Telesat Corp (TSAT) AI Stock Analysis

• Market Cap: $531.61M
• Dividend Yield: N/A
• Average Volume (3M): 20.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: -25.79%
• EPS Growth: -413.48%
• Country: CA
• Employees: 610
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -2.38
• Shares Outstanding: 14,695,331
• 10 Day Avg. Volume: 22,798
• 30 Day Avg. Volume: 20,853
• PEG Ratio: 0.02
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.58
• P/FCF Ratio: -137.68
• Enterprise Value/Market Cap: 9.30
• Enterprise Value/Revenue: 11.68
• Enterprise Value/Gross Profit: 13.73
• Enterprise Value/Ebitda: -21.33
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -4.16
• Revenue Forecast (FY): $416.59M

• Rating: 41 Neutral
• Price Target: C$34.00 ▼(-5.29% Downside)

Telesat Corp's overall stock score is primarily impacted by its financial performance and valuation concerns. The company's significant financial challenges, including declining revenue, high leverage, and weak cash generation, are major risks. The technical analysis suggests a neutral to slightly bearish outlook, while the negative P/E ratio highlights valuation issues. Despite some positive developments in the LEO segment, the overall outlook remains cautious.

Positive Factors

LEO Segment Progress

Advancements in the LEO segment indicate Telesat's commitment to innovation and potential market expansion, enhancing long-term growth prospects.

Capital Structure Optimization

Optimizing capital structure can improve financial flexibility and access to financing, supporting sustainable growth and strategic initiatives.

Debt Reduction

Successful debt reduction enhances financial health by lowering interest expenses, freeing up resources for investment and growth.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in maintaining customer contracts, which could impact long-term financial stability and growth.

High Leverage

High leverage poses risks to financial stability, limiting flexibility and increasing vulnerability to economic downturns.

Weak Cash Generation

Weak cash generation limits the ability to fund operations and investments, posing a threat to long-term sustainability and growth.

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 generates revenue primarily through the leasing of satellite capacity to commercial and government clients. This includes long-term contracts with telecom operators for broadband services and partnerships with media companies for television distribution. Additionally, Telesat earns income from its data services and managed network solutions. The company has strategic partnerships with various industry players, enhancing its service offerings and market reach. Factors contributing to Telesat's earnings include the increasing demand for high-speed internet access, particularly in remote and underserved areas, and the growing reliance on satellite communications for secure and resilient connectivity.

Telesat Corp Financial Statement Overview

Summary

Telesat Corp faces significant financial challenges, including declining revenue and profitability, high leverage, and weak cash generation. The negative net profit margin and high debt levels pose risks to financial stability and future growth prospects.

Income Statement

Telesat Corp's income statement reveals significant challenges. The company has experienced a decline in revenue over the TTM period, with a negative revenue growth rate of -13.46%. The gross profit margin remains strong at 85.18%, but the net profit margin is negative at -21.04%, indicating profitability issues. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Overall, the income statement shows declining revenue and profitability, which are concerning for future growth.

Balance Sheet

The balance sheet of Telesat Corp highlights high leverage with a debt-to-equity ratio of 4.71, indicating significant reliance on debt financing. The return on equity is negative at -14.49%, reflecting poor returns for shareholders. The equity ratio is relatively low, suggesting limited equity financing. The company's high debt levels pose a risk to financial stability, and the negative ROE indicates challenges in generating shareholder value.

Cash Flow

Telesat Corp's cash flow statement shows a troubling picture. The free cash flow growth rate is significantly negative at -9285.96%, indicating a substantial decline in free cash flow. The operating cash flow to net income ratio is 0.61, suggesting limited cash generation relative to net income. The free cash flow to net income ratio is low at 0.01, highlighting challenges in converting earnings into cash. Overall, the cash flow statement reflects weak cash generation and liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	423.41M	571.04M	704.16M	759.17M	758.21M	820.47M
Gross Profit	360.27M	533.07M	665.65M	705.16M	728.00M	787.10M
EBITDA	-231.87M	67.02M	1.14B	394.71M	626.05M	678.31M
Net Income	-146.18M	-87.72M	157.12M	-80.12M	157.76M	244.82M
Balance Sheet
Total Assets	6.93B	6.95B	6.27B	6.48B	6.37B	5.58B
Cash, Cash Equivalents and Short-Term Investments	482.61M	552.63M	1.67B	1.68B	1.45B	818.83M
Total Debt	3.31B	3.13B	3.23B	3.88B	3.83B	3.22B
Total Liabilities	4.68B	4.45B	3.88B	4.64B	4.67B	4.12B
Stockholders Equity	667.02M	710.28M	661.92M	480.37M	416.52M	1.46B
Cash Flow
Free Cash Flow	-119.05M	-2.39M	29.58M	164.27M	260.61M	355.35M
Operating Cash Flow	95.22M	62.46M	169.09M	228.85M	296.39M	371.68M
Investing Cash Flow	-1.10B	-1.09B	211.93M	74.00K	-272.86M	-92.23M
Financing Cash Flow	376.36M	-170.20M	-354.65M	-104.86M	605.24M	-450.24M

