Telesat (TSAT) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NasdaqGS•Technology•Communication Equipment

WeakMetricSide Score: 20/100

ProfitabilityProfit4/25

GrowthGrowth5/25

Balance Sheet & Red FlagsBalance10/25

Cash & Earnings QualityCash1/25

Strongest: Balance Sheet & Red Flags (10/25); weakest: Cash & Earnings Quality (1/25).

Price & Volume

Telesat Corporation, a satellite operator, provides mission-critical communications solutions to support the requirements of satellite users in Canada, the United States, Asia, Australia, Latin America, the Caribbean, Europe, the Middle East, and Africa. It operates through Geostationary (GEO) and Low Earth Orbit (LEO) segments. The company offers broadcast services, such as direct-to-home television, video distribution and contribution, and occasional use services; enterprise services, including telecommunication carrier and integrator, government, consumer broadband, resource, maritime and aeronautical, and retail and satellite operator services; and consulting services related to space and earth segments, government studies, satellite control services, and research and development. It also provides satellites for full-time transmission of television programming; and government services. In addition, the company offers satellite capacity and end-to-end services for data and voice transmission to telecommunications carriers and integrators; and space segment services and terrestrial facilities for enterprise connectivity, internet backhaul, and cellular backhaul, as well as rural telephony services to telecommunications carriers and network services integrators. Further, it provides direct-to-consumer broadband services; communications services to offshore, oil and gas, and mining industries; and installation and maintenance of the end user terminal, as well as the provision of satellite capacity and other network elements. Additionally, the company operates satellite and terrestrial networks that support enterprise and retail activities. It offers its services through a direct sales force. Telesat Corporation was founded in 1969 and is headquartered in Ottawa, Canada.

Moat Signals

Competitive analysis based on 55 quarters of fundamental data

Pricing Power

Weak Moat

Operating margins are under pressure, averaging -4.3%. The business may lack pricing power or face rising costs.'

Competitive Advantage

Weak Moat

ROE is low or negative, suggesting limited competitive advantage or capital allocation challenges.

Risk Signals

Data-driven red flags and warnings across 55 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

Free cash flow has been negative in 7 of the last 8 quarters — earnings are not translating to cash.

Leverage Risk

Red Flag

D/E ratio is 3.4 — dangerously high. The company is heavily leveraged and vulnerable to rising rates or cash flow dips.

Revenue Decline

Red Flag

TTM revenue has contracted 26.0% — significant decline indicating deteriorating demand.

Cash Burn

Red Flag

The last 4 consecutive quarters had negative FCF — the company is burning cash and may need external funding.

Share Dilution

Healthy

Shares decreased 5.5% — net buybacks are reducing shares outstanding and boosting per-share value.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $388.42M
Q. Revenue: $87.28M
TTM EBITDA: $-352.61M
TTM Op. Income: $33.60M
Q. Op. Income: $3.09M
TTM Net Income: $-185.33M
Q. Net Income: $-45.61M
EPS: N/A
Shares Out.: $14.98M

$388.42M in TTM revenue declined 27.5% YoY, reaching $87.28M last quarter. TTM EBITDA of $-352.61M and TTM operating income of $33.60M shows growth is flowing through. However, net income is negative at $185.33M — growth is not yet reaching the bottom line. Revenue is contracting — assess whether this is cyclical or structural. Across the last 8 quarters, TTM revenue has fallen for 7 consecutive quarters — a deteriorating trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: -91.1%
Op. Margin: 3.5%
Net Margin: -52.3%

Op. margin of 3.5% is down 22.9% YoY — costs are rising relative to revenue. Net margin at -52.3%. Over the past year, Operating margin is down 87% — a deteriorating trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: N/A
P/S Ratio: 1.3x
P/B Ratio: 1.4x

P/S of 1.3x and P/B of 1.4x. A low P/S may indicate the stock is undervalued. Over the past year, P/E is up 0% — a improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $4.81B
Cash: $375.80M
Long-Term Debt: $1.27B
Book Value: $373.13M
D/E Ratio: 3.4
Debt/EBITDA: N/A

With $4.81B in assets and $1.27B in long-term debt, the D/E of 3.4and book value of $373.13M — indicates elevated leverage — the company has significant financial risk and may struggle in a downturn. Over the past year, Debt/equity is down 28% — a deteriorating trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

TTM Free Cash Flow: $-569.49M
FCF Margin: -146.6%
FCF / Net Income: 3.1

TTM FCF of $-569.49M. The FCF / Net Income ratio of 3.1x means earnings are well backed by actual cash — high-quality earnings. Across the last 8 quarters, Free cash flow has fallen for 4 consecutive quarters — a deteriorating trend.