TelesatTSX:TSAT +0.05%52 Gross Margin % is 90.09% as of Mar. 2026, which is 5% below its 10-year median of 94.56. GuruFocus rates TSX:TSAT with a GF Score™ of 52/100 and a GF Value™ of C$10.99 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,454 Hardware companies, Telesat ranks better than 99.23% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Telesat's Gross Profit for the
three
months ended in Mar. 2026 was C$78.4 Mil. Telesat's Revenue for the
three
months ended in Mar. 2026 was C$87.1 Mil. Therefore, Telesat's Gross Margin % for the quarter that ended in Mar. 2026 was 90.09%.
The historical rank and industry rank for Telesat's Gross Margin % or its related term are showing as below:
TSX:TSAT'
s Gross Margin % Range Over the Past 10 Years
Min: 92.89 Med: 94.56 Max: 96.01
Current: 93.65
During the past 7 years, the highestGross Margin % of Telesat was 96.01%. The lowest was 92.89%. And the median was 94.56%.
TSX:TSAT's Gross Margin % is ranked better than 99.23% of 2454
companies
in the Hardware industry
Industry Median: 24.565
vs TSX:TSAT: 93.65
Telesat had a gross margin of 90.09% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Telesat was -0.40% per year.
Telesat (TSX:TSAT) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Telesat had a gross margin of 90.09% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Telesat Gross Margin % Related Terms
Telesat Gross Margin % Historical Data
* Premium members only.
The historical data trend for Telesat's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSX:TSAT vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Telesat's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Telesat Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Telesat's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Telesat's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Telesat (TSX:TSAT) has a Gross Margin % of 90.09% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Telesat and its competitors. This is near median its historical median of 94.56. Over the past decade, Telesat's Gross Margin % has ranged from 92.89 to 96.01. According to the industry distribution chart, Telesat ranks #19 out of 2454 companies in the Hardware industry, placing it in the top 0.8%.
Is Telesat's Gross Margin % too high?
Telesat's current Gross Margin % of 90.09% is near median its 10-year median of 94.56. Over the past 10 years, this metric has ranged from a low of 92.89 to a high of 96.01. The Hardware industry median Gross Margin % is 24.57. Telesat's value of 90.09% is 266.7% above this industry median. Based on the distribution chart, Telesat ranks #19 out of 2454 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Telesat has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telesat's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Telesat ranks #19 out of 2454 companies for Gross Margin %. This places Telesat in the top 1% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.57. Telesat's value of 90.09% is 266.7% above this benchmark. Historically, Telesat's own Gross Margin % has ranged from 92.89 to 96.01 over the past decade. While the company's 10-year median is 94.56 vs. the industry median of 24.57, Telesat has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.57, based on 2,454 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telesat's current Gross Margin % of 90.09% is 266.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Telesat and its competitors. For the Hardware industry, the median Gross Margin % is 24.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telesat's current Gross Margin % is 90.09%, which is near median its own 10-year median of 94.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telesat stock overvalued right now?
Based on GuruFocus' analysis, Telesat (TSX:TSAT) is currently considered Significantly Overvalued. The stock's GF Value™ is C$10.99, compared to a current price of C$59.80 — trading 444.1% above its estimated fair value. The current Gross Margin % is 90.09%, which is near median its 10-year median of 94.56 and 266.7% above the Hardware industry median of 24.57. Telesat's overall GF Score™ is 52/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Telesat (TSX:TSAT), the current Gross Margin % is 90.09% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Telesat (TSX:TSAT) Overvalued in 2026?
Based on GuruFocus' analysis, Telesat stock appears to be overvalued.
The current stock price of C$59.80 is trading 444.1% above its estimated GF Value™ of C$10.99.
GuruFocus considers Telesat to be Significantly Overvalued.
Key valuation signals for TSX:TSAT:
Gross Margin %: 90.09% (near median its 10-year median of 94.56)
GF Value™: C$10.99 vs. price of C$59.80 (444.1% above fair value)
Industry Position: 266.7% above the Hardware median (#19 of 2454)
No single metric tells the full story. See the TSX:TSAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telesat Corp is a satellite operator, that provides its customers with mission-critical communications services. It operates in a single operating segment, in which it provides satellite-based services to its broadcast, enterprise, and consulting customers around the world. The company has two operating segments: GEO services (GEO) segment that refers to the operation of the fleet of GEO satellite and LEO services (LEO) segment that refers to the deployment and operation of the Telesat Lightspeed constellation Geographically, it derives a majority of its revenue from Canada. It derives revenue from Broadcast, Enterprise, Consulting, and others.
52GF Score
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