TELUS CORP (T.CA) Fundamental Analysis & Valuation

TSX:T • CA87971M1032

18.64 CAD
-0.24 (-1.27%)
Last: Mar 6, 2026, 07:00 PM
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This T.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

3

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 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. T also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

3

1. T.CA Profitability Analysis

1.1 Basic Checks

  • T had positive earnings in the past year.
  • T had a positive operating cash flow in the past year.
  • Each year in the past 5 years T has been profitable.
  • Each year in the past 5 years T had a positive operating cash flow.
T.CA Yearly Net Income VS EBIT VS OCF VS FCFT.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B

1.2 Ratios

  • With a Return On Assets value of 1.87%, T is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
  • T has a worse Return On Equity (7.06%) than 83.33% of its industry peers.
  • T has a Return On Invested Capital of 4.45%. This is amonst the worse of the industry: T underperforms 83.33% 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 5.00%.
Industry RankSector 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)4.51%
ROIC(5y)4.83%
T.CA Yearly ROA, ROE, ROICT.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • T's Profit Margin of 5.47% is on the low side compared to the rest of the industry. T is outperformed by 80.00% of its industry peers.
  • In the last couple of years the Profit Margin of T has declined.
  • T's Operating Margin of 15.76% is on the low side compared to the rest of the industry. T is outperformed by 86.67% of its industry peers.
  • T's Operating Margin has declined in the last couple of years.
  • T's Gross Margin of 63.02% is on the low side compared to the rest of the industry. T is outperformed by 83.33% 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 RankSector 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%
T.CA Yearly Profit, Operating, Gross MarginsT.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. T.CA Health Analysis

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
  • T has more shares outstanding than it did 5 years ago.
  • T has a worse debt/assets ratio than last year.
T.CA Yearly Shares OutstandingT.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
T.CA Yearly Total Debt VS Total AssetsT.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • T has an Altman-Z score of 0.89. This is a bad value and indicates that T is not financially healthy and even has some risk of bankruptcy.
  • T has a Altman-Z score of 0.89. This is amongst the best in the industry. T outperforms 90.00% 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.
  • T has a worse Debt to FCF ratio (28.27) than 83.33% of its industry peers.
  • T has a Debt/Equity ratio of 1.80. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of T (1.80) is worse than 76.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.8
Debt/FCF 28.27
Altman-Z 0.89
ROIC/WACC0.8
WACC5.55%
T.CA Yearly LT Debt VS Equity VS FCFT.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B 20B 25B

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.
  • The Current ratio of T (0.86) is better than 90.00% of its industry peers.
  • A Quick Ratio of 0.81 indicates that T may have some problems paying its short term obligations.
  • The Quick ratio of T (0.81) is better than 96.67% of its industry peers.
Industry RankSector Rank
Current Ratio 0.86
Quick Ratio 0.81
T.CA Yearly Current Assets VS Current LiabilitesT.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

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%.
  • Measured over the past years, T shows a small growth in Revenue. The Revenue has been growing by 5.81% on average per year.
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

  • Based on estimates for the next years, T will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.48% on average per year.
  • The Revenue is expected to grow by 2.79% on average over the next years.
EPS Next Y16.95%
EPS Next 2Y11.87%
EPS Next 3Y12.86%
EPS Next 5Y10.48%
Revenue Next Year1.86%
Revenue Next 2Y2.37%
Revenue Next 3Y2.52%
Revenue Next 5Y2.79%

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.
T.CA Yearly Revenue VS EstimatesT.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B 25B
T.CA Yearly EPS VS EstimatesT.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.5 1 1.5

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2

4. T.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 20.26, T is valued on the expensive side.
  • Based on the Price/Earnings ratio, T is valued a bit more expensive than the industry average as 76.67% of the companies are valued more cheaply.
  • T's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.29.
  • A Price/Forward Earnings ratio of 17.32 indicates a rather expensive valuation of T.
  • T's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. T is more expensive than 76.67% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 24.57. T is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 20.26
Fwd PE 17.32
T.CA Price Earnings VS Forward Price EarningsT.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 76.67% of the companies in the same industry are cheaper than T, based on the Enterprise Value to EBITDA ratio.
  • T's Price/Free Cash Flow ratio is rather expensive when compared to the industry. T is more expensive than 80.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 25.94
EV/EBITDA 7.87
T.CA Per share dataT.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

