TELUS CORP (TU) Fundamental Analysis & Valuation

NYSE:TU • CA87971M1032

Current stock price

12.55 USD
+0.02 (+0.16%)
At close:
12.5 USD
-0.05 (-0.4%)
After Hours:

This TU fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. TU Profitability Analysis

1.1 Basic Checks

  • In the past year TU was profitable.
  • In the past year TU had a positive cash flow from operations.
  • In the past 5 years TU has always been profitable.
  • In the past 5 years TU always reported a positive cash flow from operatings.
TU Yearly Net Income VS EBIT VS OCF VS FCFTU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B

1.2 Ratios

  • The Return On Assets of TU (1.87%) is better than 62.16% of its industry peers.
  • Looking at the Return On Equity, with a value of 7.06%, TU is in the better half of the industry, outperforming 64.86% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 4.45%, TU is doing good in the industry, outperforming 62.16% of the companies in the same industry.
  • TU had an Average Return On Invested Capital over the past 3 years of 4.54%. This is in line with the industry average of 6.00%.
Industry RankSector Rank
ROA 1.87%
ROE 7.06%
ROIC 4.45%
ROA(3y)1.69%
ROA(5y)2.3%
ROE(3y)6.21%
ROE(5y)7.87%
ROIC(3y)4.54%
ROIC(5y)4.85%
TU Yearly ROA, ROE, ROICTU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • TU's Profit Margin of 5.47% is fine compared to the rest of the industry. TU outperforms 62.16% of its industry peers.
  • TU's Profit Margin has declined in the last couple of years.
  • TU's Operating Margin of 15.76% is fine compared to the rest of the industry. TU outperforms 62.16% of its industry peers.
  • TU's Operating Margin has declined in the last couple of years.
  • TU has a better Gross Margin (63.02%) than 67.57% of its industry peers.
  • TU's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 15.76%
PM (TTM) 5.47%
GM 63.02%
OM growth 3Y-3.29%
OM growth 5Y-2.36%
PM growth 3Y-14.75%
PM growth 5Y-7.01%
GM growth 3Y0.54%
GM growth 5Y0.84%
TU Yearly Profit, Operating, Gross MarginsTU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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1

2. TU Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TU is destroying value.
  • Compared to 1 year ago, TU has more shares outstanding
  • The number of shares outstanding for TU has been increased compared to 5 years ago.
  • Compared to 1 year ago, TU has a worse debt to assets ratio.
TU Yearly Shares OutstandingTU Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
TU Yearly Total Debt VS Total AssetsTU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • Based on the Altman-Z score of 0.86, we must say that TU is in the distress zone and has some risk of bankruptcy.
  • TU has a Altman-Z score (0.86) which is comparable to the rest of the industry.
  • The Debt to FCF ratio of TU is 28.27, which is on the high side as it means it would take TU, 28.27 years of fcf income to pay off all of its debts.
  • TU has a Debt to FCF ratio of 28.27. This is comparable to the rest of the industry: TU outperforms 43.24% of its industry peers.
  • TU has a Debt/Equity ratio of 1.80. This is a high value indicating a heavy dependency on external financing.
  • TU's Debt to Equity ratio of 1.80 is on the low side compared to the rest of the industry. TU is outperformed by 75.68% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.8
Debt/FCF 28.27
Altman-Z 0.86
ROIC/WACC0.87
WACC5.1%
TU Yearly LT Debt VS Equity VS FCFTU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B 20B 25B

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: 81.08% 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 has a Quick ratio of 0.81. This is in the lower half of the industry: TU underperforms 78.38% of its industry peers.
Industry RankSector Rank
Current Ratio 0.86
Quick Ratio 0.81
TU Yearly Current Assets VS Current LiabilitesTU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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3

3. TU Growth Analysis

3.1 Past

  • TU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.54%.
  • Measured over the past years, TU shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.98% on average per year.
  • The Revenue has been growing slightly by 1.03% in the past year.
  • TU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.81% yearly.
EPS 1Y (TTM)-11.54%
EPS 3Y-8.22%
EPS 5Y-2.98%
EPS Q2Q%-20%
Revenue 1Y (TTM)1.03%
Revenue growth 3Y3.61%
Revenue growth 5Y5.81%
Sales Q2Q%-2.23%

