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 88 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.
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.
In the past 5 years TIXT always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -8.63%, TIXT is not doing good in the industry: 74.12% of the companies in the same industry are doing better.
TIXT has a worse Return On Equity (-22.61%) than 71.76% of its industry peers.
With a Return On Invested Capital value of 1.27%, TIXT perfoms like the industry average, outperforming 45.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TIXT is significantly below the industry average of 28.99%.
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 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's Operating Margin of 1.80% is in line compared to the rest of the industry. TIXT outperforms 42.35% of its industry peers.
In the last couple of years the Operating Margin of TIXT has declined.
Looking at the Gross Margin, with a value of 80.28%, TIXT belongs to the top of the industry, outperforming 97.65% of the companies in the same industry.
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.
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.
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.
A Debt/Equity ratio of 0.85 indicates that TIXT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.85, TIXT is not doing good in the industry: 63.53% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | N/A |
ROIC/WACC0.14
WACC8.78%
2.3 Liquidity
A Current Ratio of 0.84 indicates that TIXT may have some problems paying its short term obligations.
TIXT's Current ratio of 0.84 is on the low side compared to the rest of the industry. TIXT is outperformed by 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 worse Quick ratio (0.84) than 83.53% of its industry peers.
| 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.
TIXT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -26.56% yearly.
Looking at the last year, TIXT shows a small growth in Revenue. The Revenue has grown by 2.03% in the last 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
Based on estimates for the next years, TIXT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.86% on average per year.
TIXT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.57% yearly.
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
Based on the Price/Earnings ratio of 30.79, the valuation of TIXT can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TIXT is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.00, TIXT is valued at the same level.
A Price/Forward Earnings ratio of 10.83 indicates a reasonable valuation of TIXT.
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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.70.
| 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 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 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
No dividends for TIXT!.
| 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 Change0%
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 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.
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.