TELUS International Cda Inc (TIXT) Fundamental Analysis & Valuation

NYSE:TIXT • CA87975H1001

Current stock price

4.31 USD
-0.05 (-1.15%)
At close:
4.31 USD
0 (0%)
After Hours:

This TIXT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. TIXT Profitability Analysis

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.
  • 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

  • The Return On Assets of TIXT (-8.63%) is worse than 74.12% of its industry peers.
  • TIXT has a Return On Equity of -22.61%. This is in the lower half of the industry: TIXT underperforms 71.76% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 1.27%, TIXT is in line with its industry, outperforming 45.88% 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 11.07%.
  • 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 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 (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 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

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1

2. TIXT Health Analysis

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.
  • TIXT has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, TIXT has an improved debt to assets ratio.
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 5.42. This is a neutral value as TIXT would need 5.42 years to pay back of all of its debts.
  • TIXT has a Debt to FCF ratio of 5.42. This is comparable 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's Debt to Equity ratio of 0.85 is on the low side compared to the rest of the industry. TIXT is outperformed by 63.53% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.85
Debt/FCF 5.42
Altman-Z N/A
ROIC/WACC0.14
WACC8.78%
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 Current ratio of 0.84. This is amonst the worse of the industry: TIXT underperforms 83.53% 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 of 0.84. This is amonst the worse of the industry: TIXT underperforms 83.53% 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

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. TIXT Growth Analysis

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.
  • 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.
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

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5

4. TIXT Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 30.79, TIXT can be considered very expensive at the moment.
  • TIXT's Price/Earnings is on the same level as the industry average.
  • The average S&P500 Price/Earnings ratio is at 24.75. TIXT is valued slightly more expensive when compared to this.
  • 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 cheaper than 85.88% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of TIXT to the average of the S&P500 Index (22.10), we can say TIXT is valued rather cheaply.
Industry RankSector Rank
PE 30.79
Fwd PE 10.83
TIXT Price Earnings VS Forward Price EarningsTIXT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • TIXT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TIXT is cheaper than 95.29% of the companies in the same industry.
  • 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 RankSector Rank
P/FCF 4.17
EV/EBITDA 4.31
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 2Y-0.28%
EPS Next 3Y9.86%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. TIXT Dividend Analysis

5.1 Amount

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

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TIXT Fundamentals: All Metrics, Ratios and Statistics

TELUS International Cda Inc

NYSE:TIXT (10/30/2025, 8:04:00 PM)

After market: 4.31 0 (0%)

4.31

-0.05 (-1.15%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)10-31
Earnings (Next)02-11
Inst Owners53.33%
Inst Owner Change-68.65%
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 %N/A
Short RatioN/A
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)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 RankSector 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 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%
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 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
WACC8.78%
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 Fundamental Analysis FAQ

What is the fundamental rating for TIXT stock?

ChartMill assigns a fundamental rating of 3 / 10 to TIXT.


Can you provide the valuation status for TELUS International Cda Inc?

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.


Can you provide the PE and PB ratios for TIXT stock?

The Price/Earnings (PE) ratio for TELUS International Cda Inc (TIXT) is 30.79 and the Price/Book (PB) ratio is 0.71.


Can you provide the expected EPS growth for TIXT stock?

The Earnings per Share (EPS) of TELUS International Cda Inc (TIXT) is expected to decline by -23.07% in the next year.