TELUS Corp. (T) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Rogers Communications, Inc.

Quebecor, Inc.

TELUS Corp.

TeraGo, Inc.

Uniserve Communications Corp.

Trilogy International Partners, Inc.

Why is TELUS Corp. ?

Negative results in Jun 26

ROCE(HY) Lowest at -6.45%
INTEREST COVERAGE RATIO(Q) Lowest at 271.96
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -38.75%, its profits have risen by 3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -38.75% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is TELUS Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

TELUS Corp.

-38.75%

-2.72

22.77%

S&P/TSX 60

29.63%

2.46

12.04%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.29%

EBIT Growth (5y)

4.81%

EBIT to Interest (avg)

3.09

Debt to EBITDA (avg)

3.57

Net Debt to Equity (avg)

1.70

Sales to Capital Employed (avg)

0.47

Tax Ratio

37.60%

Dividend Payout Ratio

227.41%

Pledged Shares

Institutional Holding

50.80%

ROCE (avg)

7.55%

ROE (avg)

9.96%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.61

EV to EBIT

16.64

EV to EBITDA

7.26

EV to Capital Employed

1.22

EV to Sales

2.57

PEG Ratio

Dividend Yield

ROCE (Latest)

7.34%

ROE (Latest)

9.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 5,015 MM

RAW MATERIAL COST(Y)

Fallen by -0.22% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 36.1 times

-19What is not working for the Company

ROCE(HY)

Lowest at -6.45%

INTEREST COVERAGE RATIO(Q)

Lowest at 271.96

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBT-EQUITY RATIO (HY)

Highest at 226.41 %

NET SALES(Q)

Lowest at CAD 4,920 MM

INTEREST(Q)

Highest at CAD 649 MM

PRE-TAX PROFIT(Q)

Lowest at CAD 333 MM

EPS(Q)

Lowest at CAD -1.17

Here's what is working for TELUS Corp.

Operating Cash Flow

Highest at CAD 5,015 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Inventory Turnover Ratio

Highest at 36.1 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -0.22% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for TELUS Corp.

Interest

At CAD 649 MM has Grown at 15.28%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest Coverage Ratio

Lowest at 271.96

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CAD 4,920 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Interest

Highest at CAD 649 MM

in the last five periods and Increased by 15.28% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Pre-Tax Profit

Lowest at CAD 333 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

EPS

Lowest at CAD -1.17

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Debt-Equity Ratio

Highest at 226.41 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)