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Telus Corp. (TSE:T)
TSX:T

Telus (T) AI Stock Analysis

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Telus

(TSX:T)

Rating:68Neutral
Price Target:
C$24.00
▲(6.10%Upside)
Telus exhibits strong financial performance with effective cost management and cash flow generation. The technical analysis suggests stable market conditions, while the high dividend yield adds attractiveness despite a higher P/E ratio. Positive corporate events further enhance Telus's financial strategy and market standing.
Positive Factors
Business Strategy
TELUS believes full ownership will enhance TELUS’ Artificial Intelligence (AI) capabilities and Software-as-a-Service (SaaS) transformation across all lines of its businesses.
Financial Performance
Health revenues increased 12% to $473mm with adjusted EBITDA increasing 30%.
Market Position
TELUS is well positioned to navigate current challenging markets with its credible de-levering plan.
Negative Factors
Financial Guidance
TELUS continues to trend toward the lower half of its full-year guidance range due to adjustments in revenue and volume estimates.
Revenue Challenges
Further multiple expansion is unlikely given current telecom pricing and volume challenges, which limit service revenue growth.
Revenue Decline
Network revenue decreased 1% reflecting slowed mobile loading and weak ARPU -3.7%.

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

Telus Business Overview & Revenue Model

Company DescriptionTelus Corporation is a Canadian national telecommunications company that provides a wide range of telecommunications products and services, including wireless and wireline voice and data services. It operates primarily in the telecommunications sector and offers services such as mobile network services, internet access, voice, entertainment, healthcare, video, and IPTV television. Telus also focuses on providing innovative solutions in healthcare technology and digital health services.
How the Company Makes MoneyTelus makes money through a variety of revenue streams primarily focused on telecommunications services. Its key revenue streams include mobile network services, where the company earns revenue from providing voice and data services to individual and business customers. This includes postpaid and prepaid plans, as well as additional services like roaming and equipment sales. Wireline services also contribute significantly, with Telus offering internet, television, and home phone services. Telus Health is another area of growth, generating revenue through digital healthcare solutions and technology services for healthcare providers and patients. The company also benefits from strategic partnerships and collaborations, which can enhance service offerings and customer reach.

Telus Earnings Call Summary

Earnings Call Date:May 09, 2025
(Q4-2024)
|
% Change Since: 10.82%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Neutral
TELUS demonstrated strong customer growth and robust EBITDA performance, highlighting significant achievements in its Health and Agriculture segments. However, challenges such as a decline in mobile ARPU and higher financing costs tempered the overall positive sentiment. The company remains focused on leveraging its strong asset base for future growth.
Q4-2024 Updates
Positive Updates
Record Customer Additions
TELUS achieved over 1.2 million telecom net new customer additions in 2024, marking the third consecutive year of surpassing 1 million additions.
Strong EBITDA Growth
TTech EBITDA grew by 7% in Q4 2024 and 5.5% for the full year, meeting the target range set at the beginning of the year.
TELUS Health and Agriculture Growth
TELUS Health achieved 10% revenue growth and 20% EBITDA growth in Q4, while TELUS Agriculture & Consumer Goods saw a 16% revenue increase.
Improved Capital Efficiency
Consolidated capital intensity was down 200 basis points year-over-year at 12%, reflecting a planned slowdown in fiber and wireless asset builds.
Negative Updates
Decline in Mobile Phone ARPU
Mobile phone ARPU declined by 3.6% in Q4 2024, indicating ongoing competitive pressures in the market.
Higher Financing Costs
Net income was partially offset by higher financing costs, reflecting increased long-term debt and higher interest rates.
Slight Miss on Free Cash Flow Target
Free cash flow for the full year was approximately $2 billion, slightly below the target of $2.1 billion due to higher-than-expected cash impacts of contract assets and device financing.
Company Guidance
During TELUS' 2024 Q4 earnings call, the guidance for 2025 highlighted several key financial metrics and strategic focuses. TELUS aims for TTech operating revenue growth of 2% to 4% and adjusted EBITDA growth of 3% to 5%, supported by moderated capital expenditures of approximately $2.5 billion. The company expects consolidated free cash flow to reach around $2.15 billion. TELUS plans to leverage its strong performance in customer additions, having achieved over 1.2 million net new telecom customer additions in 2024. The company also targets a net debt-to-EBITDA ratio of approximately 3x by 2027, alongside the removal of the discounted dividend reinvestment plan. The strategic focus includes enhancing operational excellence, expanding customer base, and capitalizing on growth in TELUS Health and Agriculture sectors. These initiatives aim to underpin long-term profitable growth and sustain the dividend growth program, which is now in its 15th year.

