Executive Summary
TELUS Corporation, together with its subsidiaries, provides a range of telecommunications products and services in Canada. More Details
Rewards
Risk Analysis
Dividend of 4.71% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Mediocre balance sheet second-rate 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 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
-0.3%
T
-0.6%
CA Telecom
-0.2%
CA Market
1 Year Return
1.1%
T
-12.0%
CA Telecom
1.5%
CA Market
Return vs Industry: T exceeded the Canadian Telecom industry which returned -12% over the past year.
Return vs Market: T matched the Canadian Market which returned 1.4% over the past year.
Shareholder returns
| T | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.3% | -0.6% | -0.2% |
| 30 Day | 3.4% | 0.2% | 2.7% |
| 90 Day | 9.6% | 3.4% | 12.5% |
| 1 Year | 6.1%1.1% | -7.0%-12.0% | 5.2%1.5% |
| 3 Year | 30.7%13.8% | 5.1%-9.9% | 13.5%2.7% |
| 5 Year | 70.1%35.7% | 22.6%-5.1% | 60.0%35.5% |
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
5 days ago | Simply Wall St
Does TELUS Corporation (TSE:T) Create Value For Shareholders?2 weeks ago | Simply Wall St
Is TELUS Corporation (TSE:T) Popular Amongst Institutions?1 month ago | Simply Wall St
Our Take On TELUS' (TSE:T) CEO SalaryValuation
Is TELUS undervalued compared to its fair value and its price relative to the market?
49.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: T (CA$26.44) is trading below our estimate of fair value (CA$52.82)
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 (25.2x) compared to the XN Telecom industry average (11.6x).
PE vs Market: T is poor value based on its PE Ratio (25.2x) compared to the Canadian market (16.8x).
Price to Earnings Growth Ratio
PEG Ratio: T is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: T is overvalued based on its PB Ratio (2.8x) compared to the XN Telecom industry average (2.3x).
Next Steps
Future Growth
How is TELUS forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
11.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: T's forecast earnings growth (11.7% per year) is above the savings rate (1.5%).
Earnings vs Market: T's earnings (11.7% per year) are forecast to grow slower than the Canadian market (26.1% per year).
High Growth Earnings: T's earnings are forecast to grow, but not significantly.
Revenue vs Market: T's revenue (5.8% per year) is forecast to grow slower than the Canadian market (8% per year).
High Growth Revenue: T's revenue (5.8% 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 (13.1%).
Next Steps
Past Performance
How has TELUS performed over the past 5 years?
4.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: T has high quality earnings.
Growing Profit Margin: T's current net profit margins (8.7%) are lower than last year (12%).
Past Earnings Growth Analysis
Earnings Trend: T's earnings have grown by 4.2% 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 (-24.2%) over the past year, making it difficult to compare to the Telecom industry average (9.6%).
Return on Equity
High ROE: T's Return on Equity (11%) 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$23.1B).
Debt to Equity History and Analysis
Debt Level: T's debt to equity ratio (138%) is considered high.
Reducing Debt: T's debt to equity ratio has reduced from 159.2% to 138% over the past 5 years.
Debt Coverage: T's debt is well covered by operating cash flow (25.3%).
Interest Coverage: T's interest payments on its debt are well covered by EBIT (3.8x coverage).
Balance Sheet
Next Steps
Dividend
What is TELUS current dividend yield, its reliability and sustainability?
4.71%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: T's dividend (4.71%) is higher than the bottom 25% of dividend payers in the Canadian market (1.55%).
High Dividend: T's dividend (4.71%) is low compared to the top 25% of dividend payers in the Canadian market (4.91%).
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 (111.2%), 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 (103.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.0yrs
Average management tenure
CEO
Darren Entwistle (56 yo)
21yrs
Tenure
CA$12,920,864
Compensation
Mr. Darren Entwistle, B.A., M.B.A., LLD, has been the Chief Executive Officer and President of TELUS Corporation since August 2015. Mr. Entwistle serves as the Chief Executive Officer and President at Telu...
CEO Compensation Analysis
Compensation vs Market: Darren's total compensation ($USD10.15M) is above average for companies of similar size in the Canadian market ($USD6.59M).
Compensation vs Earnings: Darren's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 21yrs | CA$12.92m | 0.030% CA$ 10.2m | |
| Executive VP & CFO | 5yrs | CA$3.84m | 0.0081% CA$ 2.8m | |
| Executive Vice President of Technology Strategy & Business Transformation | no data | CA$3.64m | 0.012% CA$ 4.2m | |
| Executive VP & Group President | no data | CA$3.94m | 0.0072% CA$ 2.5m | |
| Executive VP & Chief Customer Officer | no data | CA$4.41m | 0.011% CA$ 3.8m | |
| Head of Investor Relations | 0.92yr | no data | no data | |
| Chief Legal & Governance Officer | no data | no data | 0.0025% CA$ 853.6k | |
| Executive VP of People & Culture and Chief Human Resources Officer | no data | no data | 0.0067% CA$ 2.3m | |
| Executive Vice President | no data | CA$2.05m | no data | |
| Senior Vice President of Legal Services | no data | no data | no data | |
| Senior Vice President | no data | no data | no data | |
| President of TELUS Business Solutions | no data | no data | 0.0061% CA$ 2.1m |
5.0yrs
Average Tenure
56yo
Average Age
Experienced Management: T's management team is seasoned and experienced (5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 21yrs | CA$12.92m | 0.030% CA$ 10.2m | |
| Independent Director | 2.42yrs | CA$235.00k | no data | |
| Independent Chairman | 5.42yrs | CA$518.02k | 0.0045% CA$ 1.5m | |
| Chairman Emeritus | 6.67yrs | CA$255.63k | no data | |
| Independent Director | 5.92yrs | CA$241.44k | no data | |
| Independent Director | 4.67yrs | CA$268.00k | 0.00093% CA$ 317.5k | |
| Independent Director | 7.5yrs | CA$238.00k | 0.0031% CA$ 1.1m | |
| Independent Director | 9yrs | CA$253.47k | 0.000040% CA$ 13.7k | |
| Independent Director | 6.67yrs | CA$268.61k | no data | |
| Independent Director | 3.17yrs | CA$240.66k | 0.00035% CA$ 119.5k | |
| Chairman of Atlantic Canada Community Board | 12.33yrs | no data | no data | |
| Independent Director | 3.67yrs | CA$237.37k | 0.000020% CA$ 6.8k |
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 been diluted in the past year, with total shares outstanding growing by 6.8%.
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$34.144b
- Shares outstanding: 1.29b
- Website: https://www.telus.com
Number of Employees
Location
- TELUS Corporation
- 510 West Georgia Street
- 7th Floor
- Vancouver
- British Columbia
- V6B 0M3
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| T | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Jan 1999 |
| BCZ | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1999 |
| TU | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Jan 1999 |
| TU N | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Jan 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 telecommunicatio...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/23 23:21 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.