NYSE:TU

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

6 star dividend payer with proven track record.


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


Market Performance


7 Day Return

0.6%

NYSE:TU

-0.5%

US Telecom

0.8%

US Market


1 Year Return

0.3%

NYSE:TU

7.0%

US Telecom

1.9%

US Market

TU underperformed the Telecom industry which returned 6.9% over the past year.

TU underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

TUIndustryMarket
7 Day0.6%-0.5%0.8%
30 Day1.1%5.8%3.4%
90 Day-0.1%8.9%2.1%
1 Year5.0%0.3%12.6%7.0%4.2%1.9%
3 Year28.8%12.6%17.6%0.6%46.7%37.2%
5 Year27.6%2.9%34.6%3.7%62.3%44.5%

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

No news available

Valuation

Is TELUS undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

TELUS's share price is below the future cash flow value, and at a moderate discount (> 20%).

TELUS's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

TELUS is overvalued based on earnings compared to the US Telecom industry average.

TELUS is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

TELUS is poor value based on expected growth next year.


Price Based on Value of Assets

TELUS is overvalued based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is TELUS expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

TELUS's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).

TELUS's earnings are expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).

TELUS's revenue growth is positive but not above the United States of America market average.

TELUS's earnings growth is positive but not above the United States of America market average.

TELUS's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

TELUS is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has TELUS performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

TELUS's year on year earnings growth rate has been positive over the past 5 years.

TELUS's 1-year earnings growth exceeds its 5-year average (12.1% vs 3%)

TELUS's earnings growth has exceeded the US Telecom industry average in the past year (12.1% vs -18%).


Return on Equity

TELUS has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

TELUS used its assets more efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

TELUS's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is TELUS's financial position?


Financial Position Analysis

TELUS's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

TELUS's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

TELUS's level of debt (143.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (113.9% vs 143.2% today).

Debt is well covered by operating cash flow (26.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.5x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

4.95%

Expected Dividend Yield


Dividend Yield and Payments Analysis

TELUS's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

TELUS's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.3x coverage).


Next Steps

Management

What is the CEO of TELUS's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average board tenure


CEO

Darren Entwistle (55yo)

19.7yrs

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

Darren's remuneration is about average for companies of similar size in United States of America.

Darren's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

5.8yrs

Average Tenure

63.5yo

Average Age

The tenure for the TELUS board of directors is about average.


Insider Trading

More shares have been bought than sold by TELUS individual insiders in the past 3 months.


Recent Insider Transactions

BuyCA$58,68409 Aug 19
Doug French
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares1,650
Max PriceCA$35.57
SellCA$30,23609 Aug 19
Doug French
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares850
Max PriceCA$35.57
SellCA$47,24717 May 19
John Manley
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,300
Max PriceCA$36.34
SellCA$83,33317 May 19
Doug French
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares2,300
Max PriceCA$36.23
BuyCA$110,57517 May 19
Doug French
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares3,050
Max PriceCA$36.25
BuyCA$19,58310 May 19
Doug French
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares551
Max PriceCA$35.54
BuyCA$18,55210 May 19
Sandy McIntosh
EntityIndividual
Role
Head of Human Resources
Executive VP of People & Culture and Chief Human Resources Officer
Shares522
Max PriceCA$35.54
BuyCA$60,06410 May 19
Josh Blair
EntityIndividual
Role
Senior Key Executive
Executive VP
Shares1,690
Max PriceCA$35.54
BuyCA$99,53207 Dec 18
Andrea Wood
EntityIndividual
Role
Chief Legal Officer
Chief Legal & Governance Officer
Shares2,808
Max PriceCA$35.45
SellCA$17,86207 Dec 18
Doug French
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares500
Max PriceCA$35.72
BuyCA$37,84103 Dec 18
Josh Blair
EntityIndividual
Role
Senior Key Executive
Executive VP
Shares1,058
Max PriceCA$35.77
BuyCA$267,46203 Dec 18
Doug French
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares7,478
Max PriceCA$35.77
BuyCA$418,50403 Dec 18
Tony Geheran
EntityIndividual
Shares11,701
Max PriceCA$35.77
BuyCA$489,25003 Dec 18
Sandy McIntosh
EntityIndividual
Role
Head of Human Resources
Executive VP of People & Culture and Chief Human Resources Officer
Shares13,679
Max PriceCA$35.77

Ownership Breakdown


Management Team

  • Darren Entwistle (55yo)

    President

    • Tenure: 19.7yrs
    • Compensation: CA$12.56m
  • François Côté (61yo)

    Executive Vice President

    • Tenure: 0yrs
    • Compensation: CA$2.05m
  • Andrea Wood

    Chief Legal & Governance Officer

    • Tenure: 0yrs
  • Eros Spadotto

    Executive Vice President of Technology Strategy & Business Transformation

    • Tenure: 0yrs
    • Compensation: CA$3.23m
  • François Gratton

    Executive VP & Group President

    • Tenure: 0yrs
  • Josh Blair

    Executive VP

    • Tenure: 0yrs
    • Compensation: CA$3.37m
  • Michel Belec

    Senior Vice President of Legal Services

    • Tenure: 0yrs
  • Sandy McIntosh

    Executive VP of People & Culture and Chief Human Resources Officer

    • Tenure: 0yrs
  • Doug French

    Executive VP & CFO

    • Tenure: 23.7yrs
    • Compensation: CA$3.36m
  • Ian McMillan

    Investor Relations

    • Tenure: 0yrs

Board Members

  • Dick Auchinleck (67yo)

    Chairman

    • Tenure: 4.1yrs
    • Compensation: CA$518.94k
  • Brian Canfield (80yo)

    Chairman Emeritus

    • Tenure: 5.3yrs
    • Compensation: CA$255.63k
  • Darren Entwistle (55yo)

    President

    • Tenure: 19.7yrs
    • Compensation: CA$12.56m
  • Lisa de Wilde (63yo)

    Director

    • Tenure: 4.6yrs
    • Compensation: CA$238.65k
  • Dave Mowat (63yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: CA$265.00k
  • Ray Chan (63yo)

    Director

    • Tenure: 6.2yrs
    • Compensation: CA$233.47k
  • John Manley (69yo)

    Director

    • Tenure: 7.7yrs
    • Compensation: CA$251.67k
  • Mary Haddad (63yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: CA$267.54k
  • Rick Hillier (64yo)

    Chairman of Atlantic Canada Community Board

    • Tenure: 11yrs
  • Stockwell Day (69yo)

    Director

    • Tenure: 8.7yrs
    • Compensation: CA$259.20k

Company Information

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


Key Information

  • Name: TELUS Corporation
  • Ticker: TU
  • Exchange: NYSE
  • Founded: 1993
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: CA$29.250b
  • Listing Market Cap: CA$22.065b
  • Shares outstanding: 601.84m
  • 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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 00:51
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.