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.
  • TIXT had a positive operating cash flow in the past year.
  • TIXT had positive earnings in 4 of the past 5 years.
  • In the past 5 years TIXT always reported a positive cash flow from operatings.
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 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 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

  • Looking at the Operating Margin, with a value of 1.80%, TIXT is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
  • 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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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.
  • 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.
  • TIXT has a better Debt to FCF ratio (5.42) than 66.67% of its industry peers.
  • A Debt/Equity ratio of 0.85 indicates that 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 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.
  • With a Current ratio value of 0.84, TIXT is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.84 indicates that TIXT may have some problems paying its short term obligations.
  • TIXT has a Quick ratio (0.84) which is comparable to the rest of the 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.
  • 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

  • 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

  • With a Price/Earnings ratio of 30.35, TIXT can be considered very expensive at the moment.
  • TIXT's Price/Earnings ratio is rather cheap when compared to the industry. TIXT is cheaper than 83.33% of the companies in the same industry.
  • TIXT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.71, which is the current average of the S&P500 Index.
  • TIXT is valuated reasonably with a Price/Forward Earnings ratio of 10.88.
  • 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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.83.
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

  • TIXT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TIXT is cheaper than 100.00% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, TIXT is valued cheaper than 100.00% of the companies 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.


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.