Globalstar, Inc.

Where It Passes

Where It Falls Short

• Valuation0% pass✗ 28▾

  All 13 investors flag GSAT's valuation

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio

  ✗Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value0.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=0.1%, ROC=0.7%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)

  ✗Dreman< 8x

  Price / Book Value per Share

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation Reasonableness

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF Yield

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical Average

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share

  ✗Ackman<= 25

  Price vs. Trailing Low467% of trailing low ($18.46)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization-0.64%; #3340/6340 (top 52.7%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+0.0248; #5114/6449 (top 79.3%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.0248; #4722/5247 (top 90.0%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+17.95%; #1449/6202 (top 23.4%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models0% pass✗ 2▾

  GSAT overvalued: all 2 models price fair value below $86.29 (median $4.67)

  Greenblatt fair value$0.13

  ✗Greenblatt-65663.4% margin vs $86.29

  Pabrai fair value$9.20

  ✗Pabrai-837.9% margin vs $86.29
• Profitability6% pass✓ 6✗ 29▾

  15 of 16 flag GSAT's profitability — Graham, Buffett, Lynch +12 more

  Positive EPS (10 years)4/24 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)6/24 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-27.8%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)2.7% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$106.5M

  ✓BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE-25.7%

  ✗Lynch> 15%

  EBIT / Enterprise Value0.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=0.1%, ROC=0.7%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-0.37%

  ✗PiotroskiROA > 0

  ROA Change YoY-3.69% -> -0.37% (delta: +3.32%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=26.72%, ROA=-0.37%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue-22.5%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-25.7%

  ✗Dreman> 12%

  Margin of Safety

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-8.9% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency6/21 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue3.8%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-25.7%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-0.1% (2023) -> 2.7% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin -0.1% -> 2.7%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization-0.64%; #3340/6340 (top 52.7%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-25.71%; #3816/5226 (top 73.0%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.1273; #3778/5884 (top 64.2%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years0/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Debt & Leverage8% pass✓ 4✗ 11▾

  11 of 12 flag GSAT's debt & leverage — Graham, Buffett, Lynch +8 more

  LT Debt vs Net Current AssetsLT Debt $293.8M vs NCA $141.8M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.36, IC: No interest expense

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity1.27

  ✗Lynch< 0.33

  Cash - Long-term Debt$36.2M

  ✓LynchPositive preferred

  LT Debt / Total Assets Change27.88% -> 19.43%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.59

  ✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity1.27

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels1.27

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=N/A (no interest expense), D/EBITDA=5.1x

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity1.27

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.2729; #3470/4210 (top 82.4%)

  ✗AsnessTop 30% of eligible cross-section
• Efficiency13% pass✓ 1✗ 10▾

  7 of 8 flag GSAT's efficiency — Graham, Buffett, Greenblatt +4 more

  Current Ratio1.59

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-9.9%

  ✗Buffett> 10%

  ROIC - WACC-19.9%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)0.7%

  ✗Greenblatt> 25%

  Current Ratio Change YoY3.16 -> 2.42

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.15x -> 0.12x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities1.59

  ✓Dreman> 1.5

  Return on Invested Capital1.3%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-0.0%; FY2024: ROIC=-0.1%; FY2025: ROIC=0.7%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROICN/A (non-positive net income)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 0.7%)

  ✗SleepROIC > 12% in a majority of years
• Verdicts13% pass✓ 2✗ 13▾

  Split decision: 12 FAIL · 2 PASS · 2 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (2/9)✗LynchFAIL (2/7)✗GreenblattRank #1819✓PiotroskiPASS (F-Score 4)✗DremanFAIL (2/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (0/6)✗MarksFAIL (0/5)✗AckmanFAIL (3/9)✗TempletonFAIL (2/8)✓SleepPASS (3/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (1/6)✗SchlossFAIL (2/7)•OshaughnessyNEUTRAL (Not ranked)
• Growth25% pass✓ 5✗ 8▾

  6 of 8 flag GSAT's growth — Graham, Lynch, Dreman +3 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: -2.0% vs Rev: 5.9%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency6/21 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth11.9%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency3/5 years with positive EPS growth

  ✓AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin -0.1% -> 2.7%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR16.3%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Cash Flow30% pass✓ 4✗ 8▾

  7 of 10 flag GSAT's cash flow — Lynch, Dreman, Pabrai +4 more

  Free Cash Flow Proxy$106.5M

  ✓BuffettPositive and growing

  FCF Positive and Growing$-1.5M

  ✗LynchPositive and growing

  Operating Cash Flow$621.6M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=26.72%, ROA=-0.37%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)

  ✗Dreman< 8x

  P/E or FCF Yield

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive3/11 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap

  ✗Ackman>= 4%

  Price / FCF per Share

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency13/17 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section