Telus International CDA Inc (TIXT.CA) Stock Fundamental Analysis

TSX:TIXT • CA87975H1001

6.07 CAD
+0.14 (+2.36%)
Last: Nov 3, 2025, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Taking everything into account, TIXT scores 4 out of 10 in our fundamental rating. TIXT was compared to 11 industry peers in the IT Services industry. There are concerns on the financial health of TIXT while its profitability can be described as average. TIXT has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • TIXT had positive earnings in the past year.
  • TIXT had a positive operating cash flow in the past year.
  • 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.
  • With a decent Return On Equity value of -22.61%, TIXT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • TIXT has a better Return On Invested Capital (1.00%) than 66.67% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for TIXT 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 better Operating Margin (1.80%) than 75.00% of its industry peers.
  • In the last couple of years the Operating Margin of TIXT has declined.
  • TIXT has a Gross Margin of 80.28%. This is amongst the best in the industry. TIXT outperforms 83.33% of its industry peers.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. Health

2.1 Basic Checks

  • TIXT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, TIXT has more shares outstanding
  • TIXT has more shares outstanding than it did 5 years ago.
  • 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

  • The Debt to FCF ratio of TIXT is 5.42, which is a neutral value as it means it would take TIXT, 5.42 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 5.42, TIXT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • TIXT has a Debt/Equity ratio of 0.85. This is a neutral value indicating TIXT is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.85, TIXT is in line with its industry, outperforming 50.00% of the companies in the same industry.
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

  • A Current Ratio of 0.84 indicates that TIXT may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.84, TIXT is doing worse than 66.67% of the companies in the same industry.
  • 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.
  • TIXT has a Quick ratio of 0.84. This is comparable to the rest of the industry: TIXT outperforms 50.00% of its industry peers.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • TIXT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -83.53%.
  • Measured over the past years, TIXT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -26.56% on average per year.
  • TIXT shows a small growth in Revenue. In the last year, the Revenue has grown by 2.03%.
  • The Revenue has been growing by 21.12% on average over the past years. This is a very strong growth!
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

  • Based on estimates for the next years, TIXT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.86% on average per year.
  • 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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of 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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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 30.35 indicates a quite expensive valuation of TIXT.
  • Based on the Price/Earnings ratio, TIXT is valued cheaper than 83.33% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.07. TIXT is around the same levels.
  • A Price/Forward Earnings ratio of 10.88 indicates a reasonable valuation of TIXT.
  • Based on the Price/Forward Earnings ratio, TIXT is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
  • TIXT is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.05, which is the current average of the S&P500 Index.
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

  • Based on the Enterprise Value to EBITDA ratio, TIXT is valued cheaper than 100.00% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, TIXT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
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. Dividend

5.1 Amount

  • TIXT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

Find the best dividend stocksShow peers with best dividend

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 FAQ

What is the fundamental rating for TIXT stock?

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


Can you provide the valuation status for Telus International CDA Inc?

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


What is the profitability of TIXT stock?

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


Can you provide the PE and PB ratios for TIXT stock?

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


Can you provide the expected EPS growth for TIXT stock?

The Earnings per Share (EPS) of Telus International CDA Inc (TIXT.CA) is expected to decline by -23.07% in the next year.