TELUS CORP (T.CA) Stock Fundamental Analysis
Canada - TSX:T - CA87971M1032 - Common Stock
21.14 CAD
-0.34 (-1.58%)
We assign a fundamental rating of 3 out of 10 to T. T was compared to 31 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. Finally T also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
T had positive earnings in the past year.
T had a positive operating cash flow in the past year.
T had positive earnings in each of the past 5 years.
In the past 5 years T always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 1.59%, T belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
The Return On Equity of T (6.35%) is better than 87.10% of its industry peers.
T has a Return On Invested Capital of 4.96%. This is amonst the worse of the industry: T underperforms 80.65% 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 5.44%.
| 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 90.32% of its industry peers.
In the last couple of years the Profit Margin of T has declined.
T's Operating Margin of 15.78% is on the low side compared to the rest of the industry. T is outperformed by 83.87% of its industry peers.
In the last couple of years the Operating Margin of T has declined.
T has a Gross Margin of 62.94%. This is amonst the worse of the industry: T underperforms 83.87% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
The debt/assets ratio for T is higher compared to a year ago.
2.2 Solvency
T has an Altman-Z score of 0.92. 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 0.92 is amongst the best of the industry. T outperforms 90.32% 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: 80.65% 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.
Looking at the Debt to Equity ratio, with a value of 1.88, T is doing worse than 70.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 31.18 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.84
WACC5.88%
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 has a Current ratio of 0.86. This is amongst the best in the industry. T outperforms 96.77% 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 96.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
T shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.00%.
The Earnings Per Share has been decreasing by -6.24% on average over the past years.
Looking at the last year, T shows a small growth in Revenue. The Revenue has grown by 2.56% in the last year.
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
T is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.32% yearly.
T is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.86% yearly.
EPS Next Y0%
EPS Next 2Y4.56%
EPS Next 3Y5.54%
EPS Next 5Y6.32%
Revenue Next Year2.91%
Revenue Next 2Y2.84%
Revenue Next 3Y2.95%
Revenue Next 5Y3.86%
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
A Price/Earnings ratio of 20.93 indicates a rather expensive valuation of T.
Based on the Price/Earnings ratio, T is valued more expensive than 80.65% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.69. T is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.59, which indicates a rather expensive current valuation of T.
Based on the Price/Forward Earnings ratio, T is valued expensively inside the industry as 80.65% of the companies are valued cheaper.
T is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.93 | ||
| Fwd PE | 18.59 |
4.2 Price Multiples
T's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. T is more expensive than 80.65% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of T indicates a rather expensive valuation: T more expensive than 87.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.56 | ||
| EV/EBITDA | 8.47 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.56%
EPS Next 3Y5.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.85%, T is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.26, T pays a better dividend. On top of this T pays more dividend than 100.00% of the companies listed in the same industry.
T's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.85% |
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
163.46% 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.
DP163.46%
EPS Next 2Y4.56%
EPS Next 3Y5.54%
TSX:T (10/20/2025, 7:00:00 PM)
21.14
-0.34 (-1.58%)
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 Cap32.45B
Analysts70.83
Price Target23.46 (10.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.85% |
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)0%
PT rev (3m)0.48%
EPS NQ rev (1m)-2.28%
EPS NQ rev (3m)-6.76%
EPS NY rev (1m)0.29%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.93 | ||
| Fwd PE | 18.59 | ||
| P/S | 1.59 | ||
| P/FCF | 30.56 | ||
| P/OCF | 6.83 | ||
| P/B | 2.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.47 |
EPS(TTM)1.01
EY4.78%
EPS(NY)1.14
Fwd EY5.38%
FCF(TTM)0.69
FCFY3.27%
OCF(TTM)3.1
OCFY14.64%
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 | 0.92 |
F-Score5
WACC5.88%
ROIC/WACC0.84
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 Y0%
EPS Next 2Y4.56%
EPS Next 3Y5.54%
EPS Next 5Y6.32%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y6.15%
Revenue growth 5Y6.66%
Sales Q2Q%2.17%
Revenue Next Year2.91%
Revenue Next 2Y2.84%
Revenue Next 3Y2.95%
Revenue Next 5Y3.86%
EBIT growth 1Y1.03%
EBIT growth 3Y-0.51%
EBIT growth 5Y0.7%
EBIT Next Year150.71%
EBIT Next 3Y39.32%
EBIT Next 5Y23.67%
FCF growth 1Y490%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y10.41%
OCF growth 3Y3.37%
OCF growth 5Y4.3%