AMEX:GSAT

Stock Analysis Report

Executive Summary

Globalstar, Inc. provides mobile satellite voice and data communication services worldwide.

Snowflake

Fundamentals

Imperfect balance sheet with weak fundamentals.

Risks

  • Globalstar has significant price volatility in the past 3 months.
  • Globalstar is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Globalstar's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-12.8%

AMEX:GSAT

-2.9%

US Telecom

-0.02%

US Market


1 Year Return

-21.0%

AMEX:GSAT

7.9%

US Telecom

1.6%

US Market

GSAT underperformed the Telecom industry which returned 7% over the past year.

GSAT underperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

GSATIndustryMarket
7 Day-12.8%-2.9%-0.02%
30 Day5.9%4.4%2.7%
90 Day-26.8%8.4%1.4%
1 Year-21.0%-21.0%13.6%7.9%3.8%1.6%
3 Year-66.9%-66.9%15.6%-1.2%45.2%35.8%
5 Year-89.5%-89.5%33.5%2.9%61.8%44.1%

Price Volatility Vs. Market

How volatile is Globalstar's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Globalstar undervalued based on future cash flows and its price relative to the stock market?

1.51x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Globalstar to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Globalstar to establish if it is available at substantial discount.


Price Based on Earnings

Globalstar is loss making, we can't compare its value to the US Telecom industry average.

Globalstar is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Globalstar, we can't assess if its growth is good value.


Price Based on Value of Assets

Globalstar is overvalued based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is Globalstar expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

5.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Globalstar's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).

Globalstar's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Globalstar's revenue growth is positive but not above the United States of America market average.

Globalstar's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Globalstar's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Globalstar will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

How has Globalstar performed over the past 5 years?

46.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Globalstar does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Globalstar's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Globalstar's 1-year growth to the US Telecom industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Globalstar has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Globalstar has efficiently used its assets last year compared to the US Telecom industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Globalstar improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Globalstar's financial position?


Financial Position Analysis

Globalstar's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Globalstar's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Globalstar's level of debt (125.1%) compared to net worth is high (greater than 40%).

Globalstar had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Globalstar has sufficient cash runway for 1.8 years based on current free cash flow.

Globalstar has less than a year of cash runway if free cash flow continues to reduce at historical rates of -30.9% each year.


Next Steps

Dividend

What is Globalstar's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Globalstar's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Globalstar's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Globalstar has not reported any payouts.

Unable to verify if Globalstar's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Globalstar has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Globalstar's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Dave Kagan (57yo)

1yrs

Tenure

US$1,479,695

Compensation

Mr. David B. Kagan has been Chief Executive Officer of Globalstar, Inc. since September 4, 2018. Mr. Kagan served as the President and COO of Globalstar Inc. (“Globalstar”). He served as Chief Operating Of ...


CEO Compensation Analysis

Dave's remuneration is about average for companies of similar size in United States of America.

Dave's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.8yrs

Average Tenure

54.5yo

Average Age

The tenure for the Globalstar management team is about average.


Board Age and Tenure

0.8yrs

Average Tenure

62yo

Average Age

The average tenure for the Globalstar board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$6,770,41510 May 19
Mudrick Capital Management, LP
EntityCompany
Shares13,743,050
Max PriceUS$0.65
SellUS$150,00525 Mar 19
L. Ponder
EntityIndividual
Role
Chief Legal Officer
General Counsel & VP of Regulatory Affairs
Shares342,558
Max PriceUS$0.44
BuyUS$6,405,72822 Dec 18
Thermo Funding II LLC
EntityCompany
Shares14,835,723
Max PriceUS$0.46
BuyUS$49,339,61222 Dec 18
Thermo Funding II LLC
EntityCompany
Shares140,970,321
Max PriceUS$0.35
BuyUS$9,291,35219 Dec 18
Mudrick Capital Management, LP
EntityCompany
Shares27,219,553
Max PriceUS$0.35

Ownership Breakdown


Management Team

  • Dave Kagan (57yo)

    Chief Executive Officer

    • Tenure: 1yrs
    • Compensation: US$1.48m
  • Jay Monroe (64yo)

    Executive Chairman

    • Tenure: 15.4yrs
    • Compensation: US$75.84k
  • Richard Roberts (73yo)

    Corporate Secretary

    • Tenure: 15.4yrs
    • Compensation: US$175.31k
  • Jim Seese

    Vice President of Administration

    • Tenure: 0yrs
  • Kyle Pickens

    Vice President of Strategy & Communications

    • Tenure: 2.5yrs
  • L. Ponder (52yo)

    General Counsel & VP of Regulatory Affairs

    • Tenure: 9.2yrs
    • Compensation: US$593.60k
  • Rebecca Clary (40yo)

    Vice President & CFO

    • Tenure: 5.1yrs
    • Compensation: US$473.39k
  • Tim Taylor (36yo)

    Vice President of Finance

    • Tenure: 0.8yrs
    • Compensation: US$75.84k
  • Wen Doong

    Senior Vice President of Engineering & Operations

    • Tenure: 1.7yrs

Board Members

  • Keith Cowan (62yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: US$75.84k
  • Bill Hasler (77yo)

    Director

    • Tenure: 10.2yrs
    • Compensation: US$385.80k
  • Mike Lovett (57yo)

    Director

    • Tenure: 0.8yrs
  • Jim Lynch (62yo)

    Director

    • Tenure: 15.8yrs
    • Compensation: US$251.15k
  • Ben Wolff (50yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: US$75.84k
  • Jay Monroe (64yo)

    Executive Chairman

    • Tenure: 15.4yrs
    • Compensation: US$75.84k
  • Tim Taylor (36yo)

    Vice President of Finance

    • Tenure: 0.8yrs
    • Compensation: US$75.84k

Company Information

Globalstar, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Globalstar, Inc.
  • Ticker: GSAT
  • Exchange: AMEX
  • Founded: 1991
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: US$595.243m
  • Shares outstanding: 1.45b
  • Website: https://www.globalstar.com

Number of Employees


Location

  • Globalstar, Inc.
  • 1351 Holiday Square Boulevard
  • Covington
  • Louisiana
  • 70433
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GSATAMEX (NYSE MKT LLC)YesVoting Common StockUSUSDNov 2006

Biography

Globalstar, Inc. provides mobile satellite voice and data communication services worldwide. The company offers duplex two-way voice and data products, including mobile voice and data satellite communicatio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 23:58
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.