TELUS CORP (TU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TU - CA87971M1032 - Common Stock
13.36 USD
+0.01 (+0.07%)
13.36 USD
0 (0%)
TU gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 37 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 is valued expensive and it does not seem to be growing. 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.
In the past 5 years TU has always been profitable.
Each year in the past 5 years TU had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.00%, TU is doing good in the industry, outperforming 62.16% of the companies in the same industry.
TU has a better Return On Equity (7.43%) than 67.57% of its industry peers.
The Return On Invested Capital of TU (4.94%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for TU is in line with the industry average of 6.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 7.43% | ||
| ROIC | 4.94% |
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 5.77%, TU is in the better half of the industry, outperforming 64.86% of the companies in the same industry.
TU's Profit Margin has declined in the last couple of years.
TU has a Operating Margin (15.48%) which is in line with its industry peers.
In the last couple of years the Operating Margin of TU has declined.
TU has a Gross Margin of 62.85%. This is in the better half of the industry: TU outperforms 64.86% of its industry peers.
In the last couple of years the Gross Margin of TU has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.48% | ||
| PM (TTM) | 5.77% | ||
| GM | 62.85% |
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
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
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
Based on the Altman-Z score of 0.89, we must say that TU is in the distress zone and has some risk of bankruptcy.
TU's Altman-Z score of 0.89 is in line compared to the rest of the industry. TU outperforms 56.76% of its industry peers.
The Debt to FCF ratio of TU is 30.52, which is on the high side as it means it would take TU, 30.52 years of fcf income to pay off all of its debts.
TU has a Debt to FCF ratio (30.52) which is in line with its industry peers.
TU has a Debt/Equity ratio of 1.68. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.68, TU is doing worse than 67.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 30.52 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.92
WACC5.39%
2.3 Liquidity
A Current Ratio of 0.76 indicates that TU may have some problems paying its short term obligations.
TU has a Current ratio of 0.76. This is amonst the worse of the industry: TU underperforms 81.08% of its industry peers.
TU has a Quick Ratio of 0.76. 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 Quick ratio of 0.71. This is amonst the worse of the industry: TU underperforms 81.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
TU shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.83%.
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.
The Revenue has been growing slightly by 2.42% in the past year.
TU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.66% yearly.
EPS 1Y (TTM)-5.83%
EPS 3Y-0.32%
EPS 5Y-6.24%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y6.15%
Revenue growth 5Y6.66%
Sales Q2Q%0.14%
3.2 Future
TU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.00% yearly.
Based on estimates for the next years, TU will show a small growth in Revenue. The Revenue will grow by 2.94% on average per year.
EPS Next Y-4.08%
EPS Next 2Y2.35%
EPS Next 3Y3.96%
EPS Next 5Y6%
Revenue Next Year0.39%
Revenue Next 2Y1.39%
Revenue Next 3Y2.56%
Revenue Next 5Y2.94%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.09, which indicates a rather expensive current valuation of TU.
Compared to the rest of the industry, the Price/Earnings ratio of TU indicates a somewhat cheap valuation: TU is cheaper than 67.57% of the companies listed in the same industry.
TU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 17.03 indicates a rather expensive valuation of TU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TU indicates a somewhat cheap valuation: TU is cheaper than 70.27% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, TU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 17.03 |
4.2 Price Multiples
TU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TU is cheaper than 64.86% of the companies in the same industry.
TU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.35 | ||
| EV/EBITDA | 7.79 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.35%
EPS Next 3Y3.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.00%, TU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.37, TU pays a better dividend. On top of this TU pays more dividend than 94.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, TU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9% |
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
135.96% 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.
DP135.96%
EPS Next 2Y2.35%
EPS Next 3Y3.96%
13.36
+0.01 (+0.07%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners55.52%
Inst Owner Change-0.01%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap20.72B
Revenue(TTM)20.45B
Net Income(TTM)1.18B
Analysts69.57
Price Target16.1 (20.51%)
Short Float %4.61%
Short Ratio11.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9% |
Yearly Dividend0.76
Dividend Growth(5Y)1.9%
DP135.96%
Div Incr Years21
Div Non Decr Years21
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.23%
Min EPS beat(2)-9.6%
Max EPS beat(2)-6.86%
EPS beat(4)2
Avg EPS beat(4)2.51%
Min EPS beat(4)-9.6%
Max EPS beat(4)15.34%
EPS beat(8)6
Avg EPS beat(8)6.26%
EPS beat(12)8
Avg EPS beat(12)1.44%
EPS beat(16)10
Avg EPS beat(16)0.79%
Revenue beat(2)0
Avg Revenue beat(2)-2.01%
Min Revenue beat(2)-3.02%
Max Revenue beat(2)-0.99%
Revenue beat(4)1
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)0.77%
Revenue beat(8)1
Avg Revenue beat(8)-1.96%
Revenue beat(12)1
Avg Revenue beat(12)-1.92%
Revenue beat(16)2
Avg Revenue beat(16)-1.99%
PT rev (1m)-2.44%
PT rev (3m)-4.43%
EPS NQ rev (1m)2.36%
EPS NQ rev (3m)-7.59%
EPS NY rev (1m)0.51%
EPS NY rev (3m)-4.08%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 17.03 | ||
| P/S | 1.41 | ||
| P/FCF | 29.35 | ||
| P/OCF | 5.98 | ||
| P/B | 1.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.79 |
EPS(TTM)0.7
EY5.24%
EPS(NY)0.78
Fwd EY5.87%
FCF(TTM)0.46
FCFY3.41%
OCF(TTM)2.24
OCFY16.73%
SpS9.5
BVpS7.37
TBVpS-7
PEG (NY)N/A
PEG (5Y)N/A
Graham Number10.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 7.43% | ||
| ROCE | 6.45% | ||
| ROIC | 4.94% | ||
| ROICexc | 5.12% | ||
| ROICexgc | 14.3% | ||
| OM | 15.48% | ||
| PM (TTM) | 5.77% | ||
| GM | 62.85% | ||
| FCFM | 4.79% |
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-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 30.52 | ||
| Debt/EBITDA | 3.72 | ||
| Cap/Depr | 95.4% | ||
| Cap/Sales | 18.75% | ||
| Interest Coverage | 2.27 | ||
| Cash Conversion | 67% | ||
| Profit Quality | 83.12% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 0.89 |
F-Score6
WACC5.39%
ROIC/WACC0.92
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)-5.83%
EPS 3Y-0.32%
EPS 5Y-6.24%
EPS Q2Q%-14.29%
EPS Next Y-4.08%
EPS Next 2Y2.35%
EPS Next 3Y3.96%
EPS Next 5Y6%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y6.15%
Revenue growth 5Y6.66%
Sales Q2Q%0.14%
Revenue Next Year0.39%
Revenue Next 2Y1.39%
Revenue Next 3Y2.56%
Revenue Next 5Y2.94%
EBIT growth 1Y-2.34%
EBIT growth 3Y-0.51%
EBIT growth 5Y0.7%
EBIT Next Year147.79%
EBIT Next 3Y38.35%
EBIT Next 5Y23.33%
FCF growth 1Y123.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y11.64%
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 3 / 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.
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 19.09 and the Price/Book (PB) ratio is 1.81.
What is the financial health of TELUS CORP (TU) stock?
The financial health rating of TELUS CORP (TU) is 1 / 10.