Telus International CDA Inc (TIXT.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TIXT - CA87975H1001 - Common Stock
6.07 CAD
+0.14 (+2.36%)
Taking everything into account, TIXT scores 4 out of 10 in our fundamental rating. TIXT was compared to 11 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.
In the past year TIXT had a positive cash flow from operations.
TIXT had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TIXT had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -8.63%, TIXT perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
TIXT's Return On Equity of -22.61% is fine compared to the rest of the industry. TIXT outperforms 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 below the industry average of 9.03%.
| 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
TIXT's Operating Margin of 1.80% is fine compared to the rest of the industry. TIXT outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of TIXT has declined.
TIXT's Gross Margin of 80.28% is amongst the best of 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TIXT is destroying value.
Compared to 1 year ago, TIXT has more shares outstanding
The number of shares outstanding for TIXT has been increased compared to 5 years ago.
TIXT has a better debt/assets ratio than last year.
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.
The Debt to FCF ratio of TIXT (5.42) is better than 66.67% of its industry peers.
A Debt/Equity ratio of 0.85 indicates that TIXT is somewhat dependend on debt financing.
TIXT has a Debt to Equity ratio of 0.85. This is comparable to the rest of the industry: TIXT outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | N/A |
ROIC/WACC0.13
WACC7.65%
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's Current ratio of 0.84 is on the low side compared to the rest of the industry. TIXT is outperformed by 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 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The earnings per share for TIXT have decreased strongly by -83.53% in the last year.
The earnings per share for TIXT have been decreasing by -26.56% on average. This is quite bad
TIXT shows a small growth in Revenue. In the last year, the Revenue has grown by 2.03%.
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.
Based on estimates for the next years, TIXT will show a quite strong growth in Revenue. The Revenue will grow by 13.57% on average per year.
EPS Next Y-23.07%
EPS Next 2Y-0.28%
EPS Next 3Y9.86%
EPS Next 5YN/A
Revenue Next Year4.01%
Revenue Next 2Y3.49%
Revenue Next 3Y3.8%
Revenue Next 5Y13.57%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
TIXT is valuated quite expensively with a Price/Earnings ratio of 30.35.
TIXT's Price/Earnings ratio is rather cheap when compared to the industry. TIXT is cheaper than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, TIXT is valued at the same level.
With a Price/Forward Earnings ratio of 10.88, the valuation of TIXT can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TIXT is valued cheaper than 91.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TIXT to the average of the S&P500 Index (23.92), we can say TIXT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.35 | ||
| Fwd PE | 10.88 |
4.2 Price Multiples
TIXT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TIXT is cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TIXT is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.19 | ||
| EV/EBITDA | 4.32 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.28%
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)-4%
EPS NQ rev (3m)-20%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-5.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.35 | ||
| Fwd PE | 10.88 | ||
| P/S | 0.44 | ||
| P/FCF | 4.19 | ||
| P/OCF | 3.02 | ||
| P/B | 0.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.32 |
EPS(TTM)0.2
EY3.29%
EPS(NY)0.56
Fwd EY9.19%
FCF(TTM)1.45
FCFY23.87%
OCF(TTM)2.01
OCFY33.08%
SpS13.68
BVpS8.52
TBVpS-7.24
PEG (NY)N/A
PEG (5Y)N/A
Graham Number6.19
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
WACC7.65%
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-23.07%
EPS Next 2Y-0.28%
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 2Y3.49%
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.
Can you provide the valuation status for Telus International CDA Inc?
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.
Can you provide the PE and PB ratios for TIXT stock?
The Price/Earnings (PE) ratio for Telus International CDA Inc (TIXT.CA) is 30.35 and the Price/Book (PB) ratio is 0.71.
Can you provide the expected EPS growth for TIXT stock?
The Earnings per Share (EPS) of Telus International CDA Inc (TIXT.CA) is expected to decline by -23.07% in the next year.