3.2 Future

  • Based on estimates for the next years, TU will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.35% on average per year.
  • Based on estimates for the next years, TU will show a small growth in Revenue. The Revenue will grow by 2.89% on average per year.
EPS Next Y2.55%
EPS Next 2Y7%
EPS Next 3Y9.55%
EPS Next 5Y11.35%
Revenue Next Year1.36%
Revenue Next 2Y2.06%
Revenue Next 3Y2.32%
Revenue Next 5Y2.89%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
TU Yearly Revenue VS EstimatesTU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B 25B
TU Yearly EPS VS EstimatesTU Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.5 1 1.5

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3

4. TU Valuation Analysis

4.1 Price/Earnings Ratio

  • TU is valuated rather expensively with a Price/Earnings ratio of 18.73.
  • Based on the Price/Earnings ratio, TU is valued a bit cheaper than the industry average as 72.97% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 26.64, TU is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 18.18, 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 67.57% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 21.36. TU is around the same levels.
Industry RankSector Rank
PE 18.73
Fwd PE 18.18
TU Price Earnings VS Forward Price EarningsTU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • TU's Enterprise Value to EBITDA is on the same level as the industry average.
  • TU's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 24.06
EV/EBITDA 7.52
TU Per share dataTU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TU does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of TU may justify a higher PE ratio.
PEG (NY)7.33
PEG (5Y)N/A
EPS Next 2Y7%
EPS Next 3Y9.55%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. TU Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 9.80%, TU is a good candidate for dividend investing.
  • TU's Dividend Yield is rather good when compared to the industry average which is at 2.22. TU pays more dividend than 97.30% of the companies in the same industry.
  • TU's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 9.8%

5.2 History

  • On average, the dividend of TU grows each year by 7.48%, which is quite nice.
  • TU has paid a dividend for at least 10 years, which is 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)7.48%
Div Incr Years22
Div Non Decr Years22
TU Yearly Dividends per shareTU Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • 146.27% of the earnings are spent on dividend by TU. This is not a sustainable payout ratio.
  • TU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP146.27%
EPS Next 2Y7%
EPS Next 3Y9.55%
TU Yearly Income VS Free CF VS DividendTU Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B
TU Dividend Payout.TU Dividend Payout, showing the Payout Ratio.TU Dividend Payout.PayoutRetained Earnings

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TU Fundamentals: All Metrics, Ratios and Statistics

TELUS CORP

NYSE:TU (5/1/2026, 8:04:00 PM)

After market: 12.5 -0.05 (-0.4%)

