TELUS CORP (T.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:T - CA87971M1032 - Common Stock
17.5 CAD
+0.07 (+0.4%)
We assign a fundamental rating of 3 out of 10 to T. T was compared to 28 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of T have multiple concerns. T is valued expensive and it does not seem to be growing. 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.
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 80.65% of its industry peers.
T has a Return On Equity of 7.43%. This is amonst the worse of the industry: T underperforms 83.87% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.94%, T belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
T had an Average Return On Invested Capital over the past 3 years of 5.16%. This is in line with the industry average of 5.05%.
| 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 80.65% of its industry peers.
In the last couple of years the Profit Margin of T has declined.
T's Operating Margin of 15.48% is on the low side compared to the rest of the industry. T is outperformed by 87.10% of its industry peers.
In the last couple of years the Operating Margin of T has declined.
T has a Gross Margin of 62.85%. This is amonst the worse of the industry: T underperforms 80.65% 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 | 15.48% | ||
| 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.
T has more shares outstanding than it did 1 year ago.
The number of shares outstanding for T has been increased compared to 5 years ago.
T has a worse debt/assets ratio than last year.
2.2 Solvency
T has an Altman-Z score of 0.87. 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 0.87 is amongst the best of the industry. T outperforms 87.10% 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.
T has a worse Debt to FCF ratio (30.52) than 83.87% 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.
T has a worse Debt to Equity ratio (1.68) than 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 30.52 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.87
WACC5.67%
2.3 Liquidity
A Current Ratio of 0.76 indicates that T may have some problems paying its short term obligations.
T has a Current ratio of 0.76. This is amongst the best in the industry. T outperforms 87.10% of its industry peers.
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.
T's Quick ratio of 0.71 is amongst the best of the industry. T outperforms 93.55% 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.
T shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.24% yearly.
Looking at the last year, T shows a small growth in Revenue. The Revenue has grown by 2.42% in the last year.
The Revenue has been growing slightly by 6.66% on average over the past years.
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 6.50% yearly.
Based on estimates for the next years, T will show a small growth in Revenue. The Revenue will grow by 3.62% on average per year.
EPS Next Y-4.08%
EPS Next 2Y2.35%
EPS Next 3Y3.96%
EPS Next 5Y6.5%
Revenue Next Year0.39%
Revenue Next 2Y1.39%
Revenue Next 3Y2.56%
Revenue Next 5Y3.62%
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 18.04, T is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of T indicates a rather expensive valuation: T more expensive than 83.87% of the companies listed in the same industry.
T is valuated rather cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.06, which indicates a correct valuation of T.
T's Price/Forward Earnings ratio is rather expensive when compared to the industry. T is more expensive than 83.87% of the companies in the same industry.
T is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.04 | ||
| Fwd PE | 16.06 |
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 77.42% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, T is valued more expensive than 87.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.7 | ||
| EV/EBITDA | 7.56 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.35%
EPS Next 3Y3.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.52%, T is a good candidate for dividend investing.
T's Dividend Yield is rather good when compared to the industry average which is at 5.23. 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.52% |
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
T pays out 135.96% of its income as dividend. This is not a sustainable payout ratio.
T's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP135.96%
EPS Next 2Y2.35%
EPS Next 3Y3.96%
TSX:T (12/24/2025, 7:00:00 PM)
17.5
+0.07 (+0.4%)
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 Cap27.14B
Revenue(TTM)20.45B
Net Income(TTM)1.18B
Analysts70.43
Price Target22.24 (27.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.52% |
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)-5.17%
PT rev (3m)-5.17%
EPS NQ rev (1m)2.54%
EPS NQ rev (3m)-7.59%
EPS NY rev (1m)-2.9%
EPS NY rev (3m)-4.08%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)-2.44%
Revenue NY rev (3m)-2.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.04 | ||
| Fwd PE | 16.06 | ||
| P/S | 1.33 | ||
| P/FCF | 27.7 | ||
| P/OCF | 5.64 | ||
| P/B | 1.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.56 |
EPS(TTM)0.97
EY5.54%
EPS(NY)1.09
Fwd EY6.23%
FCF(TTM)0.63
FCFY3.61%
OCF(TTM)3.1
OCFY17.73%
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 | 0.87 |
F-Score6
WACC5.67%
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-4.08%
EPS Next 2Y2.35%
EPS Next 3Y3.96%
EPS Next 5Y6.5%
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 5Y3.62%
EBIT growth 1Y-2.34%
EBIT growth 3Y-0.51%
EBIT growth 5Y0.7%
EBIT Next Year147.79%
EBIT Next 3Y38.35%
EBIT Next 5Y23.4%
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 1 / 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 18.04 and the Price/Book (PB) ratio is 1.71.
What is the earnings growth outlook for TELUS CORP?
The Earnings per Share (EPS) of TELUS CORP (T.CA) is expected to decline by -4.08% in the next year.