AMEX:GSAT

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Globalstar, Inc. provides mobile satellite services worldwide. More Details


Snowflake Analysis

Mediocre balance sheet and overvalued.


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

Stable Share Price: GSAT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.9%

GSAT

-0.8%

US Telecom

1.3%

US Market


1 Year Return

-22.3%

GSAT

-12.4%

US Telecom

15.8%

US Market

Return vs Industry: GSAT underperformed the US Telecom industry which returned -12.9% over the past year.

Return vs Market: GSAT underperformed the US Market which returned 13.8% over the past year.


Shareholder returns

GSATIndustryMarket
7 Day-9.9%-0.8%1.3%
30 Day-8.9%-2.9%-4.1%
90 Day-4.4%1.4%8.4%
1 Year-22.3%-22.3%-7.9%-12.4%18.4%15.8%
3 Year-83.2%-83.2%4.5%-10.5%38.2%29.0%
5 Year-83.1%-83.1%28.2%-0.6%84.9%64.0%

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 compared to its fair value and its price relative to the market?

1.08x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate GSAT's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate GSAT's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: GSAT is unprofitable, so we can't compare its PE Ratio to the US Telecom industry average.

PE vs Market: GSAT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GSAT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GSAT is good value based on its PB Ratio (1.1x) compared to the US Telecom industry average (1.2x).


Next Steps

Future Growth

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

0.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GSAT's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if GSAT's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GSAT's revenue (0.7% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: GSAT's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GSAT is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Globalstar performed over the past 5 years?

-33.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GSAT is currently unprofitable.

Growing Profit Margin: GSAT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GSAT is unprofitable, and losses have increased over the past 5 years at a rate of 33.1% per year.

Accelerating Growth: Unable to compare GSAT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GSAT is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (-12.9%).


Return on Equity

High ROE: GSAT has a negative Return on Equity (-16.92%), as it is currently unprofitable.


Next Steps

Financial Health

How is Globalstar's financial position?


Financial Position Analysis

Short Term Liabilities: GSAT's short term assets ($65.2M) do not cover its short term liabilities ($100.7M).

Long Term Liabilities: GSAT's short term assets ($65.2M) do not cover its long term liabilities ($352.4M).


Debt to Equity History and Analysis

Debt Level: GSAT's debt to equity ratio (78.1%) is considered high.

Reducing Debt: GSAT's debt to equity ratio has reduced from 280.1% to 78.1% over the past 5 years.


Balance Sheet


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.

Stable Cash Runway: GSAT has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: GSAT has sufficient cash runway for 1.6 years if free cash flow continues to grow at historical rates of 22.1% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GSAT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GSAT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GSAT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GSAT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GSAT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Dave Kagan (58 yo)

2yrs

Tenure

US$695,754

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

Compensation vs Market: Dave's total compensation ($USD695.75K) is below average for companies of similar size in the US market ($USD2.02M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Monroe
Executive Chairman16.42yrsUS$50.00k62.55%
$ 317.6m
David Kagan
Chief Executive Officer2yrsUS$695.75k0.077%
$ 393.1k
Rebecca Clary
VP & CFO6.08yrsUS$434.91k0.045%
$ 227.0k
L. Ponder
General Counsel & VP of Regulatory Affairs10.17yrsUS$429.68k0.031%
$ 158.2k
Timothy Taylor
VP of Finance1.75yrsUS$50.00k0.090%
$ 458.5k
Wen Doong
Senior Vice President of Engineering & Operations2.67yrsno datano data
James Seese
Vice President of Administrationno datano datano data
Kyle Pickens
Vice President of Strategy & Communications3.5yrsno datano data
Richard Roberts
Corporate Secretary16.42yrsUS$175.31kno data

4.8yrs

Average Tenure

55.5yo

Average Age

Experienced Management: GSAT's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Monroe
Executive Chairman16.42yrsUS$50.00k62.55%
$ 317.6m
Timothy Taylor
VP of Finance1.75yrsUS$50.00k0.090%
$ 458.5k
Keith Cowan
Independent Director1.75yrsUS$50.00k0.015%
$ 75.7k
William Hasler
Independent Director11.17yrsUS$50.00k0.029%
$ 147.1k
Michael Lovett
Independent Director1.75yrsUS$50.00k0.0064%
$ 32.3k
James Lynch
Director16.75yrsUS$50.00k0.77%
$ 3.9m
Benjamin Wolff
Independent Director1.75yrsUS$50.00k0.018%
$ 91.2k

1.8yrs

Average Tenure

63yo

Average Age

Experienced Board: GSAT's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Globalstar, Inc.
  • Ticker: GSAT
  • Exchange: AMEX
  • Founded: 2003
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: US$507.779m
  • Shares outstanding: 1.67b
  • 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
P8SDB (Deutsche Boerse AG)YesVoting Common StockDEEURNov 2006

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/29 00:24
End of Day Share Price2020/09/28 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.