TELUS CORP (T.CA) Stock Fundamental Analysis
Canada - TSX:T - CA87971M1032 - Common Stock
20.06 CAD
-0.32 (-1.57%)
Taking everything into account, T scores 3 out of 10 in our fundamental rating. T was compared to 30 industry peers in the Diversified Telecommunication Services industry. T has a bad profitability rating. Also its financial health evaluation is rather negative. T is valued expensive and it does not seem to be growing. Finally T also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
T had positive earnings in the past year.
T had a positive operating cash flow in the past year.
T had positive earnings in each of the past 5 years.
Each year in the past 5 years T had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.00%, T is doing worse than 80.00% of the companies in the same industry.
T has a worse Return On Equity (7.43%) than 83.33% of its industry peers.
T has a better Return On Invested Capital (4.94%) than 86.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for T is in line with the industry average of 5.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 7.43% | ||
| ROIC | 4.94% |
ROA(3y)2.07%
ROA(5y)2.49%
ROE(3y)7.11%
ROE(5y)8.46%
ROIC(3y)5.16%
ROIC(5y)5.5%
1.3 Margins
Looking at the Profit Margin, with a value of 5.77%, T is doing worse than 80.00% of the companies in the same industry.
T's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 15.48%, T is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
T's Operating Margin has declined in the last couple of years.
T's Gross Margin of 62.85% is on the low side compared to the rest of the industry. T is outperformed by 83.33% of its industry peers.
T's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.48% | ||
| PM (TTM) | 5.77% | ||
| GM | 62.85% |
OM growth 3Y-6.27%
OM growth 5Y-5.58%
PM growth 3Y-20.54%
PM growth 5Y-16.25%
GM growth 3Y1.26%
GM growth 5Y1.39%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so T is destroying value.
T has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, T has more shares outstanding
The debt/assets ratio for T is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.92, we must say that T is in the distress zone and has some risk of bankruptcy.
T has a Altman-Z score of 0.92. This is amongst the best in the industry. T outperforms 90.00% of its industry peers.
The Debt to FCF ratio of T is 30.52, which is on the high side as it means it would take T, 30.52 years of fcf income to pay off all of its debts.
T has a worse Debt to FCF ratio (30.52) than 83.33% of its industry peers.
T has a Debt/Equity ratio of 1.68. This is a high value indicating a heavy dependency on external financing.
T has a worse Debt to Equity ratio (1.68) than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 30.52 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.85
WACC5.82%
2.3 Liquidity
A Current Ratio of 0.76 indicates that T may have some problems paying its short term obligations.
With an excellent Current ratio value of 0.76, T belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
A Quick Ratio of 0.71 indicates that T may have some problems paying its short term obligations.
T has a better Quick ratio (0.71) than 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The earnings per share for T have decreased by -5.84% in the last year.
The Earnings Per Share has been decreasing by -6.24% on average over the past years.
Looking at the last year, T shows a small growth in Revenue. The Revenue has grown by 2.42% in the last year.
The Revenue has been growing slightly by 6.66% on average over the past years.
EPS 1Y (TTM)-5.84%
EPS 3Y-0.32%
EPS 5Y-6.24%
EPS Q2Q%-14.34%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y6.15%
Revenue growth 5Y6.66%
Sales Q2Q%2.59%
3.2 Future
The Earnings Per Share is expected to grow by 6.47% on average over the next years.
Based on estimates for the next years, T will show a small growth in Revenue. The Revenue will grow by 4.01% on average per year.
EPS Next Y-1.22%
EPS Next 2Y4.12%
EPS Next 3Y5.16%
EPS Next 5Y6.47%
Revenue Next Year2.91%
Revenue Next 2Y2.82%
Revenue Next 3Y2.94%
Revenue Next 5Y4.01%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.68, the valuation of T can be described as rather expensive.
83.33% of the companies in the same industry are cheaper than T, based on the Price/Earnings ratio.
T's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.56.
Based on the Price/Forward Earnings ratio of 17.79, the valuation of T can be described as rather expensive.
Based on the Price/Forward Earnings ratio, T is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
T's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.62.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.68 | ||
| Fwd PE | 17.79 |
4.2 Price Multiples
76.67% of the companies in the same industry are cheaper than T, based on the Enterprise Value to EBITDA ratio.
T's Price/Free Cash Flow ratio is rather expensive when compared to the industry. T is more expensive than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.42 | ||
| EV/EBITDA | 8.07 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.12%
EPS Next 3Y5.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.08%, T is a good candidate for dividend investing.
T's Dividend Yield is rather good when compared to the industry average which is at 5.36. T pays more dividend than 100.00% of the companies in the same industry.
T's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.08% |
5.2 History
The dividend of T has a limited annual growth rate of 1.90%.
T has been paying a dividend for at least 10 years, so it has a reliable track record.
T has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.9%
Div Incr Years21
Div Non Decr Years22
5.3 Sustainability
T pays out 135.96% of its income as dividend. This is not a sustainable payout ratio.