Telus Financial Statement Overview

Summary
Telus demonstrates strong profitability and cash flow management, with effective cost control and operational efficiency. However, moderate revenue growth and a relatively high debt-to-equity ratio suggest caution in financial leverage. The company maintains a stable financial footing with opportunities for enhancing equity contributions.
Income Statement
74
Positive
The TTM (Trailing-Twelve-Months) gross profit margin is strong at 50.7%, indicating healthy cost management. The net profit margin improved to 5.85% in TTM, showing profitability enhancement. Revenue growth is modest at 0.75% from the previous year, reflecting stable market presence. EBIT and EBITDA margins are solid at 14.7% and 33.9% respectively, demonstrating efficient operational management despite slight margin compression compared to the previous year.
Balance Sheet
68
Positive
The debt-to-equity ratio stands at 1.92, indicating a moderate leverage level, which is typical for the telecom industry but poses some financial risk. ROE improved to 7.6%, reflecting better profitability on shareholders' equity. The equity ratio of 26.9% suggests a balanced capital structure, though with room for improvement in equity financing.
Cash Flow
71
Positive
Free cash flow saw a 1.85% growth, signaling controlled capital expenditure and stable cash generation. The operating cash flow to net income ratio is robust at 4.2, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is 1.25, showing effective cash conversion from profits.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue20.29B20.14B20.00B18.29B16.84B15.34B
Gross Profit10.29B12.50B12.47B11.19B10.14B9.07B
EBITDA6.87B6.68B6.31B6.94B5.90B5.63B
Net Income1.19B993.00M841.00M1.61B1.66B1.21B
Balance Sheet
Total Assets57.98B58.02B56.14B54.05B47.99B43.33B
Cash, Cash Equivalents and Short-Term Investments1.01B869.00M864.00M974.00M723.00M848.00M
Total Debt30.05B29.78B27.45B25.14B20.97B20.39B
Total Liabilities41.20B41.23B38.83B36.39B31.93B30.73B
Stockholders Equity15.61B15.62B16.11B16.57B15.12B12.07B
Cash Flow
Free Cash Flow1.49B1.46B1.29B1.16B-928.00M1.75B
Operating Cash Flow4.97B4.85B4.50B4.81B4.39B4.57B
Investing Cash Flow-3.31B-3.70B-4.75B-5.41B-5.47B-6.17B
Financing Cash Flow-2.81B-1.14B139.00M848.00M953.00M1.90B

Telus Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22.62
Price Trends
50DMA
21.66
Positive
100DMA
21.17
Positive
200DMA
20.74
Positive
Market Momentum
MACD
0.16
Negative
RSI
68.64
Neutral
STOCH
86.24
Negative
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 22.62 is above the 20-day moving average (MA) of 22.00, above the 50-day MA of 21.66, and above the 200-day MA of 20.74, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 68.64 is Neutral, neither overbought nor oversold. The STOCH value of 86.24 is Negative, 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$9.51B12.3937.69%3.43%-1.11%8.17%
80
Outperform
C$9.51B12.9137.46%3.29%-1.11%8.17%
77
Outperform
C$23.78B14.2316.56%4.28%1.50%193.09%
72
Outperform
$23.78B13.2516.65%6.29%1.50%193.09%
TST
68
Neutral
$34.16B28.307.51%10.20%1.73%54.01%
TSBCE
67
Neutral
$29.33B75.302.83%5.50%-1.23%-78.01%
64
Neutral
£1.77B9.28-12.53%292.01%2.59%-474.71%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:T
Telus
22.62
3.02
15.42%
TSE:BCE
BCE
32.69
-6.55
-16.69%
TSE:QBR.B
Quebecor
41.51
14.59
54.17%
TSE:RCI.B
Rogers Communication
44.15
-3.38
-7.11%
TSE:QBR.A
Quebecor Inc Cl A MV
42.52
13.74
47.74%
TSE:RCI.A
Rogers Comm Cl A
47.25
-4.07
-7.93%

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.

Private Placements and Financing
TELUS Launches $1.6 Billion Junior Subordinated Note Offering
Positive
Apr 16, 2025

TELUS has announced the pricing of $1.6 billion in fixed-to-fixed rate junior subordinated notes through a syndicate of agents. These notes, issued in two series with a 30.25-year maturity, are intended to help the company repay outstanding debts and support general corporate purposes. The Series CAR notes have an initial yield of 6.25% and the Series CAS notes have an initial yield of 6.75%, with both series having mechanisms to reset interest rates every five years. The issuance of these notes is expected to enhance TELUS’s financial flexibility and strengthen its market position.

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: Jul 01, 2025