Globalstar, Inc. Fundamental Analysis (NASDAQ: GSAT)
Globalstar, Inc. Fundamental Analysis (NASDAQ: GSAT)
Globalstar, Inc. (NASDAQ: GSAT) shows moderate financial fundamentals with a PE ratio of -160.05, profit margin of -21.31%, and ROE of -17.64%. The company generates $0.3B in annual revenue with moderate year-over-year growth of 9.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -8.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GSAT's fundamental strength across five key dimensions:
Efficiency Score
WeakGSAT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGSAT trades at attractive valuation levels.
Growth Score
ExcellentGSAT delivers strong and consistent growth momentum.
Financial Health Score
ModerateGSAT shows balanced financial health with some risks.
Profitability Score
WeakGSAT struggles to sustain strong margins.
Key Financial Metrics
Is GSAT Expensive or Cheap?
P/E Ratio
GSAT trades at -160.05 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GSAT's PEG of 0.55 indicates potential undervaluation.
Price to Book
The market values Globalstar, Inc. at 36.20 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 169.53 times EBITDA. This signals the market has high growth expectations.
How Well Does GSAT Make Money?
Net Profit Margin
For every $100 in sales, Globalstar, Inc. keeps $-21.31 as profit after all expenses.
Operating Margin
Core operations generate 4.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-17.64 in profit for every $100 of shareholder equity.
ROA
Globalstar, Inc. generates $-2.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Globalstar, Inc. generates strong operating cash flow of $570.20M, reflecting robust business health.
Free Cash Flow
Globalstar, Inc. generates strong free cash flow of $181.31M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.41 in free cash annually.
FCF Yield
GSAT converts 1.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-160.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.55
vs 25 benchmark
P/B Ratio
Price to book value ratio
36.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
37.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.18
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.006
vs 25 benchmark
How GSAT Stacks Against Its Sector Peers
| Metric | GSAT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -160.05 | 19.63 | Better (Cheaper) |
| ROE | -17.64% | 605.00% | Weak |
| Net Margin | -21.31% | 492.00% | Weak |
| Debt/Equity | 1.41 | 0.80 | Weak (High Leverage) |
| Current Ratio | 1.55 | 1.90 | Neutral |
| ROA | -2.45% | 301.00% | Weak |
GSAT outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Globalstar, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
175.28%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
89.78%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
3525.73%
Industry Style: Growth, Technology, Streaming
High Growth