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TELESAT CORP (TSAT) Stock Fundamental Analysis

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

17.65  0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to TSAT. TSAT was compared to 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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6

1. Profitability

1.1 Basic Checks

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

1.2 Ratios

Looking at the Return On Assets, with a value of 0.77%, TSAT is in line with its industry, outperforming 58.06% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.52%, TSAT is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
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 5.42%.
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

The Profit Margin of TSAT (8.00%) is better than 74.19% of its industry peers.
TSAT's Profit Margin has declined in the last couple of years.
TSAT's Operating Margin of 41.88% is amongst the best of the industry. TSAT outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of TSAT has declined.
TSAT has a Gross Margin of 93.96%. This is amongst the best in 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 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

TSAT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 increased compared to 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 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

Based on the Altman-Z score of 0.70, we must say that TSAT is in the distress zone and has some risk of bankruptcy.
TSAT has a Altman-Z score of 0.70. This is in the lower half of the industry: TSAT underperforms 67.74% of its industry peers.
TSAT has a Debt/Equity ratio of 3.90. This is a high value indicating a heavy dependency on external financing.
TSAT has a Debt to Equity ratio of 3.90. This is amonst the worse of the industry: TSAT underperforms 80.65% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.9
Debt/FCF N/A
Altman-Z 0.7
ROIC/WACC0.63
WACC5.81%
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

TSAT has a Current 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 Current ratio (4.36) than 96.77% of its industry peers.
A Quick Ratio of 4.36 indicates that TSAT has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.36, TSAT belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
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

TSAT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -74.92%.
Measured over the past years, TSAT shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.71% on average per year.
The Revenue for TSAT has decreased by -18.26% in the past year. This is quite bad
TSAT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.85% yearly.
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 -42.08% on average over the next years. This is quite bad
The Revenue is expected to grow by 13.61% on average over the next years. This is quite good.
EPS Next Y-98.15%
EPS Next 2Y-93.5%
EPS Next 3Y-42.08%
EPS Next 5YN/A
Revenue Next Year17.32%
Revenue Next 2Y-3.51%
Revenue Next 3Y-3.21%
Revenue Next 5Y13.61%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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

The Price/Earnings ratio is 8.74, which indicates a very decent valuation of TSAT.
Compared to the rest of the industry, the Price/Earnings ratio of TSAT indicates a rather cheap valuation: TSAT is cheaper than 90.32% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TSAT to the average of the S&P500 Index (28.64), we can say TSAT is valued rather cheaply.
The Forward Price/Earnings Ratio is negative for TSAT. No positive earnings are expected for the next year.
Industry RankSector Rank
PE 8.74
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

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TSAT is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.61
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.
A cheap valuation may be justified as TSAT's earnings are expected to decrease with -42.08% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-93.5%
EPS Next 3Y-42.08%

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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 (1/23/2025, 9:35:15 PM)

17.65

0 (0%)

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 Owners60.05%
Inst Owner Change0%
Ins Owners10.64%
Ins Owner Change0%
Market Cap883.56M
Analysts80
Price Target20.91 (18.47%)
Short Float %0.65%
Short Ratio1.26
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)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)104.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
Industry RankSector Rank
PE 8.74
Fwd PE N/A
P/S 2.08
P/FCF N/A
P/OCF 16.4
P/B 1.7
P/tB N/A
EV/EBITDA 7.61
EPS(TTM)2.02
EY11.44%
EPS(NY)-8.72
Fwd EYN/A
FCF(TTM)-7.32
FCFYN/A
OCF(TTM)1.08
OCFY6.1%
SpS8.48
BVpS10.4
TBVpS-33.82
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 0.7
F-Score5
WACC5.81%
ROIC/WACC0.63
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-98.15%
EPS Next 2Y-93.5%
EPS Next 3Y-42.08%
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 Year17.32%
Revenue Next 2Y-3.51%
Revenue Next 3Y-3.21%
Revenue Next 5Y13.61%
EBIT growth 1Y-61.05%
EBIT growth 3Y-9.19%
EBIT growth 5Y-8.33%
EBIT Next Year76.45%
EBIT Next 3Y0.48%
EBIT Next 5Y21.16%
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%