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

  • In the past year TIXT was profitable.
  • In the past year TIXT had a positive cash flow from operations.
  • TIXT had positive earnings in 4 of the past 5 years.
  • TIXT had a positive operating cash flow in each of the past 5 years.
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's Return On Assets of -8.63% is in line compared 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.
  • TIXT has a Return On Invested Capital of 1.00%. This is in the better half of the industry: TIXT outperforms 66.67% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for TIXT is significantly below the industry average of 9.73%.
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.
  • 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.
  • TIXT's Gross Margin has been stable in the last couple of years.
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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TIXT is destroying value.
  • The number of shares outstanding for TIXT has been increased compared to 1 year ago.
  • The number of shares outstanding for TIXT has been increased compared to 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.
  • The Debt to FCF ratio of TIXT (5.42) is better than 66.67% of its industry peers.
  • A Debt/Equity ratio of 0.85 indicates that 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.
  • TIXT has a worse Current ratio (0.84) than 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.
  • Looking at the Quick ratio, with a value of 0.84, TIXT is in line with its industry, 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

  • 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.
  • Looking at the last year, TIXT shows a small growth in Revenue. The Revenue has grown by 2.03% in the last year.
  • Measured over the past years, TIXT shows a very strong growth in Revenue. The Revenue has been growing by 21.12% on average per year.
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.
  • TIXT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.57% yearly.
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

  • The Price/Earnings ratio is 30.35, which means the current valuation is very expensive for TIXT.
  • 83.33% of the companies in the same industry are more expensive than TIXT, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 26.78, TIXT is valued at the same level.
  • TIXT is valuated reasonably with a Price/Forward Earnings ratio of 10.88.
  • Based on the Price/Forward Earnings ratio, TIXT is valued cheaper than 91.67% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of TIXT to the average of the S&P500 Index (23.54), we can say TIXT is valued rather cheaply.
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

  • 100.00% of the companies in the same industry are more expensive than TIXT, based on the Enterprise Value to EBITDA ratio.
  • 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

  • TIXT does not give a dividend.
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.