TELUS CORP (T.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:T • CA87971M1032
19.27 CAD
-0.05 (-0.26%)
Last: Feb 9, 2026, 07:00 PM
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.
- In the past year T had a positive cash flow from operations.
- Each year in the past 5 years T has been profitable.
- In the past 5 years T always reported a positive cash flow from operatings.
1.2 Ratios
- T's Return On Assets of 2.00% is on the low side compared to the rest of the industry. T is outperformed by 80.00% of its industry peers.
- The Return On Equity of T (7.43%) is worse than 83.33% of its industry peers.
- T has a better Return On Invested Capital (4.94%) than 86.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for T is in line with the industry average of 5.00%.
| 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
- T has a worse Profit Margin (5.77%) than 80.00% of its industry peers.
- T's Profit Margin has declined in the last couple of years.
- The Operating Margin of T (15.48%) is worse than 86.67% of its industry peers.
- 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
- T has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, T has more shares outstanding
- T has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for T is higher compared to a year ago.
2.2 Solvency
- T has an Altman-Z score of 0.91. This is a bad value and indicates that T is not financially healthy and even has some risk of bankruptcy.
- T's Altman-Z score of 0.91 is amongst the best of the industry. T outperforms 90.00% of its industry peers.
- T has a debt to FCF ratio of 30.52. This is a negative value and a sign of low solvency as T would need 30.52 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 30.52, T is doing worse than 83.33% of the companies in the same industry.
- A Debt/Equity ratio of 1.68 is on the high side and indicates that T has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.68, T is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 30.52 | ||
| Altman-Z | 0.91 |
ROIC/WACC0.84
WACC5.88%
2.3 Liquidity
- A Current Ratio of 0.76 indicates that T may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.76, T belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
- T has a Quick Ratio of 0.76. This is a bad value and indicates that T is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.71, T belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
| 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 -5.83% in the last year.
- Measured over the past years, T shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.24% on average per year.
- T shows a small growth in Revenue. In the last year, the Revenue has grown by 2.42%.
- Measured over the past years, T shows a small growth in Revenue. The Revenue has been growing by 6.66% on average per year.
EPS 1Y (TTM)-5.83%
EPS 3Y-0.32%
EPS 5Y-6.24%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y6.15%
Revenue growth 5Y6.66%
Sales Q2Q%0.14%
3.2 Future
- T is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.00% yearly.
- T is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.94% yearly.
EPS Next Y-4.46%
EPS Next 2Y1.71%
EPS Next 3Y3.45%
EPS Next 5Y6%
Revenue Next Year0.39%
Revenue Next 2Y1.39%
Revenue Next 3Y2.56%
Revenue Next 5Y2.94%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 19.87, T is valued on the expensive side.
- Based on the Price/Earnings ratio, T is valued more expensive than 83.33% of the companies in the same industry.
- When comparing the Price/Earnings ratio of T to the average of the S&P500 Index (28.06), we can say T is valued slightly cheaper.
- T is valuated rather expensively with a Price/Forward Earnings ratio of 17.91.
- 83.33% of the companies in the same industry are cheaper than T, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.86, T is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.87 | ||
| Fwd PE | 17.91 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, T is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
- 83.33% of the companies in the same industry are cheaper than T, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.5 | ||
| EV/EBITDA | 7.94 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.71%
EPS Next 3Y3.45%
5. Dividend
5.1 Amount
- T has a Yearly Dividend Yield of 8.51%, which is a nice return.
- T's Dividend Yield is rather good when compared to the industry average which is at 4.35. T pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.80, T pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.51% |
5.2 History
- The dividend of T has a limited annual growth rate of 1.90%.
- T has paid a dividend for at least 10 years, which is a reliable track record.
- T has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
- The dividend of T is growing, but earnings are growing more, so the dividend growth is sustainable.
DP135.96%
EPS Next 2Y1.71%
EPS Next 3Y3.45%
TSX:T (2/9/2026, 7:00:00 PM)
19.27
-0.05 (-0.26%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)11-07 2025-11-07/bmo
Earnings (Next)02-12 2026-02-12/bmo
Inst Owners55.52%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap29.89B
Revenue(TTM)20.45B
Net Income(TTM)1.18B
Analysts69.57
Price Target21.86 (13.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.51% |
Yearly Dividend1.05
Dividend Growth(5Y)1.9%
DP135.96%
Div Incr Years21
Div Non Decr Years22
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.23%
Min EPS beat(2)-9.6%
Max EPS beat(2)-6.86%
EPS beat(4)2
Avg EPS beat(4)2.51%
Min EPS beat(4)-9.6%
Max EPS beat(4)15.34%
EPS beat(8)6
Avg EPS beat(8)6.26%
EPS beat(12)8
Avg EPS beat(12)1.44%
EPS beat(16)10
Avg EPS beat(16)0.79%
Revenue beat(2)0
Avg Revenue beat(2)-2.01%
Min Revenue beat(2)-3.02%
Max Revenue beat(2)-0.99%
Revenue beat(4)1
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)0.77%
Revenue beat(8)1
Avg Revenue beat(8)-1.96%
Revenue beat(12)1
Avg Revenue beat(12)-1.98%
Revenue beat(16)2
Avg Revenue beat(16)-2.04%
PT rev (1m)-1.73%
PT rev (3m)-7.16%
EPS NQ rev (1m)-2.13%
EPS NQ rev (3m)-6.81%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-3.28%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)-1.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.87 | ||
| Fwd PE | 17.91 | ||
| P/S | 1.46 | ||
| P/FCF | 30.5 | ||
| P/OCF | 6.21 | ||
| P/B | 1.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.94 |
EPS(TTM)0.97
EY5.03%
EPS(NY)1.08
Fwd EY5.58%
FCF(TTM)0.63
FCFY3.28%
OCF(TTM)3.1
OCFY16.1%
SpS13.18
BVpS10.23
TBVpS-9.71
PEG (NY)N/A
PEG (5Y)N/A
Graham Number14.95
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 | 0.91 |
F-Score6
WACC5.88%
ROIC/WACC0.84
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)-5.83%
EPS 3Y-0.32%
EPS 5Y-6.24%
EPS Q2Q%-14.29%
EPS Next Y-4.46%
EPS Next 2Y1.71%
EPS Next 3Y3.45%
EPS Next 5Y6%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y6.15%
Revenue growth 5Y6.66%
Sales Q2Q%0.14%
Revenue Next Year0.39%
Revenue Next 2Y1.39%
Revenue Next 3Y2.56%
Revenue Next 5Y2.94%
EBIT growth 1Y-2.34%
EBIT growth 3Y-0.51%
EBIT growth 5Y0.7%
EBIT Next Year147.79%
EBIT Next 3Y38.35%
EBIT Next 5Y23.33%
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.
What is the valuation status of TELUS CORP (T.CA) stock?
ChartMill assigns a valuation rating of 1 / 10 to TELUS CORP (T.CA). This can be considered as Overvalued.
Can you provide the profitability details for TELUS CORP?
TELUS CORP (T.CA) has a profitability rating of 3 / 10.
What is the earnings growth outlook for TELUS CORP?
The Earnings per Share (EPS) of TELUS CORP (T.CA) is expected to decline by -4.46% in the next year.
Is the dividend of TELUS CORP sustainable?
The dividend rating of TELUS CORP (T.CA) is 8 / 10 and the dividend payout ratio is 135.96%.