TSX:T

Stock Analysis Report

Executive Summary

TELUS Corporation, together with its subsidiaries, provides a range of telecommunications products and services in Canada.


Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has TELUS's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: T's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.5%

T

3.5%

CA Telecom

6.4%

CA Market


1 Year Return

-14.1%

T

-8.5%

CA Telecom

-25.5%

CA Market

Return vs Industry: T underperformed the Canadian Telecom industry which returned -8.5% over the past year.

Return vs Market: T exceeded the Canadian Market which returned -25.5% over the past year.


Shareholder returns

TIndustryMarket
7 Day-0.5%3.5%6.4%
30 Day-12.3%-10.4%-22.6%
90 Day-15.7%-18.4%-26.8%
1 Year-10.0%-14.1%-4.0%-8.5%-23.2%-25.5%
3 Year12.6%-1.6%0.009%-14.5%-15.7%-23.5%
5 Year25.0%0.2%18.4%-8.0%-3.1%-17.4%

Price Volatility Vs. Market

How volatile is TELUS's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TELUS undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: T (CA$21.25) is trading below our estimate of fair value (CA$43.9)

Significantly Below Fair Value: T is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: T is good value based on its PE Ratio (14.7x) compared to the Telecom industry average (15.2x).

PE vs Market: T is poor value based on its PE Ratio (14.7x) compared to the Canadian market (10.6x).


Price to Earnings Growth Ratio

PEG Ratio: T is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: T is overvalued based on its PB Ratio (2.4x) compared to the XN Telecom industry average (1.2x).


Next Steps

Future Growth

How is TELUS forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: T's forecast earnings growth (3.7% per year) is above the savings rate (1.4%).

Earnings vs Market: T's earnings (3.7% per year) are forecast to grow slower than the Canadian market (7.6% per year).

High Growth Earnings: T's earnings are forecast to grow, but not significantly.

Revenue vs Market: T's revenue (4.9% per year) is forecast to grow faster than the Canadian market (3.9% per year).

High Growth Revenue: T's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: T's Return on Equity is forecast to be low in 3 years time (16.6%).


Next Steps

Past Performance

How has TELUS performed over the past 5 years?

4.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: T has high quality earnings.

Growing Profit Margin: T's current net profit margins (12%) are higher than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: T's earnings have grown by 4.9% per year over the past 5 years.

Accelerating Growth: T's earnings growth over the past year (9.1%) exceeds its 5-year average (4.9% per year).

Earnings vs Industry: T earnings growth over the past year (9.1%) exceeded the Telecom industry 7.3%.


Return on Equity

High ROE: T's Return on Equity (16.7%) is considered low.


Next Steps

Financial Health

How is TELUS's financial position?


Financial Position Analysis

Short Term Liabilities: T's short term assets (CA$4.4B) do not cover its short term liabilities (CA$5.6B).

Long Term Liabilities: T's short term assets (CA$4.4B) do not cover its long term liabilities (CA$21.7B).


Debt to Equity History and Analysis

Debt Level: T's debt to equity ratio (159.1%) is considered high.

Reducing Debt: T's debt to equity ratio has increased from 126.5% to 159.1% over the past 5 years.

Debt Coverage: T's debt is well covered by operating cash flow (23.2%).

Interest Coverage: T's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet

Inventory Level: T has a high level of physical assets or inventory.

Debt Coverage by Assets: T's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is TELUS's current dividend yield, its reliability and sustainability?

5.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: T's dividend (5.48%) is higher than the bottom 25% of dividend payers in the Canadian market (2.73%).

High Dividend: T's dividend (5.48%) is low compared to the top 25% of dividend payers in the Canadian market (8.76%).


Stability and Growth of Payments

Stable Dividend: T's dividends per share have been stable in the past 10 years.

Growing Dividend: T's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.7%), T's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: T's dividends in 3 years are forecast to be covered by earnings (84.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

20.2yrs

Average management tenure


CEO

Darren Entwistle (55yo)

20.17s

Tenure

CA$12,563,216

Compensation

Mr. Darren Entwistle, B.A., M.B.A., LLD, has been the Chief Executive Officer and President of TELUS Corporation since August 2015. Mr. Entwistle serves as the Chief Executive Officer and President at Telu ...


CEO Compensation Analysis

Compensation vs Market: Darren's total compensation ($USD8.93M) is above average for companies of similar size in the Canadian market ($USD6.69M).

Compensation vs Earnings: Darren's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Darren Entwistle
President20.17yrsCA$12.56m0.060% CA$16.1m
Doug French
Executive VP & CFO24.17yrsCA$3.36m0.011% CA$3.0m
Eros Spadotto
Executive Vice President of Technology Strategy & Business Transformationno dataCA$3.23m0.024% CA$6.5m
Robert Mitchell
Head of Investor Relations0.083yrno datano data
Andrea Wood
Chief Legal & Governance Officerno datano data0.0040% CA$1.1m
Sandy McIntosh
Executive VP of People & Culture and Chief Human Resources Officerno datano data0.013% CA$3.4m
François Côté
Executive Vice Presidentno dataCA$2.05mno data
Michel Belec
Senior Vice President of Legal Servicesno datano datano data
Paul Lepage
Senior Vice Presidentno datano datano data
Navin Arora
President of TELUS Business Solutionsno datano data0.0089% CA$2.4m

20.2yrs

Average Tenure

Experienced Management: T's management team is seasoned and experienced (20.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Darren Entwistle
President20.17yrsCA$12.56m0.060% CA$16.1m
Richard Auchinleck
Independent Chairman4.58yrsCA$518.94k0.0089% CA$2.4m
Brian Canfield
Chairman Emeritus5.83yrsCA$255.63kno data
David Mowat
Independent Director3.83yrsCA$265.00k0.0019% CA$508.7k
Raymond Chan
Independent Director6.67yrsCA$233.47k0.0063% CA$1.7m
John Manley
Independent Director8.17yrsCA$251.67kno data
Mary Haddad
Independent Director5.83yrsCA$267.54kno data
Josh Blair
Chair of the Board - TELUS International0.17yrCA$3.37mno data
Rick Hillier
Chairman of Atlantic Canada Community Board11.5yrsno datano data
Stockwell Day
Independent Director9.17yrsCA$259.20k0.0029% CA$783.3k

6.3yrs

Average Tenure

64yo

Average Age

Experienced Board: T's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: T insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

TELUS Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TELUS Corporation
  • Ticker: T
  • Exchange: TSX
  • Founded: 1993
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: CA$26.917b
  • Shares outstanding: 1.27b
  • Website: https://www.telus.com

Number of Employees


Location

  • TELUS Corporation
  • 510 West Georgia Street
  • 7th Floor
  • Vancouver
  • British Columbia
  • V6B 0M3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1999
BCZDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1999
TUNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1999
TU NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1999

Biography

TELUS Corporation, together with its subsidiaries, provides a range of telecommunications products and services in Canada. It operates through Wireless and Wireline segments. The company’s telecommunications products and services comprise wireless and wireline voice and data services; data services, including Internet protocol; television services; hosting, managed information technology, and cloud-based services; healthcare solutions; customer care and business services; and home and business security solutions. It has 13.4 million subscriber connections, including 9.2 million wireless subscribers, 1.9 million high-speed Internet subscribers, 1.2 million wireline residential network access lines, and 1.1 million TELUS TV subscribers. The company was formerly known as TELUS Communications Inc. and changed its name to TELUS Corporation in February 2005. TELUS Corporation was founded in 1993 and is based in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 02:11
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.