TELUS INTERNATIONAL CDA INC (TIXT)
CA87975H1001 - Common Stock
Overall TIXT gets a fundamental rating of 4 out of 10. We evaluated TIXT against 86 industry peers in the IT Services industry. TIXT has a medium profitability rating, but doesn't score so well on its financial health evaluation. TIXT scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year TIXT was profitable.
TIXT had a positive operating cash flow in the past year.
Each year in the past 5 years TIXT has been profitable.
TIXT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TIXT's Return On Assets of 1.12% is in line compared to the rest of the industry. TIXT outperforms 54.76% of its industry peers.
With a Return On Equity value of 2.65%, TIXT perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
With a Return On Invested Capital value of 4.70%, TIXT perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TIXT is significantly below the industry average of 12.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 2.65% | ||
| ROIC | 4.7% |
ROA(3y)2.81%
ROA(5y)3.42%
ROE(3y)5.77%
ROE(5y)10.93%
ROIC(3y)6.55%
ROIC(5y)7.06%
1.3 Margins
TIXT has a Profit Margin (1.99%) which is comparable to the rest of the industry.
TIXT's Profit Margin has declined in the last couple of years.
TIXT has a Operating Margin of 8.79%. This is in the better half of the industry: TIXT outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of TIXT has declined.
TIXT has a Gross Margin of 82.98%. This is amongst the best in the industry. TIXT outperforms 96.43% of its industry peers.
TIXT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.79% | ||
| PM (TTM) | 1.99% | ||
| GM | 82.98% |
OM growth 3Y-8.19%
OM growth 5Y-4.3%
PM growth 3Y-32.58%
PM growth 5Y-18.78%
GM growth 3Y-0.65%
GM growth 5Y0.96%
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.
TIXT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TIXT has more shares outstanding
The debt/assets ratio for TIXT is higher compared to a year ago.
2.2 Solvency
TIXT has an Altman-Z score of 1.00. This is a bad value and indicates that TIXT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.00, TIXT is not doing good in the industry: 63.10% of the companies in the same industry are doing better.
TIXT has a debt to FCF ratio of 4.28. This is a neutral value as TIXT would need 4.28 years to pay back of all of its debts.
TIXT has a Debt to FCF ratio of 4.28. This is comparable to the rest of the industry: TIXT outperforms 57.14% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that TIXT is somewhat dependend on debt financing.
TIXT has a Debt to Equity ratio of 0.80. This is comparable to the rest of the industry: TIXT outperforms 40.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | 1 |
ROIC/WACC0.51
WACC9.26%
2.3 Liquidity
A Current Ratio of 1.14 indicates that TIXT should not have too much problems paying its short term obligations.
TIXT's Current ratio of 1.14 is on the low side compared to the rest of the industry. TIXT is outperformed by 69.05% of its industry peers.
A Quick Ratio of 1.14 indicates that TIXT should not have too much problems paying its short term obligations.
The Quick ratio of TIXT (1.14) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
TIXT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.20%.
The Earnings Per Share has been growing slightly by 0.96% on average over the past years.
TIXT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.72%.
TIXT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.54% yearly.
EPS 1Y (TTM)-25.2%
EPS 3Y-25.68%
EPS 5Y0.96%
EPS growth Q2Q-25.71%
Revenue 1Y (TTM)9.72%
Revenue growth 3Y19.63%
Revenue growth 5Y26.54%
Revenue growth Q2Q9.84%
3.2 Future
The Earnings Per Share is expected to grow by 13.82% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.72% on average over the next years.
EPS Next Y5.48%
EPS Next 2Y11.01%
EPS Next 3Y13.82%
EPS Next 5YN/A
Revenue Next Year3.76%
Revenue Next 2Y5.37%
Revenue Next 3Y6.72%
Revenue Next 5YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.89 indicates a rather cheap valuation of TIXT.
95.24% of the companies in the same industry are more expensive than TIXT, based on the Price/Earnings ratio.
TIXT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.83.
With a Price/Forward Earnings ratio of 6.53, the valuation of TIXT can be described as very cheap.
95.24% of the companies in the same industry are more expensive than TIXT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.47. TIXT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.89 | ||
| Fwd PE | 6.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIXT is valued cheaper than 91.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TIXT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.66 | ||
| EV/EBITDA | 4.1 |
4.3 Compensation for Growth
TIXT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as TIXT's earnings are expected to grow with 13.82% in the coming years.
PEG (NY)1.26
PEG (5Y)7.18
EPS Next 2Y11.01%
EPS Next 3Y13.82%
5. Dividend
5.1 Amount
TIXT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TELUS INTERNATIONAL CDA INC
NYSE:TIXT (5/16/2024, 7:21:03 PM)
After market: 6.34 0 (0%)6.34
-0.06 (-0.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap677.30M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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PT rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.89 | ||
| Fwd PE | 6.53 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.26
PEG (5Y)7.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 2.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.79% | ||
| PM (TTM) | 1.99% | ||
| GM | 82.98% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-25.2%
EPS 3Y-25.68%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.72%
Revenue growth 3Y19.63%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
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