TELUS CORP (T.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:T - CA87971M1032 - Common Stock
18.28 CAD
-0.04 (-0.22%)
Taking everything into account, T scores 3 out of 10 in our fundamental rating. T was compared to 29 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of T have multiple concerns. T does not seem to be growing, but still is valued expensively. T also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year T was profitable.
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
T has a Return On Assets of 2.00%. This is amonst the worse of the industry: T underperforms 82.76% of its industry peers.
T has a Return On Equity of 7.43%. This is amonst the worse of the industry: T underperforms 86.21% of its industry peers.
T's Return On Invested Capital of 4.94% is amongst the best of the industry. T outperforms 86.21% 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
T's Profit Margin of 5.77% is on the low side compared to the rest of the industry. T is outperformed by 82.76% of its industry peers.
In the last couple of years the Profit Margin of T has declined.
With a Operating Margin value of 15.48%, T is not doing good in the industry: 89.66% of the companies in the same industry are doing better.
T's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 62.85%, T is doing worse than 86.21% of the companies in the same industry.
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.
Compared to 1 year ago, T has more shares outstanding
T has more shares outstanding than it did 5 years ago.
T has a worse debt/assets ratio than last year.
2.2 Solvency
T has an Altman-Z score of 0.88. This is a bad value and indicates that T is not financially healthy and even has some risk of bankruptcy.
T has a better Altman-Z score (0.88) than 89.66% 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.
The Debt to FCF ratio of T (30.52) is worse than 86.21% of its industry peers.
A Debt/Equity ratio of 1.68 is on the high side and indicates that T has dependencies on debt financing.
T's Debt to Equity ratio of 1.68 is on the low side compared to the rest of the industry. T is outperformed by 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 30.52 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.87
WACC5.68%
2.3 Liquidity
T has a Current 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 Current ratio, with a value of 0.76, T belongs to the top of the industry, outperforming 86.21% 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 93.10% 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 -5.83% in the last year.
The Earnings Per Share has been decreasing by -6.24% on average over the past years.
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
Based on estimates for the next years, T will show a small growth in Earnings Per Share. The EPS will grow by 6.47% on average per year.
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
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
A Price/Earnings ratio of 18.85 indicates a rather expensive valuation of T.
Based on the Price/Earnings ratio, T is valued more expensive than 86.21% of the companies in the same industry.
T's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
T is valuated correctly with a Price/Forward Earnings ratio of 16.21.
Based on the Price/Forward Earnings ratio, T is valued expensively inside the industry as 86.21% of the companies are valued cheaper.
When comparing the Price/Forward Earnings ratio of T to the average of the S&P500 Index (35.79), we can say T is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 16.21 |
4.2 Price Multiples
79.31% 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 89.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.63 | ||
| EV/EBITDA | 7.69 |
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 8.84%, T is a good candidate for dividend investing.
T's Dividend Yield is rather good when compared to the industry average which is at 5.39. T pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, T pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.84% |
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
135.96% of the earnings are spent on dividend by T. 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 2Y4.12%
EPS Next 3Y5.16%
TSX:T (11/25/2025, 7:00:00 PM)
18.28
-0.04 (-0.22%)
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 Cap28.06B
Revenue(TTM)20.45B
Net Income(TTM)1.18B
Analysts70.83
Price Target23.46 (28.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.84% |
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)-8.23%
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)0%
PT rev (3m)0.47%
EPS NQ rev (1m)-9.76%
EPS NQ rev (3m)-12.87%
EPS NY rev (1m)-1.21%
EPS NY rev (3m)-0.93%
Revenue NQ rev (1m)-0.64%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 16.21 | ||
| P/S | 1.37 | ||
| P/FCF | 28.63 | ||
| P/OCF | 5.83 | ||
| P/B | 1.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.69 |
EPS(TTM)0.97
EY5.31%
EPS(NY)1.13
Fwd EY6.17%
FCF(TTM)0.64
FCFY3.49%
OCF(TTM)3.14
OCFY17.15%
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 | 0.88 |
F-Score6
WACC5.68%
ROIC/WACC0.87
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-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%0.14%
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 2 / 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 18.85 and the Price/Book (PB) ratio is 1.77.
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.