TELUS CORP (T.CA) Stock Fundamental Analysis
Canada - TSX:T - CA87971M1032 - Common Stock
22.1 CAD
-0.02 (-0.09%)
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. There are concerns on the financial health of T while its profitability can be described as average. 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.
T had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 1.59%, T belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
T has a better Return On Equity (6.35%) than 86.21% of its industry peers.
T's Return On Invested Capital of 4.96% is on the low side compared to the rest of the industry. T is outperformed by 82.76% 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 5.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 6.35% | ||
| ROIC | 4.96% |
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
The Profit Margin of T (4.73%) is better than 89.66% of its industry peers.
In the last couple of years the Profit Margin of T has declined.
The Operating Margin of T (15.78%) is worse than 86.21% of its industry peers.
T's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 62.94%, T is not doing good in the industry: 82.76% of the companies in the same industry are doing better.
T's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.78% | ||
| PM (TTM) | 4.73% | ||
| GM | 62.94% |
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.
The debt/assets ratio for T is higher compared to a year ago.
2.2 Solvency
T has an Altman-Z score of 0.94. This is a bad value and indicates that T is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 0.94, T belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
The Debt to FCF ratio of T is 31.18, which is on the high side as it means it would take T, 31.18 years of fcf income to pay off all of its debts.
T has a Debt to FCF ratio of 31.18. This is amonst the worse of the industry: T underperforms 82.76% of its industry peers.
A Debt/Equity ratio of 1.88 is on the high side and indicates that T has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.88, T is doing worse than 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 31.18 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.82
WACC6.06%
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.
The Current ratio of T (0.86) is better than 93.10% of its industry peers.
T has a Quick 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.
The Quick ratio of T (0.81) is better than 93.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.00% over the past 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 2.56%.
The Revenue has been growing slightly by 6.66% on average over the past years.
EPS 1Y (TTM)1%
EPS 3Y-0.32%
EPS 5Y-6.24%
EPS Q2Q%-12%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y6.15%
Revenue growth 5Y6.66%
Sales Q2Q%2.17%
3.2 Future
The Earnings Per Share is expected to grow by 5.98% 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 3.44% on average per year.
EPS Next Y-0.29%
EPS Next 2Y4.56%
EPS Next 3Y5.96%
EPS Next 5Y5.98%
Revenue Next Year2.96%
Revenue Next 2Y2.85%
Revenue Next 3Y3.02%
Revenue Next 5Y3.44%
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
T is valuated rather expensively with a Price/Earnings ratio of 21.88.
Based on the Price/Earnings ratio, T is valued more expensive than 82.76% of the companies in the same industry.
When comparing the Price/Earnings ratio of T to the average of the S&P500 Index (27.30), we can say T is valued inline with the index average.
T is valuated rather expensively with a Price/Forward Earnings ratio of 19.44.
Based on the Price/Forward Earnings ratio, T is valued expensively inside the industry as 82.76% of the companies are valued cheaper.
T is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.88 | ||
| Fwd PE | 19.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, T is valued expensively inside the industry as 82.76% of the companies are valued cheaper.
Based on the Price/Free Cash Flow ratio, T is valued more expensive than 86.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.95 | ||
| EV/EBITDA | 8.68 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.56%
EPS Next 3Y5.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.53%, T is a good candidate for dividend investing.
T's Dividend Yield is rather good when compared to the industry average which is at 7.00. T pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, T pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.53% |
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 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
163.46% 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.
DP163.46%
EPS Next 2Y4.56%
EPS Next 3Y5.96%
TSX:T (9/12/2025, 7:00:00 PM)
22.1
-0.02 (-0.09%)
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 Cap33.93B
Analysts70.83
Price Target23.46 (6.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.53% |
Yearly Dividend1.05
Dividend Growth(5Y)1.9%
DP163.46%
Div Incr Years21
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.24%
Min EPS beat(2)-6.86%
Max EPS beat(2)15.34%
EPS beat(4)3
Avg EPS beat(4)9.05%
Min EPS beat(4)-6.86%
Max EPS beat(4)16.54%
EPS beat(8)7
Avg EPS beat(8)7.57%
EPS beat(12)9
Avg EPS beat(12)2.47%
EPS beat(16)11
Avg EPS beat(16)1.47%
Revenue beat(2)0
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)-0.99%
Revenue beat(4)1
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.77%
Revenue beat(8)1
Avg Revenue beat(8)-2%
Revenue beat(12)1
Avg Revenue beat(12)-1.91%
Revenue beat(16)2
Avg Revenue beat(16)-2.02%
PT rev (1m)1.87%
PT rev (3m)2.54%
EPS NQ rev (1m)-1.09%
EPS NQ rev (3m)-2.62%
EPS NY rev (1m)0.26%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.88 | ||
| Fwd PE | 19.44 | ||
| P/S | 1.66 | ||
| P/FCF | 31.95 | ||
| P/OCF | 7.14 | ||
| P/B | 2.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.68 |
EPS(TTM)1.01
EY4.57%
EPS(NY)1.14
Fwd EY5.14%
FCF(TTM)0.69
FCFY3.13%
OCF(TTM)3.1
OCFY14.01%
SpS13.3
BVpS9.91
TBVpS-10.26
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 6.35% | ||
| ROCE | 6.48% | ||
| ROIC | 4.96% | ||
| ROICexc | 5.35% | ||
| ROICexgc | 15.69% | ||
| OM | 15.78% | ||
| PM (TTM) | 4.73% | ||
| GM | 62.94% | ||
| FCFM | 5.2% |
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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 31.18 | ||
| Debt/EBITDA | 3.98 | ||
| Cap/Depr | 92.83% | ||
| Cap/Sales | 18.07% | ||
| Interest Coverage | 2.37 | ||
| Cash Conversion | 66.03% | ||
| Profit Quality | 109.94% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 0.94 |
F-Score5
WACC6.06%
ROIC/WACC0.82
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)1%
EPS 3Y-0.32%
EPS 5Y-6.24%
EPS Q2Q%-12%
EPS Next Y-0.29%
EPS Next 2Y4.56%
EPS Next 3Y5.96%
EPS Next 5Y5.98%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y6.15%
Revenue growth 5Y6.66%
Sales Q2Q%2.17%
Revenue Next Year2.96%
Revenue Next 2Y2.85%
Revenue Next 3Y3.02%
Revenue Next 5Y3.44%
EBIT growth 1Y1.03%
EBIT growth 3Y-0.51%
EBIT growth 5Y0.7%
EBIT Next Year151.16%
EBIT Next 3Y39.7%
EBIT Next 5Y23.51%
FCF growth 1Y490%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y10.41%
OCF growth 3Y3.37%
OCF growth 5Y4.3%