Logo image of TSAT

TELESAT CORP (TSAT) Stock Fundamental Analysis

NASDAQ:TSAT - Nasdaq - CA8795123097 - Common Stock - Currency: USD

26.87  +1.77 (+7.03%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to TSAT. TSAT was compared to 32 industry peers in the Diversified Telecommunication Services industry. TSAT has only an average score on both its financial health and profitability. TSAT has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

Quickly go to:

4

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.
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.
TSAT Yearly Net Income VS EBIT VS OCF VS FCFTSAT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M -1B

1.2 Ratios

TSAT has a Return On Assets (-1.24%) which is comparable to the rest of the industry.
TSAT's Return On Equity of -12.49% is on the low side compared to the rest of the industry. TSAT is outperformed by 71.88% of its industry peers.
TSAT has a Return On Invested Capital of 2.33%. This is comparable to the rest of the industry: TSAT outperforms 46.88% 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 RankSector 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%
TSAT Yearly ROA, ROE, ROICTSAT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 100

1.3 Margins

TSAT has a better Operating Margin (34.67%) than 96.88% of its industry peers.
TSAT's Operating Margin has declined in the last couple of years.
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.
In the last couple of years the Gross Margin of TSAT has remained more or less at the same level.
Industry RankSector 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%
TSAT Yearly Profit, Operating, Gross MarginsTSAT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

More info and screens

4

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.
TSAT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TSAT has been reduced compared to a year ago.
TSAT Yearly Shares OutstandingTSAT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
TSAT Yearly Total Debt VS Total AssetsTSAT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

TSAT has an Altman-Z score of 0.62. This is a bad value and indicates that TSAT is not financially healthy and even has some risk of bankruptcy.
TSAT has a worse Altman-Z score (0.62) than 65.63% 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 81.25% of its industry peers.
Industry RankSector Rank
Debt/Equity 4.73
Debt/FCF N/A
Altman-Z 0.62
ROIC/WACC0.42
WACC5.6%
TSAT Yearly LT Debt VS Equity VS FCFTSAT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B 3B

2.3 Liquidity

A Current Ratio of 5.63 indicates that TSAT has no problem at all paying its short term obligations.
TSAT has a better Current ratio (5.63) than 96.88% of its industry peers.
A Quick Ratio of 5.63 indicates that TSAT has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 5.63, TSAT belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 5.63
Quick Ratio 5.63
TSAT Yearly Current Assets VS Current LiabilitesTSAT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

More info and screens

2

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%.
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)-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

TSAT is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -25.06% yearly.
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

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.
TSAT Yearly Revenue VS EstimatesTSAT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B
TSAT Yearly EPS VS EstimatesTSAT Yearly EPS VS EstimatesYearly EPS VS Estimates 2024 2025 2026 2027 0 -2 -4 -6 -8 -10

More info and screens

0

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 RankSector Rank
PE N/A
Fwd PE N/A
TSAT Price Earnings VS Forward Price EarningsTSAT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60

4.2 Price Multiples

TSAT's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.77
TSAT Per share dataTSAT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 -20 -30

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-59.05%
EPS Next 3Y-25.06%

More info and screens

0

5. Dividend

5.1 Amount

TSAT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

TELESAT CORP

NASDAQ:TSAT (7/15/2025, 8:26:59 PM)

26.87

+1.77 (+7.03%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)05-06 2025-05-06/bmo
Earnings (Next)08-08 2025-08-08
Inst Owners56.44%
Inst Owner Change0%
Ins Owners6.14%
Ins Owner Change0%
Market Cap1.37B
Analysts80
Price Target32.13 (19.58%)
Short Float %5.74%
Short Ratio7.22
Dividend
Industry RankSector 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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-74.17%
EPS NY rev (1m)-18.07%
EPS NY rev (3m)31.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.47%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 3.51
P/FCF N/A
P/OCF 14.94
P/B 2.65
P/tB N/A
EV/EBITDA 13.77
EPS(TTM)-2.29
EYN/A
EPS(NY)-10.09
Fwd EYN/A
FCF(TTM)-17.15
FCFYN/A
OCF(TTM)1.8
OCFY6.69%
SpS7.66
BVpS10.13
TBVpS-34.19
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 0.62
F-Score3
WACC5.6%
ROIC/WACC0.42
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%