T's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP135.96%
EPS Next 2Y4.12%
EPS Next 3Y5.16%
TSX:T (11/17/2025, 7:00:00 PM)
20.06
-0.32 (-1.57%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners54.64%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap30.79B
Revenue(TTM)20.45B
Net Income(TTM)1.18B
Analysts70.83
Price Target23.55 (17.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.08% |
Yearly Dividend1.05
Dividend Growth(5Y)1.9%
DP135.96%
Div Incr Years21
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.26%
Min EPS beat(2)-9.66%
Max EPS beat(2)-6.86%
EPS beat(4)2
Avg EPS beat(4)2.5%
Min EPS beat(4)-9.66%
Max EPS beat(4)15.34%
EPS beat(8)6
Avg EPS beat(8)6.25%
EPS beat(12)8
Avg EPS beat(12)1.43%
EPS beat(16)10
Avg EPS beat(16)0.78%
Revenue beat(2)0
Avg Revenue beat(2)-0.87%
Min Revenue beat(2)-0.99%
Max Revenue beat(2)-0.74%
Revenue beat(4)1
Avg Revenue beat(4)-0.59%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.77%
Revenue beat(8)1
Avg Revenue beat(8)-1.67%
Revenue beat(12)1
Avg Revenue beat(12)-1.79%
Revenue beat(16)2
Avg Revenue beat(16)-1.9%
PT rev (1m)0.38%
PT rev (3m)2.26%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)-3.45%
EPS NY rev (1m)-1.21%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.68 | ||
| Fwd PE | 17.79 | ||
| P/S | 1.51 | ||
| P/FCF | 31.42 | ||
| P/OCF | 6.4 | ||
| P/B | 1.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.07 |
EPS(TTM)0.97
EY4.84%
EPS(NY)1.13
Fwd EY5.62%
FCF(TTM)0.64
FCFY3.18%
OCF(TTM)3.14
OCFY15.63%
SpS13.32
BVpS10.34
TBVpS-9.81
PEG (NY)N/A
PEG (5Y)N/A
Graham Number15.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 7.43% | ||
| ROCE | 6.45% | ||
| ROIC | 4.94% | ||
| ROICexc | 5.12% | ||
| ROICexgc | 14.3% | ||
| OM | 15.48% | ||
| PM (TTM) | 5.77% | ||
| GM | 62.85% | ||
| FCFM | 4.79% |
ROA(3y)2.07%
ROA(5y)2.49%
ROE(3y)7.11%
ROE(5y)8.46%
ROIC(3y)5.16%
ROIC(5y)5.5%
ROICexc(3y)5.26%
ROICexc(5y)5.61%
ROICexgc(3y)14.67%
ROICexgc(5y)15.27%
ROCE(3y)6.66%
ROCE(5y)7.09%
ROICexgc growth 3Y-6.18%
ROICexgc growth 5Y-3.5%
ROICexc growth 3Y-7.23%
ROICexc growth 5Y-7.25%
OM growth 3Y-6.27%
OM growth 5Y-5.58%
PM growth 3Y-20.54%
PM growth 5Y-16.25%
GM growth 3Y1.26%
GM growth 5Y1.39%
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 30.52 | ||
| Debt/EBITDA | 3.72 | ||
| Cap/Depr | 95.4% | ||
| Cap/Sales | 18.75% | ||
| Interest Coverage | 2.27 | ||
| Cash Conversion | 67% | ||
| Profit Quality | 83.12% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 0.92 |
F-Score6
WACC5.82%
ROIC/WACC0.85
Cap/Depr(3y)107.1%
Cap/Depr(5y)125.25%
Cap/Sales(3y)21.07%
Cap/Sales(5y)24.41%
Profit Quality(3y)62.22%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.84%
EPS 3Y-0.32%
EPS 5Y-6.24%
EPS Q2Q%-14.34%
EPS Next Y-1.22%
EPS Next 2Y4.12%
EPS Next 3Y5.16%
EPS Next 5Y6.47%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y6.15%
Revenue growth 5Y6.66%
Sales Q2Q%2.59%
Revenue Next Year2.91%
Revenue Next 2Y2.82%
Revenue Next 3Y2.94%
Revenue Next 5Y4.01%
EBIT growth 1Y-2.34%
EBIT growth 3Y-0.51%
EBIT growth 5Y0.7%
EBIT Next Year150.71%
EBIT Next 3Y39.32%
EBIT Next 5Y23.7%
FCF growth 1Y123.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y11.64%
OCF growth 3Y3.37%
OCF growth 5Y4.3%
TELUS CORP / T.CA FAQ
What is the fundamental rating for T stock?
ChartMill assigns a fundamental rating of 3 / 10 to T.CA.
Can you provide the valuation status for TELUS CORP?
ChartMill assigns a valuation rating of 1 / 10 to TELUS CORP (T.CA). This can be considered as Overvalued.
What is the profitability of T stock?
TELUS CORP (T.CA) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for T stock?
The Price/Earnings (PE) ratio for TELUS CORP (T.CA) is 20.68 and the Price/Book (PB) ratio is 1.94.
What is the earnings growth outlook for TELUS CORP?
The Earnings per Share (EPS) of TELUS CORP (T.CA) is expected to decline by -1.22% in the next year.