TELUS CORP (T.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:T - CA87971M1032 - Common Stock
17.63 CAD
+0.03 (+0.17%)
Overall T gets a fundamental rating of 3 out of 10. We evaluated T against 30 industry peers in the Diversified Telecommunication Services industry. T has a bad profitability rating. Also its financial health evaluation is rather negative. T does not seem to be growing, but still is valued expensively. Finally 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.
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
T's Return On Assets of 2.00% is on the low side compared to the rest of the industry. T is outperformed by 80.00% of its industry peers.
T has a worse Return On Equity (7.43%) than 83.33% 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 86.67% 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 5.01%.
| 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
Looking at the Profit Margin, with a value of 5.77%, T is doing worse than 80.00% of the companies in the same industry.
T's Profit Margin has declined in the last couple of years.
The Operating Margin of T (15.48%) is worse than 86.67% of its industry peers.
T's Operating Margin has declined in the last couple of years.
The Gross Margin of T (62.85%) is worse than 83.33% of its industry peers.
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
The number of shares outstanding for T has been increased compared to 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 0.87. This is a bad value and indicates that T is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of T (0.87) is better than 90.00% 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 83.33% 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 has a Debt to Equity ratio of 1.68. This is in the lower half of the industry: T underperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 30.52 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.87
WACC5.65%
2.3 Liquidity
A Current Ratio of 0.76 indicates that T may have some problems paying its short term obligations.
The Current ratio of T (0.76) is better than 86.67% of its industry peers.
A Quick Ratio of 0.71 indicates that T may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.71, T belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
| 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 -5.83%.
The Earnings Per Share has been decreasing by -6.24% on average over the past years.
The Revenue has been growing slightly by 2.42% in the past year.
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
T is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.50% yearly.
The Revenue is expected to grow by 3.62% on average over the next years.
EPS Next Y-4.57%
EPS Next 2Y2.83%
EPS Next 3Y5.71%
EPS Next 5Y6.5%
Revenue Next Year0.39%
Revenue Next 2Y1.43%
Revenue Next 3Y2.6%
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
T is valuated rather expensively with a Price/Earnings ratio of 18.18.
83.33% of the companies in the same industry are cheaper than T, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.56. T is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.03 indicates a correct valuation of T.
Based on the Price/Forward Earnings ratio, T is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
T's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.18 | ||
| Fwd PE | 16.03 |
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.
86.67% of the companies in the same industry are cheaper than T, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.9 | ||
| EV/EBITDA | 7.59 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.83%
EPS Next 3Y5.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.46%, T is a good candidate for dividend investing.
In the last 3 months the price of T has falen by -20.23%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
T's Dividend Yield is rather good when compared to the industry average which is at 5.09. 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 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.46% |
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
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 2Y2.83%
EPS Next 3Y5.71%
TSX:T (12/12/2025, 7:00:00 PM)
17.63
+0.03 (+0.17%)
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 Cap27.34B
Revenue(TTM)20.45B
Net Income(TTM)1.18B
Analysts70.43
Price Target23.04 (30.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.46% |
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)-2.14%
PT rev (3m)-1.77%
EPS NQ rev (1m)-6.98%
EPS NQ rev (3m)-9.72%
EPS NY rev (1m)-3.39%
EPS NY rev (3m)-4.29%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)-2.45%
Revenue NY rev (3m)-2.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.18 | ||
| Fwd PE | 16.03 | ||
| P/S | 1.34 | ||
| P/FCF | 27.9 | ||
| P/OCF | 5.68 | ||
| P/B | 1.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.59 |
EPS(TTM)0.97
EY5.5%
EPS(NY)1.1
Fwd EY6.24%
FCF(TTM)0.63
FCFY3.58%
OCF(TTM)3.1
OCFY17.6%
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
WACC5.65%
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-4.57%
EPS Next 2Y2.83%
EPS Next 3Y5.71%
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 2Y1.43%
Revenue Next 3Y2.6%
Revenue Next 5Y3.62%
EBIT growth 1Y-2.34%
EBIT growth 3Y-0.51%
EBIT growth 5Y0.7%
EBIT Next Year148.02%
EBIT Next 3Y38.79%
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 18.18 and the Price/Book (PB) ratio is 1.72.
What is the earnings growth outlook for TELUS CORP?
The Earnings per Share (EPS) of TELUS CORP (T.CA) is expected to decline by -4.57% in the next year.