12.55

+0.02 (+0.16%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Industry Strength60.63
Industry Growth35.82
Earnings (Last)02-09
Earnings (Next)05-01
Inst Owners51.96%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap19.59B
Revenue(TTM)20.35B
Net Income(TTM)1.11B
Analysts71.67
Price Target15.04 (19.84%)
Short Float %4.75%
Short Ratio12.33
Dividend
Industry RankSector Rank
Dividend Yield 9.8%
Yearly Dividend0.78
Dividend Growth(5Y)7.48%
DP146.27%
Div Incr Years22
Div Non Decr Years22
Ex-Date03-11
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.18%
Min EPS beat(2)-20.76%
Max EPS beat(2)-9.6%
EPS beat(4)1
Avg EPS beat(4)-5.47%
Min EPS beat(4)-20.76%
Max EPS beat(4)15.34%
EPS beat(8)5
Avg EPS beat(8)3.45%
EPS beat(12)8
Avg EPS beat(12)1.44%
EPS beat(16)10
Avg EPS beat(16)0.24%
Revenue beat(2)0
Avg Revenue beat(2)-3.72%
Min Revenue beat(2)-4.41%
Max Revenue beat(2)-3.02%
Revenue beat(4)0
Avg Revenue beat(4)-2.45%
Min Revenue beat(4)-4.41%
Max Revenue beat(4)-0.99%
Revenue beat(8)1
Avg Revenue beat(8)-2.16%
Revenue beat(12)1
Avg Revenue beat(12)-2.11%
Revenue beat(16)1
Avg Revenue beat(16)-2.31%
PT rev (1m)-3.52%
PT rev (3m)-5.23%
EPS NQ rev (1m)-1.9%
EPS NQ rev (3m)-11.48%
EPS NY rev (1m)-0.54%
EPS NY rev (3m)-12.31%
Revenue NQ rev (1m)-1.05%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)0.57%
Valuation
Industry RankSector Rank
PE 18.73
Fwd PE 18.18
P/S 1.32
P/FCF 24.06
P/OCF 5.5
P/B 1.7
P/tB N/A
EV/EBITDA 7.52
EPS(TTM)0.67
EY5.34%
EPS(NY)0.69
Fwd EY5.5%
FCF(TTM)0.52
FCFY4.16%
OCF(TTM)2.28
OCFY18.17%
SpS9.53
BVpS7.39
TBVpS-7.04
PEG (NY)7.33
PEG (5Y)N/A
Graham Number10.5564 (-15.89%)
Profitability
Industry RankSector Rank
ROA 1.87%
ROE 7.06%
ROCE 6.42%
ROIC 4.45%
ROICexc 4.69%
ROICexgc 12.97%
OM 15.76%
PM (TTM) 5.47%
GM 63.02%
FCFM 5.47%
ROA(3y)1.69%
ROA(5y)2.3%
ROE(3y)6.21%
ROE(5y)7.87%
ROIC(3y)4.54%
ROIC(5y)4.85%
ROICexc(3y)4.67%
ROICexc(5y)4.97%
ROICexgc(3y)13.14%
ROICexgc(5y)13.78%
ROCE(3y)6.52%
ROCE(5y)6.93%
ROICexgc growth 3Y-1.53%
ROICexgc growth 5Y-0.54%
ROICexc growth 3Y-2.16%
ROICexc growth 5Y-2.22%
OM growth 3Y-3.29%
OM growth 5Y-2.36%
PM growth 3Y-14.75%
PM growth 5Y-7.01%
GM growth 3Y0.54%
GM growth 5Y0.84%
F-Score7
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 1.8
Debt/FCF 28.27
Debt/EBITDA 3.9
Cap/Depr 92.46%
Cap/Sales 18.45%
Interest Coverage 2.32
Cash Conversion 66.97%
Profit Quality 100%
Current Ratio 0.86
Quick Ratio 0.81
Altman-Z 0.86
F-Score7
WACC5.1%
ROIC/WACC0.87
Cap/Depr(3y)96.29%
Cap/Depr(5y)121.75%
Cap/Sales(3y)19.36%
Cap/Sales(5y)23.78%
Profit Quality(3y)85.25%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.54%
EPS 3Y-8.22%
EPS 5Y-2.98%
EPS Q2Q%-20%
EPS Next Y2.55%
EPS Next 2Y7%
EPS Next 3Y9.55%
EPS Next 5Y11.35%
Revenue 1Y (TTM)1.03%
Revenue growth 3Y3.61%
Revenue growth 5Y5.81%
Sales Q2Q%-2.23%
Revenue Next Year1.36%
Revenue Next 2Y2.06%
Revenue Next 3Y2.32%
Revenue Next 5Y2.89%
EBIT growth 1Y1.04%
EBIT growth 3Y0.2%
EBIT growth 5Y3.32%
EBIT Next Year148.17%
EBIT Next 3Y38%
EBIT Next 5Y22.15%
FCF growth 1Y112.81%
FCF growth 3Y30.66%
FCF growth 5Y-2.48%
OCF growth 1Y0.39%
OCF growth 3Y0.38%
OCF growth 5Y1.25%

TELUS CORP / TU Fundamental Analysis FAQ

What is the fundamental rating for TU stock?

ChartMill assigns a fundamental rating of 4 / 10 to TU.


What is the valuation status of TELUS CORP (TU) stock?

ChartMill assigns a valuation rating of 3 / 10 to TELUS CORP (TU). This can be considered as Overvalued.


Can you provide the profitability details for TELUS CORP?

TELUS CORP (TU) has a profitability rating of 6 / 10.


What is the expected EPS growth for TELUS CORP (TU) stock?

The Earnings per Share (EPS) of TELUS CORP (TU) is expected to grow by 2.55% in the next year.


Is the dividend of TELUS CORP sustainable?

The dividend rating of TELUS CORP (TU) is 8 / 10 and the dividend payout ratio is 146.27%.