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

TELUS Corp.

Rogers Communications, Inc.

Quebecor, Inc.

Uniserve Communications Corp.

TeraGo, Inc.

Trilogy International Partners, Inc.

Why is TELUS Corp. ?

Positive results in Jun 25

DIVIDEND PER SHARE(HY) Highest at CAD 4.96
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
DIVIDEND PAYOUT RATIO(Y) Highest at 9,050%

With ROE of 9.58%, it has a very attractive valuation with a 2.18 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.93%, its profits have fallen by -1.8%

High Institutional Holdings at 52.76%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.93% 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 hold?

Overall Portfolio exposure to TELUS Corp. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is TELUS Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

TELUS Corp.

-15.75%

-2.00

19.26%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.81%

EBIT Growth (5y)

4.71%

EBIT to Interest (avg)

4.03

Debt to EBITDA (avg)

3.39

Net Debt to Equity (avg)

1.70

Sales to Capital Employed (avg)

0.47

Tax Ratio

24.47%

Dividend Payout Ratio

227.41%

Pledged Shares

Institutional Holding

52.80%

ROCE (avg)

7.68%

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

1.82

EV to EBIT

17.57

EV to EBITDA

7.62

EV to Capital Employed

1.31

EV to Sales

2.69

PEG Ratio

Dividend Yield

ROCE (Latest)

7.45%

ROE (Latest)

9.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 4,866 MM

ROCE(HY)

Highest at 7.09%

DIVIDEND PER SHARE(HY)

Highest at CAD 4.44

DIVIDEND PAYOUT RATIO(Y)

Highest at 220.21%

RAW MATERIAL COST(Y)

Fallen by -5.77% (YoY

CASH AND EQV(HY)

Highest at CAD 4,448 MM

-2What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.44 times

NET PROFIT(Q)

Lowest at CAD 304.2 MM

Here's what is working for TELUS Corp.

Operating Cash Flow

Highest at CAD 4,866 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Dividend per share

Highest at CAD 4.44 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Cash and Eqv

Highest at CAD 4,448 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 220.21%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -5.77% (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.

Net Profit

Lowest at CAD 304.2 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Debtors Turnover Ratio

Lowest at 4.44 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio