TELUS INTERNATIONAL CDA INC (TIXT.CA) Stock Fundamental Analysis
Canada - TSX:TIXT - CA87975H1001 - Common Stock
6.19 CAD
-0.01 (-0.16%)
TIXT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 12 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TIXT was profitable.
TIXT had a positive operating cash flow in the past year.
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.
1.2 Ratios
The Return On Assets of TIXT (-8.63%) is comparable to the rest of the industry.
TIXT has a Return On Equity (-22.61%) which is comparable to the rest of the industry.
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.
Measured over the past 3 years, the Average Return On Invested Capital for TIXT is significantly below the industry average of 45.47%.
| Industry Rank | Sector 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%
1.3 Margins
Looking at the Operating Margin, with a value of 1.80%, TIXT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of TIXT has declined.
Looking at the Gross Margin, with a value of 80.28%, TIXT belongs to the top 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 Rank | Sector 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%
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.
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.
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.
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.
TIXT has a Debt to Equity ratio (0.85) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | N/A |
ROIC/WACC0.12
WACC8.14%
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 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.
TIXT has a Quick ratio of 0.84. This is in the lower half of the industry: TIXT underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
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%.
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-18.04%
EPS Next 2Y-5.36%
EPS Next 3Y9.86%
EPS Next 5YN/A
Revenue Next Year4.01%
Revenue Next 2Y3.54%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
TIXT is valuated quite expensively with a Price/Earnings ratio of 32.58.
Based on the Price/Earnings ratio, TIXT is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TIXT to the average of the S&P500 Index (27.27), we can say TIXT is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 12.50, the valuation of TIXT can be described as correct.
91.67% of the companies in the same industry are more expensive than TIXT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TIXT to the average of the S&P500 Index (22.77), we can say TIXT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.58 | ||
| Fwd PE | 12.5 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.33 | ||
| EV/EBITDA | 4.38 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.36%
EPS Next 3Y9.86%
5. Dividend
5.1 Amount
TIXT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:TIXT (9/15/2025, 7:00:00 PM)
6.19
-0.01 (-0.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners45.17%
Inst Owner ChangeN/A
Ins Owners1.59%
Ins Owner ChangeN/A
Market Cap1.72B
Analysts48.57
Price Target3.7 (-40.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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)-0.11%
PT rev (3m)-46%
EPS NQ rev (1m)-16.67%
EPS NQ rev (3m)-17.34%
EPS NY rev (1m)0.63%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.58 | ||
| Fwd PE | 12.5 | ||
| P/S | 0.46 | ||
| P/FCF | 4.33 | ||
| P/OCF | 3.13 | ||
| P/B | 0.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.38 |
EPS(TTM)0.19
EY3.07%
EPS(NY)0.5
Fwd EY8%
FCF(TTM)1.43
FCFY23.09%
OCF(TTM)1.98
OCFY31.99%
SpS13.49
BVpS8.41
TBVpS-7.14
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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%
ROICexcg growth 3Y-36.12%
ROICexcg 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 Rank | Sector 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
WACC8.14%
ROIC/WACC0.12
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-18.04%
EPS Next 2Y-5.36%
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 2Y3.54%
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 Year659.8%
EBIT Next 3Y106.73%
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%