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TELUS INTERNATIONAL CDA INC (TIXT) Stock Fundamental Analysis

NYSE:TIXT - New York Stock Exchange, Inc. - CA87975H1001 - Common Stock - Currency: USD

2.85  -0.01 (-0.35%)

Fundamental Rating

4

TIXT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 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 is valued quite cheap, while showing a decent growth score. This is a good combination!


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year TIXT was profitable.
In the past year TIXT had a positive cash flow from operations.
TIXT had positive earnings in 4 of the past 5 years.
TIXT had a positive operating cash flow in each of the past 5 years.
TIXT Yearly Net Income VS EBIT VS OCF VS FCFTIXT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M 500M

1.2 Ratios

TIXT's Return On Assets of -2.53% is on the low side compared to the rest of the industry. TIXT is outperformed by 60.98% of its industry peers.
Looking at the Return On Equity, with a value of -5.84%, TIXT is in line with its industry, outperforming 41.46% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.51%, TIXT is in line with its industry, outperforming 47.56% of the companies in the same industry.
TIXT had an Average Return On Invested Capital over the past 3 years of 5.81%. This is significantly below the industry average of 22.63%.
The last Return On Invested Capital (1.51%) for TIXT is well below the 3 year average (5.81%), which needs to be investigated, but indicates that TIXT had better years and this may not be a problem.
Industry RankSector Rank
ROA -2.53%
ROE -5.84%
ROIC 1.51%
ROA(3y)1.64%
ROA(5y)1.96%
ROE(3y)3.16%
ROE(5y)4.69%
ROIC(3y)5.81%
ROIC(5y)5.86%
TIXT Yearly ROA, ROE, ROICTIXT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

1.3 Margins

TIXT has a Operating Margin of 2.28%. This is comparable to the rest of the industry: TIXT outperforms 47.56% of its industry peers.
TIXT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 80.64%, TIXT belongs to the top of the industry, outperforming 96.34% of the companies in the same industry.
TIXT's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 2.28%
PM (TTM) N/A
GM 80.64%
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%
TIXT Yearly Profit, Operating, Gross MarginsTIXT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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2

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.
TIXT Yearly Shares OutstandingTIXT Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
TIXT Yearly Total Debt VS Total AssetsTIXT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

TIXT has a debt to FCF ratio of 4.26. This is a neutral value as TIXT would need 4.26 years to pay back of all of its debts.
The Debt to FCF ratio of TIXT (4.26) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.70 indicates that TIXT is somewhat dependend on debt financing.
TIXT has a Debt to Equity ratio of 0.70. This is comparable to the rest of the industry: TIXT outperforms 40.24% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 4.26
Altman-Z N/A
ROIC/WACC0.18
WACC8.25%
TIXT Yearly LT Debt VS Equity VS FCFTIXT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.3 Liquidity

A Current Ratio of 0.86 indicates that TIXT may have some problems paying its short term obligations.
TIXT's Current ratio of 0.86 is on the low side compared to the rest of the industry. TIXT is outperformed by 79.27% of its industry peers.
TIXT has a Quick Ratio of 0.86. 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 Quick ratio of 0.86 is on the low side compared to the rest of the industry. TIXT is outperformed by 79.27% of its industry peers.
Industry RankSector Rank
Current Ratio 0.86
Quick Ratio 0.86
TIXT Yearly Current Assets VS Current LiabilitesTIXT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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5

3. Growth

3.1 Past

TIXT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -72.09%.
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 decreased by -0.30% in the past year.
The Revenue has been growing by 21.12% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-72.09%
EPS 3Y-26.56%
EPS 5YN/A
EPS Q2Q%-72.73%
Revenue 1Y (TTM)-0.3%
Revenue growth 3Y6.6%
Revenue growth 5Y21.12%
Sales Q2Q%1.98%

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 13.06% yearly.
The Revenue is expected to grow by 13.57% on average over the next years. This is quite good.
EPS Next Y-18.55%
EPS Next 2Y4.79%
EPS Next 3Y13.06%
EPS Next 5YN/A
Revenue Next Year2.3%
Revenue Next 2Y2.95%
Revenue Next 3Y3.81%
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.
TIXT Yearly Revenue VS EstimatesTIXT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2029 1B 2B 3B 4B 5B
TIXT Yearly EPS VS EstimatesTIXT Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6 0.8 1

