TELUS CORP (TU) Fundamental Analysis & Valuation

NYSE:TU • CA87971M1032

13.17 USD
-0.1 (-0.75%)
Last: Mar 12, 2026, 02:30 PM
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This TU fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

Overall TU gets a fundamental rating of 4 out of 10. We evaluated TU against 37 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of TU while its profitability can be described as average. TU is valued correctly, but it does not seem to be growing. TU also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

5

1. TU Profitability Analysis

1.1 Basic Checks

  • TU had positive earnings in the past year.
  • TU had a positive operating cash flow in the past year.
  • In the past 5 years TU has always been profitable.
  • Each year in the past 5 years TU had a positive operating cash flow.
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

  • TU has a Return On Assets (1.87%) which is comparable to the rest of the industry.
  • The Return On Equity of TU (7.06%) is better than 64.86% of its industry peers.
  • TU has a Return On Invested Capital of 4.45%. This is in the better half of the industry: TU outperforms 64.86% of its industry peers.
  • TU had an Average Return On Invested Capital over the past 3 years of 4.55%. This is in line with the industry average of 5.74%.
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)4.55%
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

  • Looking at the Profit Margin, with a value of 5.47%, TU is in the better half of the industry, outperforming 62.16% of the companies in the same industry.
  • In the last couple of years the Profit Margin of TU has declined.
  • TU has a Operating Margin of 15.76%. This is comparable to the rest of the industry: TU outperforms 56.76% of its industry peers.
  • In the last couple of years the Operating Margin of TU has declined.
  • TU has a better Gross Margin (63.02%) than 70.27% 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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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. TU Health Analysis

2.1 Basic Checks

  • TU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, TU has more shares outstanding
  • TU has more shares outstanding than it did 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 0.88, we must say that TU is in the distress zone and has some risk of bankruptcy.
  • TU has a Altman-Z score (0.88) which is in line with its industry peers.
  • TU has a debt to FCF ratio of 28.27. This is a negative value and a sign of low solvency as TU would need 28.27 years to pay back of all of its debts.
  • TU has a Debt to FCF ratio (28.27) which is comparable to the rest of the industry.
  • A Debt/Equity ratio of 1.80 is on the high side and indicates that TU has dependencies on debt 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 72.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.8
Debt/FCF 28.27
Altman-Z 0.88
ROIC/WACC0.87
WACC5.14%
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.
  • TU has a Current ratio of 0.86. This is amonst the worse of the industry: TU underperforms 81.08% of its industry peers.
  • A Quick Ratio of 0.81 indicates that TU may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.81, TU is not doing good in the industry: 78.38% of the companies in the same industry are doing better.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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%.
  • The Earnings Per Share has been decreasing by -2.98% on average over the past years.
  • The Revenue has been growing slightly by 1.03% in the past year.
  • The Revenue has been growing slightly by 5.81% on average over the past years.
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 10.48% on average per year.
  • Based on estimates for the next years, TU will show a small growth in Revenue. The Revenue will grow by 2.79% on average per year.
EPS Next Y16.95%
EPS Next 2Y11.87%
EPS Next 3Y12.86%
EPS Next 5Y10.48%
Revenue Next Year1.86%
Revenue Next 2Y2.37%
Revenue Next 3Y2.52%
Revenue Next 5Y2.79%

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.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 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 0.5 1

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4

4. TU Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 19.37 indicates a rather expensive valuation of TU.
  • 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.
  • TU is valuated rather cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 16.64, which indicates a correct valuation of TU.
  • 64.86% of the companies in the same industry are more expensive than TU, based on the Price/Forward Earnings ratio.
  • TU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.27.
Industry RankSector Rank
PE 19.37
Fwd PE 16.64
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TU is on the same level as its industry peers.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of TU is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 24.91
EV/EBITDA 7.69
TU Per share dataTU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • TU's earnings are expected to grow with 12.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.14
PEG (5Y)N/A
EPS Next 2Y11.87%
EPS Next 3Y12.86%

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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 8.90%, TU is a good candidate for dividend investing.
  • TU's Dividend Yield is rather good when compared to the industry average which is at 2.13. TU pays more dividend than 94.59% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, TU pays a better dividend.
Industry RankSector Rank
Dividend Yield 8.9%

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 Years21
Div Non Decr Years21
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 2Y11.87%
EPS Next 3Y12.86%
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 (3/12/2026, 2:30:50 PM)

13.17

-0.1 (-0.75%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)02-09
Earnings (Next)05-04
Inst Owners55.52%
Inst Owner Change-8.73%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap20.40B
Revenue(TTM)20.35B
Net Income(TTM)1.11B
Analysts70
Price Target15.59 (18.38%)
Short Float %4.29%
Short Ratio11.86
Dividend
Industry RankSector Rank
Dividend Yield 8.9%
Yearly Dividend0.78
Dividend Growth(5Y)7.48%
DP146.27%
Div Incr Years21
Div Non Decr Years21
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)-2.3%
PT rev (3m)-5.56%
EPS NQ rev (1m)-9.56%
EPS NQ rev (3m)-9.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.15%
Revenue NQ rev (1m)-0.93%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)1.07%
Revenue NY rev (3m)0.99%
Valuation
Industry RankSector Rank
PE 19.37
Fwd PE 16.64
P/S 1.36
P/FCF 24.91
P/OCF 5.7
P/B 1.76
P/tB N/A
EV/EBITDA 7.69
EPS(TTM)0.68
EY5.16%
EPS(NY)0.79
Fwd EY6.01%
FCF(TTM)0.53
FCFY4.01%
OCF(TTM)2.31
OCFY17.55%
SpS9.67
BVpS7.49
TBVpS-7.13
PEG (NY)1.14
PEG (5Y)N/A
Graham Number10.71
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)4.55%
ROIC(5y)4.85%
ROICexc(3y)4.68%
ROICexc(5y)4.98%
ROICexgc(3y)13.17%
ROICexgc(5y)13.8%
ROCE(3y)6.53%
ROCE(5y)6.94%
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 0.88
F-Score7
WACC5.14%
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 Y16.95%
EPS Next 2Y11.87%
EPS Next 3Y12.86%
EPS Next 5Y10.48%
Revenue 1Y (TTM)1.03%
Revenue growth 3Y3.61%
Revenue growth 5Y5.81%
Sales Q2Q%-2.23%
Revenue Next Year1.86%
Revenue Next 2Y2.37%
Revenue Next 3Y2.52%
Revenue Next 5Y2.79%
EBIT growth 1Y1.04%
EBIT growth 3Y0.2%
EBIT growth 5Y3.32%
EBIT Next Year148.5%
EBIT Next 3Y37.89%
EBIT Next 5Y23.51%
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 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 4 / 10 to TELUS CORP (TU). This can be considered as Fairly Valued.


How profitable is TELUS CORP (TU) stock?

TELUS CORP (TU) has a profitability rating of 5 / 10.


What is the valuation of TELUS CORP based on its PE and PB ratios?

The Price/Earnings (PE) ratio for TELUS CORP (TU) is 19.37 and the Price/Book (PB) ratio is 1.76.


What is the financial health of TELUS CORP (TU) stock?

The financial health rating of TELUS CORP (TU) is 1 / 10.