Telus International CDA Inc (TIXT.CA) Fundamental Analysis & Valuation

TSX:TIXT • CA87975H1001

Current stock price

6.07 CAD
+0.14 (+2.36%)
Last:

This TIXT.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. TIXT.CA Profitability Analysis

1.1 Basic Checks

  • TIXT had positive earnings in the past year.
  • In the past year TIXT had a positive cash flow from operations.
  • TIXT had positive earnings in 4 of the past 5 years.
  • Each year in the past 5 years TIXT had a positive operating cash flow.
TIXT.CA Yearly Net Income VS EBIT VS OCF VS FCFTIXT.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M 500M

1.2 Ratios

  • TIXT has a Return On Assets of -8.63%. This is comparable to the rest of the industry: TIXT outperforms 58.33% of its industry peers.
  • TIXT has a Return On Equity of -22.61%. This is in the better half of the industry: TIXT outperforms 66.67% of its industry peers.
  • With a decent Return On Invested Capital value of 1.00%, TIXT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • TIXT had an Average Return On Invested Capital over the past 3 years of 4.57%. This is below the industry average of 9.47%.
Industry RankSector Rank
ROA -8.63%
ROE -22.61%
ROIC 1%
ROA(3y)1.64%
ROA(5y)1.96%
ROE(3y)3.16%
ROE(5y)4.69%
ROIC(3y)4.57%
ROIC(5y)4.61%
TIXT.CA Yearly ROA, ROE, ROICTIXT.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

1.3 Margins

  • TIXT has a Operating Margin of 1.80%. This is in the better half of the industry: TIXT outperforms 75.00% of its industry peers.
  • TIXT's Operating Margin has declined in the last couple of years.
  • With an excellent Gross Margin value of 80.28%, TIXT belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
  • In the last couple of years the Gross Margin of TIXT has remained more or less at the same level.
Industry RankSector Rank
OM 1.8%
PM (TTM) N/A
GM 80.28%
OM growth 3Y-27.26%
OM growth 5Y-20.91%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.3%
GM growth 5Y-0.39%
TIXT.CA Yearly Profit, Operating, Gross MarginsTIXT.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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2

2. TIXT.CA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TIXT is destroying value.
  • TIXT has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, TIXT has more shares outstanding
  • The debt/assets ratio for TIXT has been reduced compared to a year ago.
TIXT.CA Yearly Shares OutstandingTIXT.CA Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
TIXT.CA Yearly Total Debt VS Total AssetsTIXT.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

  • TIXT has a debt to FCF ratio of 5.42. This is a neutral value as TIXT would need 5.42 years to pay back of all of its debts.
  • TIXT has a better Debt to FCF ratio (5.42) than 66.67% of its industry peers.
  • TIXT has a Debt/Equity ratio of 0.85. This is a neutral value indicating TIXT is somewhat dependend on debt financing.
  • TIXT's Debt to Equity ratio of 0.85 is in line compared to the rest of the industry. TIXT outperforms 50.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.85
Debt/FCF 5.42
Altman-Z N/A
ROIC/WACC0.13
WACC7.65%
TIXT.CA Yearly LT Debt VS Equity VS FCFTIXT.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.3 Liquidity

  • TIXT has a Current Ratio of 0.84. This is a bad value and indicates that TIXT is not financially healthy enough and could expect problems in meeting its short term obligations.
  • TIXT's Current ratio of 0.84 is on the low side compared to the rest of the industry. TIXT is outperformed by 66.67% of its industry peers.
  • TIXT has a Quick Ratio of 0.84. This is a bad value and indicates that TIXT is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.84, TIXT perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.84
Quick Ratio 0.84
TIXT.CA Yearly Current Assets VS Current LiabilitesTIXT.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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6

