TELESAT CORP (TSAT.CA) Stock Fundamental Analysis
TSX:TSAT - Toronto Stock Exchange - CA8795123097 - Common Stock - Currency: CAD
We assign a fundamental rating of 3 out of 10 to TSAT. TSAT was compared to 30 industry peers in the Diversified Telecommunication Services industry. The financial health of TSAT is average, but there are quite some concerns on its profitability. TSAT does not seem to be growing, but still is valued expensively.
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.
Each year in the past 5 years TSAT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.24%, TSAT is doing worse than 86.67% of the companies in the same industry.
With a Return On Equity value of -12.49%, TSAT is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
The Return On Invested Capital of TSAT (2.33%) is worse 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 5.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.24% | ||
| ROE | -12.49% | ||
| ROIC | 2.33% |
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
The Operating Margin of TSAT (34.67%) is better than 100.00% of its industry peers.
TSAT's Operating Margin has declined in the last couple of years.
TSAT has a better Gross Margin (93.65%) than 100.00% of its industry peers.
TSAT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.67% | ||
| PM (TTM) | N/A | ||
| GM | 93.65% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
Compared to 1 year ago, TSAT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.60, we must say that TSAT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TSAT (0.60) is better than 80.00% of its industry peers.
TSAT has a Debt/Equity ratio of 4.73. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TSAT (4.73) is worse than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.6 |
ROIC/WACC0.41
WACC5.62%
2.3 Liquidity
TSAT has a Current Ratio of 5.63. This indicates that TSAT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 5.63, TSAT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 5.63 indicates that TSAT has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 5.63, TSAT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.63 | ||
| Quick Ratio | 5.63 |
3. Growth
3.1 Past
TSAT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -176.60%.
TSAT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.41%.
The Revenue has been decreasing by -8.92% on average over the past years.
EPS 1Y (TTM)-176.6%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%214.85%
Revenue 1Y (TTM)-20.41%
Revenue growth 3Y-9.02%
Revenue growth 5Y-8.92%
Sales Q2Q%-23.28%
3.2 Future
The Earnings Per Share is expected to decrease by -25.06% on average over the next years. This is quite bad
The Revenue is expected to grow by 15.49% on average over the next years. This is quite good.
EPS Next Y-57.49%
EPS Next 2Y-59.05%
EPS Next 3Y-25.06%
EPS Next 5YN/A
Revenue Next Year-25.98%
Revenue Next 2Y-19.72%
Revenue Next 3Y-6.77%
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
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
TSAT's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. TSAT is more expensive than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.08 |
4.3 Compensation for Growth
TSAT's earnings are expected to decrease with -25.06% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-59.05%
EPS Next 3Y-25.06%
5. Dividend
5.1 Amount
TSAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:TSAT (8/1/2025, 7:00:00 PM)
32.4
-0.82 (-2.47%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners56.44%
Inst Owner ChangeN/A
Ins Owners6.14%
Ins Owner ChangeN/A
Market Cap1.66B
Analysts80
Price Target43.96 (35.68%)
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)1
Avg EPS beat(2)37.73%
Min EPS beat(2)-110.16%
Max EPS beat(2)185.61%
EPS beat(4)3
Avg EPS beat(4)129.7%
Min EPS beat(4)-110.16%
Max EPS beat(4)377.21%
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)2
Avg Revenue beat(2)3.59%
Min Revenue beat(2)3.16%
Max Revenue beat(2)4.03%
Revenue beat(4)3
Avg Revenue beat(4)3.23%
Min Revenue beat(4)-0.09%
Max Revenue beat(4)5.84%
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)-0.36%
PT rev (3m)-1.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-74.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-107.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 3.09 | ||
| P/FCF | N/A | ||
| P/OCF | 13.16 | ||
| P/B | 2.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.08 |
EPS(TTM)-3.14
EYN/A
EPS(NY)-13.81
Fwd EYN/A
FCF(TTM)-23.48
FCFYN/A
OCF(TTM)2.46
OCFY7.6%
SpS10.48
BVpS13.87
TBVpS-46.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.24% | ||
| ROE | -12.49% | ||
| ROCE | 2.68% | ||
| ROIC | 2.33% | ||
| ROICexc | 2.63% | ||
| ROICexgc | 5.33% | ||
| OM | 34.67% | ||
| PM (TTM) | N/A | ||
| GM | 93.65% | ||
| 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%
ROICexcg growth 3Y-28.13%
ROICexcg 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 Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.73 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 10.42 | ||
| Cap/Depr | 973.23% | ||
| Cap/Sales | 247.48% | ||
| Interest Coverage | 1.06 | ||
| Cash Conversion | 39.08% | ||
| Profit Quality | N/A | ||
| Current Ratio | 5.63 | ||
| Quick Ratio | 5.63 | ||
| Altman-Z | 0.6 |
F-Score3
WACC5.62%
ROIC/WACC0.41
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)-176.6%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%214.85%
EPS Next Y-57.49%
EPS Next 2Y-59.05%
EPS Next 3Y-25.06%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.41%
Revenue growth 3Y-9.02%
Revenue growth 5Y-8.92%
Sales Q2Q%-23.28%
Revenue Next Year-25.98%
Revenue Next 2Y-19.72%
Revenue Next 3Y-6.77%
Revenue Next 5Y15.49%
EBIT growth 1Y-70.71%
EBIT growth 3Y-9.61%
EBIT growth 5Y-14.06%
EBIT Next Year-11.44%
EBIT Next 3Y-4.1%
EBIT Next 5Y26.1%
FCF growth 1Y-779.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-49.27%
OCF growth 3Y-40.49%
OCF growth 5Y-30.15%