TELUS CORP (T.CA) Stock Fundamental Analysis
Canada - TSX:T - CA87971M1032 - Common Stock
20.06 CAD
-0.32 (-1.57%)
T gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 30 industry peers in the Diversified Telecommunication Services industry. T may be in some trouble as it scores bad on both profitability and health. T has a expensive valuation and it also scores bad on growth. 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.
In the past 5 years T has always been profitable.
T had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
T has a Return On Assets of 2.00%. This is amonst the worse of the industry: T underperforms 80.00% of its industry peers.
With a Return On Equity value of 7.43%, T is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
The Return On Invested Capital of T (4.94%) is better than 86.67% of its industry peers.
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 5.01%.
| 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
The Profit Margin of T (5.77%) is worse than 80.00% of its industry peers.
In the last couple of years the Profit Margin of T has declined.
Looking at the Operating Margin, with a value of 15.48%, T is doing worse than 86.67% of the companies in the same industry.
T's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 62.85%, T is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), T is destroying value.
The number of shares outstanding for T has been increased compared to 1 year ago.
Compared to 5 years ago, T has more shares outstanding
The debt/assets ratio for T is higher compared to a year ago.
2.2 Solvency
T has an Altman-Z score of 0.93. 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 0.93, T belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 30.52, T is doing worse than 83.33% of the companies in the same industry.
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 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 30.52 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.85
WACC5.82%
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.
The Current ratio of T (0.76) is better than 86.67% 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.
The Quick ratio of T (0.71) is better than 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
T shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.84%.
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)-5.84%
EPS 3Y-0.32%
EPS 5Y-6.24%
EPS Q2Q%-14.34%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y6.15%
Revenue growth 5Y6.66%
Sales Q2Q%2.59%
3.2 Future
T is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.47% yearly.
The Revenue is expected to grow by 4.01% on average over the next years.
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 20.68 indicates a rather expensive valuation of T.
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 25.56, T is valued at the same level.
T is valuated rather expensively with a Price/Forward Earnings ratio of 17.79.
83.33% of the companies in the same industry are cheaper than T, based on the Price/Forward Earnings ratio.
T is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.68 | ||
| Fwd PE | 17.79 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of T indicates a rather expensive valuation: T more expensive than 86.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.42 | ||
| EV/EBITDA | 8.14 |
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 8.08%, T is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.36, T pays a better dividend. On top of this T pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, T pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.08% |
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
135.96% 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 (11/17/2025, 7:00:00 PM)
20.06
-0.32 (-1.57%)
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 Cap30.79B
Revenue(TTM)20.45B
Net Income(TTM)1.18B
Analysts70.83
Price Target23.55 (17.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.08% |
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)-8.26%
Min EPS beat(2)-9.66%
Max EPS beat(2)-6.86%
EPS beat(4)2
Avg EPS beat(4)2.5%
Min EPS beat(4)-9.66%
Max EPS beat(4)15.34%
EPS beat(8)6
Avg EPS beat(8)6.25%
EPS beat(12)8
Avg EPS beat(12)1.43%
EPS beat(16)10
Avg EPS beat(16)0.78%
Revenue beat(2)0
Avg Revenue beat(2)-0.87%
Min Revenue beat(2)-0.99%
Max Revenue beat(2)-0.74%
Revenue beat(4)1
Avg Revenue beat(4)-0.59%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.77%
Revenue beat(8)1
Avg Revenue beat(8)-1.67%
Revenue beat(12)1
Avg Revenue beat(12)-1.79%
Revenue beat(16)2
Avg Revenue beat(16)-1.9%
PT rev (1m)0.38%
PT rev (3m)2.26%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)-3.45%
EPS NY rev (1m)-1.21%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.68 | ||
| Fwd PE | 17.79 | ||
| P/S | 1.51 | ||
| P/FCF | 31.42 | ||
| P/OCF | 6.4 | ||
| P/B | 1.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.14 |
EPS(TTM)0.97
EY4.84%
EPS(NY)1.13
Fwd EY5.62%
FCF(TTM)0.64
FCFY3.18%
OCF(TTM)3.14
OCFY15.63%
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 | 0.93 |
F-Score6
WACC5.82%
ROIC/WACC0.85
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)-5.84%
EPS 3Y-0.32%
EPS 5Y-6.24%
EPS Q2Q%-14.34%
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%2.59%
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 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 20.68 and the Price/Book (PB) ratio is 1.94.
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.