TELUS INTERNATIONAL CDA INC (TIXT.CA) Stock Fundamental Analysis
Canada - TSX:TIXT - CA87975H1001 - Common Stock
6.07 CAD
+0.14 (+2.36%)
TIXT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 12 industry peers in the IT Services industry. There are concerns on the financial health of TIXT while its profitability can be described as average. TIXT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
TIXT had positive earnings in the past year.
TIXT had a positive operating cash flow in the past year.
Of the past 5 years TIXT 4 years were profitable.
Each year in the past 5 years TIXT had a positive operating cash flow.
1.2 Ratios
TIXT's Return On Assets of -8.63% is in line compared to the rest of the industry. TIXT outperforms 58.33% of its industry peers.
TIXT has a better Return On Equity (-22.61%) than 66.67% of its industry peers.
TIXT's Return On Invested Capital of 1.00% is fine compared to the rest of the industry. TIXT outperforms 66.67% of its industry peers.
TIXT had an Average Return On Invested Capital over the past 3 years of 4.57%. This is in line with the industry average of 6.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.63% | ||
| ROE | -22.61% | ||
| ROIC | 1% |
ROA(3y)1.64%
ROA(5y)1.96%
ROE(3y)3.16%
ROE(5y)4.69%
ROIC(3y)4.57%
ROIC(5y)4.61%
1.3 Margins
The Operating Margin of TIXT (1.80%) is better than 75.00% of its industry peers.
In the last couple of years the Operating Margin of TIXT has declined.
TIXT has a Gross Margin of 80.28%. This is amongst the best in the industry. TIXT outperforms 83.33% of its industry peers.
TIXT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.8% | ||
| PM (TTM) | N/A | ||
| GM | 80.28% |
OM growth 3Y-27.26%
OM growth 5Y-20.91%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.3%
GM growth 5Y-0.39%
2. Health
2.1 Basic Checks
TIXT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TIXT has been increased compared to 1 year ago.
The number of shares outstanding for TIXT has been increased compared to 5 years ago.
The debt/assets ratio for TIXT has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of TIXT is 5.42, which is a neutral value as it means it would take TIXT, 5.42 years of fcf income to pay off all of its debts.
TIXT has a better Debt to FCF ratio (5.42) than 66.67% of its industry peers.
TIXT has a Debt/Equity ratio of 0.85. This is a neutral value indicating TIXT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.85, TIXT is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | N/A |
ROIC/WACC0.13
WACC7.66%
2.3 Liquidity
TIXT has a Current Ratio of 0.84. This is a bad value and indicates that TIXT is not financially healthy enough and could expect problems in meeting its short term obligations.
TIXT has a Current ratio of 0.84. This is in the lower half of the industry: TIXT underperforms 66.67% of its industry peers.
A Quick Ratio of 0.84 indicates that TIXT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.84, TIXT is in line with its industry, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
TIXT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -83.53%.
Measured over the past years, TIXT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -26.56% on average per year.
The Revenue has been growing slightly by 2.03% in the past year.
Measured over the past years, TIXT shows a very strong growth in Revenue. The Revenue has been growing by 21.12% on average per year.
EPS 1Y (TTM)-83.53%
EPS 3Y-26.56%
EPS 5YN/A
EPS Q2Q%-62.5%
Revenue 1Y (TTM)2.03%
Revenue growth 3Y6.6%
Revenue growth 5Y21.12%
Sales Q2Q%7.21%
3.2 Future
The Earnings Per Share is expected to grow by 9.86% on average over the next years. This is quite good.
TIXT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.57% yearly.
EPS Next Y-22.77%
EPS Next 2Y0.2%
EPS Next 3Y9.86%
EPS Next 5YN/A
Revenue Next Year4.01%
Revenue Next 2Y3.54%
Revenue Next 3Y3.8%
Revenue Next 5Y13.57%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.35, which means the current valuation is very expensive for TIXT.
Compared to the rest of the industry, the Price/Earnings ratio of TIXT indicates a rather cheap valuation: TIXT is cheaper than 83.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TIXT to the average of the S&P500 Index (25.83), we can say TIXT is valued inline with the index average.
A Price/Forward Earnings ratio of 10.73 indicates a reasonable valuation of TIXT.
