Telus (T) AI Stock Analysis

• Market Cap: C$27.95B
• Dividend Yield: 9.49%
• Average Volume (3M): 8.42M
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.04
• 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: 1,550,956,200
• 10 Day Avg. Volume: 5,021,959
• 30 Day Avg. Volume: 8,416,709
• 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$20.73
• Price Target Upside: 15.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: C$20.00 ▲(10.99% 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, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. It operates through Technology Solutions and Digitally-Led Customer Experiences segments. The Technology Solutions segment offers a range of telecommunications products and services; network revenue; mobile technologies equipment sale; data revenues, such as internet protocol; television; hosting, managed information technology, and cloud-based services; software, data management, and data analytics-driven smart food-chain technologies; home and business security; healthcare software and technology solutions; and voice and other telecommunications services. The Digitally-Led Customer Experiences segment provides digital customer experience and digital-enablement transformation solutions, including artificial intelligence and content management solutions. It has 16.9 million subscriber connections, which include 9.3 million mobile phone subscribers; 2.1 million connected device subscribers; 2.3 million internet subscribers; 1.1 million residential voice subscribers; 1.3 million TV subscribers; and 804,000 security subscribers. The company was formerly known as TELUS Communications Inc. and changed its name to TELUS Corporation in February 2005. TELUS Corporation was incorporated in 1998 and is headquartered in Vancouver, 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: Neutral
• Last Price: 18.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:T, the sentiment is Neutral. The current price of 18.02 is above the 20-day moving average (MA) of 17.76, below the 50-day MA of 18.71, and below the 200-day MA of 20.29, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 49.51 is Neutral, neither overbought nor oversold. The STOCH value of 83.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	C$28.18B	4.16	47.62%	3.94%	2.75%	342.54%
QBR.A	78 Outperform	C$11.89B	14.79	35.34%	2.70%	-0.29%	15.30%
QBR.B	75 Outperform	C$11.89B	14.59	34.72%	2.69%	-0.29%	15.30%
BCE	72 Outperform	C$30.41B	4.91	31.28%	7.42%	0.11%	7109.23%
T	62 Neutral	C$27.95B	23.23	7.30%	9.49%	2.42%	24.37%
RCI.A	62 Neutral	C$28.18B	4.22	47.85%	3.89%	2.75%	342.54%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Telus Corporate Events

TELUS Announces Full Redemption of C$600 Million Notes Ahead of Schedule

TELUS Corporation has announced the full redemption of its C$600 million 3.75% Notes, Series CV, which were due on March 10, 2026. This strategic financial move is set to take place on January 16, 2026, and reflects TELUS’s proactive management of its financial obligations, potentially impacting its financial positioning positively. The redemption aligns with TELUS’s commitment to leveraging its financial strategies to support its operations and maintain its industry standing.

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.

TELUS Announces Pricing for Debt Securities Tender Offers

TELUS Corporation announced the pricing terms for its cash tender offers to purchase several series of its outstanding debt securities. The company has set the terms for these offers, which include a mix of reference yields and fixed spreads for different notes. The financing condition for these offers has been satisfied through the company’s recent offerings of Canadian and U.S. junior subordinated notes. The settlement date for the accepted notes is expected on December 16, 2025, after which the purchased notes will be retired and canceled. This move is part of TELUS’s strategy to manage its debt portfolio effectively, potentially impacting its financial flexibility and market positioning.

The most recent analyst rating on (TSE:T) stock is a Hold with a C$19.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.

TELUS Upsizes Cash Tender Offers for Debt Securities

TELUS Corporation announced an increase in its cash tender offers for seven series of debt securities, raising the Maximum Purchase Amount to accommodate all tendered notes for specific series. The company successfully tendered C$1,873,961,000 in aggregate principal amount of notes, indicating strong participation. This move is likely to impact TELUS’s financial strategy by managing its debt profile, potentially improving its market positioning and financial flexibility.

The most recent analyst rating on (TSE:T) stock is a Hold with a C$19.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.

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.

The most recent analyst rating on (TSE:T) stock is a Hold with a C$21.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.