Logo image of TIXT

TELUS INTERNATIONAL CDA INC (TIXT) Stock Fundamental Analysis

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

3.75  -0.14 (-3.6%)

Fundamental Rating

3

Taking everything into account, TIXT scores 3 out of 10 in our fundamental rating. TIXT was compared to 82 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.


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.
TIXT had a positive operating cash flow in each of the past 5 years.
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's Return On Assets of -2.53% is on the low side compared to the rest of the industry. TIXT is outperformed by 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's Return On Invested Capital of 1.51% is in line compared to the rest of the industry. TIXT outperforms 46.34% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TIXT is significantly below the industry average of 21.64%.
The 3 year average ROIC (5.81%) for TIXT is well above the current ROIC(1.51%). The reason for the recent decline needs to be investigated.
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

TIXT's Operating Margin of 2.28% is in line compared to the rest of the industry. TIXT outperforms 46.34% of its industry peers.
In the last couple of years the Operating Margin of TIXT has declined.
The Gross Margin of TIXT (80.64%) is better 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

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.
TIXT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TIXT has been reduced compared to a year ago.
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 4.26, which is a neutral value as it means it would take TIXT, 4.26 years of fcf income to pay off 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.
TIXT has a Debt/Equity ratio of 0.70. This is a neutral value indicating TIXT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.70, TIXT is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 4.26
Altman-Z N/A
ROIC/WACC0.17
WACC8.9%
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.
With a Current ratio value of 0.86, TIXT is not doing good in the industry: 81.71% of the companies in the same industry are doing better.
TIXT has a Quick Ratio of 0.86. 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's Quick ratio of 0.86 is on the low side compared to the rest of the industry. TIXT is outperformed by 80.49% of its industry peers.
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

5

3. Growth

3.1 Past

The earnings per share for TIXT have decreased strongly by -72.09% 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 decrease in Revenue. The Revenue has decreased by -0.30% in the last year.
TIXT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.12% yearly.
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

The Earnings Per Share is expected to grow by 13.06% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.57% on average over the next years. This is quite good.
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

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 15.63, the valuation of TIXT can be described as correct.
74.39% of the companies in the same industry are more expensive than TIXT, based on the Price/Earnings ratio.
TIXT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.54, the valuation of TIXT can be described as reasonable.
Based on the Price/Forward Earnings ratio, TIXT is valued cheaper than 92.68% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. TIXT is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 15.63
Fwd PE 8.54
TIXT Price Earnings VS Forward Price EarningsTIXT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TIXT is valued cheaply inside the industry as 90.24% of the companies are valued more expensively.
100.00% 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 2.97
EV/EBITDA 6.28
TIXT Per share dataTIXT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5

4.3 Compensation for Growth

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

0

5. Dividend

5.1 Amount

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

TELUS INTERNATIONAL CDA INC

NYSE:TIXT (7/11/2025, 8:04:00 PM)

3.75

-0.14 (-3.6%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)05-09 2025-05-09/bmo
Earnings (Next)08-01 2025-08-01/bmo
Inst Owners45.17%
Inst Owner Change0%
Ins Owners1.59%
Ins Owner ChangeN/A
Market Cap1.04B
Analysts72.31
Price Target3.33 (-11.2%)
Short Float %4.96%
Short Ratio4.85
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)-35.33%
PT rev (3m)-33.13%
EPS NQ rev (1m)-1.5%
EPS NQ rev (3m)-13.57%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.5%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
Industry RankSector Rank
PE 15.63
Fwd PE 8.54
P/S 0.39
P/FCF 2.97
P/OCF 2.26
P/B 0.53
P/tB N/A
EV/EBITDA 6.28
EPS(TTM)0.24
EY6.4%
EPS(NY)0.44
Fwd EY11.71%
FCF(TTM)1.26
FCFY33.71%
OCF(TTM)1.66
OCFY44.31%
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
WACC8.9%
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%