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TELESAT CORP (TSAT) Stock Fundamental Analysis

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

19.12  -0.52 (-2.65%)

Fundamental Rating

4

Overall TSAT gets a fundamental rating of 4 out of 10. We evaluated TSAT against 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

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6

1. Profitability

1.1 Basic Checks

In the past year TSAT was profitable.
TSAT had a positive operating cash flow in the past year.
Of the past 5 years TSAT 4 years were profitable.
Each year in the past 5 years TSAT had a positive operating cash flow.
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 0 100M 200M 300M 400M 500M

1.2 Ratios

TSAT's Return On Assets of 0.77% is in line compared to the rest of the industry. TSAT outperforms 58.06% of its industry peers.
The Return On Equity of TSAT (6.52%) is better than 61.29% of its industry peers.
The Return On Invested Capital of TSAT (3.66%) is comparable to the rest of the industry.
TSAT had an Average Return On Invested Capital over the past 3 years of 4.21%. This is in line with the industry average of 5.44%.
Industry RankSector Rank
ROA 0.77%
ROE 6.52%
ROIC 3.66%
ROA(3y)1.26%
ROA(5y)2.27%
ROE(3y)14.59%
ROE(5y)15.12%
ROIC(3y)4.21%
ROIC(5y)5.27%
TSAT Yearly ROA, ROE, ROICTSAT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 50 100

1.3 Margins

TSAT's Profit Margin of 8.00% is fine compared to the rest of the industry. TSAT outperforms 70.97% of its industry peers.
TSAT's Profit Margin has declined in the last couple of years.
TSAT has a better Operating Margin (41.88%) than 100.00% of its industry peers.
TSAT's Operating Margin has declined in the last couple of years.
TSAT has a Gross Margin of 93.96%. This is amongst the best in the industry. TSAT outperforms 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 RankSector Rank
OM 41.88%
PM (TTM) 8%
GM 93.96%
OM growth 3Y-4.44%
OM growth 5Y-3.66%
PM growth 3Y-9.33%
PM growth 5YN/A
GM growth 3Y-0.49%
GM growth 5Y-0.18%
TSAT Yearly Profit, Operating, Gross MarginsTSAT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 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.
The number of shares outstanding for TSAT has been increased compared to 1 year ago.
Compared to 5 years ago, TSAT has more shares outstanding
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 10M 20M 30M 40M 50M
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 2B 4B 6B

2.2 Solvency

TSAT has an Altman-Z score of 0.71. This is a bad value and indicates that TSAT is not financially healthy and even has some risk of bankruptcy.
TSAT's Altman-Z score of 0.71 is on the low side compared to the rest of the industry. TSAT is outperformed by 61.29% of its industry peers.
A Debt/Equity ratio of 3.90 is on the high side and indicates that TSAT has dependencies on debt financing.
TSAT's Debt to Equity ratio of 3.90 is on the low side compared to the rest of the industry. TSAT is outperformed by 80.65% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.9
Debt/FCF N/A
Altman-Z 0.71
ROIC/WACC0.57
WACC6.45%
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 0 1B 2B 3B

2.3 Liquidity

A Current Ratio of 4.36 indicates that TSAT has no problem at all paying its short term obligations.
TSAT's Current ratio of 4.36 is amongst the best of the industry. TSAT outperforms 96.77% of its industry peers.
TSAT has a Quick Ratio of 4.36. This indicates that TSAT is financially healthy and has no problem in meeting its short term obligations.
TSAT has a better Quick ratio (4.36) than 96.77% of its industry peers.
Industry RankSector Rank
Current Ratio 4.36
Quick Ratio 4.36
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 500M 1B 1.5B

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3

3. Growth

3.1 Past

The earnings per share for TSAT have decreased strongly by -74.92% in the last year.
The Earnings Per Share has been growing by 27.71% on average over the past years. This is a very strong growth
Looking at the last year, TSAT shows a very negative growth in Revenue. The Revenue has decreased by -18.26% in the last year.
The Revenue has been decreasing by -4.85% on average over the past years.
EPS 1Y (TTM)-74.92%
EPS 3Y27.71%
EPS 5YN/A
EPS Q2Q%123.72%
Revenue 1Y (TTM)-18.26%
Revenue growth 3Y-4.97%
Revenue growth 5Y-4.85%
Sales Q2Q%-22.26%

3.2 Future

The Earnings Per Share is expected to decrease by -41.93% on average over the next years. This is quite bad
TSAT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.31% yearly.
EPS Next Y-98.17%
EPS Next 2Y-93.06%
EPS Next 3Y-41.93%
EPS Next 5YN/A
Revenue Next Year16.16%
Revenue Next 2Y-3.99%
Revenue Next 3Y-3.53%
Revenue Next 5Y13.31%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 2016 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 -2 -4 -6 -8 -10

