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Telus Corp. (TSE:T)
TSX:T
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Telus (T) AI Stock Analysis

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TSE:T

Telus

(TSX:T)

Rating:73Outperform
Price Target:
C$25.00
▲(10.08% Upside)
Telus demonstrates strong financial performance and strategic growth initiatives, particularly in TELUS Health and infrastructure monetization. While the high P/E ratio suggests potential overvaluation, the attractive dividend yield and positive earnings call insights support a favorable outlook. Technical indicators show a positive trend, though caution is advised due to overbought signals.
Positive Factors
Financial Performance
Adjusted free cash flow came in at $535 million, well ahead of expectations.
Strategic Partnerships
The Tower deal with La Caisse was a clear net positive, indicating a step forward for the company.
Negative Factors
Earnings
Adjusted earnings per share decreased by 12% year over year to $0.22, impacted by depreciation and interest expenses.
Wireless Revenue Challenges
Wireless remains the main challenge, with service revenue growth remaining in negative territory.

Telus (T) vs. iShares MSCI Canada ETF (EWC)

Telus Business Overview & Revenue Model

Company DescriptionTelus Corporation is a Canadian telecommunications company headquartered in Vancouver, British Columbia. It operates in two primary sectors: wireless and wireline communications. Telus provides a wide range of products and services including mobile voice and data services, internet access, television broadcasting, and digital healthcare solutions. The company serves millions of customers across Canada and is recognized for its commitment to innovation and customer service.
How the Company Makes MoneyTelus generates revenue through multiple key streams, primarily from its wireless and wireline services. The wireless segment contributes a significant portion of revenue through mobile subscriptions, data plans, and device sales. The wireline segment includes revenues from internet, television, and home phone services. Additionally, Telus has ventured into digital healthcare services, providing solutions that leverage its telecommunications infrastructure. Strategic partnerships with technology providers and content creators enhance its offerings and market reach. The company's focus on customer retention and expansion into new service areas, such as smart home technology and IoT solutions, further supports its revenue growth.

Telus Earnings Call Summary

Earnings Call Date:Aug 01, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong customer growth and strategic investments with some challenges in mobile revenue and increased churn. The highlights such as TELUS Health's growth and tower monetization initiatives indicate a forward-looking strategy, while the lowlights reflect ongoing market pressures.
Q2-2025 Updates
Positive Updates
Strong Customer Growth
TELUS achieved total mobile and fixed customer growth of 198,000 in Q2 2025, driven by mobile phone and connected device additions of 167,000 and fixed customer additions of 31,000.
Industry-Leading Postpaid Mobile Phone Churn
TELUS maintained its postpaid mobile phone churn at 0.9%, marking the 12th consecutive year below 1%.
TELUS Health Revenue and EBITDA Growth
TELUS Health demonstrated strong operating momentum with revenue growth of 16% and adjusted EBITDA growth of 29%.
Tower Infrastructure Monetization
TELUS announced a definitive agreement with La Caisse to acquire a 49.9% interest in Terrion, its new Canadian wireless tower infrastructure operator, to strengthen financial flexibility and accelerate balance sheet deleveraging.
TELUS Friendly Future Foundation Success
The TELUS Friendly Future Foundation raised over $2.6 million in sponsorships, cash donations, and in-kind contributions for the TELUS Student Bursary fund.
Negative Updates
Mobile Network Revenue Decline
Mobile network revenue was down slightly due to a 3.3% decline in ARPU, influenced by competitive pressures and lower overage and roaming revenues.
Increased Internet Churn
TELUS experienced an uptick in internet churn due to affordability constraints and competitive pressures.
TELUS Digital Impairment
TELUS recorded a non-cash impairment adjustment to goodwill for TELUS Digital due to higher weighted average cost of capital and lower cash flow forecasts.
Company Guidance
During the TELUS 2025 Q2 earnings call, the company provided comprehensive guidance, highlighting several key metrics. TELUS reported total mobile and fixed customer growth of 198,000, with mobile phone and connected device additions totaling 167,000 and fixed customer additions of 31,000. Postpaid mobile phone churn remained low at 0.9%. Financial performance was strong, with TTech EBITDA growth of 4%, consistent with Q1 results. TELUS Health demonstrated robust growth, achieving operating revenue and adjusted EBITDA increases of 16% and 29%, respectively. TELUS announced a $2 billion investment to expand broadband services in Ontario and Quebec, aiming for a national scale through smart broadband network builds. The company's wireline business saw industry-leading total fixed customer additions, with 27,000 Internet net additions and fixed data services revenue growth of 73%. TELUS also revealed a strategic move with La Caisse to acquire a 49.9% interest in their newly formed Canadian wireless tower infrastructure operator, Terrion, to enhance financial flexibility and leverage national wireless access. Looking ahead, TELUS maintained its 2025 targets, including TTech operating revenues and adjusted EBITDA growth of 2% to 4% and 3% to 5%, respectively, with consolidated free cash flow for 2025 confirmed at $2.15 billion. The company is focused on achieving a leverage ratio of 3x net debt to EBITDA by 2027.

