TELUS Corp (TU) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B against the industry

Needs positive book value.

Price against fair value

We could not estimate a fair value: it needs at least two valuation methods with positive inputs.

Margin of safety

Depends on the fair value estimate.

Revenue growing under 10% a year

Revenue grew 3.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -14.5% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 12.1% over the last twelve months, against a 5-year average of -1.6% a year.

Growing slower than the industry

Revenue grew 0.6% over the last twelve months; the Telephone Communications median is 5.5%.

Guidance lowered

Telus lowered its 2026 Consolidated Adjusted EBITDA outlook on Jul 31, 2026.

Gross margin improving

Gross margin was 88.3% over the last twelve months, against 87.7% a year earlier.

Return on equity under 15%

Return on equity was 7.8% over the last twelve months and averaged 8.2% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 3.5%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Telus's return on equity of 7.8% is below the Telephone Communications median of 8.4%.

Earnings shrank over 5 years

Net income shrank 1.6% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 5.4% over the last twelve months, against a 5-year average of 6.6%.

Net margin below the industry

Telus's net margin of 5.4% is below the Telephone Communications median of 6.5%.

High debt

Debt is 237% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 169% five years ago to 237%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 15.5% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 2.0 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.67 times current liabilities.

Bankruptcy risk (Altman Z)

Needs market value, working capital and retained earnings.

No dividend

Telus has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.