(TSAT) Telesat - Overview
Sector: Technology | Industry: Communication Equipment | Exchange: NASDAQ (USA) | Market Cap: 2.201m USD | Total Return: 163.3% in 12m
Industry Rotation: -4.5
Avg Turnover: 8.10M USD
Peers RS (IBD): 68.1
EPS Trend: -37.2%
Qual. Beats: 0
Rev. Trend: -94.1%
Qual. Beats: 0
Warnings
High Debt/EBITDA (14.4) with thin interest coverage (0.3)
High Debt while negative Cash Flow
Interest Coverage Ratio 0.3 is critical
Altman Z'' -2.35 < 1.0 - financial distress zone
Volatile
Tailwinds
No distinct edge detected
Telesat Corporation (TSAT) is a Canadian satellite operator providing mission-critical communication solutions globally. The company utilizes both Geostationary (GEO) and Low Earth Orbit (LEO) satellite segments, a common approach in the commercial satellite industry to offer varied service capabilities.
Telesats service offerings span broadcast, enterprise, and consulting. Broadcast services include direct-to-home television and video distribution. Enterprise services cater to telecommunication carriers, governments, and resource industries, reflecting the diverse applications of satellite communication for business and infrastructure. Consulting services cover space and earth segments, government studies, and R&D.
Value-added services include satellite capacity, digital encoding, and uplinking/downlinking. The company provides end-to-end data and voice transmission, internet and cellular backhaul, and direct-to-consumer broadband. This broad portfolio is typical of established satellite operators seeking to maximize satellite asset utilization. Telesat also serves specialized sectors like offshore, oil and gas, and mining industries.
Telesat operates satellite and terrestrial networks and employs a direct sales force. Further research on platforms like ValueRay can provide deeper insights into TSATs market position and financial performance within the Electronic Equipment & Instruments sub-industry.
- LEO satellite constellation deployment costs impact profitability
- Geostationary satellite service demand drives revenue
- Government contracts secure long-term revenue streams
- Global broadband connectivity needs expand market opportunity
| Net Income: -155.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.05 > 0.02 and ΔFCF/TA -5.30 > 1.0 |
| NWC/Revenue: -647.9% < 20% (prev 133.9%; Δ -781.8% < -1%) |
| CFO/TA 0.01 > 3% & CFO 66.7m > Net Income -155.3m |
| Net Debt (3.04b) to EBITDA (211.4m): 14.36 < 3 |
| Current Ratio: 0.18 > 1.5 & < 3 |
| Outstanding Shares: last quarter (14.8m) vs 12m ago 5.39% < -2% |
| Gross Margin: 80.31% > 18% (prev 0.93%; Δ 7.94k% > 0.5%) |
| Asset Turnover: 6.17% > 50% (prev 8.22%; Δ -2.05% > 0%) |
| Interest Coverage Ratio: 0.29 > 6 (EBITDA TTM 211.4m / Interest Expense TTM 218.4m) |
| A: -0.41 (Total Current Assets 607.3m - Total Current Liabilities 3.31b) / Total Assets 6.60b |
| B: 0.05 (Retained Earnings 330.5m / Total Assets 6.60b) |
| C: 0.01 (EBIT TTM 62.6m / Avg Total Assets 6.77b) |
| D: 0.11 (Book Value of Equity 530.4m / Total Liabilities 4.83b) |
| Altman-Z'' Score: -2.35 = D |
| DSRI: 0.47 (Receivables 64.3m/188.2m, Revenue 417.9m/571.0m) |
| GMI: 1.16 (GM 80.31% / 93.35%) |
| AQI: 0.95 (AQ_t 0.50 / AQ_t-1 0.53) |
| SGI: 0.73 (Revenue 417.9m / 571.0m) |
| TATA: -0.03 (NI -155.3m - CFO 66.7m) / TA 6.60b) |
| Beneish M-Score: -3.58 (Cap -4..+1) = AAA |
Over the past week, the price has changed by +5.04%, over one month by +27.44%, over three months by +33.93% and over the past year by +163.25%.
| Analysts Target Price | 19 | -57.9% |
P/S = 5.2665
P/B = 1.6714
Revenue TTM = 417.9m CAD
EBIT TTM = 62.6m CAD
EBITDA TTM = 211.4m CAD
Long Term Debt = 1.15b CAD (from longTermDebt, last quarter)
Short Term Debt = 2.34b CAD (from shortTermDebt, last quarter)
Debt = 3.53b CAD (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.04b CAD (from netDebt column, last quarter)
Enterprise Value = 6.06b CAD (3.03b + Debt 3.53b - CCE 509.4m)
Interest Coverage Ratio = 0.29 (Ebit TTM 62.6m / Interest Expense TTM 218.4m)
EV/FCF = -17.26x (Enterprise Value 6.06b / FCF TTM -350.9m)
FCF Yield = -5.80% (FCF TTM -350.9m / Enterprise Value 6.06b)
FCF Margin = -83.98% (FCF TTM -350.9m / Revenue TTM 417.9m)
Net Margin = -37.15% (Net Income TTM -155.3m / Revenue TTM 417.9m)
Gross Margin = 80.31% ((Revenue TTM 417.9m - Cost of Revenue TTM 82.3m) / Revenue TTM)
Gross Margin QoQ = 29.29% (prev none%)
Tobins Q-Ratio = 0.92 (Enterprise Value 6.06b / Total Assets 6.60b)
Interest Expense / Debt = 1.51% (Interest Expense 53.4m / Debt 3.53b)
Taxrate = 21.0% (US default 21%)
NOPAT = 49.4m (EBIT 62.6m * (1 - 21.00%))
Current Ratio = 0.18 (Total Current Assets 607.3m / Total Current Liabilities 3.31b)
Debt / Equity = 6.66 (Debt 3.53b / totalStockholderEquity, last quarter 530.4m)
Debt / EBITDA = 14.36 (Net Debt 3.04b / EBITDA 211.4m)
Debt / FCF = -8.65 (negative FCF - burning cash) (Net Debt 3.04b / FCF TTM -350.9m)
Total Stockholder Equity = 645.6m (last 4 quarters mean from totalStockholderEquity)
RoA = -2.29% (Net Income -155.3m / Total Assets 6.60b)
RoE = -24.05% (Net Income TTM -155.3m / Total Stockholder Equity 645.6m)
RoCE = 3.48% (EBIT 62.6m / Capital Employed (Equity 645.6m + L.T.Debt 1.15b))
RoIC = 1.24% (NOPAT 49.4m / Invested Capital 3.98b)
WACC = 5.35% (E(3.03b)/V(6.57b) * Re(10.19%) + D(3.53b)/V(6.57b) * Rd(1.51%) * (1-Tc(0.21)))
Discount Rate = 10.19% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 0.0 | Cagr: 0.0%
[DCF] Fair Price = unknown (Cash Flow -350.9m)
EPS Correlation: -37.17 | EPS CAGR: -57.50% | SUE: -1.94 | # QB: 0
Revenue Correlation: -94.10 | Revenue CAGR: -16.62% | SUE: -0.00 | # QB: 0