TELUS CORP (T.CA) Stock Fundamental Analysis
TSX:T - Toronto Stock Exchange - CA87971M1032 - Common Stock - Currency: CAD
Overall T gets a fundamental rating of 4 out of 10. We evaluated T against 30 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of T while its profitability can be described as average. T is valied quite expensively at the moment, while it does show a decent growth rate. T also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year T was profitable.
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
The Return On Assets of T (2.05%) is better than 90.00% of its industry peers.
Looking at the Return On Equity, with a value of 7.61%, T belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.14%, T belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for T is in line with the industry average of 5.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.05% | ||
| ROE | 7.61% | ||
| ROIC | 5.14% |
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 5.85%, T belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
T's Profit Margin has declined in the last couple of years.
T has a Operating Margin of 15.87%. This is amonst the worse of the industry: T underperforms 86.67% of its industry peers.
In the last couple of years the Operating Margin of T has declined.
T's Gross Margin of 62.84% is on the low side compared to the rest of the industry. T is outperformed by 83.33% of its industry peers.
In the last couple of years the Gross Margin of T has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.87% | ||
| PM (TTM) | 5.85% | ||
| GM | 62.84% |
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.
Compared to 1 year ago, T has more shares outstanding
Compared to 5 years ago, T has more shares outstanding
T has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.96, we must say that T is in the distress zone and has some risk of bankruptcy.
T's Altman-Z score of 0.96 is amongst the best of the industry. T outperforms 90.00% of its industry peers.
The Debt to FCF ratio of T is 35.65, which is on the high side as it means it would take T, 35.65 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of T (35.65) is worse than 86.67% 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.
Looking at the Debt to Equity ratio, with a value of 1.68, T belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 35.65 | ||
| Altman-Z | 0.96 |
ROIC/WACC0.66
WACC7.85%
2.3 Liquidity
T has a Current Ratio of 0.64. This is a bad value and indicates that T is not financially healthy enough and could expect problems in meeting its short term obligations.
T's Current ratio of 0.64 is on the low side compared to the rest of the industry. T is outperformed by 83.33% of its industry peers.
A Quick Ratio of 0.59 indicates that T may have some problems paying its short term obligations.
T's Quick ratio of 0.59 is on the low side compared to the rest of the industry. T is outperformed by 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.64% over the past year.
The Earnings Per Share has been decreasing by -6.24% on average over the past years.
The Revenue has been growing slightly by 1.73% in the past year.
T shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.66% yearly.
EPS 1Y (TTM)10.64%
EPS 3Y-0.32%
EPS 5Y-6.24%
EPS Q2Q%0%
Revenue 1Y (TTM)1.73%
Revenue growth 3Y6.15%
Revenue growth 5Y6.66%
Sales Q2Q%3.12%
3.2 Future
T is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.91% yearly.
The Revenue is expected to grow by 2.56% on average over the next years.
EPS Next Y-0.55%
EPS Next 2Y4.56%
EPS Next 3Y8.06%
EPS Next 5Y16.91%
Revenue Next Year3.09%
Revenue Next 2Y2.9%
Revenue Next 3Y2.98%
Revenue Next 5Y2.56%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
T is valuated rather expensively with a Price/Earnings ratio of 21.17.
T's Price/Earnings ratio is rather expensive when compared to the industry. T is more expensive than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.28, T is valued a bit cheaper.
With a Price/Forward Earnings ratio of 19.37, T is valued on the expensive side.
Based on the Price/Forward Earnings ratio, T is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
When comparing the Price/Forward Earnings ratio of T to the average of the S&P500 Index (21.76), we can say T is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.17 | ||
| Fwd PE | 19.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, T is valued more expensive than 83.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, T is valued more expensive than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.55 | ||
| EV/EBITDA | 8.5 |
4.3 Compensation for Growth
The decent profitability rating of T may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.56%
EPS Next 3Y8.06%
5. Dividend
5.1 Amount
T has a Yearly Dividend Yield of 7.66%, which is a nice return.
T's Dividend Yield is rather good when compared to the industry average which is at 6.33. 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.66% |
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 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
135.21% of the earnings are spent on dividend by T. This is not a sustainable payout ratio.
T's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP135.21%
EPS Next 2Y4.56%
EPS Next 3Y8.06%
TSX:T (7/2/2025, 7:00:00 PM)
22.02
+0.15 (+0.69%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners54.56%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap33.34B
Analysts70.83
Price Target23.07 (4.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.66% |
Yearly Dividend1.05
Dividend Growth(5Y)1.9%
DP135.21%
Div Incr Years21
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.26%
Min EPS beat(2)11.18%
Max EPS beat(2)15.34%
EPS beat(4)4
Avg EPS beat(4)14%
Min EPS beat(4)11.18%
Max EPS beat(4)16.54%
EPS beat(8)7
Avg EPS beat(8)6.46%
EPS beat(12)10
Avg EPS beat(12)3.65%
EPS beat(16)11
Avg EPS beat(16)1.77%
Revenue beat(2)1
Avg Revenue beat(2)-0.3%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)0.77%
Revenue beat(4)1
Avg Revenue beat(4)-1.03%
Min Revenue beat(4)-2.62%
Max Revenue beat(4)0.77%
Revenue beat(8)1
Avg Revenue beat(8)-2.03%
Revenue beat(12)1
Avg Revenue beat(12)-2.1%
Revenue beat(16)2
Avg Revenue beat(16)-2.04%
PT rev (1m)1.83%
PT rev (3m)-0.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.17 | ||
| Fwd PE | 19.37 | ||
| P/S | 1.64 | ||
| P/FCF | 39.55 | ||
| P/OCF | 6.7 | ||
| P/B | 2.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.5 |
EPS(TTM)1.04
EY4.72%
EPS(NY)1.14
Fwd EY5.16%
FCF(TTM)0.56
FCFY2.53%
OCF(TTM)3.28
OCFY14.92%
SpS13.4
BVpS10.31
TBVpS-10.21
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.05% | ||
| ROE | 7.61% | ||
| ROCE | 6.78% | ||
| ROIC | 5.14% | ||
| ROICexc | 5.25% | ||
| ROICexgc | 15% | ||
| OM | 15.87% | ||
| PM (TTM) | 5.85% | ||
| GM | 62.84% | ||
| FCFM | 4.15% |
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%
ROICexcg growth 3Y-6.18%
ROICexcg 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-Score5
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 35.65 | ||
| Debt/EBITDA | 3.66 | ||
| Cap/Depr | 104.19% | ||
| Cap/Sales | 20.36% | ||
| Interest Coverage | 2.36 | ||
| Cash Conversion | 69.23% | ||
| Profit Quality | 71.02% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 0.96 |
F-Score5
WACC7.85%
ROIC/WACC0.66
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)10.64%
EPS 3Y-0.32%
EPS 5Y-6.24%
EPS Q2Q%0%
EPS Next Y-0.55%
EPS Next 2Y4.56%
EPS Next 3Y8.06%
EPS Next 5Y16.91%
Revenue 1Y (TTM)1.73%
Revenue growth 3Y6.15%
Revenue growth 5Y6.66%
Sales Q2Q%3.12%
Revenue Next Year3.09%
Revenue Next 2Y2.9%
Revenue Next 3Y2.98%
Revenue Next 5Y2.56%
EBIT growth 1Y4.72%
EBIT growth 3Y-0.51%
EBIT growth 5Y0.7%
EBIT Next Year151.16%
EBIT Next 3Y39.7%
EBIT Next 5Y23.98%
FCF growth 1Y207.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y12.1%
OCF growth 3Y3.37%
OCF growth 5Y4.3%