NYSE:TU

Stock Analysis Report

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Executive Summary

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


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: TU has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

TU

-3.5%

US Telecom

-3.3%

US Market


1 Year Return

-0.3%

TU

-13.7%

US Telecom

10.9%

US Market

Return vs Industry: TU exceeded the US Telecom industry which returned -13.7% over the past year.

Return vs Market: TU underperformed the US Market which returned 10.9% over the past year.


Shareholder returns

TUIndustryMarket
7 Day-1.3%-3.5%-3.3%
30 Day-4.6%-4.1%-5.7%
90 Day7.7%3.5%8.2%
1 Year3.9%-0.3%-9.3%-13.7%13.4%10.9%
3 Year11.6%-2.0%3.8%-11.1%34.9%25.9%
5 Year35.9%9.2%30.0%0.7%84.6%63.8%

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 compared to its fair value and its price relative to the market?

43.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TU ($17.62) is trading below our estimate of fair value ($30.96)

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


Price To Earnings Ratio

PE vs Industry: TU is poor value based on its PE Ratio (20.1x) compared to the US Telecom industry average (11.3x).

PE vs Market: TU is poor value based on its PE Ratio (20.1x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TU is overvalued based on its PB Ratio (2.5x) compared to the US 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 14 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TU's forecast earnings growth (11.7% per year) is above the savings rate (2.2%).

Earnings vs Market: TU's earnings (11.7% per year) are forecast to grow slower than the US market (23% per year).

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

Revenue vs Market: TU's revenue (4.6% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: TU's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TU's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

How has TELUS performed over the past 5 years?

5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TU has high quality earnings.

Growing Profit Margin: TU's current net profit margins (9.7%) are lower than last year (12.1%).


Past Earnings Growth Analysis

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

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

Earnings vs Industry: TU had negative earnings growth (-17.4%) over the past year, making it difficult to compare to the Telecom industry average (-12.9%).


Return on Equity

High ROE: TU's Return on Equity (12%) is considered low.


Next Steps

Financial Health

How is TELUS's financial position?


Financial Position Analysis

Short Term Liabilities: TU's short term assets (CA$4.4B) do not cover its short term liabilities (CA$4.9B).

Long Term Liabilities: TU'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: TU's debt to equity ratio (136.7%) is considered high.

Reducing Debt: TU's debt to equity ratio has reduced from 157% to 136.7% over the past 5 years.

Debt Coverage: TU's debt is well covered by operating cash flow (27.3%).

Interest Coverage: TU's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet


Next Steps

Dividend

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

4.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TU's dividend (4.95%) is higher than the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: TU's dividend (4.95%) is low compared to the top 25% of dividend payers in the US market (5.03%).


Stability and Growth of Payments

Stable Dividend: TU's dividends per share have been stable in the past 10 years.

Growing Dividend: TU's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (99%), TU's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TU's dividends in 3 years are not forecast to be well covered by earnings (99.2% payout ratio).


Next Steps

Management

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

20.7yrs

Average management tenure


CEO

Darren Entwistle (56 yo)

20.67yrs

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 ($USD9.64M) is about average for companies of similar size in the US market ($USD11.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Darren Entwistle
President20.67yrsCA$12.92m0.059%
CA$ 13.3m
Doug French
Executive VP & CFO24.67yrsCA$3.84m0.0054%
CA$ 1.2m
Eros Spadotto
Executive Vice President of Technology Strategy & Business Transformationno dataCA$3.64m0.024%
CA$ 5.3m
François Gratton
Executive VP & Group Presidentno dataCA$3.94m0.014%
CA$ 3.1m
Tony Geheran
Executive VP & Chief Customer Officerno dataCA$4.41m0.011%
CA$ 2.5m
Robert Mitchell
Head of Investor Relations0.58yrno datano data
Andrea Wood
Chief Legal & Governance Officerno datano data0.0040%
CA$ 901.7k
Sandy McIntosh
Executive VP of People & Culture and Chief Human Resources Officerno datano data0.012%
CA$ 2.8m
François Côté
Executive Vice Presidentno dataCA$2.05mno data
Michel Belec
Senior Vice President of Legal Servicesno datano datano data
Paul Lepage
Senior Vice Presidentno datano datano data
Navin Arora
President of TELUS Business Solutionsno datano data0.0044%
CA$ 987.3k

20.7yrs

Average Tenure

Experienced Management: TU's management team is seasoned and experienced (20.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Darren Entwistle
President20.67yrsCA$12.92m0.059%
CA$ 13.3m
Richard Auchinleck
Independent Chairman5.08yrsCA$518.02k0.0045%
CA$ 1.0m
Brian Canfield
Chairman Emeritus6.33yrsCA$255.63kno data
Lisa de Wilde
Independent Director5.58yrsCA$241.44kno data
David Mowat
Independent Director4.33yrsCA$268.00k0.00093%
CA$ 209.6k
Raymond Chan
Independent Director7.17yrsCA$238.00k0.0031%
CA$ 703.3k
John Manley
Independent Director8.67yrsCA$253.47k0.000040%
CA$ 9.0k
Mary Haddad
Independent Director6.33yrsCA$268.61kno data
Marc Parent
Independent Director2.83yrsCA$240.66k0.00035%
CA$ 78.9k
Josh Blair
Chair of the Board - TELUS International0.67yrCA$1.49m0.030%
CA$ 6.8m
Rick Hillier
Chairman of Atlantic Canada Community Board12yrsno datano data
Kathy Kinloch
Independent Director3.33yrsCA$237.37k0.000020%
CA$ 4.5k

6.0yrs

Average Tenure

64yo

Average Age

Experienced Board: TU's board of directors are considered experienced (6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TU 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 6.7%.


Top Shareholders

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$30.200b
  • Listing Market Cap: CA$22.542b
  • Shares outstanding: 1.28b
  • 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 telecommunicatio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/25 05:54
End of Day Share Price2020/09/24 00:00
Earnings2020/06/30
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.