Executive Summary
TELUS Corporation, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. More Details
Rewards
Risk Analysis
Dividend of 4.79% is not well covered by earnings or forecast to be in the next 3 years
+ 1 more risk
Snowflake Analysis
Average dividend payer and fair value.
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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: T's weekly volatility (2%) has been stable over the past year.
Market Performance
7 Day Return
0.5%
T
0.2%
CA Telecom
-0.7%
CA Market
1 Year Return
17.5%
T
13.1%
CA Telecom
39.3%
CA Market
Return vs Industry: T exceeded the Canadian Telecom industry which returned 13.1% over the past year.
Return vs Market: T underperformed the Canadian Market which returned 39.3% over the past year.
Shareholder returns
| T | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.5% | 0.2% | -0.7% |
| 30 Day | 1.4% | 4.5% | 1.0% |
| 90 Day | -1.0% | 8.2% | 6.1% |
| 1 Year | 23.2%17.5% | 19.3%13.1% | 43.8%39.3% |
| 3 Year | 32.9%15.7% | 28.4%10.0% | 28.6%16.4% |
| 5 Year | 63.2%30.1% | 26.4%-2.5% | 58.6%34.7% |
Long-Term 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
2 weeks ago | Simply Wall St
TELUS Corporation's (TSE:T) CEO Compensation Looks Acceptable To Us And Here's Why3 weeks ago | Simply Wall St
What You Need To Know About TELUS Corporation's (TSE:T) Investor Composition1 month ago | Simply Wall St
The Returns On Capital At TELUS (TSE:T) Don't Inspire ConfidenceValuation
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$26.42) is trading below our estimate of fair value (CA$75.2)
Significantly Below Fair Value: T is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: T is poor value based on its PE Ratio (28.6x) compared to the North American Telecom industry average (12.9x).
PE vs Market: T is poor value based on its PE Ratio (28.6x) compared to the Canadian market (15.2x).
Price to Earnings Growth Ratio
PEG Ratio: T is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: T is good value based on its PB Ratio (2.4x) compared to the XN Telecom industry average (2.8x).
Future Growth
How is TELUS forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
13.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: T's forecast earnings growth (13.1% per year) is above the savings rate (1.5%).
Earnings vs Market: T's earnings (13.1% per year) are forecast to grow slower than the Canadian market (13.6% per year).
High Growth Earnings: T's earnings are forecast to grow, but not significantly.
Revenue vs Market: T's revenue (5.3% per year) is forecast to grow slower than the Canadian market (6.4% per year).
High Growth Revenue: T's revenue (5.3% 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 (12.8%).
Past Performance
How has TELUS performed over the past 5 years?
1.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: T has high quality earnings.
Growing Profit Margin: T's current net profit margins (7.6%) are lower than last year (11.3%).
Past Earnings Growth Analysis
Earnings Trend: T's earnings have grown by 1.7% per year over the past 5 years.
Accelerating Growth: T's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: T had negative earnings growth (-28.8%) over the past year, making it difficult to compare to the Telecom industry average (18%).
Return on Equity
High ROE: T's Return on Equity (8%) is considered low.
Financial Health
How is TELUS's financial position?
Financial Position Analysis
Short Term Liabilities: T's short term assets (CA$5.8B) do not cover its short term liabilities (CA$6.9B).
Long Term Liabilities: T's short term assets (CA$5.8B) do not cover its long term liabilities (CA$23.0B).
Debt to Equity History and Analysis
Debt Level: T's debt to equity ratio (118%) is considered high.
Reducing Debt: T's debt to equity ratio has reduced from 166.7% to 118% over the past 5 years.
Debt Coverage: T's debt is well covered by operating cash flow (23.8%).
Interest Coverage: T's interest payments on its debt are well covered by EBIT (3.6x coverage).
Balance Sheet
Dividend
What is TELUS current dividend yield, its reliability and sustainability?
4.79%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: T's dividend (4.79%) is higher than the bottom 25% of dividend payers in the Canadian market (1.54%).
High Dividend: T's dividend (4.79%) is in the top 25% of dividend payers in the Canadian market (4.53%)
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: With its high payout ratio (130.6%), T's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: T's dividends in 3 years are not forecast to be well covered by earnings (114.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.3yrs
Average management tenure
CEO
Darren Entwistle (56 yo)
21.33yrs
Tenure
CA$16,036,973
Compensation
Mr. Darren Entwistle, B.A., M.B.A., LLD, has been the Chief Executive Officer and President of TELUS Corporation since August 2015. Mr. Entwistle serves as the Chief Executive Officer and President at Telu...
CEO Compensation Analysis
Compensation vs Market: Darren's total compensation ($USD13.25M) is above average for companies of similar size in the Canadian market ($USD6.59M).
Compensation vs Earnings: Darren's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: T's management team is seasoned and experienced (5.3 years average tenure).
Board Members
Experienced Board: T's board of directors are considered experienced (6.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: T insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.5%.
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$35.799b
- Shares outstanding: 1.36b
- Website: https://www.telus.com
Number of Employees
Location
- TELUS Corporation
- 510 West Georgia Street
- 7th Floor
- Vancouver
- British Columbia
- V6B 0M3
- Canada
Listings
Biography
TELUS Corporation, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. It operates through Wireless and Wireline segments. The...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/16 04:08 |
| End of Day Share Price | 2021/05/14 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.