TELUS CORP (T.CA) Stock Fundamental Analysis
TSX:T - Toronto Stock Exchange - CA87971M1032 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to T. 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. While showing a medium growth rate, T is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year T was profitable.
T had a positive operating cash flow in the past year.
Each year in the past 5 years T has been profitable.
In the past 5 years T always reported a positive cash flow from operatings.
1.2 Ratios
T's Return On Assets of 1.71% is amongst the best of the industry. T outperforms 89.66% of its industry peers.
T's Return On Equity of 6.36% is amongst the best of the industry. T outperforms 86.21% of its industry peers.
T has a Return On Invested Capital of 5.04%. This is amonst the worse of the industry: T underperforms 86.21% 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 5.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 6.36% | ||
| ROIC | 5.04% |
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 4.93%, T belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
In the last couple of years the Profit Margin of T has declined.
T has a worse Operating Margin (15.76%) than 89.66% of its industry peers.
T's Operating Margin has declined in the last couple of years.
T's Gross Margin of 62.97% is on the low side compared to the rest of the industry. T is outperformed by 86.21% 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 | 15.76% | ||
| PM (TTM) | 4.93% | ||
| GM | 62.97% |
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
T has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, T has more shares outstanding
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 0.94. 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 (0.94) is better than 89.66% of its industry peers.
T has a debt to FCF ratio of 56.93. This is a negative value and a sign of low solvency as T would need 56.93 years to pay back of all of its debts.
The Debt to FCF ratio of T (56.93) is worse than 89.66% of its industry peers.
T has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external financing.
T's Debt to Equity ratio of 1.70 is amongst the best of the industry. T outperforms 93.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 56.93 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.88
WACC5.74%
2.3 Liquidity
A Current Ratio of 0.68 indicates that T may have some problems paying its short term obligations.
With an excellent Current ratio value of 0.68, T belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
A Quick Ratio of 0.61 indicates that T may have some problems paying its short term obligations.
T has a better Quick ratio (0.61) than 86.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.47% over the past year.
T shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.24% yearly.
T shows a small growth in Revenue. In the last year, the Revenue has grown by 0.67%.
T shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.66% yearly.
EPS 1Y (TTM)9.47%
EPS 3Y-0.32%
EPS 5Y-6.24%
EPS Q2Q%4.17%
Revenue 1Y (TTM)0.67%
Revenue growth 3Y6.15%
Revenue growth 5Y6.66%
Sales Q2Q%3.52%
3.2 Future
T is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.96% yearly.
T is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.31% yearly.
EPS Next Y-0.55%
EPS Next 2Y4.56%
EPS Next 3Y8.06%
EPS Next 5Y15.96%
Revenue Next Year3.11%
Revenue Next 2Y2.93%
Revenue Next 3Y2.98%
Revenue Next 5Y2.31%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.00 indicates a rather expensive valuation of T.
Compared to the rest of the industry, the Price/Earnings ratio of T indicates a rather expensive valuation: T more expensive than 86.21% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of T to the average of the S&P500 Index (24.12), we can say T is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 20.11, the valuation of T can be described as rather expensive.
Based on the Price/Forward Earnings ratio, T is valued more expensive than 86.21% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.42. T is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 20.11 |
4.2 Price Multiples
T's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. T is more expensive than 86.21% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, T is valued expensively inside the industry as 89.66% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.22 | ||
| EV/EBITDA | 8.25 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.56%
EPS Next 3Y8.06%
5. Dividend
5.1 Amount
T has a Yearly Dividend Yield of 7.63%, which is a nice return.
Compared to an average industry Dividend Yield of 11.86, T is paying slightly less dividend.
T's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.63% |
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 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
157.30% of the earnings are spent on dividend by T. This is not a sustainable payout ratio.
T's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP157.3%
EPS Next 2Y4.56%
EPS Next 3Y8.06%
TSX:T (5/8/2025, 7:00:00 PM)
20.8
+0.03 (+0.14%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners57.34%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap31.49B
Analysts70.83
Price Target22.65 (8.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.63% |
Yearly Dividend1.05
Dividend Growth(5Y)1.9%
DP157.3%
Div Incr Years21
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.86%
Min EPS beat(2)11.18%
Max EPS beat(2)16.54%
EPS beat(4)4
Avg EPS beat(4)12.37%
Min EPS beat(4)8.8%
Max EPS beat(4)16.54%
EPS beat(8)7
Avg EPS beat(8)4.89%
EPS beat(12)9
Avg EPS beat(12)2.14%
EPS beat(16)10
Avg EPS beat(16)0.38%
Revenue beat(2)1
Avg Revenue beat(2)-0.05%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)0.77%
Revenue beat(4)1
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-4.74%
Max Revenue beat(4)0.77%
Revenue beat(8)1
Avg Revenue beat(8)-2.03%
Revenue beat(12)1
Avg Revenue beat(12)-2.33%
Revenue beat(16)2
Avg Revenue beat(16)-1.98%
PT rev (1m)-2.29%
PT rev (3m)-3.09%
EPS NQ rev (1m)0.79%
EPS NQ rev (3m)-5.03%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)0.96%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 20.11 | ||
| P/S | 1.56 | ||
| P/FCF | 60.22 | ||
| P/OCF | 6.5 | ||
| P/B | 2.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.25 |
EPS(TTM)1.04
EY5%
EPS(NY)1.03
Fwd EY4.97%
FCF(TTM)0.35
FCFY1.66%
OCF(TTM)3.2
OCFY15.39%
SpS13.3
BVpS10.32
TBVpS-10.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 6.36% | ||
| ROCE | 6.59% | ||
| ROIC | 5.04% | ||
| ROICexc | 5.13% | ||
| ROICexgc | 14.47% | ||
| OM | 15.76% | ||
| PM (TTM) | 4.93% | ||
| GM | 62.97% | ||
| FCFM | 2.6% |
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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 56.93 | ||
| Debt/EBITDA | 3.68 | ||
| Cap/Depr | 107.14% | ||
| Cap/Sales | 21.47% | ||
| Interest Coverage | 2.39 | ||
| Cash Conversion | 67.23% | ||
| Profit Quality | 52.67% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 0.94 |
F-Score5
WACC5.74%
ROIC/WACC0.88
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)9.47%
EPS 3Y-0.32%
EPS 5Y-6.24%
EPS Q2Q%4.17%
EPS Next Y-0.55%
EPS Next 2Y4.56%
EPS Next 3Y8.06%
EPS Next 5Y15.96%
Revenue 1Y (TTM)0.67%
Revenue growth 3Y6.15%
Revenue growth 5Y6.66%
Sales Q2Q%3.52%
Revenue Next Year3.11%
Revenue Next 2Y2.93%
Revenue Next 3Y2.98%
Revenue Next 5Y2.31%
EBIT growth 1Y6.3%
EBIT growth 3Y-0.51%
EBIT growth 5Y0.7%
EBIT Next Year150.12%
EBIT Next 3Y39.47%
EBIT Next 5Y23.57%
FCF growth 1Y-39.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y7.74%
OCF growth 3Y3.37%
OCF growth 5Y4.3%