GLOBALSTAR INC (GSAT) Stock Fundamental Analysis
NASDAQ:GSAT - Nasdaq - US3789735079 - Common Stock - Currency: USD
Overall GSAT gets a fundamental rating of 3 out of 10. We evaluated GSAT against 35 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
GSAT had negative earnings in the past year.
GSAT had a positive operating cash flow in the past year.
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
GSAT's Return On Assets of -4.51% is on the low side compared to the rest of the industry. GSAT is outperformed by 77.14% of its industry peers.
GSAT has a worse Return On Equity (-22.62%) than 71.43% of its industry peers.
GSAT has a worse Return On Invested Capital (0.13%) than 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.51% | ||
| ROE | -22.62% | ||
| ROIC | 0.13% |
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
Looking at the Operating Margin, with a value of 1.00%, GSAT is doing worse than 62.86% of the companies in the same industry.
GSAT's Gross Margin of 66.71% is fine compared to the rest of the industry. GSAT outperforms 77.14% of its industry peers.
GSAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1% | ||
| PM (TTM) | N/A | ||
| GM | 66.71% |
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
GSAT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, GSAT has more shares outstanding
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 -0.09, we must say that GSAT is in the distress zone and has some risk of bankruptcy.
GSAT's Altman-Z score of -0.09 is on the low side compared to the rest of the industry. GSAT is outperformed by 74.29% of its industry peers.
GSAT has a debt to FCF ratio of 7.15. This is a slightly negative value and a sign of low solvency as GSAT would need 7.15 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.15, GSAT is doing good in the industry, outperforming 68.57% of the companies in the same industry.
A Debt/Equity ratio of 1.37 is on the high side and indicates that GSAT has dependencies on debt financing.
The Debt to Equity ratio of GSAT (1.37) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 7.15 | ||
| Altman-Z | -0.09 |
ROIC/WACC0.02
WACC8.22%
2.3 Liquidity
GSAT has a Current Ratio of 2.27. This indicates that GSAT is financially healthy and has no problem in meeting its short term obligations.
GSAT has a Current ratio of 2.27. This is amongst the best in the industry. GSAT outperforms 88.57% of its industry peers.
GSAT has a Quick Ratio of 2.19. This indicates that GSAT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.19, GSAT belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.19 |
3. Growth
3.1 Past
GSAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.09%, which is quite good.
The Revenue has grown by 11.86% in the past year. This is quite good.
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)11.86%
Revenue growth 3Y26.29%
Revenue growth 5Y13.71%
Sales Q2Q%11.2%
3.2 Future
Based on estimates for the next years, GSAT will show a very strong growth in Earnings Per Share. The EPS will grow by 35.90% on average per year.
The Revenue is expected to grow by 9.81% on average over the next years. This is quite good.
EPS Next Y50.42%
EPS Next 2Y40.92%
EPS Next 3Y35.9%
EPS Next 5YN/A
Revenue Next Year5.55%
Revenue Next 2Y12.85%
Revenue Next 3Y15.15%
Revenue Next 5Y9.81%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GSAT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year GSAT is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GSAT is valued a bit more expensive than the industry average as 68.57% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, GSAT is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.22 | ||
| EV/EBITDA | 37.6 |
4.3 Compensation for Growth
GSAT's earnings are expected to grow with 35.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y40.92%
EPS Next 3Y35.9%
5. Dividend
5.1 Amount
GSAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.47
+3.29 (+13.07%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners21.37%
Inst Owner Change-0.14%
Ins Owners60.61%
Ins Owner Change0.39%
Market Cap3.60B
Analysts82.5
Price Target53.55 (88.09%)
Short Float %5.59%
Short Ratio4.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP-13.61%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-831.37%
Min EPS beat(2)-1272.55%
Max EPS beat(2)-390.2%
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)0
Avg Revenue beat(2)-4.11%
Min Revenue beat(2)-7.79%
Max Revenue beat(2)-0.43%
Revenue beat(4)2
Avg Revenue beat(4)3.21%
Min Revenue beat(4)-7.79%
Max Revenue beat(4)17.49%
Revenue beat(8)5
Avg Revenue beat(8)2.68%
Revenue beat(12)9
Avg Revenue beat(12)6.27%
Revenue beat(16)13
Avg Revenue beat(16)7.82%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-150%
EPS NY rev (1m)0%
EPS NY rev (3m)-686.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.18%
Revenue NY rev (1m)-1.26%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 14.19 | ||
| P/FCF | 51.22 | ||
| P/OCF | 7.81 | ||
| P/B | 10.47 | ||
| P/tB | 17.51 | ||
| EV/EBITDA | 37.6 |
EPS(TTM)-0.45
EYN/A
EPS(NY)-0.01
Fwd EYN/A
FCF(TTM)0.56
FCFY1.95%
OCF(TTM)3.64
OCFY12.8%
SpS2.01
BVpS2.72
TBVpS1.63
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.51% | ||
| ROE | -22.62% | ||
| ROCE | 0.16% | ||
| ROIC | 0.13% | ||
| ROICexc | 0.15% | ||
| ROICexgc | 0.17% | ||
| OM | 1% | ||
| PM (TTM) | N/A | ||
| GM | 66.71% | ||
| FCFM | 27.71% |
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 Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 7.15 | ||
| Debt/EBITDA | 5.15 | ||
| Cap/Depr | 438.37% | ||
| Cap/Sales | 153.95% | ||
| Interest Coverage | 0.28 | ||
| Cash Conversion | 502.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.19 | ||
| Altman-Z | -0.09 |
F-Score5
WACC8.22%
ROIC/WACC0.02
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 Y50.42%
EPS Next 2Y40.92%
EPS Next 3Y35.9%
EPS Next 5YN/A
Revenue 1Y (TTM)11.86%
Revenue growth 3Y26.29%
Revenue growth 5Y13.71%
Sales Q2Q%11.2%
Revenue Next Year5.55%
Revenue Next 2Y12.85%
Revenue Next 3Y15.15%
Revenue Next 5Y9.81%
EBIT growth 1Y130.01%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year833.2%
EBIT Next 3Y147.69%
EBIT Next 5Y92.3%
FCF growth 1Y519.4%
FCF growth 3Y29.75%
FCF growth 5YN/A
OCF growth 1Y483.58%
OCF growth 3Y49.33%
OCF growth 5Y170.23%