Globalstar (GSAT) AI Stock Analysis

• Market Cap: $7.54B
• Dividend Yield: N/A
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• Revenue Growth: 8.54%
• EPS Growth: -59.63%
• Country: US
• Employees: 389
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): <0.01
• Shares Outstanding: 126,838,420
• 10 Day Avg. Volume: 1,415,909
• 30 Day Avg. Volume: 1,383,270
• PEG Ratio: -0.32
• Price to Book (P/B): 10.89
• Price to Sales (P/S): 15.61
• P/FCF Ratio: 12.20
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 18.44
• Enterprise Value/Gross Profit: 32.27
• Enterprise Value/Ebitda: 46.87
• 1Y Price Target: $67.00
• Price Target Upside: 18.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.06
• Revenue Forecast (FY): $267.91M

• Rating: 56 Neutral
• Price Target: $66.00 ▲(16.48% Upside)

Globalstar's stock score is primarily driven by its financial performance challenges, including profitability issues and high leverage, which weigh heavily on the score. The technical analysis shows strong bullish momentum, providing some positive outlook. However, valuation concerns due to negative earnings and lack of dividends further impact the score. The earnings call provided some optimism with record revenue and strategic investments, but also highlighted significant challenges.

Positive Factors

Revenue Growth

Record revenue growth indicates strong demand for Globalstar's services and products, suggesting a robust market position and potential for continued expansion.

Cash Generation

Strong cash flow generation enhances financial flexibility, allowing Globalstar to invest in growth opportunities and manage debt effectively.

Strategic Investments

Strategic investments in technology and partnerships position Globalstar to capitalize on future growth opportunities and maintain competitive advantages.

Negative Factors

Profitability Challenges

Ongoing profitability issues may hinder long-term financial health, limiting the company's ability to reinvest in its business and reward shareholders.

High Capital Expenditures

High capital expenditures may strain financial resources and impact short-term liquidity, posing risks if expected returns on investments are delayed.

Rising Debt Levels

Increasing debt levels can limit financial flexibility and increase vulnerability to economic downturns, affecting long-term sustainability.

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 multiple streams, primarily from subscription services, device sales, and value-added services. The company charges customers monthly fees for satellite phone and data services, which provide ongoing recurring income. Device sales contribute to revenue as well, with customers purchasing satellite phones and data modems. Additionally, Globalstar offers value-added services, such as tracking and monitoring solutions for enterprises, which further enhance its revenue potential. Strategic partnerships with various industries, including maritime and logistics, are crucial for expanding its customer base and creating tailored solutions that meet specific market needs. Moreover, Globalstar's focus on enhancing its network capacity and introducing new technologies, such as the integration of IoT applications, positions the company to capitalize on emerging trends in satellite communication.

Globalstar Financial Statement Overview

Summary

Globalstar is experiencing revenue growth, but profitability remains a challenge with consistent net losses. The balance sheet shows increasing leverage, which could pose financial risks if not managed properly. Cash flow generation is a positive aspect, although the company needs to improve its conversion of earnings into free cash flow. Overall, while there are growth opportunities, financial stability and profitability need to be addressed.

Income Statement

Globalstar's revenue has shown a positive growth trend, particularly with a significant increase in the TTM period. However, the company is struggling with profitability, as evidenced by negative net profit margins and fluctuating EBIT margins. The gross profit margin has decreased over time, indicating potential cost management issues.

Balance Sheet

The company has a high debt-to-equity ratio, which has increased over time, indicating rising leverage and potential financial risk. Return on equity is negative, reflecting ongoing losses. The equity ratio suggests a moderate level of equity financing, but the increasing debt levels are concerning.

Cash Flow

Operating cash flow has improved significantly in the TTM period, showing strong cash generation capability. However, free cash flow growth is negative, and the free cash flow to net income ratio indicates that the company is not converting its earnings into free cash flow efficiently. The operating cash flow to net income ratio is strong, suggesting good cash flow management despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	262.20M	250.35M	223.81M	148.50M	124.30M	128.49M
Gross Profit	149.87M	167.57M	154.34M	83.48M	72.33M	79.81M
EBITDA	103.18M	88.59M	88.39M	37.58M	30.98M	38.07M
Net Income	-49.92M	-63.16M	-24.72M	-256.92M	-112.63M	-109.64M
Balance Sheet
Total Assets	2.16B	1.71B	924.31M	833.39M	814.11M	888.09M
Cash, Cash Equivalents and Short-Term Investments	346.29M	391.16M	56.74M	32.08M	14.30M	13.33M
Total Debt	572.29M	541.93M	392.55M	222.07M	269.67M	400.47M
Total Liabilities	1.80B	1.35B	545.33M	518.62M	448.68M	465.03M
Stockholders Equity	364.82M	358.88M	378.98M	314.77M	365.43M	423.06M
Cash Flow
Free Cash Flow	266.04M	320.29M	-92.46M	23.85M	86.34M	15.00M
Operating Cash Flow	786.42M	439.19M	74.34M	63.80M	131.88M	22.21M
Investing Cash Flow	-638.74M	-260.57M	-175.61M	-39.95M	-45.19M	-14.54M
Financing Cash Flow	146.18M	157.18M	125.79M	-6.05M	-140.28M	1.16M

Globalstar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 56.66
• 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 Positive. The current price of 56.66 is above the 20-day moving average (MA) of 53.37, above the 50-day MA of 45.10, and above the 200-day MA of 28.54, indicating a bullish trend. The MACD of 4.66 indicates Positive momentum. The RSI at 56.78 is Neutral, neither overbought nor oversold. The STOCH value of 56.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GSAT.

Globalstar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VEON	71 Outperform	$3.36B	5.33	48.17%	―	6.42%	―
IRDM	64 Neutral	$1.70B	14.13	22.59%	3.60%	7.30%	21.31%
TEO	61 Neutral	$5.63B	―	-2.95%	1.55%	15.38%	-292.52%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GSAT	56 Neutral	$7.54B	―	-12.45%	―	8.54%	-59.63%
TDS	56 Neutral	$4.14B	―	1.73%	0.42%	-22.79%	79.90%
CCOI	39 Underperform	$834.08M	―	-136.94%	18.29%	-6.48%	-588.01%

Globalstar Corporate Events

Globalstar Inc. Reports Record Revenue in Q3 Earnings Call

Globalstar Inc. recently held its third-quarter earnings call, revealing a strong performance characterized by record revenue and growth in key sectors such as Commercial IoT. The company reported a solid cash position and strategic investments, although challenges like lower net income due to noncash items, high capital expenditures, and uncertainties around satellite launch timing were acknowledged. Despite these hurdles, Globalstar expressed optimism about its future, particularly with ongoing investments in XCOM RAN and government sector engagement.

Globalstar Inc. Reports Record Revenue in Q3 2025

Globalstar Inc., a leader in satellite and terrestrial connectivity solutions, leverages its low Earth orbit satellite constellation and licensed spectrum to serve global business, enterprise, and consumer markets.