Globalstar (GSAT) AI Stock Analysis

• Market Cap: $5.26B
• Dividend Yield: N/A
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: 14.85%
• EPS Growth: 6.91%
• Country: US
• Employees: 389
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): N/A
• Shares Outstanding: 126,672,745
• 10 Day Avg. Volume: 992,776
• 30 Day Avg. Volume: 1,163,995
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 12.47
• Enterprise Value/Gross Profit: 21.54
• Enterprise Value/Ebitda: 27.35
• 1Y Price Target: $63.00
• Price Target Upside: 51.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: $47.00 ▲(13.14% Upside)

Globalstar's overall stock score is driven by strong technical momentum and positive earnings call highlights, including revenue growth and strategic partnerships. However, financial performance concerns, particularly profitability and high leverage, along with a poor valuation due to negative earnings, weigh down the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Infrastructure Expansion

Expanding ground infrastructure enhances service quality and network capacity, positioning Globalstar for future growth in satellite connectivity.

Strategic Partnerships

Strategic partnerships expand market reach and enhance service offerings, contributing to competitive advantage and long-term growth.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting long-term financial health and operational stability.

Profitability Concerns

Ongoing profitability issues suggest operational inefficiencies, which could hinder long-term growth and shareholder value creation.

Cost Increases

Rising costs in development projects can pressure margins and reduce profitability, potentially affecting future financial performance.

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 primarily through the sale of satellite communications services, which includes subscription fees for voice and data plans, hardware sales (such as satellite phones and IoT devices), and usage-based charges for satellite airtime. Key revenue streams include monthly service subscriptions for both individual users and enterprises, one-time sales of satellite equipment, and additional charges for data usage beyond standard limits. The company has established significant partnerships with various industries, including maritime and energy sectors, enhancing its customer base and service offerings. Additionally, Globalstar benefits from agreements with other telecommunications companies that allow them to extend their services through roaming agreements, further diversifying their revenue sources.

Globalstar Financial Statement Overview

Summary

Globalstar shows promising revenue growth and strong cash flow generation, yet faces profitability challenges with consistent net losses. The balance sheet reflects high leverage, which could pose risks if revenue growth does not translate into eventual profitability. Overall, the company demonstrates potential in cash flow management while needing to improve profitability and manage debt levels.

Income Statement

Globalstar's revenue has shown a consistent growth trend with a notable increase of 13.58% from 2023 to the TTM period. However, the company continues to report net losses, which negatively impacts its net profit margin. The gross profit margin remains healthy at 65.55% in the TTM, although EBIT and net income remain negative, indicating ongoing profitability challenges.

Balance Sheet

The debt-to-equity ratio is relatively high at 1.56, indicating a significant leverage position. The equity ratio is moderate at 19.91%, suggesting a stable but not overly strong equity base. Return on equity is negative due to recurring net losses, pointing to challenges in generating returns for shareholders.

Cash Flow

Operating cash flow has been robust, with a significant increase in free cash flow growth. The operating cash flow to net income ratio is strong, indicating good cash generation despite accounting losses. The free cash flow to net income ratio is also positive, reflecting efficient cash management even in light of negative earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	260.66M	250.35M	223.81M	148.50M	124.30M	128.49M
Gross Profit	150.94M	167.57M	154.34M	83.48M	72.33M	79.81M
EBITDA	118.85M	88.59M	88.39M	37.58M	30.98M	38.15M
Net Income	-38.41M	-63.16M	-24.72M	-256.92M	-112.63M	-109.64M
Balance Sheet
Total Assets	1.91B	1.71B	924.31M	833.39M	814.11M	888.09M
Cash, Cash Equivalents and Short-Term Investments	308.23M	391.16M	56.74M	32.08M	14.30M	13.33M
Total Debt	542.91M	541.93M	392.55M	222.07M	269.67M	400.47M
Total Liabilities	1.55B	1.35B	545.33M	518.62M	448.68M	465.03M
Stockholders Equity	360.88M	358.88M	378.98M	314.77M	365.43M	423.06M
Cash Flow
Free Cash Flow	367.94M	320.29M	-101.27M	23.85M	86.34M	15.00M
Operating Cash Flow	586.40M	439.19M	74.34M	63.80M	131.88M	22.21M
Investing Cash Flow	-461.85M	-260.57M	-175.61M	-39.95M	-45.19M	-14.54M
Financing Cash Flow	118.91M	157.18M	125.79M	-6.05M	-140.28M	1.16M

Globalstar Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 41.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 41.54 is below the 20-day moving average (MA) of 43.68, above the 50-day MA of 36.73, and above the 200-day MA of 26.17, indicating a neutral trend. The MACD of 1.65 indicates Positive momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 23.79 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
VEON	―	$3.42B	3.48	89.94%	―	8.66%	―
IRDM	―	$1.77B	15.16	22.59%	3.37%	7.30%	21.31%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GSAT	―	$5.26B	―	-10.33%	―	14.85%	6.91%
TEO	―	$4.86B	―	-0.27%	1.85%	3.89%	-107.44%
CCOI	―	$2.11B	-9.45	-93.59%	9.36%	-6.64%	-569.94%
TDS	―	$4.24B	―	-0.81%	0.41%	-5.62%	80.09%

Globalstar Corporate Events

Globalstar Inc Reports Strong Growth Amid Challenges

Globalstar Inc’s recent earnings call painted a picture of robust growth and strategic advancements, despite some challenges. The company reported significant revenue growth and successful partnerships, particularly in the infrastructure and government sectors. However, the positive developments were somewhat offset by increased costs associated with XCOM, which impacted the EBITDA margin. Overall, the sentiment was optimistic, with the positives outweighing the negatives.

Globalstar Inc. Reports Strong Q2 2025 Results

Globalstar Inc., a provider of satellite and terrestrial connectivity services, operates in the telecommunications sector with a focus on low Earth orbit satellite constellations for secure data transmission.