Verizon, and Vodafone through successful video calls. Capital expenditures for Q4 2024 were $86 million, with expectations to increase to $150-$175 million in Q1 2025. The company is also pursuing non-dilutive financing from quasi-governmental sources to support large projects. They anticipate reaching positive operating cash flow with approximately 25 satellites, while continuing to pursue strategic partnerships and regulatory approvals to expand services.AST SpaceMobile Corporate Events
Business Operations and StrategyFinancial Disclosures
AST SpaceMobile Reports 2024 Financial Results and Growth
Positive
Mar 4, 2025
AST SpaceMobile announced its business update and financial results for the fourth quarter and full year of 2024, highlighting significant advancements in its commercialization efforts and strategic agreements. The company secured a long-term commercial agreement with Vodafone and a $43 million contract with the U.S. Space Development Agency, enhancing its market position in the direct-to-device satellite communications industry. AST SpaceMobile also achieved operational status for its first five BlueBird satellites and is accelerating satellite manufacturing to expand its network. Financially, the company reported nearly $1 billion in cash and a decrease in operating expenses, positioning it well for future growth.
Executive/Board Changes
AST SpaceMobile Announces Board of Directors Changes
Neutral
Feb 3, 2025
On January 29, 2025, AST SpaceMobile, Inc. experienced changes in its Board of Directors with the resignation of Christopher Sambar, who was a designee of AT&T Venture Investments, LLC. His resignation was not due to any disagreements with the company. Keith Larson was appointed as a new director by AT&T, effective January 30, 2025, to fill the vacancy created by Sambar’s resignation. Larson, who has a rich history in strategic investment roles, declined compensation for his board service. Additionally, Andrew Johnson, who has been serving as the company’s CFO and CLO since 2024, was appointed as a director to fill another existing vacancy, bringing his extensive legal and business experience to the board.
Private Placements and FinancingBusiness Operations and Strategy
AST SpaceMobile Restructures Debt and Plans New Note Offering
Positive
Jan 22, 2025
On January 22, 2025, AST SpaceMobile announced its decision to convert approximately $148.5 million of its 5.50% convertible PIK toggle notes due 2034 into shares of Class A common stock, at a conversion price of $5.75 per share, resulting in the issuance of approximately 25.8 million shares. This move aims to streamline the company’s financial obligations and improve its capital structure by eliminating the 2034 Convertible Notes upon their conversion. Additionally, AST SpaceMobile revealed plans to offer $400 million in new notes, with an option for purchasers to acquire an additional $60 million, targeting qualified institutional buyers, indicating a strategic effort to enhance liquidity and financial flexibility.
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.