Telesat Corp (TSAT) AI Stock Analysis

• Market Cap: $503.18M
• Dividend Yield: N/A
• Average Volume (3M): 11.80K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.33
• Revenue Growth: -24.21%
• EPS Growth: -440.28%
• Country: CA
• Employees: 610
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 1.38
• Shares Outstanding: 14,682,322
• 10 Day Avg. Volume: 10,770
• 30 Day Avg. Volume: 11,802
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 9.52
• Enterprise Value/Revenue: 9.79
• Enterprise Value/Gross Profit: 10.27
• Enterprise Value/Ebitda: -152.85
• 1Y Price Target: $29.00
• Price Target Upside: -15.93% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 43 Neutral
• Price Target: C$29.00 ▼(-15.94% Downside)

Telesat Corp's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, high leverage, and negative profitability. Technical analysis provides a neutral outlook, while valuation metrics are unfavorable due to a negative P/E ratio. The earnings call highlighted some strategic progress but was overshadowed by financial declines and operational challenges.

Telesat Corp Business Overview & Revenue Model

Company Description

Telesat Corporation, a satellite operator, provides mission-critical communications services to broadcast, enterprise, and consulting customers worldwide. The company's satellite-based services allow direct-to-home (DTH) service providers to deliver television programming, audio, and information channels directly to customers' homes; and enables broadcasters, cable networks, and DTH service providers to transmit television programming services. It offers value-added services, such as satellite capacity, digital encoding of video channels, authorization, and uplinking and downlinking services; and occasional use services for the broadcast of video news, sports, and live event coverages. The company also provides satellite capacity and end-to-end services, including space segment services and terrestrial facilities for enterprise connectivity, and internet and cellular backhaul; and rural telephony to telecommunications carriers and network services integrators. In addition, it offers broadband communication services to maritime and aeronautical markets comprising commercial airplanes and vessels; services to the U.S. government through government service integrators, and satellite services to the Canadian government; and direct-to-consumer broadband services. Further, the company operates satellite and hybrid satellite/terrestrial networks; and communications services for the oil and gas and mining industries. Additionally, it provides satellite operator services; and consulting services related to space and earth segments, government studies, satellite control, and research and development services. The company offers its services primarily through a direct sales force. As of December 31, 2021, it operated a fleet of 14 in-orbit geostationary satellites and a Canadian payload on the ViaSat-1 satellite. The company was founded in 1969 and is headquartered in Ottawa, Canada.

How the Company Makes Money

Telesat Corp generates revenue primarily through the leasing of satellite bandwidth and capacity to clients across various industries, including television broadcasters, internet service providers, telecom companies, and government agencies. The company offers managed network services, satellite backhaul solutions, and secure communications for remote and underserved regions. Additionally, Telesat is expanding its revenue streams by developing the Telesat Lightspeed LEO satellite constellation, which aims to provide low-latency, high-speed internet connectivity worldwide. Key partnerships with technology firms and government contracts also contribute significantly to Telesat's earnings.

Telesat Corp Financial Statement Overview

Summary

Telesat Corp faces significant financial challenges with declining revenues, high leverage, and negative profitability. The company needs to address its operational inefficiencies and improve cash flow management to stabilize its financial position.

Income Statement

Telesat Corp's income statement shows a declining revenue trend with a negative revenue growth rate of -8.65% in the TTM. The company has a high gross profit margin of 95.32%, indicating efficient cost management. However, the net profit margin is negative at -21.04%, reflecting significant losses. The EBIT and EBITDA margins are also negative, suggesting operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 4.71, indicating significant leverage and potential financial risk. Return on equity is negative at -14.49%, showing the company is not generating positive returns for shareholders. The equity ratio is relatively low, suggesting a reliance on debt financing.

Cash Flow

Cash flow analysis indicates a severe decline in free cash flow growth by -97.15% in the TTM. The operating cash flow to net income ratio is 0.61, showing some cash generation capability, but the free cash flow to net income ratio is very low at 0.01, highlighting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	489.29M	571.04M	704.16M	759.17M	758.21M	820.47M
Gross Profit	466.39M	533.07M	665.65M	705.16M	728.00M	787.10M
EBITDA	-31.35M	67.02M	1.14B	394.71M	626.05M	634.74M
Net Income	-102.95M	-87.72M	157.12M	-80.12M	157.76M	244.82M
Balance Sheet
Total Assets	6.75B	6.95B	6.27B	6.48B	6.37B	5.58B
Cash, Cash Equivalents and Short-Term Investments	547.80M	552.63M	1.67B	1.68B	1.45B	818.83M
Total Debt	3.19B	3.13B	3.23B	3.85B	3.79B	3.22B
Total Liabilities	4.48B	4.45B	3.88B	4.64B	4.67B	4.12B
Stockholders Equity	676.26M	710.28M	661.92M	480.37M	416.52M	1.46B
Cash Flow
Free Cash Flow	1.30M	-2.39M	29.58M	164.27M	260.61M	355.35M
Operating Cash Flow	104.32M	62.46M	169.09M	228.85M	296.39M	371.68M
Investing Cash Flow	-1.28B	-1.09B	211.93M	74.00K	-272.86M	-92.23M
Financing Cash Flow	290.01M	-170.20M	-354.65M	-104.86M	605.24M	-450.24M

Telesat Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TSAT, the sentiment is Positive. The current price of 34.5 is above the 20-day moving average (MA) of 31.07, above the 50-day MA of 32.21, and above the 200-day MA of 27.46, indicating a bullish trend. The MACD of 1.06 indicates Negative momentum. The RSI at 58.40 is Neutral, neither overbought nor oversold. The STOCH value of 53.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TSAT.

Telesat Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCM	68 Neutral	255.30M	70.35	0.00%	2.10%	9.13%	-77.24%
CMI	46 Neutral	36.76M	-29.29	0.00%	5.75%	-51.54%	-164.01%
NVI	44 Neutral	2.34M	7.14	30.17%	―	-16.93%	0.00%
TSAT	43 Neutral	$503.18M	8.35	-14.04%	―	-24.21%	-440.28%
LTE	41 Neutral	6.73M	-7.02	0.00%	―	37.33%	-7.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Telesat Corp Corporate Events

Telesat Reports Decline in Revenue Amid Strategic Progress

Telesat Corporation reported a significant decrease in revenue and adjusted EBITDA for the quarter and six months ending June 30, 2025, compared to the previous year. The decline was attributed to a lower rate on a long-term agreement with a North American television customer, reductions in services for other customers, and lower LEO consulting revenues. Despite these challenges, Telesat is making progress with its Telesat Lightspeed project, maintaining a backlog of over $1 billion, and continues to focus on expanding opportunities across its target segments.

The most recent analyst rating on (TSE:TSAT) stock is a Buy with a C$28.00 price target. To see the full list of analyst forecasts on Telesat Corp stock, see the TSE:TSAT Stock Forecast page.