TELUS CORP (T.CA) Stock Fundamental Analysis
Canada - TSX:T - CA87971M1032 - Common Stock
22.13 CAD
+0.22 (+1%)
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. While T is still in line with the averages on profitability rating, there are concerns on its financial 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.
T had a positive operating cash flow in the past year.
In the past 5 years T has always been profitable.
Each year in the past 5 years T had a positive operating cash flow.
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.
With an excellent Return On Equity value of 6.35%, T belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
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
T's Profit Margin of 4.73% is amongst the best of the industry. T outperforms 89.66% of its industry peers.
In the last couple of years the Profit Margin of T has declined.
With a Operating Margin value of 15.78%, T is not doing good in the industry: 86.21% of the companies in the same industry are doing better.
T's Operating Margin has declined in the last couple of years.
The Gross Margin of T (62.94%) is worse than 82.76% 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 | 15.78% | ||
| 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.
T has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, T has more shares outstanding
T has a worse debt/assets ratio than last year.
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.
T's Altman-Z score of 0.94 is amongst the best of the industry. T outperforms 89.66% of its industry peers.
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.
With a Debt to FCF ratio value of 31.18, T is not doing good in the industry: 82.76% of the companies in the same industry are doing better.
T has a Debt/Equity ratio of 1.88. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.88, T is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 31.18 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.82
WACC6.07%
2.3 Liquidity
A Current Ratio of 0.86 indicates that T may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.86, T belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
A Quick Ratio of 0.81 indicates that T may have some problems paying its short term obligations.
T has a Quick ratio of 0.81. This is amongst the best in the industry. T outperforms 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.
Measured over the past years, T shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.24% on average per year.
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
Based on estimates for the next years, T will show a small growth in Earnings Per Share. The EPS will grow by 5.98% on average per year.
The Revenue is expected to grow by 3.44% on average over the next years.
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
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
The Price/Earnings ratio is 21.91, which indicates a rather expensive current 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 82.76% of the companies listed in the same industry.
T's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.20.
T is valuated rather expensively with a Price/Forward Earnings ratio of 19.46.
Compared to the rest of the industry, the Price/Forward Earnings ratio of T indicates a rather expensive valuation: T more expensive than 82.76% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, T is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.91 | ||
| Fwd PE | 19.46 |
4.2 Price Multiples
T's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. T is more expensive than 82.76% of the companies in the same industry.
86.21% 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 | 31.99 | ||
| 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
T has a Yearly Dividend Yield of 7.53%, which is a nice return.
Compared to an average industry Dividend Yield of 7.00, 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 2.38, 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
T pays out 163.46% 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.
DP163.46%
EPS Next 2Y4.56%
EPS Next 3Y5.96%
TSX:T (9/17/2025, 7:00:00 PM)
22.13
+0.22 (+1%)
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 Cap33.97B
Analysts70.83
Price Target23.46 (6.01%)
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 | 21.91 | ||
| Fwd PE | 19.46 | ||
| P/S | 1.66 | ||
| P/FCF | 31.99 | ||
| P/OCF | 7.15 | ||
| P/B | 2.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.68 |
EPS(TTM)1.01
EY4.56%
EPS(NY)1.14
Fwd EY5.14%
FCF(TTM)0.69
FCFY3.13%
OCF(TTM)3.1
OCFY13.99%
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
WACC6.07%
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%