TELUS CORP (T.CA) Stock Fundamental Analysis
Canada - TSX:T - CA87971M1032 - Common Stock
21.12 CAD
-0.14 (-0.66%)
Overall T gets a fundamental rating of 3 out of 10. We evaluated T against 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 does not seem to be growing, but still is valued expensively. T also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
T had positive earnings in the past year.
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
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.
With an excellent Return On Equity value of 6.35%, T belongs to the best of the industry, outperforming 87.10% 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 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
With an excellent Profit Margin value of 4.73%, T belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
T's Profit Margin has declined in the last couple of years.
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.
T's Operating Margin has declined in the last couple of years.
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
T has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
T has more shares outstanding than it did 1 year ago.
The number of shares outstanding for T has been increased compared to 5 years ago.
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 has a Altman-Z score of 0.92. This is amongst the best in 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.
T's Debt to FCF ratio of 31.18 is on the low side compared to the rest of the industry. T is outperformed by 80.65% of its industry peers.
A Debt/Equity ratio of 1.88 is on the high side and indicates that T has dependencies on debt financing.
T has a Debt to Equity ratio of 1.88. This is in the lower half of the industry: T underperforms 70.97% of its industry peers.
| 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.
Looking at the Current ratio, with a value of 0.86, T belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
T has a Quick 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 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
The Earnings Per Share has been growing slightly by 1.00% over the past year.
The Earnings Per Share has been decreasing by -6.24% on average over the past years.
The Revenue has been growing slightly by 2.56% in the past year.
Measured over the past years, T shows a small growth in Revenue. The Revenue has been growing by 6.66% on average per year.
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
The Earnings Per Share is expected to grow by 6.32% on average over the next years.
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
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
With a Price/Earnings ratio of 20.91, T is valued on the expensive side.
T's Price/Earnings 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 an average S&P500 Price/Earnings ratio of 26.83, T is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.57 indicates a rather expensive valuation of T.
Compared to the rest of the industry, the Price/Forward Earnings ratio of T indicates a rather expensive valuation: T more expensive than 80.65% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of T to the average of the S&P500 Index (22.82), we can say T is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 18.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, T is valued expensively inside the industry as 80.65% of the companies are valued cheaper.
T's Price/Free Cash Flow ratio is rather expensive when compared to the industry. T is more expensive than 87.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.53 | ||
| 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.
T's Dividend Yield is rather good when compared to the industry average which is at 5.26. 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 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.
The dividend of T is growing, but earnings are growing more, so the dividend growth is sustainable.
DP163.46%
EPS Next 2Y4.56%
EPS Next 3Y5.54%
TSX:T (10/23/2025, 7:00:00 PM)
21.12
-0.14 (-0.66%)
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 Cap32.42B
Revenue(TTM)20.42B
Net Income(TTM)966.00M
Analysts70.83
Price Target23.46 (11.08%)
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 | 20.91 | ||
| Fwd PE | 18.57 | ||
| P/S | 1.59 | ||
| P/FCF | 30.53 | ||
| P/OCF | 6.82 | ||
| 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
FCFY3.28%
OCF(TTM)3.1
OCFY14.66%
SpS13.3
BVpS9.91
TBVpS-10.26
PEG (NY)N/A
PEG (5Y)N/A
Graham Number15.01
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%
ROICexgc growth 3Y-6.18%
ROICexgc 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%
TELUS CORP / T.CA FAQ
What is the fundamental rating for T stock?
ChartMill assigns a fundamental rating of 3 / 10 to T.CA.
Can you provide the valuation status for TELUS CORP?
ChartMill assigns a valuation rating of 1 / 10 to TELUS CORP (T.CA). This can be considered as Overvalued.
What is the profitability of T stock?
TELUS CORP (T.CA) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for T stock?
The Price/Earnings (PE) ratio for TELUS CORP (T.CA) is 20.91 and the Price/Book (PB) ratio is 2.13.
What is the earnings growth outlook for TELUS CORP?
The Earnings per Share (EPS) of TELUS CORP (T.CA) is expected to decline by 0% in the next year.