TELUS INTERNATIONAL CDA INC (TIXT.CA) Stock Fundamental Analysis
Canada - TSX:TIXT - CA87975H1001 - Common Stock
6.07 CAD
+0.14 (+2.36%)
Overall TIXT gets a fundamental rating of 4 out of 10. We evaluated TIXT against 12 industry peers in the IT Services industry. TIXT has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
Of the past 5 years TIXT 4 years were profitable.
In the past 5 years TIXT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TIXT (-8.63%) is comparable to the rest of the industry.
The Return On Equity of TIXT (-22.61%) is better than 66.67% of its industry peers.
The Return On Invested Capital of TIXT (1.00%) is better than 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TIXT is in line with the industry average of 6.16%.
| 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
Looking at the Operating Margin, with a value of 1.80%, TIXT is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
TIXT's Operating Margin has declined in the last couple of years.
The Gross Margin of TIXT (80.28%) is better than 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.
TIXT has more shares outstanding than it did 1 year ago.
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
TIXT has a debt to FCF ratio of 5.42. This is a neutral value as TIXT would need 5.42 years to pay back of all of its debts.
TIXT's Debt to FCF ratio of 5.42 is fine compared to the rest of the industry. TIXT outperforms 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 (0.85) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | N/A |
ROIC/WACC0.13
WACC7.64%
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.
The Current ratio of TIXT (0.84) is worse than 66.67% of its industry peers.
TIXT has a Quick 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.
The Quick ratio of TIXT (0.84) is comparable to the rest of the 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.
TIXT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -26.56% yearly.
TIXT shows a small growth in Revenue. In the last year, the Revenue has grown by 2.03%.
The Revenue has been growing by 21.12% on average over the past years. This is a very strong growth!
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
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
TIXT is valuated quite expensively with a Price/Earnings ratio of 30.35.
Based on the Price/Earnings ratio, TIXT is valued cheaper than 83.33% of the companies in the same industry.
TIXT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.89 indicates a reasonable valuation of TIXT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TIXT indicates a rather cheap valuation: TIXT is cheaper than 91.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 33.61. TIXT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.35 | ||
| Fwd PE | 10.89 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than TIXT, based on the Enterprise Value to EBITDA ratio.
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)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.35 | ||
| Fwd PE | 10.89 | ||
| P/S | 0.44 | ||
| P/FCF | 4.19 | ||
| P/OCF | 3.03 | ||
| P/B | 0.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.32 |
EPS(TTM)0.2
EY3.29%
EPS(NY)0.56
Fwd EY9.18%
FCF(TTM)1.45
FCFY23.86%
OCF(TTM)2.01
OCFY33.05%
SpS13.67
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
WACC7.64%
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.
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.