TELUS INTERNATIONAL CDA INC (TIXT) Stock Fundamental Analysis
USA - NYSE:TIXT - CA87975H1001 - Common Stock
4.51 USD
+0.04 (+0.89%)
TIXT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 87 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TIXT was profitable.
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.
1.2 Ratios
TIXT has a worse Return On Assets (-8.63%) than 70.11% of its industry peers.
With a Return On Equity value of -22.61%, TIXT is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 1.27%, TIXT perfoms like the industry average, outperforming 45.98% 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 21.81%.
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 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
The Operating Margin of TIXT (1.80%) is comparable to the rest of the industry.
TIXT's Operating Margin has declined in the last couple of years.
The Gross Margin of TIXT (80.28%) is better than 96.55% 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 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TIXT is destroying value.
Compared to 1 year ago, TIXT has more shares outstanding
TIXT has more shares outstanding than it did 5 years ago.
TIXT has a better debt/assets ratio than last year.
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.
With a Debt to FCF ratio value of 5.42, TIXT perfoms like the industry average, outperforming 57.47% of the companies in the same industry.
TIXT has a Debt/Equity ratio of 0.85. This is a neutral value indicating TIXT is somewhat dependend on debt financing.
The Debt to Equity ratio of TIXT (0.85) is worse than 60.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | N/A |
ROIC/WACC0.14
WACC9.28%
2.3 Liquidity
TIXT has a Current 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 Current ratio of 0.84. This is amonst the worse of the industry: TIXT underperforms 81.61% 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 Quick ratio of 0.84. This is amonst the worse of the industry: TIXT underperforms 81.61% 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.
The earnings per share for TIXT have been decreasing by -26.56% on average. This is quite bad
TIXT shows a small growth in Revenue. In the last year, the Revenue has grown by 2.03%.
The Revenue has been growing by 21.12% on average over the past years. This is a very strong growth!
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-18.04%
EPS Next 2Y-5.36%
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
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
The Price/Earnings ratio is 32.21, which means the current valuation is very expensive for TIXT.
TIXT's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.41, TIXT is valued at the same level.
Based on the Price/Forward Earnings ratio of 12.59, the valuation of TIXT can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TIXT indicates a rather cheap valuation: TIXT is cheaper than 80.46% of the companies listed in the same industry.
TIXT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.21 | ||
| Fwd PE | 12.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIXT is valued cheaply inside the industry as 95.40% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TIXT is valued cheaper than 98.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.36 | ||
| EV/EBITDA | 4.38 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.36%
EPS Next 3Y9.86%
5. Dividend
5.1 Amount
TIXT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:TIXT (9/24/2025, 1:50:02 PM)
4.51
+0.04 (+0.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners45.17%
Inst Owner Change20.94%
Ins Owners1.59%
Ins Owner ChangeN/A
Market Cap1.26B
Analysts48.57
Price Target2.69 (-40.35%)
Short Float %4.3%
Short Ratio2.22
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)-1.72%
PT rev (3m)-46.42%
EPS NQ rev (1m)-15.09%
EPS NQ rev (3m)-17.34%
EPS NY rev (1m)0%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.21 | ||
| Fwd PE | 12.59 | ||
| P/S | 0.46 | ||
| P/FCF | 4.36 | ||
| P/OCF | 3.15 | ||
| P/B | 0.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.38 |
EPS(TTM)0.14
EY3.1%
EPS(NY)0.36
Fwd EY7.94%
FCF(TTM)1.03
FCFY22.93%
OCF(TTM)1.43
OCFY31.77%
SpS9.76
BVpS6.08
TBVpS-5.17
PEG (NY)N/A
PEG (5Y)N/A
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%
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 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
WACC9.28%
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-18.04%
EPS Next 2Y-5.36%
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 Year659.8%
EBIT Next 3Y106.73%
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%