TELUS CORP (T.CA) Fundamental Analysis & Valuation

TSX:T • CA87971M1032

Current stock price

17.97 CAD
+0.24 (+1.35%)
Last:

This T.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. T.CA Profitability Analysis

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.
  • T had a positive operating cash flow in each of the past 5 years.
T.CA Yearly Net Income VS EBIT VS OCF VS FCFT.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B

1.2 Ratios

  • The Return On Assets of T (1.87%) is worse than 80.00% of its industry peers.
  • The Return On Equity of T (7.06%) is worse than 83.33% of its industry peers.
  • T's Return On Invested Capital of 4.45% is on the low side compared to the rest of the industry. T is outperformed by 83.33% 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 5.37%.
Industry RankSector Rank
ROA 1.87%
ROE 7.06%
ROIC 4.45%
ROA(3y)1.69%
ROA(5y)2.3%
ROE(3y)6.21%
ROE(5y)7.87%
ROIC(3y)4.54%
ROIC(5y)4.85%
T.CA Yearly ROA, ROE, ROICT.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • T has a worse Profit Margin (5.47%) than 80.00% of its industry peers.
  • In the last couple of years the Profit Margin of T has declined.
  • T has a Operating Margin of 15.76%. This is amonst the worse of the industry: T underperforms 83.33% of its industry peers.
  • In the last couple of years the Operating Margin of T has declined.
  • T has a Gross Margin of 63.02%. This is amonst the worse of the industry: T underperforms 83.33% of its industry peers.
  • T's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 15.76%
PM (TTM) 5.47%
GM 63.02%
OM growth 3Y-3.29%
OM growth 5Y-2.36%
PM growth 3Y-14.75%
PM growth 5Y-7.01%
GM growth 3Y0.54%
GM growth 5Y0.84%
T.CA Yearly Profit, Operating, Gross MarginsT.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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2

2. T.CA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
T.CA Yearly Shares OutstandingT.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
T.CA Yearly Total Debt VS Total AssetsT.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

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.
  • Looking at the Altman-Z score, with a value of 0.88, T belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
  • T has a debt to FCF ratio of 28.27. This is a negative value and a sign of low solvency as T would need 28.27 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 28.27, T is doing worse than 83.33% of the companies in the same industry.
  • T has a Debt/Equity ratio of 1.80. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.80, T is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.8
Debt/FCF 28.27
Altman-Z 0.88
ROIC/WACC0.82
WACC5.45%
T.CA Yearly LT Debt VS Equity VS FCFT.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B 20B 25B

2.3 Liquidity

  • T has a Current Ratio of 0.86. 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 has a better Current ratio (0.86) than 93.33% of its industry peers.
  • A Quick Ratio of 0.81 indicates that T may have some problems paying its short term obligations.
  • The Quick ratio of T (0.81) is better than 100.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.86
Quick Ratio 0.81
T.CA Yearly Current Assets VS Current LiabilitesT.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. T.CA Growth Analysis

3.1 Past

  • T shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.54%.
  • T shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.98% yearly.
  • T shows a small growth in Revenue. In the last year, the Revenue has grown by 1.03%.
  • The Revenue has been growing slightly by 5.81% on average over the past years.
EPS 1Y (TTM)-11.54%
EPS 3Y-8.22%
EPS 5Y-2.98%
EPS Q2Q%-20%
Revenue 1Y (TTM)1.03%
Revenue growth 3Y3.61%
Revenue growth 5Y5.81%
Sales Q2Q%-2.23%

3.2 Future

  • Based on estimates for the next years, T will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.38% on average per year.
  • Based on estimates for the next years, T will show a small growth in Revenue. The Revenue will grow by 2.92% on average per year.
EPS Next Y3.11%
EPS Next 2Y8.48%
EPS Next 3Y9.77%
EPS Next 5Y11.38%
Revenue Next Year1.58%
Revenue Next 2Y2.2%
Revenue Next 3Y2.38%
Revenue Next 5Y2.92%

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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
T.CA Yearly Revenue VS EstimatesT.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B 25B
T.CA Yearly EPS VS EstimatesT.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.5 1 1.5

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1

4. T.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 19.53, 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.
  • When comparing the Price/Earnings ratio of T to the average of the S&P500 Index (24.75), we can say T is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 18.94, which indicates a rather expensive current valuation of T.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of T indicates a rather expensive valuation: T more expensive than 83.33% of the companies listed in the same industry.
  • T is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.53
Fwd PE 18.94
T.CA Price Earnings VS Forward Price EarningsT.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of T indicates a slightly more expensive valuation: T is more expensive than 76.67% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, T is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
Industry RankSector Rank
P/FCF 25.21
EV/EBITDA 7.7
T.CA Per share dataT.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)6.28
PEG (5Y)N/A
EPS Next 2Y8.48%
EPS Next 3Y9.77%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. T.CA Dividend Analysis

5.1 Amount

  • T has a Yearly Dividend Yield of 9.33%, which is a nice return.
  • T's Dividend Yield is rather good when compared to the industry average which is at 4.34. T pays more dividend than 100.00% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, T pays a better dividend.
Industry RankSector Rank
Dividend Yield 9.33%

