TELUS International (CDA) (TIXT) AI Stock Analysis

• Market Cap: $1.69B
• Dividend Yield: N/A
• Average Volume (3M): 104.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.02
• Revenue Growth: 5.06%
• EPS Growth: -638.59%
• Country: CA
• Employees: 78,879
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.08
• Shares Outstanding: 126,776,794
• 10 Day Avg. Volume: 82,839
• 30 Day Avg. Volume: 104,618
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.95
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 1.51
• Enterprise Value/Ebitda: 11.26
• 1Y Price Target: $6.34
• Price Target Upside: 4.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 55 Neutral
• Price Target: C$6.50 ▲(7.26% Upside)

TELUS International's stock score is primarily influenced by its financial performance challenges, including negative profitability and increased leverage. Despite these issues, the stock shows strong technical momentum, which partially offsets the financial concerns. However, the negative P/E ratio and lack of dividend yield weigh heavily on the valuation, resulting in a moderate overall score.

Positive Factors

Negative Factors

TELUS International (CDA) Business Overview & Revenue Model

Company Description

TELUS International (Cda) Inc. provides customer experience and digital business services in Europe, North America, the Asia-Pacific, and the Central America. It offers digital experience solutions, such as AI and bots, omnichannel CX, mobility solutions, cloud contact center, big data, platform transformation, and UX/UI design; and customer experience solutions, including work anywhere/work from home, customer care, technical support, sales growth and retention, and healthcare/patient experience. The company also provides IT lifecycle services comprising cloud and platform services, app dev and management, quality assurance and testing, system operations, IT service desk, internet of things, engineering solutions, and enterprise platform services; advisory services consisting of digital strategy, CX process consulting, data and customer analytics, workforce management, learning excellence solutions, and business and process transformation; robotic process automation, talent acquisition, finance and accounting, and supply chain management; and content moderation and social media, and fraud prevention and detection. It serves tech and games, communications and media, ecommerce and fintech, healthcare, and travel and hospitality industries. The company was founded in 2005 and is headquartered in Vancouver, Canada. TELUS International (Cda) Inc. is a subsidiary of TELUS Communications Inc.

How the Company Makes Money

TELUS International generates revenue primarily through its diversified service offerings, which include outsourced customer support, digital consulting, and IT services. The company's revenue model consists of long-term contracts with clients across multiple industries that pay for ongoing services, project-based engagements, and subscription-based solutions. Key revenue streams include customer experience solutions, digital transformation projects, and managed services. Partnerships with technology providers and integration with advanced AI and automation tools also enhance its service capabilities, allowing TELUS International to offer more value to clients and drive higher earnings. Additionally, its focus on expanding into emerging markets and enhancing its service portfolio plays a significant role in sustaining revenue growth.

TELUS International (CDA) Financial Statement Overview

Summary

TELUS International is facing profitability challenges, with negative net income and declining margins. The balance sheet shows increased leverage, posing potential risks. Cash flow generation is under pressure, with declining free cash flow growth. Improvement in operational efficiency and debt management is needed.

Income Statement

TELUS International has shown a slight revenue growth in the TTM period, but the company is struggling with profitability. The gross profit margin remains strong, but the net profit margin has turned negative, indicating challenges in managing costs and achieving profitability. The negative EBIT margin further highlights operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating a higher reliance on debt financing, which could pose a risk if not managed properly. The return on equity is negative, reflecting the company's current unprofitability. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