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3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 9.37 indicates a reasonable valuation of TSAT.
Based on the Price/Earnings ratio, TSAT is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.
TSAT is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Forward Price/Earnings Ratio is negative for TSAT. No positive earnings are expected for the next year.
Industry RankSector Rank
PE 9.37
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

The rest of the industry has a similar Enterprise Value to EBITDA ratio as TSAT.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.84
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

The decent profitability rating of TSAT may justify a higher PE ratio.
TSAT's earnings are expected to decrease with -41.93% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-93.06%
EPS Next 3Y-41.93%

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0

5. Dividend

5.1 Amount

No dividends for TSAT!.
Industry RankSector Rank
Dividend Yield N/A

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TELESAT CORP

NASDAQ:TSAT (2/21/2025, 8:00:01 PM)

19.12

-0.52 (-2.65%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)11-14 2024-11-14/bmo
Earnings (Next)N/A N/A
Inst Owners54.72%
Inst Owner Change-99.82%
Ins Owners12.4%
Ins Owner Change0%
Market Cap957.15M
Analysts80
Price Target20.91 (9.36%)
Short Float %1.22%
Short Ratio2.29
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)2
Avg EPS beat(2)221.66%
Min EPS beat(2)66.11%
Max EPS beat(2)377.21%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)2.88%
Min Revenue beat(2)-0.09%
Max Revenue beat(2)5.84%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)7.89%
EPS NQ rev (1m)-157.76%
EPS NQ rev (3m)-157.76%
EPS NY rev (1m)0%
EPS NY rev (3m)109.67%
Revenue NQ rev (1m)28.65%
Revenue NQ rev (3m)28.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
Industry RankSector Rank
PE 9.37
Fwd PE N/A
P/S 2.23
P/FCF N/A
P/OCF 17.59
P/B 1.82
P/tB N/A
EV/EBITDA 7.84
EPS(TTM)2.04
EY10.67%
EPS(NY)-8.8
Fwd EYN/A
FCF(TTM)-7.4
FCFYN/A
OCF(TTM)1.09
OCFY5.68%
SpS8.57
BVpS10.5
TBVpS-34.15
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.77%
ROE 6.52%
ROCE 4.22%
ROIC 3.66%
ROICexc 4.45%
ROICexgc 12.34%
OM 41.88%
PM (TTM) 8%
GM 93.96%
FCFM N/A
ROA(3y)1.26%
ROA(5y)2.27%
ROE(3y)14.59%
ROE(5y)15.12%
ROIC(3y)4.21%
ROIC(5y)5.27%
ROICexc(3y)5.67%
ROICexc(5y)6.69%
ROICexgc(3y)18.4%
ROICexgc(5y)21.75%
ROCE(3y)4.86%
ROCE(5y)6.07%
ROICexcg growth 3Y-8.13%
ROICexcg growth 5Y-4.13%
ROICexc growth 3Y-8.3%
ROICexc growth 5Y-6.55%
OM growth 3Y-4.44%
OM growth 5Y-3.66%
PM growth 3Y-9.33%
PM growth 5YN/A
GM growth 3Y-0.49%
GM growth 5Y-0.18%
F-Score5
Asset Turnover0.1
Health
Industry RankSector Rank
Debt/Equity 3.9
Debt/FCF N/A
Debt/EBITDA 7.11
Cap/Depr 390.28%
Cap/Sales 99.01%
Interest Coverage 1.51
Cash Conversion 18.86%
Profit Quality N/A
Current Ratio 4.36
Quick Ratio 4.36
Altman-Z 0.71
F-Score5
WACC6.45%
ROIC/WACC0.57
Cap/Depr(3y)82.18%
Cap/Depr(5y)60.22%
Cap/Sales(3y)23.32%
Cap/Sales(5y)17.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-74.92%
EPS 3Y27.71%
EPS 5YN/A
EPS Q2Q%123.72%
EPS Next Y-98.17%
EPS Next 2Y-93.06%
EPS Next 3Y-41.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.26%
Revenue growth 3Y-4.97%
Revenue growth 5Y-4.85%
Sales Q2Q%-22.26%
Revenue Next Year16.16%
Revenue Next 2Y-3.99%
Revenue Next 3Y-3.53%
Revenue Next 5Y13.31%
EBIT growth 1Y-61.05%
EBIT growth 3Y-9.19%
EBIT growth 5Y-8.33%
EBIT Next Year74.71%
EBIT Next 3Y0.15%
EBIT Next 5Y20.83%
FCF growth 1Y-1629.17%
FCF growth 3Y-52.69%
FCF growth 5Y-39.44%
OCF growth 1Y-62.75%
OCF growth 3Y-23.14%
OCF growth 5Y-18.36%