TELUS CORP (TU) Stock Fundamental Analysis
USA - NYSE:TU - CA87971M1032 - Common Stock
15.77 USD
+0.09 (+0.57%)
We assign a fundamental rating of 3 out of 10 to TU. TU was compared to 36 industry peers in the Diversified Telecommunication Services industry. While TU is still in line with the averages on profitability rating, there are concerns on its financial health. TU is valued expensive and it does not seem to be growing. 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.
In the past 5 years TU always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TU (1.59%) is comparable to the rest of the industry.
TU's Return On Equity of 6.35% is fine compared to the rest of the industry. TU outperforms 63.89% of its industry peers.
TU has a better Return On Invested Capital (4.96%) than 63.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TU is in line with the industry average of 6.32%.
| 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
TU's Profit Margin of 4.73% is in line compared to the rest of the industry. TU outperforms 58.33% of its industry peers.
TU's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 15.78%, TU is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
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.
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.
2.2 Solvency
TU has an Altman-Z score of 0.94. This is a bad value and indicates that TU is not financially healthy and even has some risk of bankruptcy.
TU has a better Altman-Z score (0.94) than 63.89% of its industry peers.
TU has a debt to FCF ratio of 31.18. This is a negative value and a sign of low solvency as TU would need 31.18 years to pay back of all of its debts.
TU has a Debt to FCF ratio of 31.18. This is comparable to the rest of the industry: TU outperforms 47.22% of its industry peers.
A Debt/Equity ratio of 1.88 is on the high side and indicates that TU has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.88, TU is doing worse than 69.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 31.18 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.88
WACC5.65%
2.3 Liquidity
A Current Ratio of 0.86 indicates that TU may have some problems paying its short term obligations.
The Current ratio of TU (0.86) is worse than 72.22% of its industry peers.
A Quick Ratio of 0.81 indicates that TU may have some problems paying its short term obligations.
The Quick ratio of TU (0.81) is worse than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
TU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.00%.
TU shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.24% yearly.
The Revenue has been growing slightly by 2.56% in the past year.
The Revenue has been growing slightly by 6.66% on average over the past years.
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
Based on estimates for the next years, TU will show a small growth in Earnings Per Share. The EPS will grow by 5.98% on average per year.
The Revenue is expected to grow by 3.44% on average over the next years.
EPS Next Y0%
EPS Next 2Y4.56%
EPS Next 3Y5.54%
EPS Next 5Y5.98%
Revenue Next Year2.96%
Revenue Next 2Y2.85%
Revenue Next 3Y3.02%
Revenue Next 5Y3.44%
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 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 21.90 indicates a rather expensive valuation of TU.
TU's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.54, TU is valued a bit cheaper.
The Price/Forward Earnings ratio is 19.34, which indicates a rather expensive current valuation of TU.
66.67% of the companies in the same industry are more expensive than TU, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.05, TU is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.9 | ||
| Fwd PE | 19.34 |
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.
TU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.79 | ||
| EV/EBITDA | 8.63 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.56%
EPS Next 3Y5.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.58%, TU is a good candidate for dividend investing.
TU's Dividend Yield is rather good when compared to the industry average which is at 5.16. 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.58% |
5.2 History
The dividend of TU has a limited annual growth rate of 1.90%.
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)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%
NYSE:TU (9/29/2025, 11:05:07 AM)
15.77
+0.09 (+0.57%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners54.64%
Inst Owner Change4.49%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap24.21B
Analysts70.83
Price Target16.97 (7.61%)
Short Float %1.84%
Short Ratio9.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.58% |
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)0.65%
PT rev (3m)0.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.62%
EPS NY rev (1m)0.29%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.9 | ||
| Fwd PE | 19.34 | ||
| P/S | 1.65 | ||
| P/FCF | 31.79 | ||
| P/OCF | 7.11 | ||
| P/B | 2.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.63 |
EPS(TTM)0.72
EY4.57%
EPS(NY)0.82
Fwd EY5.17%
FCF(TTM)0.5
FCFY3.15%
OCF(TTM)2.22
OCFY14.07%
SpS9.54
BVpS7.11
TBVpS-7.35
PEG (NY)N/A
PEG (5Y)N/A
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%
ROICexcg growth 3Y-6.18%
ROICexcg 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 | 0.94 |
F-Score5
WACC5.65%
ROIC/WACC0.88
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 5Y5.98%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y6.15%
Revenue growth 5Y6.66%
Sales Q2Q%2.17%
Revenue Next Year2.96%
Revenue Next 2Y2.85%
Revenue Next 3Y3.02%
Revenue Next 5Y3.44%
EBIT growth 1Y1.03%
EBIT growth 3Y-0.51%
EBIT growth 5Y0.7%
EBIT Next Year150.71%
EBIT Next 3Y39.32%
EBIT Next 5Y23.51%
FCF growth 1Y490%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y10.41%
OCF growth 3Y3.37%
OCF growth 5Y4.3%