Globalstar Stock Beneish M Score

GSAT Stock  USD 1.65  0.04  2.48%   
This module uses fundamental data of Globalstar to approximate the value of its Beneish M Score. Globalstar M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Globalstar Piotroski F Score and Globalstar Altman Z Score analysis.
For more information on how to buy Globalstar Stock please use our How to Invest in Globalstar guide.
  
At this time, Globalstar's Total Debt is comparatively stable as compared to the past year. Debt Non Current is likely to gain to about 147.6 M in 2024, whereas Debt Current is likely to drop slightly above 65.9 M in 2024. At this time, Globalstar's Current Ratio is comparatively stable as compared to the past year. Debt to Equity Ratio is likely to gain to 1.24 in 2024, whereas Accrued Expenses Turnover is likely to drop 3.09 in 2024.
At this time, it appears that Globalstar is an unlikely manipulator. The earnings manipulation may begin if Globalstar's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Globalstar executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Globalstar's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-4.74
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.97

Focus
Asset Quality

N/A

Focus
Expense Coverage

1.09

Focus
Gross Margin Strengs

1.0

Focus
Accruals Factor

1.09

Focus
Depreciation Resistance

1.21

Focus
Net Sales Growth

0.91

Focus
Financial Leverage Condition

1.21

Focus

Globalstar Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Globalstar's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense50.3 M50.7 M
Slightly Down
Slightly volatile
Revenues155.6 M170.8 M
Significantly Down
Slightly volatile
Trade and Non Trade Receivables26.8 M30.3 M
Fairly Down
Slightly volatile
Property Plant and Equipment Net663 M532.1 M
Fairly Up
Slightly volatile
Net Cash Flow from Operations79.2 M73.4 M
Significantly Up
Slightly volatile
Liabilities Non Current209.3 M204 M
Fairly Up
Slightly volatile
Current Liabilities191.9 M226.6 M
Fairly Down
Pretty Stable
Total Liabilities528 M381.3 M
Significantly Up
Slightly volatile
Gross Margin0.650.65
Steady
Slightly volatile
Depreciation Amortization and Accretion107.9 M108 M
Slightly Down
Slightly volatile
Debt Non Current147.6 M143.8 M
Fairly Up
Slightly volatile
Debt Current65.9 M68.5 M
Sufficiently Down
Slightly volatile
Total Debt305.9 M197.4 M
Way Up
Slightly volatile
Assets Non Current723.4 M591.5 M
Fairly Up
Slightly volatile
Current Assets92.2 M93.4 M
Fairly Down
Pretty Stable
Total Assets793.2 M664.6 M
Fairly Up
Slightly volatile

Globalstar Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Globalstar's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Globalstar in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Globalstar's degree of accounting gimmicks and manipulations.

About Globalstar Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

107.89 Million

At this time, Globalstar's Depreciation Amortization and Accretion is comparatively stable as compared to the past year.

Globalstar Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Globalstar. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Revenues131.7M128.5M124.3M148.5M170.8M155.6M
Total Assets965.6M888.1M814.1M738.5M664.6M793.2M
Current Assets63.3M68.5M68.9M81.2M93.4M92.2M
Assets Non Current902.3M819.6M745.2M657.2M591.5M723.4M
Total Liabilities558.2M465.0M448.7M423.7M381.3M528.0M
Current Liabilities63.1M114.2M61.6M197.1M226.6M191.9M
Total Debt478.9M399.1M267.2M219.3M197.4M305.9M
Debt Current79.2M96.2M58.8M59.6M68.5M65.9M
Debt Non Current478.9M340.3M267.2M159.8M143.8M147.6M
Operating Income(64.0M)(59.2M)(65.5M)(221.0M)(198.9M)(204.2M)
Gross Margin0.580.60.590.620.560.65

About Globalstar Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Globalstar's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Globalstar using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Globalstar based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Globalstar, Inc. provides mobile satellite services worldwide. The company was founded in 1993 and is headquartered in Covington, Louisiana. Globalstar operates under Telecom Services classification in the United States and is traded on AMEX Exchange. It employs 329 people.

Globalstar Implied Volatility

    
  101.59  
Globalstar's implied volatility exposes the market's sentiment of Globalstar stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Globalstar's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Globalstar stock will not fluctuate a lot when Globalstar's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Globalstar in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Globalstar's short interest history, or implied volatility extrapolated from Globalstar options trading.

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When determining whether Globalstar is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Globalstar Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Globalstar Stock. Highlighted below are key reports to facilitate an investment decision about Globalstar Stock:
Check out Globalstar Piotroski F Score and Globalstar Altman Z Score analysis.
For more information on how to buy Globalstar Stock please use our How to Invest in Globalstar guide.
Note that the Globalstar information on this page should be used as a complementary analysis to other Globalstar's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Investment Finder module to use AI to screen and filter profitable investment opportunities.

Complementary Tools for Globalstar Stock analysis

When running Globalstar's price analysis, check to measure Globalstar's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Globalstar is operating at the current time. Most of Globalstar's value examination focuses on studying past and present price action to predict the probability of Globalstar's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Globalstar's price. Additionally, you may evaluate how the addition of Globalstar to your portfolios can decrease your overall portfolio volatility.
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Is Globalstar's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Globalstar. If investors know Globalstar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Globalstar listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.01)
Revenue Per Share
0.117
Quarterly Revenue Growth
0.533
Return On Assets
0.0008
Return On Equity
(0.06)
The market value of Globalstar is measured differently than its book value, which is the value of Globalstar that is recorded on the company's balance sheet. Investors also form their own opinion of Globalstar's value that differs from its market value or its book value, called intrinsic value, which is Globalstar's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Globalstar's market value can be influenced by many factors that don't directly affect Globalstar's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Globalstar's value and its price as these two are different measures arrived at by different means. Investors typically determine if Globalstar is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Globalstar's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.