With the business potentially at an important milestone, we thought we'd take a closer look at Globalstar, Inc.'s (NASDAQ:GSAT) future prospects. Globalstar, Inc. provides mobile satellite services in the United States, Canada, Europe, Central and South America, and internationally. With the latest financial year loss of US$35m and a trailing-twelve-month loss of US$39m, the US$3.1b market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Globalstar's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Globalstar

Consensus from 3 of the American Telecom analysts is that Globalstar is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$3.5m in 2025. The company is therefore projected to breakeven around a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 97% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Globalstar's upcoming projects, however, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one issue worth mentioning. Globalstar currently has a debt-to-equity ratio of 100%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Globalstar to cover in one brief article, but the key fundamentals for the company can all be found in one place – Globalstar's company page on Simply Wall St. We've also compiled a list of key aspects you should further research:

1. Valuation: What is Globalstar worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Globalstar is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Globalstar’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.