The cash flow situation shows a decline in free cash flow growth, which is concerning. The operating cash flow to net income ratio is positive, indicating that the company is generating cash from operations despite net losses. However, the free cash flow to net income ratio has decreased, reflecting challenges in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.72B	2.66B	2.71B	2.47B	2.19B	1.58B
Gross Profit	2.18B	2.15B	2.25B	2.00B	1.76B	1.28B
EBITDA	293.00M	437.00M	523.43M	527.25M	439.10M	396.92M
Net Income	-383.00M	-61.00M	54.00M	183.00M	78.00M	103.00M
Balance Sheet
Total Assets	4.44B	4.52B	4.82B	3.56B	3.63B	3.74B
Cash, Cash Equivalents and Short-Term Investments	151.00M	174.00M	131.00M	125.00M	115.00M	152.50M
Total Debt	1.56B	1.52B	1.75B	964.00M	1.15B	1.77B
Total Liabilities	2.75B	2.58B	2.79B	1.72B	1.97B	2.63B
Stockholders Equity	1.69B	1.95B	2.04B	1.84B	1.66B	1.11B
Cash Flow
Free Cash Flow	287.00M	412.00M	409.00M	332.00M	183.00M	237.00M
Operating Cash Flow	399.00M	517.00M	498.00M	437.00M	282.00M	297.00M
Investing Cash Flow	-112.00M	-107.00M	-941.00M	-119.00M	-110.00M	-1.87B
Financing Cash Flow	-297.00M	-361.00M	443.00M	-300.00M	-206.00M	1.66B

TELUS International (CDA) Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TIXT, the sentiment is Neutral. The current price of 6.06 is below the 20-day moving average (MA) of 6.21, above the 50-day MA of 6.04, and above the 200-day MA of 4.90, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 42.17 is Neutral, neither overbought nor oversold. The STOCH value of 28.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TIXT.

TELUS International (CDA) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STC	―	C$246.31M	-35.31	-1.99%	―	-1.46%	40.89%
BB	―	$3.97B	―	2.66%	―	-13.61%	89.73%
TIXT	―	$1.69B	―	-20.44%	―	5.06%	-638.59%
DND	―	C$444.00M	―	―	1.48%	2.47%	19.37%
CVO	―	C$703.27M	―	-17.77%	―	10.09%	-8.79%
NOW	―	C$30.60M	12.93	-10.10%	―	-13.50%	96.77%

TELUS International (CDA) Corporate Events

TELUS International Urges Shareholders to Support Acquisition by TELUS Corporation

TELUS International (CDA) has issued a reminder to its shareholders to vote in favor of a proposed arrangement with TELUS Corporation, which involves TELUS acquiring all outstanding shares of TELUS Digital for US$4.50 per share. This proposal, supported by leading proxy advisory firms and the company’s board, offers a significant premium over previous share prices and is deemed fair to minority shareholders. The special meeting for this vote is scheduled for October 27, 2025, and shareholders are encouraged to vote by the proxy deadline of October 23, 2025, despite potential delays due to a Canada Post labor strike.

The most recent analyst rating on (TSE:TIXT) stock is a Hold with a C$4.50 price target. To see the full list of analyst forecasts on TELUS International (CDA) stock, see the TSE:TIXT Stock Forecast page.

Proxy Firms Endorse TELUS Digital’s Arrangement with TELUS Corporation

TELUS International announced that leading independent proxy advisory firms have recommended shareholders vote in favor of its proposed arrangement with TELUS Corporation. The endorsement highlights the attractive offer for shareholders, including a significant premium and minimal standalone execution risk. The transaction is supported by TELUS Digital’s board and its largest minority shareholder, indicating strong backing for the deal, which is deemed fair and in the best interests of minority shareholders.

The most recent analyst rating on (TSE:TIXT) stock is a Hold with a C$4.50 price target. To see the full list of analyst forecasts on TELUS International (CDA) stock, see the TSE:TIXT Stock Forecast page.

TELUS Digital Addresses Potential Postal Delays Ahead of Shareholder Meeting

TELUS Digital announced a potential delay in the postal delivery of its management information circular due to a Canada Post strike, affecting the distribution of materials for its upcoming Special Meeting of shareholders. The company encourages shareholders to access materials electronically to avoid disruptions. This announcement highlights TELUS Digital’s proactive measures to ensure shareholder engagement and voting processes remain uninterrupted, despite logistical challenges posed by the strike.

The most recent analyst rating on (TSE:TIXT) stock is a Hold with a C$4.50 price target. To see the full list of analyst forecasts on TELUS International (CDA) stock, see the TSE:TIXT Stock Forecast page.