Based on the Price/Forward Earnings ratio, TIXT is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 32.68. TIXT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.35 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIXT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
100.00% of the companies in the same industry are more expensive than TIXT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.17 | ||
| EV/EBITDA | 4.31 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.2%
EPS Next 3Y9.86%
5. Dividend
5.1 Amount
TIXT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:TIXT (11/3/2025, 7:00:00 PM)
6.07
+0.14 (+2.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners53.33%
Inst Owner ChangeN/A
Ins Owners3.67%
Ins Owner ChangeN/A
Market Cap1.69B
Revenue(TTM)2.72B
Net Income(TTM)-383.00M
Analysts46.67
Price Target3.9 (-35.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.78%
Min EPS beat(2)-4.62%
Max EPS beat(2)12.17%
EPS beat(4)2
Avg EPS beat(4)62.22%
Min EPS beat(4)-47.72%
Max EPS beat(4)289.04%
EPS beat(8)3
Avg EPS beat(8)30.25%
EPS beat(12)6
Avg EPS beat(12)20.59%
EPS beat(16)10
Avg EPS beat(16)17.4%
Revenue beat(2)2
Avg Revenue beat(2)2.17%
Min Revenue beat(2)0.97%
Max Revenue beat(2)3.37%
Revenue beat(4)3
Avg Revenue beat(4)1.19%
Min Revenue beat(4)-0.28%
Max Revenue beat(4)3.37%
Revenue beat(8)3
Avg Revenue beat(8)-1.2%
Revenue beat(12)3
Avg Revenue beat(12)-2.69%
Revenue beat(16)3
Avg Revenue beat(16)-2.45%
PT rev (1m)5.22%
PT rev (3m)5.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.35 | ||
| Fwd PE | 10.73 | ||
| P/S | 0.44 | ||
| P/FCF | 4.17 | ||
| P/OCF | 3.01 | ||
| P/B | 0.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.31 |
EPS(TTM)0.2
EY3.29%
EPS(NY)0.57
Fwd EY9.32%
FCF(TTM)1.46
FCFY24%
OCF(TTM)2.02
OCFY33.24%
SpS13.75
BVpS8.57
TBVpS-7.28
PEG (NY)N/A
PEG (5Y)N/A
Graham Number6.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.63% | ||
| ROE | -22.61% | ||
| ROCE | 1.39% | ||
| ROIC | 1% | ||
| ROICexc | 1.04% | ||
| ROICexgc | 14.23% | ||
| OM | 1.8% | ||
| PM (TTM) | N/A | ||
| GM | 80.28% | ||
| FCFM | 10.6% |
ROA(3y)1.64%
ROA(5y)1.96%
ROE(3y)3.16%
ROE(5y)4.69%
ROIC(3y)4.57%
ROIC(5y)4.61%
ROICexc(3y)4.76%
ROICexc(5y)4.8%
ROICexgc(3y)33.38%
ROICexgc(5y)46.87%
ROCE(3y)6.35%
ROCE(5y)6.4%
ROICexgc growth 3Y-36.12%
ROICexgc growth 5Y-3.66%
ROICexc growth 3Y-29.52%
ROICexc growth 5Y-28.85%
OM growth 3Y-27.26%
OM growth 5Y-20.91%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.3%
GM growth 5Y-0.39%
F-Score4
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 5.42 | ||
| Debt/EBITDA | 2.37 | ||
| Cap/Depr | 19.93% | ||
| Cap/Sales | 4.08% | ||
| Interest Coverage | 0.58 | ||
| Cash Conversion | 65.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | N/A |
F-Score4
WACC7.66%
ROIC/WACC0.13
Cap/Depr(3y)33.52%
Cap/Depr(5y)34.32%
Cap/Sales(3y)3.83%
Cap/Sales(5y)3.95%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-83.53%
EPS 3Y-26.56%
EPS 5YN/A
EPS Q2Q%-62.5%
EPS Next Y-22.77%
EPS Next 2Y0.2%
EPS Next 3Y9.86%
EPS Next 5YN/A
Revenue 1Y (TTM)2.03%
Revenue growth 3Y6.6%
Revenue growth 5Y21.12%
Sales Q2Q%7.21%
Revenue Next Year4.01%
Revenue Next 2Y3.54%
Revenue Next 3Y3.8%
Revenue Next 5Y13.57%
EBIT growth 1Y-75.98%
EBIT growth 3Y-22.45%
EBIT growth 5Y-4.2%
EBIT Next Year658.19%
EBIT Next 3Y104.78%
EBIT Next 5Y89.13%
FCF growth 1Y-4.64%
FCF growth 3Y24.79%
FCF growth 5Y35.89%
OCF growth 1Y1.01%
OCF growth 3Y18.46%
OCF growth 5Y29.56%
TELUS INTERNATIONAL CDA INC / TIXT.CA FAQ
What is the fundamental rating for TIXT stock?
ChartMill assigns a fundamental rating of 4 / 10 to TIXT.CA.
What is the valuation status for TIXT stock?
ChartMill assigns a valuation rating of 6 / 10 to TELUS INTERNATIONAL CDA INC (TIXT.CA). This can be considered as Fairly Valued.
What is the profitability of TIXT stock?
TELUS INTERNATIONAL CDA INC (TIXT.CA) has a profitability rating of 5 / 10.
What is the financial health of TELUS INTERNATIONAL CDA INC (TIXT.CA) stock?
The financial health rating of TELUS INTERNATIONAL CDA INC (TIXT.CA) is 2 / 10.