TELESAT CORP (TSAT.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TSAT - CA8795123097 - Common Stock
40.83 CAD
-0.8 (-1.92%)
We assign a fundamental rating of 2 out of 10 to TSAT. TSAT was compared to 30 industry peers in the Diversified Telecommunication Services industry. While TSAT seems to be doing ok healthwise, there are quite some concerns on its profitability. TSAT has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
TSAT had negative earnings in the past year.
TSAT had a positive operating cash flow in the past year.
In multiple years TSAT reported negative net income over the last 5 years.
TSAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TSAT's Return On Assets of -2.25% is on the low side compared to the rest of the industry. TSAT is outperformed by 86.67% of its industry peers.
The Return On Equity of TSAT (-23.41%) is worse than 86.67% of its industry peers.
TSAT has a worse Return On Invested Capital (1.16%) than 86.67% of its industry peers.
TSAT had an Average Return On Invested Capital over the past 3 years of 3.76%. This is in line with the industry average of 5.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.25% | ||
| ROE | -23.41% | ||
| ROIC | 1.16% |
ROA(3y)0.29%
ROA(5y)1.38%
ROE(3y)2.17%
ROE(5y)9.65%
ROIC(3y)3.76%
ROIC(5y)4.41%
1.3 Margins
Looking at the Operating Margin, with a value of 19.98%, TSAT is doing worse than 83.33% of the companies in the same industry.
In the last couple of years the Operating Margin of TSAT has declined.
TSAT has a Gross Margin of 94.29%. This is amongst the best in the industry. TSAT outperforms 100.00% of its industry peers.
TSAT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.98% | ||
| PM (TTM) | N/A | ||
| GM | 94.29% |
OM growth 3Y-0.65%
OM growth 5Y-5.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.93%
GM growth 5Y-0.54%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TSAT is destroying value.
Compared to 1 year ago, TSAT has more shares outstanding
The number of shares outstanding for TSAT has been reduced compared to 5 years ago.
TSAT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.54, we must say that TSAT is in the distress zone and has some risk of bankruptcy.
TSAT has a Altman-Z score of 0.54. This is amonst the worse of the industry: TSAT underperforms 86.67% of its industry peers.
TSAT has a Debt/Equity ratio of 4.96. This is a high value indicating a heavy dependency on external financing.
TSAT has a worse Debt to Equity ratio (4.96) than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.54 |
ROIC/WACC0.2
WACC5.76%
2.3 Liquidity
A Current Ratio of 4.11 indicates that TSAT has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.11, TSAT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 4.11 indicates that TSAT has no problem at all paying its short term obligations.
TSAT has a better Quick ratio (4.11) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.11 | ||
| Quick Ratio | 4.11 |
3. Growth
3.1 Past
TSAT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -387.98%.
The Revenue for TSAT has decreased by -25.79% in the past year. This is quite bad
TSAT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.92% yearly.
EPS 1Y (TTM)-387.98%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-293.5%
Revenue 1Y (TTM)-25.79%
Revenue growth 3Y-9.02%
Revenue growth 5Y-8.92%
Sales Q2Q%-27%
3.2 Future
TSAT is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -20.52% yearly.
The Revenue is expected to grow by 15.49% on average over the next years. This is quite good.
EPS Next Y-0.04%
EPS Next 2Y-51.53%
EPS Next 3Y-20.52%
EPS Next 5YN/A
Revenue Next Year-26.26%
Revenue Next 2Y-21.81%
Revenue Next 3Y-7.87%
Revenue Next 5Y15.49%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for TSAT. In the last year negative earnings were reported.