3. TIXT.CA Growth Analysis

3.1 Past

  • The earnings per share for TIXT have decreased strongly by -83.53% in the last year.
  • TIXT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -26.56% yearly.
  • Looking at the last year, TIXT shows a small growth in Revenue. The Revenue has grown by 2.03% in the last year.
  • TIXT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.12% yearly.
EPS 1Y (TTM)-83.53%
EPS 3Y-26.56%
EPS 5YN/A
EPS Q2Q%-62.5%
Revenue 1Y (TTM)2.03%
Revenue growth 3Y6.6%
Revenue growth 5Y21.12%
Sales Q2Q%7.21%

3.2 Future

  • TIXT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.86% yearly.
  • The Revenue is expected to grow by 13.57% on average over the next years. This is quite good.
EPS Next Y-23.07%
EPS Next 2Y-0.28%
EPS Next 3Y9.86%
EPS Next 5YN/A
Revenue Next Year4.01%
Revenue Next 2Y3.49%
Revenue Next 3Y3.8%
Revenue Next 5Y13.57%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
TIXT.CA Yearly Revenue VS EstimatesTIXT.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B 4B 5B
TIXT.CA Yearly EPS VS EstimatesTIXT.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6 0.8 1

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6

4. TIXT.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 30.35, the valuation of TIXT can be described as expensive.
  • 83.33% of the companies in the same industry are more expensive than TIXT, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 25.60. TIXT is around the same levels.
  • With a Price/Forward Earnings ratio of 10.88, the valuation of TIXT can be described as very reasonable.
  • 91.67% of the companies in the same industry are more expensive than TIXT, based on the Price/Forward Earnings ratio.
  • TIXT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.84.
Industry RankSector Rank
PE 30.35
Fwd PE 10.88
TIXT.CA Price Earnings VS Forward Price EarningsTIXT.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TIXT indicates a rather cheap valuation: TIXT is cheaper than 100.00% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of TIXT indicates a rather cheap valuation: TIXT is cheaper than 100.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 4.19
EV/EBITDA 4.32
TIXT.CA Per share dataTIXT.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.28%
EPS Next 3Y9.86%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. TIXT.CA Dividend Analysis

5.1 Amount

  • No dividends for TIXT!.
Industry RankSector Rank
Dividend Yield N/A

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TIXT.CA Fundamentals: All Metrics, Ratios and Statistics

Telus International CDA Inc

TSX:TIXT (11/3/2025, 7:00:00 PM)