5.2 History

  • The dividend of T is nicely growing with an annual growth rate of 7.48%!
  • 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)7.48%
Div Incr Years21
Div Non Decr Years22
T.CA Yearly Dividends per shareT.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • 146.27% 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.
DP146.27%
EPS Next 2Y8.48%
EPS Next 3Y9.77%
T.CA Yearly Income VS Free CF VS DividendT.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B
T.CA Dividend Payout.T.CA Dividend Payout, showing the Payout Ratio.T.CA Dividend Payout.PayoutRetained Earnings

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T.CA Fundamentals: All Metrics, Ratios and Statistics

TELUS CORP

TSX:T (3/30/2026, 7:00:00 PM)

17.97

+0.24 (+1.35%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)02-09
Earnings (Next)05-04
Inst Owners52.18%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap28.06B
Revenue(TTM)20.35B
Net Income(TTM)1.11B
Analysts70.43
Price Target21.35 (18.81%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 9.33%
Yearly Dividend1.07
Dividend Growth(5Y)7.48%
DP146.27%
Div Incr Years21
Div Non Decr Years22
Ex-Date03-11
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.18%
Min EPS beat(2)-20.76%
Max EPS beat(2)-9.6%
EPS beat(4)1
Avg EPS beat(4)-5.47%
Min EPS beat(4)-20.76%
Max EPS beat(4)15.34%
EPS beat(8)5
Avg EPS beat(8)3.45%
EPS beat(12)8
Avg EPS beat(12)1.44%
EPS beat(16)10
Avg EPS beat(16)0.24%
Revenue beat(2)0
Avg Revenue beat(2)-3.72%
Min Revenue beat(2)-4.41%
Max Revenue beat(2)-3.02%
Revenue beat(4)0
Avg Revenue beat(4)-2.45%
Min Revenue beat(4)-4.41%
Max Revenue beat(4)-0.99%
Revenue beat(8)1
Avg Revenue beat(8)-2.16%
Revenue beat(12)1
Avg Revenue beat(12)-2.17%
Revenue beat(16)1
Avg Revenue beat(16)-2.36%
PT rev (1m)0.02%
PT rev (3m)-4%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)-9.71%
EPS NY rev (1m)-11.84%
EPS NY rev (3m)-12.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)0.79%
Valuation
Industry RankSector Rank
PE 19.53
Fwd PE 18.94
P/S 1.38
P/FCF 25.21
P/OCF 5.77
P/B 1.78
P/tB N/A
EV/EBITDA 7.7
EPS(TTM)0.92
EY5.12%
EPS(NY)0.95
Fwd EY5.28%
FCF(TTM)0.71
FCFY3.97%
OCF(TTM)3.12
OCFY17.34%
SpS13.03
BVpS10.1
TBVpS-9.62
PEG (NY)6.28
PEG (5Y)N/A
Graham Number14.46
Profitability
Industry RankSector Rank
ROA 1.87%
ROE 7.06%
ROCE 6.42%
ROIC 4.45%
ROICexc 4.69%
ROICexgc 12.97%
OM 15.76%
PM (TTM) 5.47%
GM 63.02%
FCFM 5.47%
ROA(3y)1.69%
ROA(5y)2.3%
ROE(3y)6.21%
ROE(5y)7.87%
ROIC(3y)4.54%
ROIC(5y)4.85%
ROICexc(3y)4.67%
ROICexc(5y)4.97%
ROICexgc(3y)13.14%
ROICexgc(5y)13.78%
ROCE(3y)6.52%
ROCE(5y)6.93%
ROICexgc growth 3Y-1.53%
ROICexgc growth 5Y-0.54%
ROICexc growth 3Y-2.16%
ROICexc growth 5Y-2.22%
OM growth 3Y-3.29%
OM growth 5Y-2.36%
PM growth 3Y-14.75%
PM growth 5Y-7.01%
GM growth 3Y0.54%
GM growth 5Y0.84%
F-Score7
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 1.8
Debt/FCF 28.27
Debt/EBITDA 3.9
Cap/Depr 92.46%
Cap/Sales 18.45%
Interest Coverage 2.32
Cash Conversion 66.97%
Profit Quality 100%
Current Ratio 0.86
Quick Ratio 0.81
Altman-Z 0.88
F-Score7
WACC5.45%
ROIC/WACC0.82
Cap/Depr(3y)96.29%
Cap/Depr(5y)121.75%
Cap/Sales(3y)19.36%
Cap/Sales(5y)23.78%
Profit Quality(3y)85.25%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.54%
EPS 3Y-8.22%
EPS 5Y-2.98%
EPS Q2Q%-20%
EPS Next Y3.11%
EPS Next 2Y8.48%
EPS Next 3Y9.77%
EPS Next 5Y11.38%
Revenue 1Y (TTM)1.03%
Revenue growth 3Y3.61%
Revenue growth 5Y5.81%
Sales Q2Q%-2.23%
Revenue Next Year1.58%
Revenue Next 2Y2.2%
Revenue Next 3Y2.38%
Revenue Next 5Y2.92%
EBIT growth 1Y1.04%
EBIT growth 3Y0.2%
EBIT growth 5Y3.32%
EBIT Next Year148.5%
EBIT Next 3Y37.89%
EBIT Next 5Y22.62%
FCF growth 1Y112.81%
FCF growth 3Y30.66%
FCF growth 5Y-2.48%
OCF growth 1Y0.39%
OCF growth 3Y0.38%
OCF growth 5Y1.25%

TELUS CORP / T.CA Fundamental Analysis 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 grow by 3.11% 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 146.27%.