Telus Financial Statement Overview

Summary
Telus exhibits solid financial performance with strong revenue growth and cash flow generation. However, increased leverage and slight pressure on profitability margins warrant attention. The company is well-positioned in the telecommunications industry, but should focus on managing debt levels and improving net profitability to sustain long-term growth.
Income Statement
75
Positive
Telus has demonstrated consistent revenue growth with a TTM growth rate of 6.46%. The gross profit margin remains strong at 62.25%, indicating efficient cost management. However, the net profit margin has slightly decreased to 4.73% in the TTM, reflecting some pressure on profitability. The EBIT and EBITDA margins have also seen a decline, suggesting increased operational costs or competitive pressures.
Balance Sheet
70
Positive
The company's debt-to-equity ratio has increased to 2.18, indicating higher leverage, which could pose financial risk if not managed carefully. Return on equity is relatively stable at 6.21%, showing moderate profitability. The equity ratio stands at 25.11%, suggesting a balanced asset structure but with room for improvement in equity financing.
Cash Flow
80
Positive
Telus has shown a significant improvement in free cash flow growth at 48.69% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.44, reflecting adequate cash flow relative to net income. The free cash flow to net income ratio of 0.47 suggests effective conversion of profits into cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue20.42B20.14B20.00B18.29B16.84B15.34B
Gross Profit12.71B12.50B12.47B11.19B10.14B9.07B
EBITDA6.37B6.68B6.31B6.94B5.90B5.63B
Net Income966.00M993.00M841.00M1.61B1.66B1.21B
Balance Sheet
Total Assets60.63B58.02B56.14B54.05B47.99B43.33B
Cash, Cash Equivalents and Short-Term Investments3.68B869.00M864.00M974.00M723.00M848.00M
Total Debt33.12B29.78B27.45B25.14B20.97B20.39B
Total Liabilities44.53B41.23B38.83B36.39B31.93B30.73B
Stockholders Equity15.22B15.62B16.11B16.57B15.12B12.07B
Cash Flow
Free Cash Flow2.21B1.46B1.29B1.16B-928.00M1.75B
Operating Cash Flow4.75B4.85B4.50B4.81B4.39B4.57B
Investing Cash Flow-3.15B-3.70B-4.75B-5.41B-5.47B-6.17B
Financing Cash Flow1.15B-1.14B139.00M848.00M953.00M1.90B

Telus Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22.71
Price Trends
50DMA
22.32
Positive
100DMA
21.71
Positive
200DMA
20.99
Positive
Market Momentum
MACD
0.17
Negative
RSI
57.85
Neutral
STOCH
52.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:T, the sentiment is Positive. The current price of 22.71 is above the 20-day moving average (MA) of 22.43, above the 50-day MA of 22.32, and above the 200-day MA of 20.99, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 57.85 is Neutral, neither overbought nor oversold. The STOCH value of 52.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:T.

Telus Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$34.63B35.646.08%7.08%2.56%21.28%
60
Neutral
$43.56B4.52-12.81%4.07%1.87%-43.08%
$23.23B85.842.91%9.79%
$19.27B17.4113.68%4.00%
75
Outperform
C$26.65B18.2813.93%3.89%1.87%71.51%
70
Outperform
C$9.32B12.2734.50%3.16%-1.02%4.71%
$6.74B12.3333.80%3.26%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:T
Telus
22.75
2.64
13.13%
BCE
BCE
24.98
-6.85
-21.52%
RCI
Rogers Communication
35.78
-3.10
-7.97%
TSE:QBR.A
Quebecor Inc Cl A MV
42.20
11.91
39.32%
TSE:RCI.A
Rogers Comm Cl A
51.43
-2.15
-4.01%
QBCRF
Quebecor
30.35
6.65
28.06%

Telus Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
TELUS Announces Pricing for Debt Securities Tender Offers
Neutral
Jul 1, 2025

TELUS Corporation announced the pricing terms for its cash tender offers for eight series of debt securities, aiming to purchase up to a specified maximum amount of its outstanding notes. The tender offers are part of TELUS’s financial strategy to manage its debt profile, with the settlement expected to occur on July 3, 2025. The completion of this offer will result in the retirement and cancellation of the purchased notes, impacting the company’s financial operations by potentially reducing its interest obligations and optimizing its capital structure.

