Telus (T) AI Stock Analysis

• Market Cap: C$28.59B
• Dividend Yield: 9.03%
• Average Volume (3M): 8.31M
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.03
• Revenue Growth: 2.42%
• EPS Growth: 24.37%
• Country: CA
• Employees: 106,800
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.24
• Shares Outstanding: 1,548,000,000
• 10 Day Avg. Volume: 9,393,517
• 30 Day Avg. Volume: 8,306,612
• PEG Ratio: 1.89
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 1.44
• P/FCF Ratio: 19.92
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$20.95
• Price Target Upside: 14.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.98
• Revenue Forecast (FY): C$20.71B

• Rating: 62 Neutral
• Price Target: C$20.00 ▲(9.29% Upside)

Telus' overall stock score is driven by stable financial performance and a strong earnings call, highlighting growth in customer base and AI initiatives. However, technical indicators suggest bearish momentum, and high leverage poses financial risks. The attractive dividend yield and strategic corporate events provide positive support.

Positive Factors

Customer Growth

Strong customer growth indicates robust demand for TELUS services, enhancing market position and providing a stable revenue base for future expansion.

Health Segment Expansion

Expansion in the health segment diversifies revenue streams and leverages TELUS' expertise in digital health, supporting long-term growth and stability.

AI Revenue Growth

Significant AI revenue growth prospects position TELUS at the forefront of technology innovation, enhancing competitive advantage and future profitability.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting investment capacity and flexibility, impacting long-term financial health.

Declining Revenue Growth

Declining revenue growth suggests challenges in maintaining sales momentum, which could affect future profitability and market share.

Digital Profitability Challenges

Profitability challenges in TELUS Digital may hinder the segment's contribution to overall earnings, affecting long-term growth potential.

Telus Business Overview & Revenue Model

Company Description

Telus Corporation is a Canadian telecommunications company headquartered in Vancouver, British Columbia. It operates in the telecommunications and information technology sectors, providing a wide range of services including wireless voice and data services, wireline communications, internet services, and television services. The company is also involved in health technology and smart home solutions, catering to both residential and business customers across Canada.

How the Company Makes Money

Telus generates revenue primarily through its wireless and wireline services. The wireless segment includes voice and data plans for mobile devices, which are a significant source of recurring revenue. The company also earns money from wireline services, including broadband internet, home phone services, and television subscriptions. Additionally, Telus has ventured into health technology, offering digital health solutions and services that contribute to its revenue. Key partnerships with device manufacturers and content providers enhance its service offerings and revenue potential. Furthermore, the company's emphasis on customer retention and expansion into new markets plays a crucial role in driving its financial performance.

Telus Financial Statement Overview

Summary

Telus demonstrates stable profitability and operational efficiency, but faces challenges with declining revenue growth and high leverage. The company needs to focus on improving revenue streams and managing debt levels to enhance financial stability and growth prospects.

Income Statement

The income statement shows a decline in revenue growth with a negative rate of -6.87% in the TTM period, indicating potential challenges in maintaining sales momentum. However, the company maintains a stable EBIT margin of 15.63% and a net profit margin of 4.73%, suggesting operational efficiency. The gross profit margin remains healthy at 34.89%, although slightly lower than previous periods.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 2.18, indicating significant leverage which could pose financial risk. The return on equity is moderate at 6.21%, showing reasonable profitability from shareholders' investments. The equity ratio stands at 26.96%, suggesting a balanced asset structure but with room for improvement in reducing debt levels.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth at -1.45% in the TTM period, which may impact future investment capabilities. The operating cash flow to net income ratio is 0.44, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is 0.47, reflecting moderate cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.02B	20.14B	20.00B	18.29B	16.84B	15.34B
Gross Profit	5.92B	7.08B	7.03B	6.52B	6.03B	5.62B
EBITDA	6.20B	5.67B	5.62B	5.41B	4.99B	4.70B
Net Income	1.04B	993.00M	841.00M	1.61B	1.66B	1.21B
Balance Sheet
Total Assets	42.26B	58.02B	56.14B	54.05B	47.99B	43.33B
Cash, Cash Equivalents and Short-Term Investments	1.31B	869.00M	864.00M	974.00M	723.00M	848.00M
Total Debt	21.48B	29.78B	27.45B	25.14B	20.97B	20.39B
Total Liabilities	29.68B	41.23B	38.83B	36.41B	31.92B	30.70B
Stockholders Equity	11.40B	15.62B	16.11B	16.57B	15.12B	12.04B
Cash Flow
Free Cash Flow	2.18B	1.46B	1.29B	1.16B	-928.00M	1.75B
Operating Cash Flow	4.39B	4.85B	4.50B	4.81B	4.39B	4.57B
Investing Cash Flow	-1.93B	-3.70B	-4.75B	-5.41B	-5.47B	-6.17B
Financing Cash Flow	-921.38M	-1.14B	139.00M	848.00M	953.00M	1.90B

Telus Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:T, the sentiment is Negative. The current price of 18.3 is below the 20-day moving average (MA) of 18.79, below the 50-day MA of 20.16, and below the 200-day MA of 20.99, indicating a bearish trend. The MACD of -0.53 indicates Negative momentum. The RSI at 28.51 is Positive, neither overbought nor oversold. The STOCH value of 48.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:T.

Telus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCI.B	80 Outperform	$27.39B	4.05	47.62%	4.04%	2.75%	342.54%
QBR.B	75 Outperform	$10.29B	13.55	34.72%	2.77%	-0.29%	15.30%
BCE	72 Outperform	$29.92B	4.83	31.28%	8.97%	0.11%	7109.23%
QBR.A	71 Outperform	C$10.29B	13.19	35.34%	2.78%	-0.29%	15.30%
RCI.A	71 Outperform	C$28.97B	4.28	47.85%	4.03%	2.75%	342.54%
T	62 Neutral	C$28.59B	23.81	7.30%	9.03%	2.42%	24.37%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Telus Corporate Events

TELUS Completes Privatization of TELUS Digital to Boost AI and SaaS Leadership

TELUS has completed the privatization of TELUS Digital, acquiring all outstanding shares for approximately US$539 million, thereby owning 100% of the company. This strategic move is expected to enhance TELUS’s capabilities in AI-powered digital customer experience and SaaS transformation, generating approximately $150 million annually in operational efficiencies. The integration aims to accelerate growth across TELUS’s business lines and create significant shareholder value, positioning the company as a global leader in its industry.