Logo image of TIXT

TELUS INTERNATIONAL CDA INC (TIXT) Stock Fundamental Analysis

NYSE:TIXT - New York Stock Exchange, Inc. - CA87975H1001 - Common Stock - Currency: USD

3.63  0 (0%)

After market: 3.63 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to TIXT. TIXT was compared to 82 industry peers in the IT Services industry. While TIXT is still in line with the averages on profitability rating, there are concerns on its financial health. TIXT has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

Quickly go to:

4

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.
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

TIXT has a worse Return On Assets (-2.53%) than 64.63% of its industry peers.
Looking at the Return On Equity, with a value of -5.84%, TIXT is doing worse than 60.98% of the companies in the same industry.
TIXT has a Return On Invested Capital (1.51%) which is comparable to the rest of the 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 21.64%.
The last Return On Invested Capital (1.51%) 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 -2.53%
ROE -5.84%
ROIC 1.51%
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

The Operating Margin of TIXT (2.28%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TIXT has declined.
TIXT has a better Gross Margin (80.64%) than 96.34% of its industry peers.
TIXT's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 2.28%
PM (TTM) N/A
GM 80.64%
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

More info and screens

1

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.
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.
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

TIXT has a debt to FCF ratio of 4.26. This is a neutral value as TIXT would need 4.26 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.26, TIXT is in line with its industry, outperforming 57.32% of the companies in the same industry.
A Debt/Equity ratio of 0.70 indicates that TIXT is somewhat dependend on debt financing.
TIXT's Debt to Equity ratio of 0.70 is on the low side compared to the rest of the industry. TIXT is outperformed by 60.98% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 4.26
Altman-Z N/A
ROIC/WACC0.17
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 0.86 indicates that TIXT may have some problems paying its short term obligations.
TIXT's Current ratio of 0.86 is on the low side compared to the rest of the industry. TIXT is outperformed by 81.71% of its industry peers.
A Quick Ratio of 0.86 indicates that TIXT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.86, TIXT is doing worse than 80.49% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.86
Quick Ratio 0.86
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

More info and screens

5

3. Growth

3.1 Past

TIXT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -72.09%.
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 decrease in Revenue. The Revenue has decreased by -0.30% 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)-72.09%
EPS 3Y-26.56%
EPS 5YN/A
EPS Q2Q%-72.73%
Revenue 1Y (TTM)-0.3%
Revenue growth 3Y6.6%
Revenue growth 5Y21.12%
Sales Q2Q%1.98%

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 13.06% on average per year.
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-18.55%
EPS Next 2Y4.79%
EPS Next 3Y13.06%
EPS Next 5YN/A
Revenue Next Year2.3%
Revenue Next 2Y2.95%
Revenue Next 3Y3.81%
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.
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 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

More info and screens

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 15.13 indicates a correct valuation of TIXT.
75.61% 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 valuation a bit cheaper than the S&P500 average which is at 26.32.
A Price/Forward Earnings ratio of 8.26 indicates a reasonable valuation of TIXT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TIXT indicates a rather cheap valuation: TIXT is cheaper than 92.68% of the companies listed in the same industry.
TIXT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.13
Fwd PE 8.26
TIXT Price Earnings VS Forward Price EarningsTIXT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

91.46% of the companies in the same industry are more expensive than TIXT, based on the Enterprise Value to EBITDA ratio.
TIXT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TIXT is cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 2.87
EV/EBITDA 6.09
TIXT Per share dataTIXT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5

4.3 Compensation for Growth

A more expensive valuation may be justified as TIXT's earnings are expected to grow with 13.06% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.79%
EPS Next 3Y13.06%

More info and screens

0

5. Dividend

5.1 Amount

No dividends for TIXT!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

TELUS INTERNATIONAL CDA INC

NYSE:TIXT (6/17/2025, 8:21:22 PM)

After market: 3.63 0 (0%)

3.63

0 (0%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)05-09 2025-05-09/bmo
Earnings (Next)07-31 2025-07-31/bmo
Inst Owners45.17%
Inst Owner Change-5.97%
Ins Owners1.59%
Ins Owner ChangeN/A
Market Cap1.01B
Analysts50
Price Target5.02 (38.29%)
Short Float %5.2%
Short Ratio5.55
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)-17.78%
Min EPS beat(2)-47.72%
Max EPS beat(2)12.17%
EPS beat(4)2
Avg EPS beat(4)58.53%
Min EPS beat(4)-47.72%
Max EPS beat(4)289.04%
EPS beat(8)3
Avg EPS beat(8)30.43%
EPS beat(12)7
Avg EPS beat(12)21.57%
EPS beat(16)11
Avg EPS beat(16)18.39%
Revenue beat(2)2
Avg Revenue beat(2)0.84%
Min Revenue beat(2)0.72%
Max Revenue beat(2)0.97%
Revenue beat(4)2
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-6.5%
Max Revenue beat(4)0.97%
Revenue beat(8)2
Avg Revenue beat(8)-1.94%
Revenue beat(12)2
Avg Revenue beat(12)-3.09%
Revenue beat(16)2
Avg Revenue beat(16)-2.74%
PT rev (1m)-2.52%
PT rev (3m)-28.92%
EPS NQ rev (1m)-12.26%
EPS NQ rev (3m)-19.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.5%
Revenue NQ rev (1m)0.92%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
Industry RankSector Rank
PE 15.13
Fwd PE 8.26
P/S 0.38
P/FCF 2.87
P/OCF 2.18
P/B 0.51
P/tB N/A
EV/EBITDA 6.09
EPS(TTM)0.24
EY6.61%
EPS(NY)0.44
Fwd EY12.1%
FCF(TTM)1.26
FCFY34.83%
OCF(TTM)1.66
OCFY45.77%
SpS9.65
BVpS7.05
TBVpS-4.88
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.53%
ROE -5.84%
ROCE 1.65%
ROIC 1.51%
ROICexc 1.57%
ROICexgc 22.16%
OM 2.28%
PM (TTM) N/A
GM 80.64%
FCFM 13.1%
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 Turnover0.59
Health
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 4.26
Debt/EBITDA 3.53
Cap/Depr 33.74%
Cap/Sales 4.12%
Interest Coverage 0.7
Cash Conversion 118.86%
Profit Quality N/A
Current Ratio 0.86
Quick Ratio 0.86
Altman-Z N/A
F-Score4
WACC8.78%
ROIC/WACC0.17
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)-72.09%
EPS 3Y-26.56%
EPS 5YN/A
EPS Q2Q%-72.73%
EPS Next Y-18.55%
EPS Next 2Y4.79%
EPS Next 3Y13.06%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.3%
Revenue growth 3Y6.6%
Revenue growth 5Y21.12%
Sales Q2Q%1.98%
Revenue Next Year2.3%
Revenue Next 2Y2.95%
Revenue Next 3Y3.81%
Revenue Next 5Y13.57%
EBIT growth 1Y-72.4%
EBIT growth 3Y-22.45%
EBIT growth 5Y-4.2%
EBIT Next Year378.91%
EBIT Next 3Y77.25%
EBIT Next 5Y72.45%
FCF growth 1Y18.64%
FCF growth 3Y24.79%
FCF growth 5Y35.89%
OCF growth 1Y17.05%
OCF growth 3Y18.46%
OCF growth 5Y29.56%