28.4 USD
-0.35 (-1.22%)
27.7 USD
-0.7 (-2.46%)
We assign a fundamental rating of 3 out of 10 to TSAT. TSAT was compared to 36 industry peers in the Diversified Telecommunication Services industry. Both the profitability and the financial health of TSAT get a neutral evaluation. Nothing too spectacular is happening here. TSAT does not seem to be growing, but still is valued expensively.
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.
- In the past 5 years TSAT always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of TSAT (-2.25%) is comparable to the rest of the industry.
- With a Return On Equity value of -23.41%, TSAT is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
- The Return On Invested Capital of TSAT (1.16%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for TSAT is below the industry average of 6.71%.
| 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
- The Operating Margin of TSAT (19.98%) is better than 80.56% of its industry peers.
- TSAT's Operating Margin has declined in the last couple of years.
- 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
- Based on the Altman-Z score of 0.53, we must say that TSAT is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of TSAT (0.53) is worse than 72.22% 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.
- Looking at the Debt to Equity ratio, with a value of 4.96, TSAT is doing worse than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.53 |
ROIC/WACC0.21
WACC5.54%
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 97.22% 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's Quick ratio of 4.11 is amongst the best of the industry. TSAT outperforms 97.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.11 | ||
| Quick Ratio | 4.11 |
3. Growth
3.1 Past
- TSAT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -387.98%.
- TSAT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -25.79%.
- TSAT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.92% yearly.
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
- TSAT is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -20.52% yearly.
- 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 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
- 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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.66 |
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
- TSAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TELESAT CORP / TSAT FAQ
Can you provide the ChartMill fundamental rating for TELESAT CORP?
ChartMill assigns a fundamental rating of 3 / 10 to TSAT.
Can you provide the valuation status for TELESAT CORP?
ChartMill assigns a valuation rating of 0 / 10 to TELESAT CORP (TSAT). This can be considered as Overvalued.
Can you provide the profitability details for TELESAT CORP?
TELESAT CORP (TSAT) has a profitability rating of 4 / 10.
What is the financial health of TELESAT CORP (TSAT) stock?
The financial health rating of TELESAT CORP (TSAT) is 4 / 10.
What is the expected EPS growth for TELESAT CORP (TSAT) stock?
The Earnings per Share (EPS) of TELESAT CORP (TSAT) is expected to grow by 33.49% in the next year.