Also next year TSAT is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TSAT is valued expensively inside the industry as 86.67% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.1 |
4.3 Compensation for Growth
A cheap valuation may be justified as TSAT's earnings are expected to decrease with -20.52% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-51.53%
EPS Next 3Y-20.52%
5. Dividend
5.1 Amount
No dividends for TSAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:TSAT (12/24/2025, 7:00:00 PM)
40.83
-0.8 (-1.92%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners57.52%
Inst Owner ChangeN/A
Ins Owners5.2%
Ins Owner ChangeN/A
Market Cap2.09B
Revenue(TTM)451.91M
Net Income(TTM)-156.12M
Analysts80
Price Target69.8 (70.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)84.69%
Min EPS beat(2)29.51%
Max EPS beat(2)139.87%
EPS beat(4)3
Avg EPS beat(4)61.21%
Min EPS beat(4)-110.16%
Max EPS beat(4)185.61%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.27%
Min Revenue beat(2)-5.43%
Max Revenue beat(2)-1.11%
Revenue beat(4)2
Avg Revenue beat(4)0.16%
Min Revenue beat(4)-5.43%
Max Revenue beat(4)4.03%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)38.83%
PT rev (3m)58.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)31.76%
EPS NY rev (1m)25.1%
EPS NY rev (3m)14.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 4.62 | ||
| P/FCF | N/A | ||
| P/OCF | 21.91 | ||
| P/B | 3.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.1 |
EPS(TTM)-8.35
EYN/A
EPS(NY)-12.54
Fwd EYN/A
FCF(TTM)-19.76
FCFYN/A
OCF(TTM)1.86
OCFY4.56%
SpS8.85
BVpS13.06
TBVpS-45.8
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.25% | ||
| ROE | -23.41% | ||
| ROCE | 1.34% | ||
| ROIC | 1.16% | ||
| ROICexc | 1.25% | ||
| ROICexgc | 2.42% | ||
| OM | 19.98% | ||
| PM (TTM) | N/A | ||
| GM | 94.29% | ||
| FCFM | N/A |
ROA(3y)0.29%
ROA(5y)1.38%
ROE(3y)2.17%
ROE(5y)9.65%
ROIC(3y)3.76%
ROIC(5y)4.41%
ROICexc(3y)4.87%
ROICexc(5y)5.57%
ROICexgc(3y)14.76%
ROICexgc(5y)17.44%
ROCE(3y)4.34%
ROCE(5y)5.08%
ROICexgc growth 3Y-28.13%
ROICexgc growth 5Y-25.47%
ROICexc growth 3Y-17.12%
ROICexc growth 5Y-18.41%
OM growth 3Y-0.65%
OM growth 5Y-5.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.93%
GM growth 5Y-0.54%
F-Score3
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.96 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 14.26 | ||
| Cap/Depr | 779.45% | ||
| Cap/Sales | 244.48% | ||
| Interest Coverage | 0.49 | ||
| Cash Conversion | 41.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.11 | ||
| Quick Ratio | 4.11 | ||
| Altman-Z | 0.54 |
F-Score3
WACC5.76%
ROIC/WACC0.2
Cap/Depr(3y)301.38%
Cap/Depr(5y)217.49%
Cap/Sales(3y)74.26%
Cap/Sales(5y)55.15%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-387.98%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-293.5%
EPS Next Y-0.04%
EPS Next 2Y-51.53%
EPS Next 3Y-20.52%
EPS Next 5YN/A
Revenue 1Y (TTM)-25.79%
Revenue growth 3Y-9.02%
Revenue growth 5Y-8.92%
Sales Q2Q%-27%
Revenue Next Year-26.26%
Revenue Next 2Y-21.81%
Revenue Next 3Y-7.87%
Revenue Next 5Y15.49%
EBIT growth 1Y-64.6%
EBIT growth 3Y-9.61%
EBIT growth 5Y-14.06%
EBIT Next Year-11.56%
EBIT Next 3Y-4.93%
EBIT Next 5Y26.1%
FCF growth 1Y-951.76%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-57.46%
OCF growth 3Y-40.49%
OCF growth 5Y-30.15%
TELESAT CORP / TSAT.CA FAQ
Can you provide the ChartMill fundamental rating for TELESAT CORP?
ChartMill assigns a fundamental rating of 2 / 10 to TSAT.CA.
What is the valuation status for TSAT stock?
ChartMill assigns a valuation rating of 0 / 10 to TELESAT CORP (TSAT.CA). This can be considered as Overvalued.
Can you provide the profitability details for TELESAT CORP?
TELESAT CORP (TSAT.CA) has a profitability rating of 3 / 10.
What is the earnings growth outlook for TELESAT CORP?
The Earnings per Share (EPS) of TELESAT CORP (TSAT.CA) is expected to decline by -0.04% in the next year.
Is the dividend of TELESAT CORP sustainable?
The dividend rating of TELESAT CORP (TSAT.CA) is 0 / 10 and the dividend payout ratio is 0%.