The most recent analyst rating on (TSE:T) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Telus Expands Cash Tender Offers for Debt Securities
Positive
Jun 30, 2025

Telus Corporation announced the results of its cash tender offers for eight series of debt securities, increasing the maximum purchase amount to accommodate all tendered 3.95% and 4.10% Senior Notes, and a portion of the 4.40% Senior Notes. This strategic move allows Telus to manage its debt more effectively, potentially improving its financial flexibility and market positioning.

The most recent analyst rating on (TSE:T) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Telus Successfully Completes Cash Tender Offers for Debt Securities
Positive
Jun 30, 2025

Telus Corporation announced the results of its cash tender offers for two series of debt securities, with a total of US$318,255,000 aggregate principal amount of notes accepted for purchase. The offers, which were subject to certain conditions, have been successfully completed, with all validly tendered notes being accepted. This move is part of Telus’s financial strategy to manage its debt portfolio, supported by the recent issuance of US$1.5 billion in junior subordinated notes, reflecting the company’s proactive approach in optimizing its financial structure.

The most recent analyst rating on (TSE:T) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
TELUS Announces Pricing for Debt Securities Tender Offers
Neutral
Jun 27, 2025

TELUS Corporation announced the pricing terms for its cash tender offers to purchase two series of its outstanding debt securities. The offers are structured to buy back notes with a total consideration calculated based on specific yields and fixed spreads. The tender offers are set to expire on June 27, 2025, with settlement expected by July 3, 2025, provided all conditions are met. This move is part of TELUS’s strategy to manage its debt portfolio, potentially impacting its financial flexibility and cost of capital.

The most recent analyst rating on (TSE:T) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
TELUS Completes US$1.5 Billion Notes Offering to Bolster Financial Strategy
Positive
Jun 27, 2025

TELUS has successfully closed its US$1.5 billion offering of Fixed-to-Fixed Rate Junior Subordinated Notes, which will be used to fund previously announced tender offers and potentially repay debt and support general corporate purposes. This financial maneuver is expected to strengthen TELUS’ financial position, enhance its operational flexibility, and potentially impact its market standing positively.

The most recent analyst rating on (TSE:T) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
TELUS Prices $1.5 Billion Junior Subordinated Notes Offering
Positive
Jun 25, 2025

TELUS has announced the pricing of a US$1.5 billion offering of Fixed-to-Fixed Rate Junior Subordinated Notes in two series, with Series A and Series B due in 2055. The proceeds from this offering are intended to fund previously announced tender offers, and any remaining funds will be used for debt repayment and general corporate purposes. This strategic financial move is expected to bolster TELUS’s financial flexibility and support its ongoing operational and corporate objectives.

The most recent analyst rating on (TSE:T) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
TELUS Announces Cash Tender Offers for Debt Securities
Neutral
Jun 20, 2025

TELUS Corporation announced cash tender offers for two series of its outstanding debt securities, with a total purchase amount capped at US$750 million. This move is part of TELUS’s strategic financial management to optimize its debt portfolio, potentially impacting its financial flexibility and market positioning by reducing interest expenses and managing its long-term liabilities.

The most recent analyst rating on (TSE:T) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
TELUS Initiates Cash Tender Offers for Debt Securities
Neutral
Jun 20, 2025

TELUS Corporation announced cash tender offers for eight series of its outstanding senior notes, with a maximum purchase amount of C$600 million. These offers are part of the company’s strategic financial management and may impact its debt structure and liquidity. The tender offers are subject to various conditions, including a financing condition, and provide TELUS with the flexibility to manage its debt portfolio effectively.

The most recent analyst rating on (TSE:T) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.

Private Placements and Financing
TELUS Announces $800 Million Junior Subordinated Note Offering
Positive
Jun 17, 2025

TELUS has announced the pricing of an $800 million re-opening of its fixed-to-fixed rate junior subordinated notes, Series CAR and Series CAS, with a 30-year maturity. The proceeds from this offering will be used to reduce outstanding indebtedness and for general corporate purposes, potentially strengthening TELUS’s financial position and operational flexibility. The notes have been assigned 50% equity credit by credit rating agencies, indicating a positive reception in the financial markets.

The most recent analyst rating on (TSE:T) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
TELUS Proposes Full Acquisition of TELUS Digital to Boost AI and SaaS
Positive
Jun 12, 2025

TELUS Corporation has submitted a non-binding indication of interest to acquire full ownership of TELUS Digital. The acquisition aims to enhance TELUS Digital’s operational efficiency and market responsiveness, with a proposed premium on share prices. The move is expected to strengthen TELUS’s capabilities in AI and SaaS across its business sectors, benefiting customers and investors. The proposal is subject to due diligence and approvals, with no guarantee of completion.

The most recent analyst rating on (TSE:T) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025