(TSAT) Telesat - NASDAQ
Sector: Technology | Industry: Communication Equipment | Exchange: NASDAQ (USA) | Market Cap: 2.575m USD | Total Return: 172.3% in 12m
Avg Turnover: 15.9M
Qual. Beats: 0
Rev. Trend: -98.9%
Qual. Beats: 0
Warnings
High Debt/EBITDA (11.3) with thin interest coverage (0.3)
High Debt while negative Cash Flow
Interest Coverage Ratio 0.3 is critical
Altman Z'' -2.19 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
Rs Leader
Telesat Corporation is a global satellite operator headquartered in Ottawa, Canada, providing mission-critical communication infrastructure across Geostationary (GEO) and Low Earth Orbit (LEO) segments. The company’s service portfolio includes video distribution for broadcasters, data backhaul for telecommunications carriers, and specialized connectivity for maritime, aeronautical, and government sectors. Telesat utilizes a direct sales force to manage its international operations spanning the Americas, EMEA, and Asia-Pacific regions.
The satellite industry is currently shifting toward LEO constellations to reduce latency and increase throughput compared to traditional GEO satellites. This transition requires significant capital expenditure but allows operators to compete directly with terrestrial fiber for high-speed enterprise and government contracts. Examining the companys financial health on ValueRay can provide further clarity on its long-term viability. Telesat’s business model relies on long-term capacity leases, which typically provide predictable revenue streams from established media and telecom clients.
- Telesat Lightspeed LEO constellation deployment timeline dictates long-term capital expenditure and growth
- GEO satellite revenue remains under pressure from terrestrial fiber and LEO competition
- Strategic funding and government grants determine the feasibility of next-generation satellite launches
- Multi-year backlog stability and contract renewals drive predictable cash flow for debt servicing
| Net Income: -185.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.12 > 0.02 and ΔFCF/TA -12.48 > 1.0 |
| NWC/Revenue: -472.9% < 20% (prev 177.4%; Δ -650.3% < -1%) |
| CFO/TA -0.01 > 3% & CFO -68.6m > Net Income -185.3m |
| Net Debt (2.28b) to EBITDA (202.2m): 11.30 < 3 |
| Current Ratio: 0.25 > 1.5 & < 3 |
| Outstanding Shares: last quarter (15.0m) vs 12m ago 4.16% < -2% |
| Gross Margin: 64.06% > 18% (prev 93.65%; Δ -29.59% > 0.5%) |
| Asset Turnover: 6.51% > 50% (prev 7.52%; Δ -1.01% > 0%) |
| Interest Coverage Ratio: 0.28 > 6 (EBIT TTM 59.3m / Interest Expense TTM 211.9m) |
| A: -0.38 (Total Current Assets 616.7m - Total Current Liabilities 2.45b) / Total Assets 4.81b |
| B: 0.04 (Retained Earnings 204.7m / Total Assets 4.81b) |
| C: 0.01 (EBIT TTM 59.3m / Avg Total Assets 5.97b) |
| D: 0.10 (Book Value of Equity 373.1m / Total Liabilities 3.61b) |
| Altman-Z'' = -2.19 = D |
| DSRI: 0.75 (Receivables 49.5m/91.1m, Revenue 388.4m/535.6m) |
| GMI: 1.46 (GM 93.65% / 64.06%) |
| AQI: 0.89 (AQ_t 0.44 / AQ_t-1 0.50) |
| SGI: 0.73 (Revenue 388.4m / 535.6m) |
| TATA: -0.02 (NI -185.3m - CFO -68.6m) / TA 4.81b) |
| Beneish M = -3.08 (Cap -4..+1) = AA |
As of June 15, 2026, the stock is trading at USD 46.91 with a total of 379,266 shares traded.
Over the past week, the price has changed by +5.27%,
over one month by -12.51%,
over three months by +36.25% and
over the past year by +172.26%.
Telesat has no consensus analysts rating.
| Analysts Target Price | 19 | -59.4% |
Market Cap CAD = 3.60b (2.58b USD * 1.3989 USD.CAD)
P/S = 6.6323
P/B = 2.0471
Revenue TTM = 388.4m CAD
EBIT TTM = 59.3m CAD
EBITDA TTM = 202.2m CAD
Long Term Debt = 1.27b CAD (from longTermDebt, last quarter)
Short Term Debt = 1.71b CAD (from shortTermDebt, last quarter)
Debt = 2.66b CAD (from shortLongTermDebtTotal, last quarter) + Leases 40.1m
Net Debt = 2.28b CAD (calculated: Debt 2.66b - CCE 375.8m)
Enterprise Value = 5.89b CAD (3.60b + Debt 2.66b - CCE 375.8m)
Interest Coverage Ratio = 0.28 (Ebit TTM 59.3m / Interest Expense TTM 211.9m)
EV/FCF = -10.34x (Enterprise Value 5.89b / FCF TTM -569.5m)
FCF Yield = -9.67% (FCF TTM -569.5m / Enterprise Value 5.89b)
FCF Margin = -146.6% (FCF TTM -569.5m / Revenue TTM 388.4m)
Net Margin = -47.71% (Net Income TTM -185.3m / Revenue TTM 388.4m)
Gross Margin = 64.06% ((Revenue TTM 388.4m - Cost of Revenue TTM 139.6m) / Revenue TTM)
Gross Margin QoQ = 26.65% (prev 29.29%)
Tobins Q-Ratio = 1.22 (Enterprise Value 5.89b / Total Assets 4.81b)
Interest Expense / Debt = 7.96% (Interest Expense 211.9m / Debt 2.66b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 46.8m (EBIT 59.3m * (1 - 21.00%))
Current Ratio = 0.25 (Total Current Assets 616.7m / Total Current Liabilities 2.45b)
Debt / Equity = 7.13 (Debt 2.66b / totalStockholderEquity, last quarter 373.1m)
Debt / EBITDA = 11.30 (Net Debt 2.28b / EBITDA 202.2m)
Debt / FCF = -4.01 (negative FCF - burning cash) (Net Debt 2.28b / FCF TTM -569.5m)
Total Stockholder Equity = 561.7m (last 4 quarters mean from totalStockholderEquity)
RoA = -3.11% (Net Income -185.3m / Total Assets 4.81b)
RoE = -32.99% (Net Income TTM -185.3m / Total Stockholder Equity 561.7m)
RoCE = 3.24% (EBIT 59.3m / Capital Employed (Equity 561.7m + L.T.Debt 1.27b))
RoIC = 1.16% (NOPAT 46.8m / Invested Capital 4.05b)
WACC = 9.09% (E(3.60b)/V(6.26b) * Re(11.15%) + D(2.66b)/V(6.26b) * Rd(7.96%) * (1-Tc(0.21)))
Discount Rate = 11.15% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 28.89 | Cagr: 1.46%
[DCF] Fair Price = unknown (Cash Flow -569.5m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.35 | # QB: 0
Revenue Correlation: -98.94 | Revenue CAGR: -22.00% | SUE: 0.00 | # QB: 0