GLOBALSTAR INC (GSAT) Stock Fundamental Analysis
NASDAQ:GSAT - Nasdaq - US3789735079 - Common Stock - Currency: USD
GSAT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 32 industry peers in the Diversified Telecommunication Services industry. GSAT scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. While showing a medium growth rate, GSAT is valued expensive at the moment.
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.
GSAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.51%, GSAT is doing worse than 81.82% of the companies in the same industry.
GSAT's Return On Equity of -22.62% is on the low side compared to the rest of the industry. GSAT is outperformed by 75.76% of its industry peers.
With a Return On Invested Capital value of 0.13%, GSAT is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| 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 66.67% of the companies in the same industry.
GSAT has a better Gross Margin (66.71%) than 75.76% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GSAT 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
GSAT has an Altman-Z score of 0.02. This is a bad value and indicates that GSAT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.02, GSAT is not doing good in the industry: 78.79% of the companies in the same industry are doing better.
The Debt to FCF ratio of GSAT is 7.15, which is on the high side as it means it would take GSAT, 7.15 years of fcf income to pay off all of its debts.
GSAT has a better Debt to FCF ratio (7.15) than 63.64% of its industry peers.
A Debt/Equity ratio of 1.37 is on the high side and indicates that GSAT has dependencies on debt financing.
GSAT has a Debt to Equity ratio of 1.37. This is in the lower half of the industry: GSAT underperforms 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 7.15 | ||
| Altman-Z | 0.02 |
ROIC/WACC0.02
WACC8.37%
2.3 Liquidity
A Current Ratio of 2.27 indicates that GSAT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.27, GSAT belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
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.
GSAT's Quick ratio of 2.19 is amongst the best of the industry. GSAT outperforms 87.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.19 |
3. Growth
3.1 Past
The earnings per share for GSAT have decreased strongly by -111.59% in the last year.
Looking at the last year, GSAT shows a quite strong growth in Revenue. The Revenue has grown by 14.55% in the last year.
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)-111.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-6.67%
Revenue 1Y (TTM)14.55%
Revenue growth 3Y26.29%
Revenue growth 5Y13.71%
Sales Q2Q%6.29%
3.2 Future
The Earnings Per Share is expected to grow by 35.90% on average over the next years. This is a very strong growth
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 Year6.89%
Revenue Next 2Y14.04%
Revenue Next 3Y15.79%
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.
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
GSAT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. GSAT is more expensive than 72.73% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GSAT indicates a slightly more expensive valuation: GSAT is more expensive than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.84 | ||
| EV/EBITDA | 40.32 |
4.3 Compensation for Growth
A more expensive valuation may be justified as GSAT's earnings are expected to grow with 35.90% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y40.92%
EPS Next 3Y35.9%
5. Dividend
5.1 Amount
No dividends for GSAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27.15
-0.16 (-0.59%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners21.37%
Inst Owner Change0%
Ins Owners60.61%
Ins Owner Change0.39%
Market Cap3.44B
Analysts82.5
Price Target53.55 (97.24%)
Short Float %4.69%
Short Ratio4.02
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)-795.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 13.54 | ||
| P/FCF | 48.84 | ||
| P/OCF | 7.45 | ||
| P/B | 9.98 | ||
| P/tB | 16.7 | ||
| EV/EBITDA | 40.32 |
EPS(TTM)-0.73
EYN/A
EPS(NY)-0.01
Fwd EYN/A
FCF(TTM)0.56
FCFY2.05%
OCF(TTM)3.64
OCFY13.42%
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 | 0.02 |
F-Score5
WACC8.37%
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)-111.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-6.67%
EPS Next Y50.42%
EPS Next 2Y40.92%
EPS Next 3Y35.9%
EPS Next 5YN/A
Revenue 1Y (TTM)14.55%
Revenue growth 3Y26.29%
Revenue growth 5Y13.71%
Sales Q2Q%6.29%
Revenue Next Year6.89%
Revenue Next 2Y14.04%
Revenue Next 3Y15.79%
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%