Globalstar Inc's Meteoric Rise: Unpacking the 31% Surge in Just 3 Months

Globalstar Inc (GSAT, Financial), a leading player in the telecommunications industry, has been making waves in the stock market with its impressive performance. The company's market cap stands at $2.61 billion, with its stock price currently at $1.42. Over the past week, the stock has seen a gain of 10.16%, and over the past three months, it has surged by a remarkable 30.56%. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. The current GF Value of the stock is $1.79, up from $1.62 three months ago, indicating a positive trend. The stock's current GF Valuation is 'Modestly Undervalued', a significant improvement from the 'Possible Value Trap, Think Twice' valuation three months ago.

Company Overview: Globalstar Inc

Globalstar Inc is a telecommunications company that provides mobile satellite services. These services are primarily used where existing terrestrial wireline and wireless communications networks are impaired or do not exist. The company offers two-way voice and data transmission services, as well as one-way data transmission, using mobile or fixed devices. As an owner of satellite assets, Globalstar Inc generates the vast majority of its revenue within the United States. 1719373263496343552.png

Profitability Analysis

Globalstar Inc's Profitability Rank stands at 3/10, suggesting moderate business stability. The company's Operating Margin is -10.46%, better than 11.05% of companies in the industry. The ROE is -75.87%, better than 4.97% of companies, while the ROA is -25.37%, better than 6.57% of companies. The ROIC is -2.33%, better than 17.93% of companies. Over the past 10 years, the company has had 2 years of profitability, better than 12% of companies. 1719373285973618688.png

Growth Prospects

The company's Growth Rank is 4/10, suggesting moderate long-term performance. The 3-Year Revenue Growth Rate per Share is 0.80%, better than 37.6% of companies, while the 5-Year Revenue Growth Rate per Share is -5.50%, better than 21.74% of companies. The 3-Year EPS without NRI Growth Rate is -26.00%, better than 12.62% of companies, and the 5-Year EPS without NRI Growth Rate is -26.30%, better than 3.83% of companies. 1719373304604717056.png

Major Stock Holders

The top two holders of the stock are Jim Simons (Trades, Portfolio), who holds 1,323,374 shares (0.07% share percentage), and Steven Cohen (Trades, Portfolio), who holds 108 shares (0% share percentage).

Competitive Landscape

Globalstar Inc operates in a competitive industry, with major competitors including DISH Network Corp (DISH, Financial) with a market cap of $2.61 billion, Millicom International Cellular SA (TIGO, Financial) with a market cap of $2.68 billion, and Telephone and Data Systems Inc (TDS, Financial) with a market cap of $2.02 billion.

Conclusion

In conclusion, Globalstar Inc has shown impressive stock performance with a 30.56% gain over the past three months. Despite its modest profitability and growth ranks, the company's improving GF Value and GF Valuation suggest potential for future growth. However, the competitive landscape and the company's profitability and growth metrics warrant careful consideration for potential investors.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.