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TELUS INTERNATIONAL CDA INC (TIXT) Stock Fundamental Analysis

USA - NYSE:TIXT - CA87975H1001 - Common Stock

4.48 USD
-0.02 (-0.44%)
Last: 10/17/2025, 8:04:00 PM
4.48 USD
0 (0%)
After Hours: 10/17/2025, 8:04:00 PM
Fundamental Rating

3

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 is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

4

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.
Of the past 5 years TIXT 4 years were profitable.
In the past 5 years TIXT always reported a positive cash flow from operatings.
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

The Return On Assets of TIXT (-8.63%) is worse than 74.42% of its industry peers.
TIXT has a worse Return On Equity (-22.61%) than 72.09% 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 21.42%.
The last Return On Invested Capital (1.27%) 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 -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%
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 1.80%. This is comparable to the rest of the industry: TIXT outperforms 43.02% of 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 97.67% of its industry peers.
In the last couple of years the Gross Margin of TIXT has remained more or less at the same level.
Industry RankSector 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%
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

1

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.
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

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 has a Debt to FCF ratio (5.42) which is in line with its industry peers.
TIXT has a Debt/Equity ratio of 0.85. This is a neutral value indicating TIXT is somewhat dependend on debt financing.
TIXT has a worse Debt to Equity ratio (0.85) than 62.79% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.85
Debt/FCF 5.42
Altman-Z N/A
ROIC/WACC0.15
WACC8.69%
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 0.84 indicates that TIXT may have some problems paying its short term obligations.
TIXT has a worse Current ratio (0.84) than 83.72% of its industry peers.
A Quick Ratio of 0.84 indicates that TIXT may have some problems paying its short term obligations.
TIXT has a worse Quick ratio (0.84) than 83.72% of its industry peers.
Industry RankSector Rank
Current Ratio 0.84
Quick Ratio 0.84
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

6

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.
TIXT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.12% yearly.
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-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

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 2028 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

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 32.00, the valuation of TIXT can be described as expensive.
TIXT's Price/Earnings ratio is in line with the industry average.
TIXT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
TIXT is valuated reasonably with a Price/Forward Earnings ratio of 11.15.
81.40% of the companies in the same industry are more expensive than TIXT, based on the Price/Forward Earnings ratio.
TIXT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 32
Fwd PE 11.15
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

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TIXT indicates a rather cheap valuation: TIXT is cheaper than 95.35% of the companies listed in the same industry.
98.84% of the companies in the same industry are more expensive than TIXT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 4.33
EV/EBITDA 4.38
TIXT Per share dataTIXT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.2%
EPS Next 3Y9.86%

0

5. Dividend

5.1 Amount

TIXT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

TELUS INTERNATIONAL CDA INC

NYSE:TIXT (10/17/2025, 8:04:00 PM)

After market: 4.48 0 (0%)

4.48

-0.02 (-0.44%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)08-01 2025-08-01/bmo
Earnings (Next)10-31 2025-10-31/bmo
Inst Owners53.33%
Inst Owner Change0%
Ins Owners3.67%
Ins Owner ChangeN/A
Market Cap1.25B
Analysts46.67
Price Target2.68 (-40.18%)
Short Float %3.77%
Short Ratio1.93
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)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)-0.22%
PT rev (3m)-19.41%
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 RankSector Rank
PE 32
Fwd PE 11.15
P/S 0.46
P/FCF 4.33
P/OCF 3.13
P/B 0.74
P/tB N/A
EV/EBITDA 4.38
EPS(TTM)0.14
EY3.13%
EPS(NY)0.4
Fwd EY8.96%
FCF(TTM)1.03
FCFY23.07%
OCF(TTM)1.43
OCFY31.96%
SpS9.75
BVpS6.08
TBVpS-5.16
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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%
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 RankSector 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
WACC8.69%
ROIC/WACC0.15
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%