6.07

+0.14 (+2.36%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)10-31
Earnings (Next)02-11
Inst Owners53.33%
Inst Owner ChangeN/A
Ins Owners3.67%
Ins Owner ChangeN/A
Market Cap1.69B
Revenue(TTM)2.72B
Net Income(TTM)-383.00M
Analysts46.67
Price Target3.9 (-35.75%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.78%
Min EPS beat(2)-4.62%
Max EPS beat(2)12.17%
EPS beat(4)2
Avg EPS beat(4)62.22%
Min EPS beat(4)-47.72%
Max EPS beat(4)289.04%
EPS beat(8)3
Avg EPS beat(8)30.25%
EPS beat(12)6
Avg EPS beat(12)20.59%
EPS beat(16)10
Avg EPS beat(16)17.4%
Revenue beat(2)2
Avg Revenue beat(2)2.17%
Min Revenue beat(2)0.97%
Max Revenue beat(2)3.37%
Revenue beat(4)3
Avg Revenue beat(4)1.19%
Min Revenue beat(4)-0.28%
Max Revenue beat(4)3.37%
Revenue beat(8)3
Avg Revenue beat(8)-1.2%
Revenue beat(12)3
Avg Revenue beat(12)-2.69%
Revenue beat(16)3
Avg Revenue beat(16)-2.45%
PT rev (1m)5.22%
PT rev (3m)5.11%
EPS NQ rev (1m)-4%
EPS NQ rev (3m)-20%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-5.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.01%
Valuation
Industry RankSector Rank
PE 30.35
Fwd PE 10.88
P/S 0.44
P/FCF 4.19
P/OCF 3.02
P/B 0.71
P/tB N/A
EV/EBITDA 4.32
EPS(TTM)0.2
EY3.29%
EPS(NY)0.56
Fwd EY9.19%
FCF(TTM)1.45
FCFY23.87%
OCF(TTM)2.01
OCFY33.08%
SpS13.68
BVpS8.52
TBVpS-7.24
PEG (NY)N/A
PEG (5Y)N/A
Graham Number6.19
Profitability
Industry RankSector Rank
ROA -8.63%
ROE -22.61%
ROCE 1.39%
ROIC 1%
ROICexc 1.04%
ROICexgc 14.23%
OM 1.8%
PM (TTM) N/A
GM 80.28%
FCFM 10.6%
ROA(3y)1.64%
ROA(5y)1.96%
ROE(3y)3.16%
ROE(5y)4.69%
ROIC(3y)4.57%
ROIC(5y)4.61%
ROICexc(3y)4.76%
ROICexc(5y)4.8%
ROICexgc(3y)33.38%
ROICexgc(5y)46.87%
ROCE(3y)6.35%
ROCE(5y)6.4%
ROICexgc growth 3Y-36.12%
ROICexgc growth 5Y-3.66%
ROICexc growth 3Y-29.52%
ROICexc growth 5Y-28.85%
OM growth 3Y-27.26%
OM growth 5Y-20.91%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.3%
GM growth 5Y-0.39%
F-Score4
Asset Turnover0.61
Health
Industry RankSector Rank
Debt/Equity 0.85
Debt/FCF 5.42
Debt/EBITDA 2.37
Cap/Depr 19.93%
Cap/Sales 4.08%
Interest Coverage 0.58
Cash Conversion 65.84%
Profit Quality N/A
Current Ratio 0.84
Quick Ratio 0.84
Altman-Z N/A
F-Score4
WACC7.65%
ROIC/WACC0.13
Cap/Depr(3y)33.52%
Cap/Depr(5y)34.32%
Cap/Sales(3y)3.83%
Cap/Sales(5y)3.95%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-83.53%
EPS 3Y-26.56%
EPS 5YN/A
EPS Q2Q%-62.5%
EPS Next Y-23.07%
EPS Next 2Y-0.28%
EPS Next 3Y9.86%
EPS Next 5YN/A
Revenue 1Y (TTM)2.03%
Revenue growth 3Y6.6%
Revenue growth 5Y21.12%
Sales Q2Q%7.21%
Revenue Next Year4.01%
Revenue Next 2Y3.49%
Revenue Next 3Y3.8%
Revenue Next 5Y13.57%
EBIT growth 1Y-75.98%
EBIT growth 3Y-22.45%
EBIT growth 5Y-4.2%
EBIT Next Year658.19%
EBIT Next 3Y104.78%
EBIT Next 5Y89.13%
FCF growth 1Y-4.64%
FCF growth 3Y24.79%
FCF growth 5Y35.89%
OCF growth 1Y1.01%
OCF growth 3Y18.46%
OCF growth 5Y29.56%

Telus International CDA Inc / TIXT.CA Fundamental Analysis FAQ

What is the fundamental rating for TIXT stock?

ChartMill assigns a fundamental rating of 4 / 10 to TIXT.CA.


What is the valuation status of Telus International CDA Inc (TIXT.CA) stock?

ChartMill assigns a valuation rating of 6 / 10 to Telus International CDA Inc (TIXT.CA). This can be considered as Fairly Valued.


How profitable is Telus International CDA Inc (TIXT.CA) stock?

Telus International CDA Inc (TIXT.CA) has a profitability rating of 5 / 10.


What is the valuation of Telus International CDA Inc based on its PE and PB ratios?

The Price/Earnings (PE) ratio for Telus International CDA Inc (TIXT.CA) is 30.35 and the Price/Book (PB) ratio is 0.71.