Telesat Corp (TSAT) AI Stock Analysis

• Market Cap: $455.69M
• Dividend Yield: N/A
• Average Volume (3M): 16.61K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.16
• Revenue Growth: -24.21%
• EPS Growth: -440.28%
• Country: CA
• Employees: 610
• Sector: Technology
• Sector Strength: 97
• Industry: Communication Equipment
• EPS (TTM): 1.38
• Shares Outstanding: 14,682,322
• 10 Day Avg. Volume: 15,122
• 30 Day Avg. Volume: 16,606
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 10.51
• Enterprise Value/Revenue: 8.95
• Enterprise Value/Gross Profit: 10.46
• Enterprise Value/Ebitda: -45.84
• 1Y Price Target: $31.00
• Price Target Upside: 1.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: C$31.00 ▲(1.11% Upside)

Telesat Corp's overall stock score is primarily impacted by its financial performance, which shows significant profitability challenges and high leverage. Technical analysis indicates bearish momentum, and valuation metrics are weak due to negative earnings. While the earnings call and corporate events provide some positive insights, they are overshadowed by the company's financial difficulties.

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 profitability challenges with consistent net losses impacting its financial health. Despite strong gross margins, operational inefficiencies and high leverage pose risks. Cash flow improvements are promising, but strategic actions are needed to enhance profitability and reduce debt levels.

Income Statement

The income statement indicates declining revenue over the years, with a revenue drop of approximately 5% TTM compared to the previous year. Gross profit margin is strong at 85.54% TTM, but the net profit margin is negative due to substantial net losses, worsening from -15.36% to -16.52% TTM. EBIT and EBITDA margins also reflect negative figures, indicating operational challenges.

Balance Sheet

The balance sheet shows a moderate position with a debt-to-equity ratio of 4.73, indicating high leverage. However, the equity ratio is 9.94%, suggesting some financial stability. Return on equity is negative due to net losses, but stockholders' equity has increased slightly in recent periods, showing some resilience.

Cash Flow

Cash flow analysis reveals a substantial improvement in free cash flow, turning positive in the TTM period. The operating cash flow to net income ratio is 1.42 TTM, indicating strong cash generation relative to net losses. However, the free cash flow to net income ratio is only 0.51, reflecting challenges in converting revenue to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	535.62M	571.04M	704.16M	759.17M	758.21M	820.47M
Gross Profit	458.18M	533.07M	665.65M	705.16M	728.00M	787.10M
EBITDA	-104.53M	67.02M	1.14B	394.71M	626.05M	634.74M
Net Income	-88.50M	-87.72M	157.12M	-80.12M	157.76M	244.82M
Balance Sheet
Total Assets	7.13B	6.95B	6.27B	6.48B	6.37B	5.58B
Cash, Cash Equivalents and Short-Term Investments	798.06M	552.63M	1.67B	1.68B	1.45B	818.83M
Total Debt	3.35B	3.13B	3.23B	3.85B	3.79B	3.22B
Total Liabilities	4.68B	4.45B	3.88B	4.64B	4.67B	4.12B
Stockholders Equity	708.62M	710.28M	661.92M	480.37M	416.52M	1.46B
Cash Flow
Free Cash Flow	45.48M	-2.39M	29.58M	164.27M	260.61M	355.35M
Operating Cash Flow	125.80M	62.46M	169.09M	228.85M	296.39M	371.68M
Investing Cash Flow	-1.30B	-1.09B	211.93M	74.00K	-272.86M	-92.23M
Financing Cash Flow	164.58M	-170.20M	-354.65M	-104.86M	605.24M	-450.24M

Telesat Corp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 30.66
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 30.66 is below the 20-day moving average (MA) of 34.02, below the 50-day MA of 31.39, and above the 200-day MA of 25.66, indicating a neutral trend. The MACD of -0.66 indicates Positive momentum. The RSI at 43.62 is Neutral, neither overbought nor oversold. The STOCH value of 24.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TSAT.

Telesat Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	57 Neutral	€1.69B	12.24	1.59%	3.67%	2.96%	-106.86%
TSAT	49 Neutral	$455.69M	8.35	-14.04%	―	-24.21%	-440.28%
CMI	46 Neutral	C$38.24M	24.42	-5.22%	5.56%	-51.54%	-164.01%
MMAX	―	$249.16K	―		―	―	―
VCM	68 Neutral	C$251.66M	68.05	1.61%	2.13%	9.13%	-77.24%
NVI	43 Neutral	C$2.84M	―	27.31%	―	-33.92%	96.67%
LTE	41 Neutral	C$6.73M	―		―	48.22%	54.09%

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.

Telesat Corporation Reports 2025 AGM Results, Reinforces Strategic Direction

Telesat Corporation announced the results of its 2025 Annual General Meeting, where shareholders approved all business items, including the appointment of Deloitte LLP as auditors and the election of director nominees. This meeting underscores the company’s stable governance and ongoing commitment to its strategic goals, potentially reinforcing its industry position and stakeholder confidence.

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.