TELUS CORP (T.CA) Fundamental Analysis & Valuation
TSX:T • CA87971M1032
Current stock price
16.99 CAD
+0.06 (+0.35%)
Last:
This T.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. T.CA Profitability Analysis
1.1 Basic Checks
- In the past year T was profitable.
- 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 worse Return On Assets (1.87%) than 82.14% of its industry peers.
- T has a Return On Equity of 7.06%. This is amonst the worse of the industry: T underperforms 85.71% of its industry peers.
- T's Return On Invested Capital of 4.45% is on the low side compared to the rest of the industry. T is outperformed by 85.71% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for T is in line with the industry average of 5.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 7.06% | ||
| ROIC | 4.45% |
ROA(3y)1.69%
ROA(5y)2.3%
ROE(3y)6.21%
ROE(5y)7.87%
ROIC(3y)4.54%
ROIC(5y)4.85%
1.3 Margins
- Looking at the Profit Margin, with a value of 5.47%, T is doing worse than 82.14% of the companies in the same industry.
- In the last couple of years the Profit Margin of T has declined.
- The Operating Margin of T (15.76%) is worse than 85.71% of its industry peers.
- In the last couple of years the Operating Margin of T has declined.
- With a Gross Margin value of 63.02%, T is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
- T's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.76% | ||
| PM (TTM) | 5.47% | ||
| GM | 63.02% |
OM growth 3Y-3.29%
OM growth 5Y-2.36%
PM growth 3Y-14.75%
PM growth 5Y-7.01%
GM growth 3Y0.54%
GM growth 5Y0.84%
2. T.CA Health Analysis
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
- Based on the Altman-Z score of 0.86, we must say that T is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of T (0.86) is better than 89.29% of its industry peers.
- T has a debt to FCF ratio of 28.27. This is a negative value and a sign of low solvency as T would need 28.27 years to pay back of all of its debts.
- The Debt to FCF ratio of T (28.27) is worse than 85.71% of its industry peers.
- A Debt/Equity ratio of 1.80 is on the high side and indicates that T has dependencies on debt financing.
- T has a worse Debt to Equity ratio (1.80) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 28.27 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.81
WACC5.46%
2.3 Liquidity
- T has a Current Ratio of 0.86. 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 Current ratio of 0.86 is amongst the best of the industry. T outperforms 92.86% of its industry peers.
- A Quick Ratio of 0.81 indicates that T may have some problems paying its short term obligations.
- T has a better Quick ratio (0.81) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.81 |
3. T.CA Growth Analysis
3.1 Past
- T shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.54%.
- T shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.98% yearly.
- T shows a small growth in Revenue. In the last year, the Revenue has grown by 1.03%.
- T shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.81% yearly.
EPS 1Y (TTM)-11.54%
EPS 3Y-8.22%
EPS 5Y-2.98%
EPS Q2Q%-20%
Revenue 1Y (TTM)1.03%
Revenue growth 3Y3.61%
Revenue growth 5Y5.81%
Sales Q2Q%-2.23%
3.2 Future
- The Earnings Per Share is expected to grow by 11.38% on average over the next years. This is quite good.
- The Revenue is expected to grow by 2.92% on average over the next years.
EPS Next Y2.55%
EPS Next 2Y7%
EPS Next 3Y9.55%
EPS Next 5Y11.38%
Revenue Next Year1.36%
Revenue Next 2Y2.06%
Revenue Next 3Y2.32%
Revenue Next 5Y2.92%
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. T.CA Valuation Analysis
4.1 Price/Earnings Ratio
- T is valuated rather expensively with a Price/Earnings ratio of 18.47.
- T's Price/Earnings ratio is rather expensive when compared to the industry. T is more expensive than 85.71% of the companies in the same industry.
- T's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.95.
- T is valuated rather expensively with a Price/Forward Earnings ratio of 18.01.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of T indicates a rather expensive valuation: T more expensive than 85.71% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 38.68, T is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 18.01 |
4.2 Price Multiples
- 78.57% of the companies in the same industry are cheaper than T, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, T is valued more expensive than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.83 | ||
| EV/EBITDA | 7.49 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)7.23
PEG (5Y)N/A
EPS Next 2Y7%
EPS Next 3Y9.55%
5. T.CA Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 9.84%, T is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 4.77, 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 1.81, T pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.84% |
5.2 History
- The dividend of T is nicely growing with an annual growth rate of 7.48%!
- 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)7.48%
Div Incr Years22
Div Non Decr Years23
5.3 Sustainability
- T pays out 146.27% 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.
