TELUS INTERNATIONAL CDA INC (TIXT.CA) Stock Fundamental Analysis
Canada - TSX:TIXT - CA87975H1001 - Common Stock
6.27 CAD
+0.01 (+0.16%)
We assign a fundamental rating of 4 out of 10 to TIXT. TIXT was compared to 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TIXT was profitable.
TIXT had a positive operating cash flow in the past year.
Of the past 5 years TIXT 4 years were profitable.
TIXT had a positive operating cash flow in each of the past 5 years.
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.
Looking at the Return On Equity, with a value of -22.61%, TIXT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
TIXT has a better Return On Invested Capital (1.00%) than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TIXT 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
TIXT has a Operating Margin of 1.80%. This is in the better half of the industry: TIXT outperforms 75.00% of its industry peers.
TIXT's Operating Margin has declined in the last couple of years.
TIXT has a better Gross Margin (80.28%) 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TIXT 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.
The debt/assets ratio for TIXT has been reduced compared to a year ago.
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.
Looking at the Debt to FCF ratio, with a value of 5.42, TIXT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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/WACC0.12
WACC8.16%
2.3 Liquidity
A Current Ratio of 0.84 indicates that TIXT may have some problems paying 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.
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.
TIXT has a Quick ratio (0.84) which 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.
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.
The Revenue is expected to grow by 13.57% on average over the next years. This is quite good.
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.
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
A Price/Earnings ratio of 31.35 indicates a quite expensive valuation of TIXT.
Based on the Price/Earnings ratio, TIXT is valued cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. TIXT is around the same levels.
A Price/Forward Earnings ratio of 11.18 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.
TIXT is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.35 | ||
| Fwd PE | 11.18 |
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.
TIXT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TIXT is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.34 | ||
| EV/EBITDA | 4.39 |
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
No dividends for TIXT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:TIXT (10/3/2025, 7:00:00 PM)
6.27
+0.01 (+0.16%)
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 Cap1.75B
Analysts46.67
Price Target3.7 (-40.99%)
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)-6.53%
PT rev (3m)-18.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.53%
EPS NY rev (1m)-5.78%
EPS NY rev (3m)-5.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.35 | ||
| Fwd PE | 11.18 | ||
| P/S | 0.46 | ||
| P/FCF | 4.34 | ||
| P/OCF | 3.13 | ||
| P/B | 0.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.39 |
EPS(TTM)0.2
EY3.19%
EPS(NY)0.56
Fwd EY8.95%
FCF(TTM)1.44
FCFY23.03%
OCF(TTM)2
OCFY31.91%
SpS13.63
BVpS8.49
TBVpS-7.22
PEG (NY)N/A
PEG (5Y)N/A
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%
ROICexcg growth 3Y-36.12%
ROICexcg 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
WACC8.16%
ROIC/WACC0.12
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%