Telesat Corporation (TSAT)
Valuation Overview•Is Telesat Corporation Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Fragile underlying quality score of 20/100; weak margins or elevated debt leverage warrant caution.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Highly distressed profile flashing severe fundamental warning signs.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. The company currently dilutes shareholders to fund operations and growth rather than returning capital.
TSAT struggles with subpar profitability and pressured margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company is facing top-line contraction (-18.1% 3Y CAGR) paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 14.7%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $94.0M | -26.9% | -18.1% | -12.6% | -7.9% | |
| EBITDA | $43.7M | — | -25.6% | — | — | |
| Net Income | -$125.4M | -77.0% | -86.9% | — | +5.3% | |
| EPS (Diluted) | $-8.45 | -68.7% | — | — | -16.9% | |
| Free Cash Flow | -$250.5M | -29074.3% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 80.3% | 74.9% | 82.7% | 82.3% |
| Operating Margin | 14.7% | 29.1% | 36.1% | 44.0% |
| Net Margin | -37.2% | -10.1% | -4.2% | 10.5% |
| FCF Margin | -84.0% | -50.5% | -19.1% | 9.3% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $-0.67 | $-2.21 | -231.5% | ||
| Q1'26 | $-0.85 | $-0.97 | -14.1% | ||
| Q4'25 | $-0.78 | $-1.73 | -121.8% | ||
| Q3'25 | $-0.69 | $1.00 | +244.9% | ||
| Q2'25 | $-0.56 | $0.53 | +194.6% | ||
| Q1'25 | $-3.76 | $-5.90 | -56.9% | ||
| Q4'24 | $-0.36 | $-0.08 | +77.8% | ||
| Q3'24 | $2.47 | $-2.87 | -216.2% |
Total return is +129.3% (1Y), outperforming the benchmark by +104.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +56.4% | +47.1% | — |
| 1Y | +129.3% | +104.3% | — |
| 3YCAGR | +72.4% | +55.2% | — |
| 5YCAGR | +4.7% | -7.0% | — |
| 10YCAGR | +3.3% | -9.9% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Telesat Corporation (TSAT) valuation, health, and returns.
Based on peer relative multiples, Telesat Corporation appears Limited: Expensive versus peers compared to industry peers.
Telesat Corporation has multiple valuation anchors: Peer Relative Fair Value: $29.67 | Wall Street Analyst Target: $20.00 (implying -56.1% upside). A convergence of these signals offers higher conviction.
Telesat Corporation displays weak financial health with a composite quality score of 20/100, supported by a Altman Z-Score of -0.5 (distress zone), Piotroski F-Score of 2/9, Return on Invested Capital (ROIC) of 0.9%.
Telesat Corporation does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Telesat Corporation's current growth trajectory is Decelerating. The company achieved -26.9% 1Y revenue growth and -68.7% 1Y EPS growth, compared to its 3Y revenue CAGR of -18.1%.
Wall Street consensus is Hold based on 1 analysts, beating EPS expectations in 40% of recent quarters with a -3-quarter streak. The consensus price target represents a -56.1% change from current levels.
Investment risks for Telesat Corporation include: -32.9% 1-year max drawdown, high beta (2.96x market volatility), elevated distress risk. Volatility risk is characterized by a beta of 2.96x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.