TELUS International Cda Inc (TIXT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TIXT - CA87975H1001 - Common Stock
4.31 USD
-0.05 (-1.15%)
4.31 USD
0 (0%)
TIXT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 86 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 decent growth rate and is not valued too expensively.
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.
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
TIXT has a Return On Assets of -8.63%. This is in the lower half of the industry: TIXT underperforms 74.12% of its industry peers.
The Return On Equity of TIXT (-22.61%) is worse than 71.76% of its industry peers.
The Return On Invested Capital of TIXT (1.27%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for TIXT is significantly below the industry average of 29.77%.
The 3 year average ROIC (5.81%) for TIXT is well above the current ROIC(1.27%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.63% | ||
| ROE | -22.61% | ||
| ROIC | 1.27% |
ROA(3y)1.64%
ROA(5y)1.96%
ROE(3y)3.16%
ROE(5y)4.69%
ROIC(3y)5.81%
ROIC(5y)5.86%
1.3 Margins
TIXT has a Operating Margin (1.80%) which is in line with 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 97.65% 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.
TIXT has more shares outstanding than it did 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.
TIXT's Debt to FCF ratio of 5.42 is in line compared to the rest of the industry. TIXT outperforms 54.12% of its industry peers.
A Debt/Equity ratio of 0.85 indicates that TIXT is somewhat dependend on debt financing.
TIXT has a worse Debt to Equity ratio (0.85) than 63.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | N/A |
ROIC/WACC0.14
WACC8.78%
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.
Looking at the Current ratio, with a value of 0.84, TIXT is doing worse than 83.53% of the companies in the same industry.
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 of 0.84. This is amonst the worse of the industry: TIXT underperforms 83.53% of its industry peers.
| 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%.
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
TIXT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.86% yearly.
The Revenue is expected to grow by 13.57% on average over the next years. This is quite good.
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 30.79.
TIXT's Price/Earnings is on the same level as the industry average.
TIXT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.31.
Based on the Price/Forward Earnings ratio of 10.83, the valuation of TIXT can be described as reasonable.
Based on the Price/Forward Earnings ratio, TIXT is valued cheaply inside the industry as 85.88% of the companies are valued more expensively.
TIXT is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.79 | ||
| Fwd PE | 10.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIXT is valued cheaply inside the industry as 95.29% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TIXT is valued cheaply inside the industry as 98.82% of the companies are valued more expensively.
| 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 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 |
4.31
-0.05 (-1.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners53.33%
Inst Owner Change-2.09%
Ins Owners3.67%
Ins Owner ChangeN/A
Market Cap1.20B
Revenue(TTM)2.72B
Net Income(TTM)-383.00M
Analysts46.67
Price Target2.79 (-35.27%)
Short Float %0.03%
Short Ratio0.01
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)3.99%
PT rev (3m)1.98%
EPS NQ rev (1m)-4%
EPS NQ rev (3m)-21.46%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-5.56%
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 | 30.79 | ||
| Fwd PE | 10.83 | ||
| 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)0.14
EY3.25%
EPS(NY)0.4
Fwd EY9.23%
FCF(TTM)1.03
FCFY23.98%
OCF(TTM)1.43
OCFY33.22%
SpS9.75
BVpS6.08
TBVpS-5.16
PEG (NY)N/A
PEG (5Y)N/A
Graham Number4.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.63% | ||
| ROE | -22.61% | ||
| ROCE | 1.39% | ||
| ROIC | 1.27% | ||
| ROICexc | 1.33% | ||
| ROICexgc | 18.08% | ||
| 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)5.81%
ROIC(5y)5.86%
ROICexc(3y)6.05%
ROICexc(5y)6.11%
ROICexgc(3y)42.43%
ROICexgc(5y)59.58%
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
WACC8.78%
ROIC/WACC0.14
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 FAQ
What is the fundamental rating for TIXT stock?
ChartMill assigns a fundamental rating of 3 / 10 to TIXT.
What is the valuation status for TIXT stock?
ChartMill assigns a valuation rating of 5 / 10 to TELUS International Cda Inc (TIXT). This can be considered as Fairly Valued.
What is the profitability of TIXT stock?
TELUS International Cda Inc (TIXT) has a profitability rating of 4 / 10.
What is the financial health of TELUS International Cda Inc (TIXT) stock?
The financial health rating of TELUS International Cda Inc (TIXT) is 1 / 10.