TELESAT CORP (TSAT.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TSAT - CA8795123097 - Common Stock
36.14 CAD
+0.72 (+2.03%)
TSAT gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 29 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 is valued expensive and it does not seem to be growing.
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.
The reported net income has been mixed in the past 5 years: TSAT reported negative net income in multiple years.
In the past 5 years TSAT always reported a positive cash flow from operatings.
1.2 Ratios
TSAT has a worse Return On Assets (-2.25%) than 89.66% of its industry peers.
TSAT has a worse Return On Equity (-23.41%) than 89.66% of its industry peers.
TSAT's Return On Invested Capital of 1.16% is on the low side compared to the rest of the industry. TSAT is outperformed by 89.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TSAT 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
TSAT has a worse Operating Margin (19.98%) than 86.21% of its industry peers.
In the last couple of years the Operating Margin of TSAT has declined.
With an excellent Gross Margin value of 94.29%, TSAT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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
TSAT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TSAT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TSAT has been reduced compared to 5 years ago.
Compared to 1 year ago, TSAT has an improved debt to assets ratio.
2.2 Solvency
TSAT has an Altman-Z score of 0.51. This is a bad value and indicates that TSAT is not financially healthy and even has some risk of bankruptcy.
TSAT has a Altman-Z score of 0.51. This is amonst the worse of the industry: TSAT underperforms 89.66% of its industry peers.
A Debt/Equity ratio of 4.96 is on the high side and indicates that TSAT has dependencies on debt financing.
TSAT has a worse Debt to Equity ratio (4.96) than 93.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.51 |
ROIC/WACC0.2
WACC5.73%
2.3 Liquidity
A Current Ratio of 4.11 indicates that TSAT has no problem at all paying its short term obligations.
TSAT has a Current ratio of 4.11. This is amongst the best in the industry. TSAT outperforms 100.00% of its industry peers.
A Quick Ratio of 4.11 indicates that TSAT has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 4.11, TSAT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| 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%.
Looking at the last year, TSAT shows a very negative growth in Revenue. The Revenue has decreased by -25.79% in the last year.
Measured over the past years, TSAT shows a decrease in Revenue. The Revenue has been decreasing by -8.92% on average per year.
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 -11.85% yearly.
The Revenue is expected to grow by 15.49% on average over the next years. This is quite good.
EPS Next Y-33.58%
EPS Next 2Y-45.59%
EPS Next 3Y-11.85%
EPS Next 5YN/A
Revenue Next Year-26.26%
Revenue Next 2Y-20.55%
Revenue Next 3Y-7.16%
Revenue Next 5Y15.49%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
TSAT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for TSAT. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TSAT indicates a rather expensive valuation: TSAT more expensive than 93.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.91 |
4.3 Compensation for Growth
TSAT's earnings are expected to decrease with -11.85% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-45.59%
EPS Next 3Y-11.85%
5. Dividend
5.1 Amount
TSAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:TSAT (11/25/2025, 7:00:00 PM)
36.14
+0.72 (+2.03%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners56.43%
Inst Owner ChangeN/A
Ins Owners5.19%
Ins Owner ChangeN/A
Market Cap1.85B
Revenue(TTM)451.91M
Net Income(TTM)-156.12M
Analysts80
Price Target50.45 (39.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)13.09%
PT rev (3m)13.78%
EPS NQ rev (1m)31.76%
EPS NQ rev (3m)4.84%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.76%
Revenue NQ rev (1m)-2.03%
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 | 4.09 | ||
| P/FCF | N/A | ||
| P/OCF | 19.39 | ||
| P/B | 2.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.91 |
EPS(TTM)-8.35
EYN/A
EPS(NY)-11.57
Fwd EYN/A
FCF(TTM)-19.76
FCFYN/A
OCF(TTM)1.86
OCFY5.16%
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 | 0.51 |
F-Score3
WACC5.73%
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-33.58%
EPS Next 2Y-45.59%
EPS Next 3Y-11.85%
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-20.55%
Revenue Next 3Y-7.16%
Revenue Next 5Y15.49%
EBIT growth 1Y-64.6%
EBIT growth 3Y-9.61%
EBIT growth 5Y-14.06%
EBIT Next Year-11.28%
EBIT Next 3Y-3.05%
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 -33.58% 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%.