Telesat Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.90
• 50DMA: Negative
• 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 35.9 is below the 20-day moving average (MA) of 36.69, below the 50-day MA of 39.41, and above the 200-day MA of 30.98, indicating a neutral trend. The MACD of -1.52 indicates Negative momentum. The RSI at 45.50 is Neutral, neither overbought nor oversold. The STOCH value of 72.69 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VCM	54 Neutral	C$239.74M	-12.17	-8.77%	2.26%	-11.70%	-199.55%
NVI	47 Neutral	C$2.30M	6.63	―	―	-16.93%	―
CMI	46 Neutral	C$33.81M	―	-4.10%	1.56%	-46.11%	-149.26%
TSAT	41 Neutral	$531.61M	―	-21.63%	―	-25.79%	-413.48%

Telesat Corp Corporate Events

Telesat’s Earnings Call: Mixed Results with LEO Progress

The recent earnings call for Telesat Corporation painted a picture of mixed performance, highlighting both significant advancements and financial challenges. While the company made notable strides in its LEO segment and capital structure optimization, these were tempered by decreased revenues, increased operating expenses, and a substantial net loss, resulting in a balanced outlook for the firm.

Telesat Corporation Reports Q3 2025 Financial Results

Telesat Corporation is a leading global satellite operator known for its innovative solutions in the telecommunications sector, providing critical connectivity services worldwide. The company recently released its financial results for the quarter and nine months ending September 30, 2025, highlighting significant developments and financial metrics.

Telesat Corporation Releases Q3 2025 Financial Results

On November 4, 2025, Telesat Corporation released its quarterly report for the three and nine-month periods ending September 30, 2025. The report, filed with the Securities and Exchange Commission, includes certifications from the CEO and CFO, highlighting the company’s commitment to transparency and regulatory compliance. This release is significant for stakeholders as it provides insights into the company’s financial performance and operational status, which are crucial for assessing its market position and future prospects.

The most recent analyst rating on (TSE:TSAT) stock is a Hold with a C$43.00 price target. To see the full list of analyst forecasts on Telesat Corp stock, see the TSE:TSAT Stock Forecast page.

Telesat Reports Financial Decline Amid Strategic Changes

On November 4, 2025, Telesat announced its financial results for the quarter and nine months ended September 30, 2025. The company reported a 27% decrease in revenue for both periods compared to 2024, primarily due to lower rates and expired agreements with North American customers. Operating expenses increased by 26% for the quarter, driven by higher legal fees and LEO headcount growth. Telesat also reported a net loss of $121 million for the quarter, compared to a net income of $68 million in 2024, due to lower revenue and foreign exchange losses. The company distributed 62% of the equity in Telesat Lightspeed to an indirect subsidiary and appointed Donald Tremblay as CFO in August 2025.

The most recent analyst rating on (TSE:TSAT) stock is a Hold with a C$43.00 price target. To see the full list of analyst forecasts on Telesat Corp stock, see the TSE:TSAT Stock Forecast page.

Telesat Completes Major Equity Distribution of Lightspeed Business

On September 12, 2025, Telesat announced the completion of a significant equity distribution, transferring 62% of the equity of its Telesat Lightspeed business to an indirect subsidiary wholly owned by Telesat Canada’s parent entities. This transaction does not affect the company’s operations, but it marks a strategic move in managing its business structure, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (TSE:TSAT) stock is a Hold 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 Appoints Donald Tremblay as New CFO

On August 27, 2025, Telesat Corporation announced the appointment of Donald Tremblay as its new Chief Financial Officer, effective October 20, 2025. Tremblay, who brings over 35 years of financial expertise, will succeed Andrew Browne, who is retiring. Tremblay’s extensive experience in financial leadership and capital markets is expected to support Telesat’s growth plans and enhance its market position. The transition marks a pivotal moment for Telesat as it continues to innovate and expand its satellite services, with implications for stakeholders as the company aims to deliver high-quality services and create significant value.

The most recent analyst rating on (TSE:TSAT) stock is a Sell with a C$27.00 price target. To see the full list of analyst forecasts on Telesat Corp stock, see the TSE:TSAT Stock Forecast page.