TELUS International Cda Inc (TIXT) Stock Fundamental Analysis

NYSE:TIXT • CA87975H1001

4.31 USD
-0.05 (-1.15%)
At close: Oct 30, 2025
4.31 USD
0 (0%)
After Hours: 10/30/2025, 8:04:00 PM
Fundamental Rating

3

Overall TIXT gets a fundamental rating of 3 out of 10. We evaluated TIXT against 87 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 correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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 Return On Assets of -8.63%. This is in the lower half of the industry: TIXT underperforms 74.12% of its industry peers.
  • With a Return On Equity value of -22.61%, TIXT is not doing good in the industry: 71.76% 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 45.88% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for TIXT is below the industry average of 10.62%.
  • 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

  • The Operating Margin of TIXT (1.80%) is comparable to the rest of the industry.
  • 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

1

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.
  • TIXT has more shares outstanding than it did 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

  • 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.
  • Looking at the Debt to FCF ratio, with a value of 5.42, TIXT is in line with its industry, outperforming 54.12% 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.
  • Looking at the Debt to Equity ratio, with a value of 0.85, TIXT is doing worse than 63.53% of the companies in the same industry.
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.
  • With a Current ratio value of 0.84, TIXT is not doing good in the industry: 83.53% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.84 indicates that TIXT may have some problems paying its short term obligations.
  • The Quick ratio of TIXT (0.84) is worse than 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

6

3. Growth

3.1 Past

  • TIXT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -83.53%.
  • 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%.
  • TIXT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.12% yearly.
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

  • 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.
  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of 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

5

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 30.79, which means the current valuation is very expensive for TIXT.
  • The rest of the industry has a similar Price/Earnings ratio as TIXT.
  • The average S&P500 Price/Earnings ratio is at 26.99. TIXT is around the same levels.
  • TIXT is valuated reasonably with a Price/Forward Earnings ratio of 10.83.
  • 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 is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
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

  • 95.29% of the companies in the same industry are more expensive than TIXT, based on the Enterprise Value to EBITDA ratio.
  • 98.82% of the companies in the same industry are more expensive than TIXT, based on the Price/Free Cash Flow ratio.
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%

0

5. Dividend

5.1 Amount

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

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-41.45%
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 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.