Telesat Corporation
Telesat Corporation Fundamental Analysis
Telesat Corporation (TSAT) shows weak financial fundamentals with a PE ratio of -5.35, profit margin of -37.15%, and ROE of -24.05%. The company generates $0.4B in annual revenue with weak year-over-year growth of -18.90%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -105.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TSAT's fundamental strength across five key dimensions:
Efficiency Score
WeakTSAT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTSAT trades at attractive valuation levels.
Growth Score
WeakTSAT faces weak or negative growth trends.
Financial Health Score
WeakTSAT carries high financial risk with limited liquidity.
Profitability Score
WeakTSAT struggles to sustain strong margins.
Key Financial Metrics
Is TSAT Expensive or Cheap?
P/E Ratio
TSAT trades at -5.35 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TSAT's PEG of -0.76 indicates potential undervaluation.
Price to Book
The market values Telesat Corporation at 1.57 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -10.48 times EBITDA. This is generally considered low.
How Well Does TSAT Make Money?
Net Profit Margin
For every $100 in sales, Telesat Corporation keeps $-37.15 as profit after all expenses.
Operating Margin
Core operations generate 14.68 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-24.05 in profit for every $100 of shareholder equity.
ROA
Telesat Corporation generates $-2.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Telesat Corporation produces operating cash flow of $66.06M, showing steady but balanced cash generation.
Free Cash Flow
Telesat Corporation generates weak or negative free cash flow of $-347.44M, restricting financial flexibility.
FCF Per Share
Each share generates $-23.64 in free cash annually.
FCF Yield
TSAT converts -42.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-5.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.76
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.97
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
6.66
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.24
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How TSAT Stacks Against Its Sector Peers
| Metric | TSAT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -5.35 | 33.94 | Better (Cheaper) |
| ROE | -24.05% | 1002.00% | Weak |
| Net Margin | -37.15% | -48794.00% (disorted) | Weak |
| Debt/Equity | 6.66 | 0.44 | Weak (High Leverage) |
| Current Ratio | 0.18 | 5.74 | Weak Liquidity |
| ROA | -2.35% | -288341.00% (disorted) | Weak |
TSAT outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Telesat Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
438.72%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-502.68%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
42.90%
Industry Style: Growth, Innovation, High Beta
High Growth