TELUS International Announces Strategic Arrangement with TELUS Corporation

TELUS International (CDA) has announced the filing of its management information circular and the receipt of an interim order from the Supreme Court of British Columbia concerning a proposed arrangement with TELUS Corporation. The arrangement, which offers a 52% premium over the unaffected share price, is valued at $539 million and provides multiple consideration options for shareholders. The independent Special Committee has unanimously recommended the arrangement, citing immediate and long-term value for shareholders and enhanced capabilities for TELUS’ business sectors. The transaction has strong support from TELUS Digital’s largest minority shareholder, EQT, which holds a significant portion of the company’s shares.

The most recent analyst rating on (TSE:TIXT) stock is a Hold with a C$4.50 price target. To see the full list of analyst forecasts on TELUS International (CDA) stock, see the TSE:TIXT Stock Forecast page.

TELUS International Secures Shareholder Support for Arrangement Agreement

On September 1, 2025, TELUS International (Cda) Inc. entered into an arrangement agreement with TELUS Corporation, which involves a shareholder support and voting agreement with Riel B.V., a major shareholder. This agreement is designed to facilitate the approval and completion of the proposed arrangement, ensuring that the shareholder will vote in favor of the arrangement and against any competing acquisition proposals. The arrangement is aimed at consolidating TELUS Corporation’s control over TELUS International, potentially impacting the company’s market positioning and shareholder dynamics.

The most recent analyst rating on (TSE:TIXT) stock is a Hold with a C$4.50 price target. To see the full list of analyst forecasts on TELUS International (CDA) stock, see the TSE:TIXT Stock Forecast page.

TELUS International Announces Special Security Holders Meeting

On September 3, 2025, TELUS International announced a special meeting of security holders scheduled for October 27, 2025, to be held virtually. The meeting is significant for stakeholders as it involves decisions that could impact the company’s governance and operational strategies. The record date for notice and voting is set for September 12, 2025.

The most recent analyst rating on (TSE:TIXT) stock is a Sell with a C$4.50 price target. To see the full list of analyst forecasts on TELUS International (CDA) stock, see the TSE:TIXT Stock Forecast page.

TELUS to Acquire Full Ownership of TELUS Digital for $539 Million

TELUS Corporation has announced a definitive agreement to acquire full ownership of TELUS Digital by purchasing all outstanding shares for US$4.50 per share, totaling US$539 million. This acquisition aims to integrate TELUS Digital’s capabilities in AI and SaaS transformation with TELUS’s operations, enhancing services across telecommunications, health, agriculture, and consumer goods sectors. The transaction is expected to accelerate global growth in key verticals and deliver significant value to shareholders, with the Special Committee of TELUS Digital endorsing the deal as beneficial for minority shareholders.

The most recent analyst rating on (TSE:TIXT) stock is a Hold with a C$5.50 price target. To see the full list of analyst forecasts on TELUS International (CDA) stock, see the TSE:TIXT Stock Forecast page.

TELUS Digital Reports Q2 2025 Financial Results

TELUS Digital, a global technology company specializing in digital customer experiences, has reported its financial results for the second quarter of 2025. The company is known for its expertise in digital solutions, AI-fueled automation, and customer experience management.

TELUS Digital Reports Q2 2025 Revenue Growth Amid Goodwill Impairment

On August 1, 2025, TELUS Digital reported its second quarter 2025 results, showing a 7% increase in revenue compared to the previous year, driven by growth in services to existing and new clients. Despite this, the company faced a net loss of $272 million, primarily due to a $224 million non-cash goodwill impairment charge and increased operating expenses. The company remains focused on balancing revenue growth with margin pressures, while continuing to expand its service offerings and client base.

The most recent analyst rating on (TSE:TIXT) stock is a Buy with a C$6.50 price target. To see the full list of analyst forecasts on TELUS International (CDA) stock, see the TSE:TIXT Stock Forecast page.

TELUS International Reports Q2 2025 Financial Results with Increased Revenue but Net Loss

On August 1, 2025, TELUS International (CDA) Inc. released its unaudited financial results for the three and six months ended June 30, 2025. The company reported a revenue increase compared to the previous year, but faced a net loss due to higher operating expenses, including significant amortization and impairment costs. This financial performance may impact the company’s market positioning and stakeholder confidence.

The most recent analyst rating on (TSE:TIXT) stock is a Buy with a C$6.50 price target. To see the full list of analyst forecasts on TELUS International (CDA) stock, see the TSE:TIXT Stock Forecast page.