DP146.27%
EPS Next 2Y7%
EPS Next 3Y9.55%
T.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:T (4/17/2026, 7:00:00 PM)
16.99
+0.06 (+0.35%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)02-09 2026-02-09/amc
Earnings (Next)05-01 2026-05-01
Inst Owners51.96%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap26.53B
Revenue(TTM)20.35B
Net Income(TTM)1.11B
Analysts71.67
Price Target20.76 (22.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.84% |
Yearly Dividend1.07
Dividend Growth(5Y)7.48%
DP146.27%
Div Incr Years22
Div Non Decr Years23
Ex-Date03-11 2026-03-11 (0.4184)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.18%
Min EPS beat(2)-20.76%
Max EPS beat(2)-9.6%
EPS beat(4)1
Avg EPS beat(4)-5.47%
Min EPS beat(4)-20.76%
Max EPS beat(4)15.34%
EPS beat(8)5
Avg EPS beat(8)3.45%
EPS beat(12)8
Avg EPS beat(12)1.44%
EPS beat(16)10
Avg EPS beat(16)0.24%
Revenue beat(2)0
Avg Revenue beat(2)-3.72%
Min Revenue beat(2)-4.41%
Max Revenue beat(2)-3.02%
Revenue beat(4)0
Avg Revenue beat(4)-2.45%
Min Revenue beat(4)-4.41%
Max Revenue beat(4)-0.99%
Revenue beat(8)1
Avg Revenue beat(8)-2.16%
Revenue beat(12)1
Avg Revenue beat(12)-2.17%
Revenue beat(16)1
Avg Revenue beat(16)-2.36%
PT rev (1m)-2.77%
PT rev (3m)-5.77%
EPS NQ rev (1m)-2.64%
EPS NQ rev (3m)-12.09%
EPS NY rev (1m)-0.54%
EPS NY rev (3m)-13.4%
Revenue NQ rev (1m)-0.93%
Revenue NQ rev (3m)-1.53%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 18.01 | ||
| P/S | 1.3 | ||
| P/FCF | 23.83 | ||
| P/OCF | 5.45 | ||
| P/B | 1.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.49 |
EPS(TTM)0.92
EY5.41%
EPS(NY)0.94
Fwd EY5.55%
FCF(TTM)0.71
FCFY4.2%
OCF(TTM)3.12
OCFY18.34%
SpS13.03
BVpS10.1
TBVpS-9.62
PEG (NY)7.23
PEG (5Y)N/A
Graham Number14.4617 (-14.88%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 7.06% | ||
| ROCE | 6.42% | ||
| ROIC | 4.45% | ||
| ROICexc | 4.69% | ||
| ROICexgc | 12.97% | ||
| OM | 15.76% | ||
| PM (TTM) | 5.47% | ||
| GM | 63.02% | ||
| FCFM | 5.47% |
ROA(3y)1.69%
ROA(5y)2.3%
ROE(3y)6.21%
ROE(5y)7.87%
ROIC(3y)4.54%
ROIC(5y)4.85%
ROICexc(3y)4.67%
ROICexc(5y)4.97%
ROICexgc(3y)13.14%
ROICexgc(5y)13.78%
ROCE(3y)6.52%
ROCE(5y)6.93%
ROICexgc growth 3Y-1.53%
ROICexgc growth 5Y-0.54%
ROICexc growth 3Y-2.16%
ROICexc growth 5Y-2.22%
OM growth 3Y-3.29%
OM growth 5Y-2.36%
PM growth 3Y-14.75%
PM growth 5Y-7.01%
GM growth 3Y0.54%
GM growth 5Y0.84%
F-Score7
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 28.27 | ||
| Debt/EBITDA | 3.9 | ||
| Cap/Depr | 92.46% | ||
| Cap/Sales | 18.45% | ||
| Interest Coverage | 2.32 | ||
| Cash Conversion | 66.97% | ||
| Profit Quality | 100% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 0.86 |
F-Score7
WACC5.46%
ROIC/WACC0.81
Cap/Depr(3y)96.29%
Cap/Depr(5y)121.75%
Cap/Sales(3y)19.36%
Cap/Sales(5y)23.78%
Profit Quality(3y)85.25%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.54%
EPS 3Y-8.22%
EPS 5Y-2.98%
EPS Q2Q%-20%
EPS Next Y2.55%
EPS Next 2Y7%
EPS Next 3Y9.55%
EPS Next 5Y11.38%
Revenue 1Y (TTM)1.03%
Revenue growth 3Y3.61%
Revenue growth 5Y5.81%
Sales Q2Q%-2.23%
Revenue Next Year1.36%
Revenue Next 2Y2.06%
Revenue Next 3Y2.32%
Revenue Next 5Y2.92%
EBIT growth 1Y1.04%
EBIT growth 3Y0.2%
EBIT growth 5Y3.32%
EBIT Next Year148.17%
EBIT Next 3Y38%
EBIT Next 5Y22.62%
FCF growth 1Y112.81%
FCF growth 3Y30.66%
FCF growth 5Y-2.48%
OCF growth 1Y0.39%
OCF growth 3Y0.38%
OCF growth 5Y1.25%
TELUS CORP / T.CA Fundamental Analysis FAQ
What is the fundamental rating for T stock?
ChartMill assigns a fundamental rating of 3 / 10 to T.CA.
What is the valuation status for T stock?
ChartMill assigns a valuation rating of 1 / 10 to TELUS CORP (T.CA). This can be considered as Overvalued.
How profitable is TELUS CORP (T.CA) stock?
TELUS CORP (T.CA) has a profitability rating of 3 / 10.
What are the PE and PB ratios of TELUS CORP (T.CA) stock?
The Price/Earnings (PE) ratio for TELUS CORP (T.CA) is 18.47 and the Price/Book (PB) ratio is 1.68.
How financially healthy is TELUS CORP?
The financial health rating of TELUS CORP (T.CA) is 2 / 10.