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TELESAT CORP (TSAT) Stock Fundamental Analysis

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

15.4  -0.31 (-1.97%)

Fundamental Rating

3

Overall TSAT gets a fundamental rating of 3 out of 10. We evaluated TSAT against 32 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 has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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4

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.
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

The Return On Assets of TSAT (-1.26%) is comparable to the rest of the industry.
With a Return On Equity value of -12.35%, TSAT is not doing good in the industry: 61.29% of the companies in the same industry are doing better.
The Return On Invested Capital of TSAT (2.91%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for TSAT is in line with the industry average of 5.73%.
Industry RankSector Rank
ROA -1.26%
ROE -12.35%
ROIC 2.91%
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

With an excellent Operating Margin value of 39.34%, TSAT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
TSAT's Operating Margin has declined in the last couple of years.
TSAT's Gross Margin of 93.35% is amongst the best of the industry. TSAT outperforms 100.00% of its industry peers.
TSAT's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 39.34%
PM (TTM) N/A
GM 93.35%
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

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4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TSAT is destroying value.
TSAT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TSAT has less shares outstanding
Compared to 1 year ago, TSAT has an improved debt to assets ratio.
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

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 64.52% of its industry peers.
TSAT has a Debt/Equity ratio of 4.36. This is a high value indicating a heavy dependency on external financing.
TSAT has a worse Debt to Equity ratio (4.36) than 77.42% of its industry peers.
Industry RankSector Rank
Debt/Equity 4.36
Debt/FCF N/A
Altman-Z 0.56
ROIC/WACC0.53
WACC5.46%
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 3.98 indicates that TSAT has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.98, TSAT belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
A Quick Ratio of 3.98 indicates that TSAT has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.98, TSAT belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.98
Quick Ratio 3.98
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

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2

3. Growth

3.1 Past

The earnings per share for TSAT have decreased strongly by -164.57% in the last year.
TSAT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.91%.
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)-164.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-2794.25%
Revenue 1Y (TTM)-18.91%
Revenue growth 3Y-9.02%
Revenue growth 5Y-8.92%
Sales Q2Q%-22.76%

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 -22.25% 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 Y24.24%
EPS Next 2Y-8.83%
EPS Next 3Y-22.25%
EPS Next 5YN/A
Revenue Next Year-26.32%
Revenue Next 2Y-19.38%
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.
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

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0

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 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 10 20

4.2 Price Multiples

TSAT's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.03
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

TSAT's earnings are expected to decrease with -22.25% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.83%
EPS Next 3Y-22.25%

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0

5. Dividend

5.1 Amount

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

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TELESAT CORP

NASDAQ:TSAT (4/25/2025, 8:00:01 PM)

15.4

-0.31 (-1.97%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)03-27 2025-03-27/bmo
Earnings (Next)05-09 2025-05-09
Inst Owners54.72%
Inst Owner Change0%
Ins Owners12.4%
Ins Owner Change0%
Market Cap777.70M
Analysts80
Price Target32.13 (108.64%)
Short Float %1.18%
Short Ratio1.49
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)133.53%
Min EPS beat(2)-110.16%
Max EPS beat(2)377.21%
EPS beat(4)2
Avg EPS beat(4)-417.83%
Min EPS beat(4)-2004.48%
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)1
Avg Revenue beat(2)1.53%
Min Revenue beat(2)-0.09%
Max Revenue beat(2)3.16%
Revenue beat(4)2
Avg Revenue beat(4)1.05%
Min Revenue beat(4)-4.7%
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)53.66%
PT rev (3m)53.66%
EPS NQ rev (1m)77.17%
EPS NQ rev (3m)64.47%
EPS NY rev (1m)66.9%
EPS NY rev (3m)66.9%
Revenue NQ rev (1m)-9.5%
Revenue NQ rev (3m)17%
Revenue NY rev (1m)-7.16%
Revenue NY rev (3m)-7.16%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 1.89
P/FCF N/A
P/OCF 17.26
P/B 1.52
P/tB N/A
EV/EBITDA 10.03
EPS(TTM)-3.94
EYN/A
EPS(NY)-2.98
Fwd EYN/A
FCF(TTM)-14.97
FCFYN/A
OCF(TTM)0.89
OCFY5.79%
SpS8.16
BVpS10.15
TBVpS-34.29
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.26%
ROE -12.35%
ROCE 3.36%
ROIC 2.91%
ROICexc 3.17%
ROICexgc 6.44%
OM 39.34%
PM (TTM) N/A
GM 93.35%
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 4.36
Debt/FCF N/A
Debt/EBITDA 8.52
Cap/Depr 801.18%
Cap/Sales 194.47%
Interest Coverage 1.39
Cash Conversion 17.19%
Profit Quality N/A
Current Ratio 3.98
Quick Ratio 3.98
Altman-Z 0.56
F-Score3
WACC5.46%
ROIC/WACC0.53
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)-164.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-2794.25%
EPS Next Y24.24%
EPS Next 2Y-8.83%
EPS Next 3Y-22.25%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.91%
Revenue growth 3Y-9.02%
Revenue growth 5Y-8.92%
Sales Q2Q%-22.76%
Revenue Next Year-26.32%
Revenue Next 2Y-19.38%
Revenue Next 3Y-6.77%
Revenue Next 5Y15.49%
EBIT growth 1Y-65.36%
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-3643.03%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-63.06%
OCF growth 3Y-40.49%
OCF growth 5Y-30.15%