TELUS CORP (TU) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:TU • CA87971M1032

14.31 USD
+0.08 (+0.56%)
At close: Feb 10, 2026
14.31 USD
0 (0%)
After Hours: 2/10/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

Overall TU gets a fundamental rating of 3 out of 10. We evaluated TU against 36 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 does not seem to be growing, but still is valued expensively. Finally TU also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • In the past year TU was profitable.
  • TU had a positive operating cash flow in the past year.
  • 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.
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 0 2B 4B

1.2 Ratios

  • The Return On Assets of TU (2.00%) is comparable to the rest of the industry.
  • TU's Return On Equity of 7.43% is fine compared to the rest of the industry. TU outperforms 63.89% of its industry peers.
  • TU has a Return On Invested Capital of 4.94%. This is comparable to the rest of the industry: TU outperforms 58.33% 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 6.72%.
Industry RankSector 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%
TU Yearly ROA, ROE, ROICTU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • Looking at the Profit Margin, with a value of 5.77%, TU is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
  • TU's Profit Margin has declined in the last couple of years.
  • TU has a Operating Margin of 15.48%. This is comparable to the rest of the industry: TU outperforms 55.56% of its industry peers.
  • In the last couple of years the Operating Margin of TU has declined.
  • With a decent Gross Margin value of 62.85%, TU is doing good in the industry, outperforming 63.89% of the companies in the same industry.
  • TU's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
TU Yearly Profit, Operating, Gross MarginsTU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. Health

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
  • Compared to 5 years ago, TU has more shares outstanding
  • The debt/assets ratio for TU is higher compared to a year ago.
TU Yearly Shares OutstandingTU Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 10B 20B 30B 40B 50B

2.2 Solvency

  • Based on the Altman-Z score of 0.91, we must say that TU is in the distress zone and has some risk of bankruptcy.
  • With a Altman-Z score value of 0.91, TU perfoms like the industry average, outperforming 52.78% of the companies in the same industry.
  • 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.
  • The Debt to FCF ratio of TU (30.52) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 1.68 is on the high side and indicates that TU has dependencies on debt financing.
  • TU has a worse Debt to Equity ratio (1.68) than 72.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.68
Debt/FCF 30.52
Altman-Z 0.91
ROIC/WACC0.89
WACC5.55%
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 0 5B 10B 15B 20B 25B

2.3 Liquidity

  • TU has a Current 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 Current ratio of 0.76. This is amonst the worse of the industry: TU underperforms 86.11% 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 86.11% of its industry peers.
Industry RankSector Rank
Current Ratio 0.76
Quick Ratio 0.71
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 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. Growth

3.1 Past

  • The earnings per share for TU have decreased by -5.83% in the last year.
  • TU shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.24% yearly.
  • Looking at the last year, TU shows a small growth in Revenue. The Revenue has grown by 2.42% in the last year.
  • The Revenue has been growing slightly by 6.66% on average over the past years.
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-4.46%
EPS Next 2Y1.71%
EPS Next 3Y3.45%
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.
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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3

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 20.15 indicates a rather expensive valuation of TU.
  • Based on the Price/Earnings ratio, TU is valued a bit cheaper than 69.44% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of TU to the average of the S&P500 Index (28.03), we can say TU is valued slightly cheaper.
  • Based on the Price/Forward Earnings ratio of 18.10, the valuation of TU can be described as rather expensive.
  • 69.44% of the companies in the same industry are more expensive than TU, based on the Price/Forward Earnings ratio.
  • TU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.97, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 20.15
Fwd PE 18.1
TU Price Earnings VS Forward Price EarningsTU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 is on the same level as the industry average.
Industry RankSector Rank
P/FCF 30.82
EV/EBITDA 7.96
TU Per share dataTU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.71%
EPS Next 3Y3.45%

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

8

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 8.51%, TU is a good candidate for dividend investing.
  • TU's Dividend Yield is rather good when compared to the industry average which is at 2.25. TU pays more dividend than 94.44% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, TU pays a better dividend.
Industry RankSector Rank
Dividend Yield 8.51%

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
TU Yearly Dividends per shareTU Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

  • 135.96% of the earnings are spent on dividend by TU. This is not a sustainable payout ratio.
  • The dividend of TU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP135.96%
EPS Next 2Y1.71%
EPS Next 3Y3.45%
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 0 1B -1B
TU Dividend Payout.TU Dividend Payout, showing the Payout Ratio.TU Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

TELUS CORP

NYSE:TU (2/10/2026, 8:04:00 PM)

After market: 14.31 0 (0%)

14.31

+0.08 (+0.56%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)11-07
Earnings (Next)02-12
Inst Owners55.52%
Inst Owner Change-0.97%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap22.19B
Revenue(TTM)20.45B
Net Income(TTM)1.18B
Analysts69.57
Price Target15.95 (11.46%)
Short Float %4.89%
Short Ratio12.34
Dividend
Industry RankSector Rank
Dividend Yield 8.51%
Yearly Dividend0.77
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)-0.92%
PT rev (3m)-5.69%
EPS NQ rev (1m)-2.13%
EPS NQ rev (3m)-6.81%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-4.46%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)-1.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.44%
Valuation
Industry RankSector Rank
PE 20.15
Fwd PE 18.1
P/S 1.48
P/FCF 30.82
P/OCF 6.27
P/B 1.9
P/tB N/A
EV/EBITDA 7.96
EPS(TTM)0.71
EY4.96%
EPS(NY)0.79
Fwd EY5.53%
FCF(TTM)0.46
FCFY3.24%
OCF(TTM)2.28
OCFY15.94%
SpS9.69
BVpS7.52
TBVpS-7.14
PEG (NY)N/A
PEG (5Y)N/A
Graham Number10.96
Profitability
Industry RankSector 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 RankSector 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 0.91
F-Score6
WACC5.55%
ROIC/WACC0.89
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-4.46%
EPS Next 2Y1.71%
EPS Next 3Y3.45%
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 20.15 and the Price/Book (PB) ratio is 1.9.


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

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