TSAT Fundamental Analysis - TELESAT CORP

Fundamental Rating

Taking everything into account, TSAT scores 2 out of 10 in our fundamental rating. TSAT was compared to 33 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 does not seem to be growing, but still is valued expensively.

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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.

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 has a Return On Assets of -1.24%. This is in the lower half of the industry: TSAT underperforms 60.61% of its industry peers.

TSAT's Return On Equity of -12.49% is on the low side compared to the rest of the industry. TSAT is outperformed by 69.70% of its industry peers.

TSAT's Return On Invested Capital of 2.33% is in line compared to the rest of the industry. TSAT outperforms 48.48% of its industry peers.

The Average Return On Invested Capital over the past 3 years for TSAT is below the industry average of 7.13%.

		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

Looking at the Operating Margin, with a value of 34.67%, TSAT belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.

TSAT's Operating Margin has declined in the last couple of years.

The Gross Margin of TSAT (93.65%) is better 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	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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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

Based on the Altman-Z score of 0.56, we must say that TSAT is in the distress zone and has some risk of bankruptcy.

TSAT has a worse Altman-Z score (0.56) than 66.67% of its industry peers.

A Debt/Equity ratio of 4.73 is on the high side and indicates that TSAT has dependencies on debt financing.

TSAT has a Debt to Equity ratio of 4.73. This is amonst the worse of the industry: TSAT underperforms 81.82% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	4.73
Debt/FCF	N/A
Altman-Z	0.56

ROIC/WACC0.35

WACC6.64%

2.3 Liquidity

A Current Ratio of 5.63 indicates that TSAT has no problem at all paying its short term obligations.

Looking at the Current ratio, with a value of 5.63, TSAT belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.

TSAT has a Quick Ratio of 5.63. This indicates that TSAT is financially healthy and has no problem in meeting its short term obligations.

TSAT has a Quick ratio of 5.63. This is amongst the best in the industry. TSAT outperforms 96.97% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	5.63
Quick Ratio	5.63

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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%.

Looking at the last year, TSAT shows a very negative growth in Revenue. The Revenue has decreased by -20.41% in the last year.

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

Based on estimates for the next years, TSAT will show a very negative growth in Earnings Per Share. The EPS will decrease by -25.06% on average per year.

Based on estimates for the next years, TSAT will show a quite strong growth in Revenue. The Revenue will grow by 15.49% on average per year.

EPS Next Y-33.39%

EPS Next 2Y-49.13%

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.

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4. Valuation

4.1 Price/Earnings Ratio

TSAT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.

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

TSAT's Enterprise Value to EBITDA is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	11.66

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-49.13%

EPS Next 3Y-25.06%

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5. Dividend

5.1 Amount

TSAT does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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TELESAT CORP

NASDAQ:TSAT (6/13/2025, 8:00:01 PM)

17.23

+0.1 (+0.58%)

Chartmill FA Rating

GICS SectorCommunication Services

GICS IndustryGroupTelecommunication Services

GICS IndustryDiversified Telecommunication Services

Earnings (Last)05-06 2025-05-06/bmo

Earnings (Next)08-12 2025-08-12

Inst Owners56.44%

Inst Owner Change0.08%

Ins Owners6.14%

Ins Owner Change0%

Market Cap880.28M

Analysts80

Price Target32.13 (86.48%)

Short Float %2.75%

Short Ratio4.71

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%

PT rev (3m)53.66%

EPS NQ rev (1m)3.69%

EPS NQ rev (3m)52.5%

EPS NY rev (1m)0%

EPS NY rev (3m)41.71%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)-9.16%

Revenue NY rev (1m)0%

Revenue NY rev (3m)-6.73%

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A
P/S	2.24
P/FCF	N/A
P/OCF	9.54
P/B	1.69
P/tB	N/A
EV/EBITDA	11.66

EPS(TTM)-2.3

EYN/A

EPS(NY)-8.91

Fwd EYN/A

FCF(TTM)-17.23

FCFYN/A

OCF(TTM)1.81

OCFY10.49%

SpS7.69

BVpS10.18

TBVpS-34.35

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	0.56

F-Score3

WACC6.64%

ROIC/WACC0.35

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-33.39%

EPS Next 2Y-49.13%

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%

TELESAT CORP (TSAT) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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