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TIXT

TELUS International (Cda)NYSE:TIXT Stock Report

Last Price

US$27.25

Market Cap

US$7.2b

7D

-7.2%

1Y

n/a

Updated

23 Jan, 2022

Data

Company Financials +
TIXT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance1/6
Financial Health3/6
Dividends0/6

TIXT Stock Overview

TELUS International (Cda) Inc. provides customer experience and digital business services in Europe, North America, the Asia-Pacific, and the Central America.

TELUS International (Cda) Competitors

Genpact

NYSE:G

US$9.4b

Concentrix

NasdaqGS:CNXC

US$8.8b

WNS (Holdings)

NYSE:WNS

US$4.2b

ExlService Holdings

NasdaqGS:EXLS

US$4.2b

Price History & Performance

Summary of all time highs, changes and price drops for TELUS International (Cda)
Historical stock prices
Current Share PriceUS$27.25
52 Week HighUS$39.91
52 Week LowUS$26.92
Beta0
1 Month Change-15.74%
3 Month Change-31.34%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-10.36%

Recent News & Updates

Dec 20

TELUS International: Broad Based Growth With Attractive Valuation

TELUS International is achieving double-digit organic revenue growth across multiple geographies and product lines. The company is poised to continue improving margins by scaling businesses through targeted bolt-on acquisitions. TELUS International is well-positioned to profit from the rapidly growing digital solutions and digital customer experience market. COVID-19 has accelerated the pace of digital transformation and the investment being allocated to digital customer experience solutions. A recent share price pullback, coupled with 30% YoY revenue growth, suggests the company is currently undervalued.

Dec 01
A Look At The Intrinsic Value Of TELUS International (Cda) Inc. (NYSE:TIXT)

A Look At The Intrinsic Value Of TELUS International (Cda) Inc. (NYSE:TIXT)

How far off is TELUS International (Cda) Inc. ( NYSE:TIXT ) from its intrinsic value? Using the most recent financial...

Shareholder Returns

TIXTUS ITUS Market
7D-7.2%-6.6%-6.1%
1Yn/a-9.4%4.2%

Return vs Industry: Insufficient data to determine how TIXT performed against the US IT industry.

Return vs Market: Insufficient data to determine how TIXT performed against the US Market.

Price Volatility

Is TIXT's price volatile compared to industry and market?
TIXT volatility
TIXT Average Weekly Movement4.5%
IT Industry Average Movement8.4%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

Stable Share Price: TIXT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TIXT's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200558,527Jeff Puritthttps://www.telusinternational.com

TELUS International (Cda) Inc. provides customer experience and digital business services in Europe, North America, the Asia-Pacific, and the Central America. It offers digital experience solutions, such as AI and bots, omnichannel CX, mobility solutions, cloud contact center, big data, platform transformation, and UX/UI design; and customer experience solutions, including work anywhere/work from home, customer care, technical support, sales growth and retention, and healthcare/patient experience. The company also provides IT lifecycle services comprising cloud and platform services, app dev and management, quality assurance and testing, system operations, IT service desk, internet of things, engineering solutions, and enterprise platform services; advisory services consisting of digital strategy, CX process consulting, data and customer analytics, workforce management, learning excellence solutions, and business and process transformation; robotic process automation, talent acquisition, finance and accounting, and supply chain management; and content moderation and social media, and fraud prevention and detection.

TELUS International (Cda) Fundamentals Summary

How do TELUS International (Cda)'s earnings and revenue compare to its market cap?
TIXT fundamental statistics
Market CapUS$7.25b
Earnings (TTM)US$62.90m
Revenue (TTM)US$2.04b

115.2x

P/E Ratio

3.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TIXT income statement (TTM)
RevenueUS$2.04b
Cost of RevenueUS$1.58b
Gross ProfitUS$453.80m
ExpensesUS$390.90m
EarningsUS$62.90m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.24
Gross Margin22.29%
Net Profit Margin3.09%
Debt/Equity Ratio59.3%

How did TIXT perform over the long term?

See historical performance and comparison

Valuation

Is TELUS International (Cda) undervalued compared to its fair value and its price relative to the market?

25.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TIXT ($27.25) is trading below our estimate of fair value ($36.42)

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


Price To Earnings Ratio

PE vs Industry: TIXT is poor value based on its PE Ratio (115.2x) compared to the US IT industry average (32.1x).

PE vs Market: TIXT is poor value based on its PE Ratio (115.2x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: TIXT is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: TIXT is overvalued based on its PB Ratio (4.5x) compared to the US IT industry average (4.1x).


Future Growth

How is TELUS International (Cda) forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

66.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TIXT's forecast earnings growth (66.7% per year) is above the savings rate (2%).

Earnings vs Market: TIXT's earnings (66.7% per year) are forecast to grow faster than the US market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TIXT's revenue (14.6% per year) is forecast to grow faster than the US market (9.1% per year).

High Growth Revenue: TIXT's revenue (14.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TIXT's Return on Equity is forecast to be low in 3 years time (17.3%).


Past Performance

How has TELUS International (Cda) performed over the past 5 years?

15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TIXT has a large one-off loss of $50.2M impacting its September 30 2021 financial results.

Growing Profit Margin: TIXT's current net profit margins (3.1%) are lower than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: TIXT's earnings have grown by 15.4% per year over the past 5 years.

Accelerating Growth: TIXT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TIXT had negative earnings growth (-42.5%) over the past year, making it difficult to compare to the IT industry average (35.8%).


Return on Equity

High ROE: TIXT's Return on Equity (3.9%) is considered low.


Financial Health

How is TELUS International (Cda)'s financial position?


Financial Position Analysis

Short Term Liabilities: TIXT's short term assets ($628.0M) exceed its short term liabilities ($608.0M).

Long Term Liabilities: TIXT's short term assets ($628.0M) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: TIXT's net debt to equity ratio (51.3%) is considered high.

Reducing Debt: Insufficient data to determine if TIXT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: TIXT's debt is well covered by operating cash flow (32.5%).

Interest Coverage: TIXT's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


Dividend

What is TELUS International (Cda) current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TIXT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TIXT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TIXT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TIXT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TIXT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Jeff Puritt (58 yo)

6yrs

Tenure

US$3,406,239

Compensation

Mr. Jeffrey D. Puritt, also known as Jeff, serves as an Executive Vice President of TELUS Corporation. Mr. Puritt has been the President, Director and Chief Executive Officer of TELUS International (Cda) I...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD3.41M) is below average for companies of similar size in the US market ($USD6.49M).

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


Leadership Team

Experienced Management: TIXT's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: TIXT's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: TIXT only recently listed within the past 12 months.


Top Shareholders

Company Information

TELUS International (Cda) Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: TELUS International (Cda) Inc.
  • Ticker: TIXT
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Implied Market Cap: US$7.246b
  • Shares outstanding: 265.90m
  • Website: https://www.telusinternational.com

Number of Employees


Location

  • TELUS International (Cda) Inc.
  • 510 West Georgia Street
  • 7th Floor
  • Vancouver
  • British Columbia
  • V6B 0M3
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 23:26
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.