TELUS CORP (TU) Stock Fundamental Analysis
USA - NYSE:TU - CA87971M1032 - Common Stock
15.06 USD
-0.03 (-0.2%)
15.06 USD
0 (0%)
TU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 36 industry peers in the Diversified Telecommunication Services industry. TU has a medium profitability rating, but doesn't score so well on its financial health evaluation. TU has a expensive valuation and it also scores bad on growth. Finally TU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year TU was profitable.
In the past year TU had a positive cash flow from operations.
Each year in the past 5 years TU has been profitable.
TU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TU has a better Return On Assets (1.59%) than 63.89% of its industry peers.
Looking at the Return On Equity, with a value of 6.35%, TU is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.96%, TU is doing good in the industry, outperforming 61.11% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TU is in line with the industry average of 5.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 6.35% | ||
| ROIC | 4.96% |
ROA(3y)2.07%
ROA(5y)2.49%
ROE(3y)7.11%
ROE(5y)8.46%
ROIC(3y)5.16%
ROIC(5y)5.5%
1.3 Margins
Looking at the Profit Margin, with a value of 4.73%, TU is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of TU has declined.
TU has a better Operating Margin (15.78%) than 72.22% of its industry peers.
TU's Operating Margin has declined in the last couple of years.
TU has a Gross Margin of 62.94%. This is in the better half of the industry: TU outperforms 72.22% of its industry peers.
TU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.78% | ||
| PM (TTM) | 4.73% | ||
| GM | 62.94% |
OM growth 3Y-6.27%
OM growth 5Y-5.58%
PM growth 3Y-20.54%
PM growth 5Y-16.25%
GM growth 3Y1.26%
GM growth 5Y1.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TU is destroying value.
TU has more shares outstanding than it did 1 year ago.
TU has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TU is higher compared to a year ago.
2.2 Solvency
TU has an Altman-Z score of 0.92. This is a bad value and indicates that TU is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.92, TU is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
The Debt to FCF ratio of TU is 31.18, which is on the high side as it means it would take TU, 31.18 years of fcf income to pay off all of its debts.
TU has a Debt to FCF ratio (31.18) which is in line with its industry peers.
A Debt/Equity ratio of 1.88 is on the high side and indicates that TU has dependencies on debt financing.
With a Debt to Equity ratio value of 1.88, TU is not doing good in the industry: 69.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 31.18 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.9
WACC5.52%
2.3 Liquidity
TU has a Current Ratio of 0.86. This is a bad value and indicates that TU is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.86, TU is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.81 indicates that TU may have some problems paying its short term obligations.
TU's Quick ratio of 0.81 is on the low side compared to the rest of the industry. TU is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.00% over the past year.
Measured over the past years, TU shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.24% on average per year.
Looking at the last year, TU shows a small growth in Revenue. The Revenue has grown by 2.56% in the last year.
Measured over the past years, TU shows a small growth in Revenue. The Revenue has been growing by 6.66% on average per year.
EPS 1Y (TTM)1%
EPS 3Y-0.32%
EPS 5Y-6.24%
EPS Q2Q%-12%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y6.15%
Revenue growth 5Y6.66%
Sales Q2Q%2.17%
3.2 Future
The Earnings Per Share is expected to grow by 6.32% on average over the next years.
TU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.86% yearly.
EPS Next Y0%
EPS Next 2Y4.56%
EPS Next 3Y5.54%
EPS Next 5Y6.32%
Revenue Next Year2.91%
Revenue Next 2Y2.84%
Revenue Next 3Y2.95%
Revenue Next 5Y3.86%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.92 indicates a rather expensive valuation of TU.
TU's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.89. TU is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 18.58, TU is valued on the expensive side.
TU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TU is cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. TU is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.92 | ||
| Fwd PE | 18.58 |
4.2 Price Multiples
TU's Enterprise Value to EBITDA ratio is in line with the industry average.
TU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.53 | ||
| EV/EBITDA | 8.47 |
4.3 Compensation for Growth
TU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.56%
EPS Next 3Y5.54%
5. Dividend
5.1 Amount
TU has a Yearly Dividend Yield of 7.88%, which is a nice return.
TU's Dividend Yield is rather good when compared to the industry average which is at 5.31. TU pays more dividend than 94.44% of the companies in the same industry.
TU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.88% |
5.2 History
The dividend of TU has a limited annual growth rate of 1.90%.
TU has been paying a dividend for at least 10 years, so it has a reliable track record.
