Globalstar, Inc. (GSAT): A Bull Case Theory 

We came across a bullish thesis on Globalstar, Inc. on Business Invest’s Substack by Francesco Ferrari. In this article, we will summarize the bulls’ thesis on GSAT. Globalstar, Inc.’s share was trading at $60.12 as of December 1st.

Globalstar, Inc. (GSAT) operates a global network of low-earth orbit (LEO) satellites that enable data and voice communication in remote regions beyond the reach of traditional cellular networks. Its satellite infrastructure supports a range of applications, including GPS tracking, emergency communication devices, and industrial connectivity for sectors such as mining, maritime, and logistics.

The company’s profile has strengthened considerably since forming a strategic partnership with Apple, which leverages Globalstar’s satellites to power the iPhone’s emergency messaging capabilities — a high-visibility deal that underscores the relevance of its network in consumer safety and critical communications.

Financially, Globalstar presents a mixed yet intriguing picture. It has achieved strong top-line momentum with a three-year compound annual revenue growth rate of 24%, alongside a healthy 66.7% gross margin and an impressive 51.4% free cash flow margin, signaling robust operational efficiency.

However, the company’s return on invested capital remains negative, reflecting the heavy upfront infrastructure costs and ongoing capital intensity typical of satellite networks. Despite this, the company’s low beta of 0.98 suggests moderate market volatility, while its $5.33 billion market capitalization and sustained investor enthusiasm point to confidence in its long-term potential.

Over the past five years, Globalstar’s stock has delivered a striking 58.5% compound annual growth rate — an extraordinary performance fueled by strategic partnerships, improving fundamentals, and growing investor conviction in the future of satellite-enabled communication services. The combination of strong growth metrics, scalable technology, and expanding commercial applications positions Globalstar as an unconventional yet compelling play in next-generation connectivity.

Previously we covered a bullish thesis on Iridium Communications Inc. (IRDM) by Stock Picker’s Corner in October 2024, which highlighted its resilient satellite network and shareholder returns. The company’s stock price has depreciated approximately by 44.53% since our coverage as the thesis didn’t fully play out amid sector rotation. The thesis still stands as satellite demand grows structurally. Francesco Ferrari shares a similar but emphasizes Globalstar’s Apple partnership.

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Disclosure: None.