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7

4. Valuation

4.1 Price/Earnings Ratio

TIXT is valuated reasonably with a Price/Earnings ratio of 11.88.
Based on the Price/Earnings ratio, TIXT is valued cheaper than 89.02% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.70, TIXT is valued rather cheaply.
The Price/Forward Earnings ratio is 6.49, which indicates a rather cheap valuation of TIXT.
TIXT's Price/Forward Earnings ratio is rather cheap when compared to the industry. TIXT is cheaper than 93.90% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TIXT to the average of the S&P500 Index (22.49), we can say TIXT is valued rather cheaply.
Industry RankSector Rank
PE 11.88
Fwd PE 6.49
TIXT Price Earnings VS Forward Price EarningsTIXT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TIXT is valued cheaply inside the industry as 92.68% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TIXT is valued cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 2.25
EV/EBITDA 5.54
TIXT Per share dataTIXT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5

4.3 Compensation for Growth

TIXT's earnings are expected to grow with 13.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.79%
EPS Next 3Y13.06%

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0

5. Dividend

5.1 Amount

No dividends for TIXT!.
Industry RankSector Rank
Dividend Yield N/A

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TELUS INTERNATIONAL CDA INC

NYSE:TIXT (5/19/2025, 6:40:00 PM)

2.85

-0.01 (-0.35%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)05-09 2025-05-09/bmo
Earnings (Next)07-31 2025-07-31/bmo
Inst Owners49.39%
Inst Owner Change-7.28%
Ins Owners1.24%
Ins Owner ChangeN/A
Market Cap789.05M
Analysts48.75
Price Target5.15 (80.7%)
Short Float %4.83%
Short Ratio10.92
Dividend
Industry RankSector 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)-17.78%
Min EPS beat(2)-47.72%
Max EPS beat(2)12.17%
EPS beat(4)2
Avg EPS beat(4)58.53%
Min EPS beat(4)-47.72%
Max EPS beat(4)289.04%
EPS beat(8)3
Avg EPS beat(8)30.43%
EPS beat(12)7
Avg EPS beat(12)21.57%
EPS beat(16)11
Avg EPS beat(16)18.39%
Revenue beat(2)2
Avg Revenue beat(2)0.84%
Min Revenue beat(2)0.72%
Max Revenue beat(2)0.97%
Revenue beat(4)2
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-6.5%
Max Revenue beat(4)0.97%
Revenue beat(8)2
Avg Revenue beat(8)-1.94%
Revenue beat(12)2
Avg Revenue beat(12)-3.09%
Revenue beat(16)2
Avg Revenue beat(16)-2.74%
PT rev (1m)3.4%
PT rev (3m)-25.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.31%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)0.15%
Valuation
Industry RankSector Rank
PE 11.88
Fwd PE 6.49
P/S 0.3
P/FCF 2.25
P/OCF 1.72
P/B 0.4
P/tB N/A
EV/EBITDA 5.54
EPS(TTM)0.24
EY8.42%
EPS(NY)0.44
Fwd EY15.41%
FCF(TTM)1.26
FCFY44.36%
OCF(TTM)1.66
OCFY58.3%
SpS9.65
BVpS7.05
TBVpS-4.88
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.53%
ROE -5.84%
ROCE 1.65%
ROIC 1.51%
ROICexc 1.57%
ROICexgc 22.16%
OM 2.28%
PM (TTM) N/A
GM 80.64%
FCFM 13.1%
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%
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 Turnover0.59
Health
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 4.26
Debt/EBITDA 3.53
Cap/Depr 33.74%
Cap/Sales 4.12%
Interest Coverage 0.7
Cash Conversion 118.86%
Profit Quality N/A
Current Ratio 0.86
Quick Ratio 0.86
Altman-Z N/A
F-Score4
WACC8.25%
ROIC/WACC0.18
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)-72.09%
EPS 3Y-26.56%
EPS 5YN/A
EPS Q2Q%-72.73%
EPS Next Y-18.55%
EPS Next 2Y4.79%
EPS Next 3Y13.06%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.3%
Revenue growth 3Y6.6%
Revenue growth 5Y21.12%
Sales Q2Q%1.98%
Revenue Next Year2.3%
Revenue Next 2Y2.95%
Revenue Next 3Y3.81%
Revenue Next 5Y13.57%
EBIT growth 1Y-72.4%
EBIT growth 3Y-22.45%
EBIT growth 5Y-4.2%
EBIT Next Year381.06%
EBIT Next 3Y78.38%
EBIT Next 5Y72.45%
FCF growth 1Y18.64%
FCF growth 3Y24.79%
FCF growth 5Y35.89%
OCF growth 1Y17.05%
OCF growth 3Y18.46%
OCF growth 5Y29.56%