TU has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.9%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
TU pays out 163.46% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP163.46%
EPS Next 2Y4.56%
EPS Next 3Y5.54%
15.06
-0.03 (-0.2%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners54.64%
Inst Owner Change-0.02%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap23.12B
Revenue(TTM)20.42B
Net Income(TTM)966.00M
Analysts70.83
Price Target16.85 (11.89%)
Short Float %2.16%
Short Ratio9.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.88% |
Yearly Dividend0.75
Dividend Growth(5Y)1.9%
DP163.46%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.24%
Min EPS beat(2)-6.86%
Max EPS beat(2)15.34%
EPS beat(4)3
Avg EPS beat(4)9.05%
Min EPS beat(4)-6.86%
Max EPS beat(4)16.54%
EPS beat(8)7
Avg EPS beat(8)7.57%
EPS beat(12)9
Avg EPS beat(12)2.47%
EPS beat(16)11
Avg EPS beat(16)1.47%
Revenue beat(2)0
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)-0.99%
Revenue beat(4)1
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.77%
Revenue beat(8)1
Avg Revenue beat(8)-2%
Revenue beat(12)1
Avg Revenue beat(12)-1.85%
Revenue beat(16)2
Avg Revenue beat(16)-1.97%
PT rev (1m)-0.7%
PT rev (3m)-0.96%
EPS NQ rev (1m)-2.28%
EPS NQ rev (3m)-6.76%
EPS NY rev (1m)0%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.92 | ||
| Fwd PE | 18.58 | ||
| P/S | 1.59 | ||
| P/FCF | 30.53 | ||
| P/OCF | 6.82 | ||
| P/B | 2.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.47 |
EPS(TTM)0.72
EY4.78%
EPS(NY)0.81
Fwd EY5.38%
FCF(TTM)0.49
FCFY3.28%
OCF(TTM)2.21
OCFY14.66%
SpS9.49
BVpS7.07
TBVpS-7.31
PEG (NY)N/A
PEG (5Y)N/A
Graham Number10.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 6.35% | ||
| ROCE | 6.48% | ||
| ROIC | 4.96% | ||
| ROICexc | 5.35% | ||
| ROICexgc | 15.69% | ||
| OM | 15.78% | ||
| PM (TTM) | 4.73% | ||
| GM | 62.94% | ||
| FCFM | 5.2% |
ROA(3y)2.07%
ROA(5y)2.49%
ROE(3y)7.11%
ROE(5y)8.46%
ROIC(3y)5.16%
ROIC(5y)5.5%
ROICexc(3y)5.26%
ROICexc(5y)5.61%
ROICexgc(3y)14.67%
ROICexgc(5y)15.27%
ROCE(3y)6.66%
ROCE(5y)7.09%
ROICexgc growth 3Y-6.18%
ROICexgc growth 5Y-3.5%
ROICexc growth 3Y-7.23%
ROICexc growth 5Y-7.25%
OM growth 3Y-6.27%
OM growth 5Y-5.58%
PM growth 3Y-20.54%
PM growth 5Y-16.25%
GM growth 3Y1.26%
GM growth 5Y1.39%
F-Score5
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 31.18 | ||
| Debt/EBITDA | 3.98 | ||
| Cap/Depr | 92.83% | ||
| Cap/Sales | 18.07% | ||
| Interest Coverage | 2.37 | ||
| Cash Conversion | 66.03% | ||
| Profit Quality | 109.94% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 0.92 |
F-Score5
WACC5.52%
ROIC/WACC0.9
Cap/Depr(3y)107.1%
Cap/Depr(5y)125.25%
Cap/Sales(3y)21.07%
Cap/Sales(5y)24.41%
Profit Quality(3y)62.22%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1%
EPS 3Y-0.32%
EPS 5Y-6.24%
EPS Q2Q%-12%
EPS Next Y0%
EPS Next 2Y4.56%
EPS Next 3Y5.54%
EPS Next 5Y6.32%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y6.15%
Revenue growth 5Y6.66%
Sales Q2Q%2.17%
Revenue Next Year2.91%
Revenue Next 2Y2.84%
Revenue Next 3Y2.95%
Revenue Next 5Y3.86%
EBIT growth 1Y1.03%
EBIT growth 3Y-0.51%
EBIT growth 5Y0.7%
EBIT Next Year150.71%
EBIT Next 3Y39.32%
EBIT Next 5Y23.67%
FCF growth 1Y490%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y10.41%
OCF growth 3Y3.37%
OCF growth 5Y4.3%
TELUS CORP / TU FAQ
What is the fundamental rating for TU stock?
ChartMill assigns a fundamental rating of 4 / 10 to TU.
Can you provide the valuation status for TELUS CORP?
ChartMill assigns a valuation rating of 3 / 10 to TELUS CORP (TU). This can be considered as Overvalued.
How profitable is TELUS CORP (TU) stock?
TELUS CORP (TU) has a profitability rating of 6 / 10.
Can you provide the financial health for TU stock?
The financial health rating of TELUS CORP (TU) is 1 / 10.
What is the expected EPS growth for TELUS CORP (TU) stock?
The Earnings per Share (EPS) of TELUS CORP (TU) is expected to decline by 0% in the next year.