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Globalstar (GSAT)
NASDAQ:GSAT
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Globalstar
(NASDAQ:GSAT)46Neutral
Positive Factors
Partnerships and Collaborations
Management professed great enthusiasm for the combination of satellite and terrestrial services it is building, supported by tremendous partnerships, clean spectrum, architectural advantages and unique technology.
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
Competition
Some investors have expressed concerns over recent reports that Apple has been working with SpaceX to enable Starlink service on iPhones.
Globalstar (GSAT) vs. S&P 500 (SPY)
Market Cap
$2.83B
Dividend YieldN/A
Average Volume (3M)1.09M
Price to Earnings (P/E)―
Beta (1Y)1.86
Revenue Growth11.86%
EPS Growth-140.69%
CountryUS
Employees348
SectorCommunication Services
Sector Strength85
IndustryTelecommunications
Share Statistics
EPS (TTM)-0.59
Shares Outstanding126,442,720
10 Day Avg. Volume941,601
30 Day Avg. Volume1,085,698
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)11.32
Price to Cash Flow (P/CF)2.10
P/FCF Ratio2.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$43.33Price Target Upside87.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Globalstar Business Overview & Revenue Model
Company DescriptionGlobalstar, Inc. (GSAT) is a leading provider of mobile satellite voice and data services. The company operates in the telecommunications sector, offering solutions primarily to commercial and government customers. Globalstar's core products and services include satellite voice services, duplex and simplex data transmission, and equipment sales. These services enable users to communicate beyond the reach of cellular networks, making them ideal for remote and underserved areas.
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 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.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 | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 241.58M | 250.35M | 223.81M | 148.50M | 124.30M | 128.49M | Gross Profit |
| 115.15M | 250.35M | 154.34M | 83.48M | 72.33M | 79.81M | EBIT |
| -8.06M | -949.00K | -165.00K | 118.13M | -60.77M | -60.50M | EBITDA |
| 82.98M | 88.59M | 88.39M | 37.58M | 30.98M | 38.15M | Net Income Common Stockholders |
| -30.70M | -63.16M | -24.72M | -256.92M | -112.63M | -109.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 59.28M | 391.16M | 56.74M | 32.08M | 14.30M | 13.33M | Total Assets |
| 917.01M | 1.71B | 924.31M | 833.39M | 814.11M | 888.09M | Total Debt |
| 427.22M | 537.68M | 392.55M | 162.50M | 269.67M | 400.47M | Net Debt |
| 367.94M | 146.51M | 335.80M | 130.41M | 255.37M | 387.14M | Total Liabilities |
| 539.95M | 1.35B | 545.33M | 518.62M | 448.68M | 465.03M | Stockholders Equity |
| 377.05M | 358.88M | 378.98M | 314.77M | 365.43M | 423.06M |
| Cash Flow | Free Cash Flow | ||||
| 96.82M | 439.19M | -101.27M | 23.85M | 86.34M | 15.00M | Operating Cash Flow |
| 104.32M | 439.19M | 74.34M | 63.80M | 131.88M | 22.21M | Investing Cash Flow |
| -140.95M | -260.57M | -175.61M | -39.95M | -45.19M | -14.54M | Financing Cash Flow |
| 24.80M | 157.18M | 125.79M | -6.05M | -140.28M | 1.16M |
Globalstar Technical Analysis
Positive
23.09
Price Trends
25.76
Negative
25.42
Negative
21.65
Positive
Market Momentum
-0.83
Negative
50.17
Neutral
92.28
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GSAT, the sentiment is Positive. The current price of 23.09 is above the 20-day moving average (MA) of 22.03, below the 50-day MA of 25.76, and above the 200-day MA of 21.65, indicating a neutral trend. The MACD of -0.83 indicates Negative momentum. The RSI at 50.17 is Neutral, neither overbought nor oversold. The STOCH value of 92.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GSAT.
Globalstar Risk Analysis
Globalstar disclosed 37 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $3.30B | 32.19 | 15.40% | 1.81% | 5.05% | 632.38% | |
61 Neutral | $10.18B | ― | -103.82% | ― | ― | -85.21% | |
59 Neutral | $30.54B | 0.25 | -13.23% | 4.04% | 2.36% | -49.53% | |
57 Neutral | $281.96M | ― | -132.51% | ― | 24.15% | 35.73% | |
52 Neutral | $282.61M | ― | -118.08% | ― | ― | ― | |
46 Neutral | $2.83B | ― | -17.12% | ― | 11.86% | -140.69% |
* Communication Services Sector Average
Performance Comparison
GSAT
Globalstar
23.09
1.64
7.65%
IRDM
Iridium Communications
30.65
2.31
8.15%
ASTS
AST SpaceMobile
33.40
30.35
995.08%
SPIR
Spire Global
10.46
-1.49
-12.47%
SATL
Satellogic
2.92
1.00
52.08%
Globalstar Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 7.10% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant revenue growth, strategic uplisting to NASDAQ, and strong adjusted EBITDA performance. However, concerns about increased operating expenses and short-term EBITDA margin compression due to strategic investments were noted. Overall, the positive aspects of strong financial performance and strategic initiatives outweigh the lowlights.Highlights
Revenue Growth
Total revenue increased 17% in Q4 2024 to $61.2 million and 12% for the full year, reaching a record $250.3 million.
Service Revenue Increase
Service revenue increased 18% in Q4 2024, driven primarily by wholesale capacity revenue. Full-year service revenue increased 16% year-over-year.
Adjusted EBITDA Growth
Adjusted EBITDA in Q4 2024 increased 21% to $30.4 million. Full-year adjusted EBITDA reached a record $135.3 million, a 16% increase year-over-year.
Significant Cash Position
Ended the year with $391.2 million in cash. Received a total investment of $913 million from a customer in 2024.
Expansion in Commercial IoT
Record annual service revenue from Commercial IoT business in 2024, reflecting growth with existing and new customers.
NASDAQ Uplisting
Successfully completed uplifting to the NASDAQ Global Select Market and a 1 for 15 reverse stock split to enhance stock liquidity.
Lowlights
Operating Expenses Increase
Operating expenses increased by $3.5 million in Q4 2024, partially offsetting revenue gains.
EBITDA Margin Compression
Forecasted adjusted EBITDA margin for 2025 around 50%, reflecting short-term compression due to strategic investments.
Company Guidance
During the Globalstar Fourth Quarter 2024 Earnings Conference Call, the company provided guidance for 2025, expecting revenue between $260 million and $285 million, which represents a 9% year-over-year growth at the midpoint. They anticipate an adjusted EBITDA margin of around 50%, reflecting short-term compression due to strategic investments in the XCOM RAN terrestrial solution and expansion of the MSS product portfolio. Additionally, Globalstar reiterated a long-term forecast, projecting that in the first full year of service over the extended MSS network, total revenue could double to $500 million, with robust margins exceeding 54%. This forecast excludes certain growth opportunities, such as large terrestrial spectrum and XCOM RAN deployments, indicating the company's confidence in its strategic direction and potential market expansion.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.