TELESAT CORP(NASDAQ:TSAT) stock Fundamental Analysis

Fundamental Rating

We assign a fundamental rating of 2 out of 10 to TSAT. TSAT was compared to 33 industry peers in the Diversified Telecommunication Services industry. TSAT scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. TSAT has a expensive valuation and it also scores bad on growth.

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1. Profitability

1.1 Basic Checks

TSAT had negative earnings in the past year.

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.

In the past 5 years TSAT always reported a positive cash flow from operatings.

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.

Looking at the Return On Equity, with a value of -12.49%, TSAT is doing worse than 69.70% of the companies in the same industry.

TSAT has a Return On Invested Capital (2.33%) which is in line with its industry peers.

TSAT had an Average Return On Invested Capital over the past 3 years of 3.76%. This is below the industry average of 7.29%.

		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

TSAT has a better Operating Margin (34.67%) than 96.97% of its industry peers.

In the last couple of years the Operating Margin of TSAT has declined.

With an excellent Gross Margin value of 93.65%, 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	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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TSAT is destroying value.

The number of shares outstanding for TSAT has been increased compared to 1 year ago.

The number of shares outstanding for TSAT has been reduced compared to 5 years ago.

The debt/assets ratio for TSAT has been reduced compared to a year ago.

2.2 Solvency

TSAT has an Altman-Z score of 0.55. 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 0.55. This is in the lower half of the industry: TSAT underperforms 69.70% 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.

TSAT's Debt to Equity ratio of 4.73 is on the low side compared to the rest of the industry. TSAT is outperformed by 81.82% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	4.73
Debt/FCF	N/A
Altman-Z	0.55

ROIC/WACC0.41

WACC5.66%

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.

TSAT's Current ratio of 5.63 is amongst the best of the industry. TSAT outperforms 96.97% of its industry peers.

A Quick Ratio of 5.63 indicates that TSAT has no problem at all paying 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

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-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

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for TSAT. In the last year negative earnings were reported.

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

The rest of the industry has a similar Enterprise Value to EBITDA ratio as TSAT.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	11.35

4.3 Compensation for Growth

A cheap valuation may be justified as TSAT's earnings are expected to decrease with -25.06% in the coming years.

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 (5/23/2025, 9:00:11 PM)

15.67

-0.03 (-0.19%)

Chartmill FA Rating

GICS SectorCommunication Services

GICS IndustryGroupTelecommunication Services

GICS IndustryDiversified Telecommunication Services

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

Earnings (Next)N/A N/A

Inst Owners54.72%

Inst Owner Change-0.03%

Ins Owners12.4%

Ins Owner Change0%

Market Cap791.34M

Analysts80

Price Target32.13 (105.04%)

Short Float %1.73%

Short Ratio2.1

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)-80.83%

EPS NQ rev (3m)50.68%

EPS NY rev (1m)-76.08%

EPS NY rev (3m)41.71%

Revenue NQ rev (1m)3.77%

Revenue NQ rev (3m)-9.16%

Revenue NY rev (1m)0.47%

Revenue NY rev (3m)-6.73%

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A
P/S	2.05
P/FCF	N/A
P/OCF	8.72
P/B	1.55
P/tB	N/A
EV/EBITDA	11.35

EPS(TTM)-2.26

EYN/A

EPS(NY)-8.76

Fwd EYN/A

FCF(TTM)-17.13

FCFYN/A

OCF(TTM)1.8

OCFY11.47%

SpS7.65

BVpS10.12

TBVpS-34.16

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	0.55

F-Score3

WACC5.66%

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-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-12.59%

EBIT Next 3Y-11.74%

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

More info and screens

5. Dividend

5.1 Amount

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