TelesatTSX:TSAT +0.05%52 Interest Coverage is 0.02 as of Mar. 2026, which is 99% below its 10-year median of 1.77. 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 1,673 Hardware companies, Telesat ranks worse than 99.22% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Telesat's
Operating Income
for the
three
months ended in Mar. 2026 was C$1.0 Mil. Telesat's Interest Expense for the
three
months ended in Mar. 2026 was C$-50.5 Mil.
Telesat's interest coverage for the quarter that ended in Mar. 2026 was 0.02.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Telesat Corps earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Telesat's Interest Coverage or its related term are showing as below:
TSX:TSAT'
s Interest Coverage Range Over the Past 10 Years
Min: 0.15 Med: 1.77 Max: 2.39
Current: 0.15
TSX:TSAT's Interest Coverage is ranked worse than 99.22% of 1673
companies
in the Hardware industry
Industry Median: 13.73
vs TSX:TSAT: 0.15
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Telesat Interest Coverage Related Terms
Telesat Interest Coverage Historical Data
* Premium members only.
The historical data trend for Telesat's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
TSX:TSAT vs CSCO, CIEN, MSI: Interest Coverage Comparison
For the Communication Equipment subindustry, Telesat's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, Telesat's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Telesat's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Telesat (TSX:TSAT) has a Interest Coverage of 0.02 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Telesat and its competitors. This is 99% below median its historical median of 1.77. Over the past decade, Telesat's Interest Coverage has ranged from 0.15 to 2.39. According to the industry distribution chart, Telesat ranks #1660 out of 1673 companies in the Hardware industry, placing it in the top 99.2%.
Is Telesat's Interest Coverage too high?
Telesat's current Interest Coverage of 0.02 is 99% below median its 10-year median of 1.77. Over the past 10 years, this metric has ranged from a low of 0.15 to a high of 2.39. The Hardware industry median Interest Coverage is 13.73. Telesat's value of 0.02 is 99.9% below this industry median. Based on the distribution chart, Telesat ranks #1660 out of 1673 companies in the Hardware industry, which is in the bottom quartile 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 Interest Coverage compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Telesat ranks #1660 out of 1673 companies for Interest Coverage. This places Telesat in the lower half of its industry. The industry median Interest Coverage is 13.73. Telesat's value of 0.02 is 99.9% below this benchmark. Historically, Telesat's own Interest Coverage has ranged from 0.15 to 2.39 over the past decade. While the company's 10-year median is 1.77 vs. the industry median of 13.73, Telesat has consistently been below 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 Interest Coverage for a Hardware company?
The median Interest Coverage among Hardware companies is 13.73, based on 1,673 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telesat's current Interest Coverage of 0.02 is 99.9% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Telesat and its competitors. For the Hardware industry, the median Interest Coverage is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telesat's current Interest Coverage is 0.02, which is 99% below median its own 10-year median of 1.77. 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 Interest Coverage is 0.02, which is 99% below median its 10-year median of 1.77 and 99.9% below the Hardware industry median of 13.73. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Telesat (TSX:TSAT), the current Interest Coverage is 0.02 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:
Interest Coverage: 0.02 (99% below median its 10-year median of 1.77)
GF Value™: C$10.99 vs. price of C$59.80 (444.1% above fair value)
Industry Position: 99.9% below the Hardware median (#1660 of 1673)
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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