TELESAT CORP (TSAT.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:TSAT • CA8795123097
39.64 CAD
-1.12 (-2.75%)
Last: Jan 30, 2026, 07:00 PM
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 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year TSAT has reported negative net income.
- In the past year TSAT had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: TSAT reported negative net income in multiple years.
- TSAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- TSAT has a Return On Assets of -2.25%. This is amonst the worse of the industry: TSAT underperforms 86.67% of its industry peers.
- With a Return On Equity value of -23.41%, 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 (1.16%) is worse than 86.67% 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 5.00%.
| 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
- With a Operating Margin value of 19.98%, TSAT is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of TSAT has declined.
- TSAT has a better Gross Margin (94.29%) than 100.00% of its industry peers.
- In the last couple of years the Gross Margin of TSAT has remained more or less at the same level.
| 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
- 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
- Compared to 5 years ago, TSAT has less shares outstanding
- Compared to 1 year ago, TSAT has an improved debt to assets ratio.
2.2 Solvency
- TSAT has an Altman-Z score of 0.54. 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 0.54. This is amonst the worse of the industry: TSAT underperforms 86.67% 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.
- With a Debt to Equity ratio value of 4.96, TSAT is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.54 |
ROIC/WACC0.2
WACC5.81%
2.3 Liquidity
- TSAT has a Current Ratio of 4.11. 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 4.11, TSAT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- TSAT has a Quick Ratio of 4.11. This indicates that TSAT is financially healthy and has no problem in meeting 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
- The earnings per share for TSAT have decreased strongly by -387.98% in the last year.
- 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
- The Earnings Per Share is expected to decrease by -20.52% on average over the next years. This is quite bad
- TSAT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.49% yearly.
EPS Next Y33.49%
EPS Next 2Y-57.33%
EPS Next 3Y-20.52%
EPS Next 5YN/A
Revenue Next Year-26.26%
Revenue Next 2Y-21.81%
Revenue Next 3Y-8.05%
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
- Based on the Enterprise Value to EBITDA ratio, TSAT is valued more expensive than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.09 |
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-57.33%
EPS Next 3Y-20.52%
5. Dividend
5.1 Amount
- No dividends for TSAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.
Can you provide the valuation status for TELESAT CORP?
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 financial health of TELESAT CORP (TSAT.CA) stock?
The financial health rating of TELESAT CORP (TSAT.CA) is 4 / 10.
What is the expected EPS growth for TELESAT CORP (TSAT.CA) stock?
The Earnings per Share (EPS) of TELESAT CORP (TSAT.CA) is expected to grow by 33.49% in the next year.