  • T's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • A more expensive valuation may be justified as T's earnings are expected to grow with 12.86% in the coming years.
PEG (NY)1.2
PEG (5Y)N/A
EPS Next 2Y11.87%
EPS Next 3Y12.86%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. T.CA Dividend Analysis

5.1 Amount

  • T has a Yearly Dividend Yield of 8.82%, which is a nice return.
  • T's Dividend Yield is rather good when compared to the industry average which is at 4.94. 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 1.82.
Industry RankSector Rank
Dividend Yield 8.82%

5.2 History

  • On average, the dividend of T grows each year by 7.48%, which is quite nice.
  • 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)7.48%
Div Incr Years21
Div Non Decr Years22
T.CA Yearly Dividends per shareT.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

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 2Y11.87%
EPS Next 3Y12.86%
T.CA Yearly Income VS Free CF VS DividendT.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B
T.CA Dividend Payout.T.CA Dividend Payout, showing the Payout Ratio.T.CA Dividend Payout.PayoutRetained Earnings

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T.CA Fundamentals: All Metrics, Ratios and Statistics

TELUS CORP

TSX:T (3/6/2026, 7:00:00 PM)

18.64

-0.24 (-1.27%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)02-09
Earnings (Next)05-04
Inst Owners52.18%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap29.10B
Revenue(TTM)20.35B
Net Income(TTM)1.11B
Analysts70.43
Price Target21.35 (14.54%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 8.82%
Yearly Dividend1.07
Dividend Growth(5Y)7.48%
DP146.27%
Div Incr Years21
Div Non Decr Years22
Ex-Date03-11
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)-3.09%
PT rev (3m)-8.98%
EPS NQ rev (1m)-9.56%
EPS NQ rev (3m)-7.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.57%
Revenue NQ rev (1m)-0.93%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)1.07%
Revenue NY rev (3m)-1.71%
Valuation
Industry RankSector Rank
PE 20.26
Fwd PE 17.32
P/S 1.42
P/FCF 25.94
P/OCF 5.93
P/B 1.83
P/tB N/A
EV/EBITDA 7.87
EPS(TTM)0.92
EY4.94%
EPS(NY)1.08
Fwd EY5.77%
FCF(TTM)0.72
FCFY3.86%
OCF(TTM)3.14
OCFY16.86%
SpS13.14
BVpS10.19
TBVpS-9.69
PEG (NY)1.2
PEG (5Y)N/A
Graham Number14.52
Profitability
Industry RankSector 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)4.51%
ROIC(5y)4.83%
ROICexc(3y)4.65%
ROICexc(5y)4.96%
ROICexgc(3y)13.06%
ROICexgc(5y)13.74%
ROCE(3y)6.48%
ROCE(5y)6.91%
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 RankSector 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 0.89
F-Score7
WACC5.55%
ROIC/WACC0.8
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 Y16.95%
EPS Next 2Y11.87%
EPS Next 3Y12.86%
EPS Next 5Y10.48%
Revenue 1Y (TTM)1.03%
Revenue growth 3Y3.61%
Revenue growth 5Y5.81%
Sales Q2Q%-2.23%
Revenue Next Year1.86%
Revenue Next 2Y2.37%
Revenue Next 3Y2.52%
Revenue Next 5Y2.79%
EBIT growth 1Y1.04%
EBIT growth 3Y0.2%
EBIT growth 5Y3.32%
EBIT Next Year148.5%
EBIT Next 3Y37.89%
EBIT Next 5Y23.51%
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 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 of TELUS CORP (T.CA) stock?

ChartMill assigns a valuation rating of 2 / 10 to TELUS CORP (T.CA). This can be considered as Overvalued.


Can you provide the profitability details for TELUS CORP?

TELUS CORP (T.CA) has a profitability rating of 3 / 10.


What is the earnings growth outlook for TELUS CORP?

The Earnings per Share (EPS) of TELUS CORP (T.CA) is expected to grow by 16.95% in the next year.


Is the dividend of TELUS CORP sustainable?

The dividend rating of TELUS CORP (T.CA) is 8 / 10 and the dividend payout ratio is 146.27%.