GLOBALSTAR INC (GSAT) Stock Fundamental Analysis
USA - NASDAQ:GSAT - US3789735079 - Common Stock
44.96 USD
+0.47 (+1.06%)
45.6999 USD
+0.74 (+1.65%)
Taking everything into account, GSAT scores 4 out of 10 in our fundamental rating. GSAT was compared to 36 industry peers in the Diversified Telecommunication Services industry. While GSAT seems to be doing ok healthwise, there are quite some concerns on its profitability. GSAT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
GSAT had negative earnings in the past year.
In the past year GSAT had a positive cash flow from operations.
In the past 5 years GSAT always reported negative net income.
Each year in the past 5 years GSAT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GSAT (-2.57%) is comparable to the rest of the industry.
GSAT's Return On Equity of -13.58% is in line compared to the rest of the industry. GSAT outperforms 41.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.45%, GSAT is doing worse than 63.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.57% | ||
| ROE | -13.58% | ||
| ROIC | 0.45% |
ROA(3y)-14.37%
ROA(5y)-13.86%
ROE(3y)-37.31%
ROE(5y)-33.73%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
GSAT has a worse Operating Margin (3.88%) than 61.11% of its industry peers.
Looking at the Gross Margin, with a value of 66.74%, GSAT belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
GSAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.88% | ||
| PM (TTM) | N/A | ||
| GM | 66.74% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.78%
GM growth 5Y2.46%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GSAT is destroying value.
The number of shares outstanding for GSAT has been increased compared to 1 year ago.
GSAT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for GSAT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that GSAT is in the distress zone and has some risk of bankruptcy.
GSAT has a better Altman-Z score (0.95) than 63.89% of its industry peers.
The Debt to FCF ratio of GSAT is 3.76, which is a good value as it means it would take GSAT, 3.76 years of fcf income to pay off all of its debts.
GSAT has a better Debt to FCF ratio (3.76) than 88.89% of its industry peers.
GSAT has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external financing.
GSAT has a Debt to Equity ratio (1.30) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 3.76 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.05
WACC8.23%
2.3 Liquidity
A Current Ratio of 2.81 indicates that GSAT has no problem at all paying its short term obligations.
The Current ratio of GSAT (2.81) is better than 91.67% of its industry peers.
A Quick Ratio of 2.72 indicates that GSAT has no problem at all paying its short term obligations.
GSAT's Quick ratio of 2.72 is amongst the best of the industry. GSAT outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.09% over the past year.
GSAT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.85%.
Measured over the past years, GSAT shows a quite strong growth in Revenue. The Revenue has been growing by 13.71% on average per year.
EPS 1Y (TTM)9.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%186.67%
Revenue 1Y (TTM)14.85%
Revenue growth 3Y26.29%
Revenue growth 5Y13.71%
Sales Q2Q%11.2%
3.2 Future
The Earnings Per Share is expected to grow by 36.41% on average over the next years. This is a very strong growth
GSAT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.81% yearly.
EPS Next Y88.67%
EPS Next 2Y41.67%
EPS Next 3Y36.41%
EPS Next 5YN/A
Revenue Next Year7.13%
Revenue Next 2Y9.21%
Revenue Next 3Y15.17%
Revenue Next 5Y9.81%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for GSAT. In the last year negative earnings were reported.
GSAT is valuated quite expensively with a Price/Forward Earnings ratio of 8815.69.
The rest of the industry has a similar Price/Forward Earnings ratio as GSAT.
GSAT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8815.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GSAT indicates a slightly more expensive valuation: GSAT is more expensive than 72.22% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GSAT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.62 | ||
| EV/EBITDA | 58.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as GSAT's earnings are expected to grow with 36.41% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.67%
EPS Next 3Y36.41%
5. Dividend
5.1 Amount
GSAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
44.96
+0.47 (+1.06%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners23.06%
Inst Owner Change0.01%
Ins Owners60.57%
Ins Owner Change0.76%
Market Cap5.70B
Analysts82.5
Price Target53.55 (19.11%)
Short Float %5.84%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP-21.64%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-17.65%
Min EPS beat(2)-390.2%
Max EPS beat(2)354.9%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.76%
Min Revenue beat(2)-7.79%
Max Revenue beat(2)4.27%
Revenue beat(4)2
Avg Revenue beat(4)3.38%
Min Revenue beat(4)-7.79%
Max Revenue beat(4)17.49%
Revenue beat(8)5
Avg Revenue beat(8)2.59%
Revenue beat(12)9
Avg Revenue beat(12)4.91%
Revenue beat(16)13
Avg Revenue beat(16)7.56%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)66.67%
EPS NY rev (1m)0%
EPS NY rev (3m)77.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8815.69 | ||
| P/S | 21.85 | ||
| P/FCF | 43.62 | ||
| P/OCF | 9.78 | ||
| P/B | 15.78 | ||
| P/tB | 26.15 | ||
| EV/EBITDA | 58.68 |
EPS(TTM)-0.45
EYN/A
EPS(NY)0.01
Fwd EY0.01%
FCF(TTM)1.03
FCFY2.29%
OCF(TTM)4.6
OCFY10.23%
SpS2.06
BVpS2.85
TBVpS1.72
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.57% | ||
| ROE | -13.58% | ||
| ROCE | 0.57% | ||
| ROIC | 0.45% | ||
| ROICexc | 0.54% | ||
| ROICexgc | 0.6% | ||
| OM | 3.88% | ||
| PM (TTM) | N/A | ||
| GM | 66.74% | ||
| FCFM | 50.09% |
ROA(3y)-14.37%
ROA(5y)-13.86%
ROE(3y)-37.31%
ROE(5y)-33.73%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.78%
GM growth 5Y2.46%
F-Score5
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 3.76 | ||
| Debt/EBITDA | 4.68 | ||
| Cap/Depr | 501.71% | ||
| Cap/Sales | 173.36% | ||
| Interest Coverage | 1.13 | ||
| Cash Conversion | 581.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.72 | ||
| Altman-Z | 0.95 |
F-Score5
WACC8.23%
ROIC/WACC0.05
Cap/Depr(3y)171.1%
Cap/Depr(5y)115.13%
Cap/Sales(3y)67.18%
Cap/Sales(5y)49.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%186.67%
EPS Next Y88.67%
EPS Next 2Y41.67%
EPS Next 3Y36.41%
EPS Next 5YN/A
Revenue 1Y (TTM)14.85%
Revenue growth 3Y26.29%
Revenue growth 5Y13.71%
Sales Q2Q%11.2%
Revenue Next Year7.13%
Revenue Next 2Y9.21%
Revenue Next 3Y15.17%
Revenue Next 5Y9.81%
EBIT growth 1Y180.68%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year851.24%
EBIT Next 3Y147.74%
EBIT Next 5Y92.3%
FCF growth 1Y356.48%
FCF growth 3Y29.75%
FCF growth 5YN/A
OCF growth 1Y577.09%
OCF growth 3Y49.33%
OCF growth 5Y170.23%