TELUS International Cda Inc (TIXT) Fundamental Analysis & Valuation

NYSE:TIXT • CA87975H1001

Current stock price

4.31 USD
-0.05 (-1.15%)
At close:
4.31 USD
0 (0%)
After Hours:

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

4

1. TIXT 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.
  • TIXT had a positive operating cash flow in each of the past 5 years.
TIXT Yearly Net Income VS EBIT VS OCF VS FCFTIXT 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

  • With a Return On Assets value of -8.63%, TIXT is not doing good in the industry: 74.12% of the companies in the same industry are doing better.
  • The Return On Equity of TIXT (-22.61%) is worse than 71.76% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 1.27%, TIXT is in line with its industry, outperforming 45.88% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for TIXT is significantly below the industry average of 11.07%.
  • The 3 year average ROIC (5.81%) for TIXT is well above the current ROIC(1.27%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA -8.63%
ROE -22.61%
ROIC 1.27%
ROA(3y)1.64%
ROA(5y)1.96%
ROE(3y)3.16%
ROE(5y)4.69%
ROIC(3y)5.81%
ROIC(5y)5.86%
TIXT Yearly ROA, ROE, ROICTIXT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

1.3 Margins

  • TIXT's Operating Margin of 1.80% is in line compared to the rest of the industry. TIXT outperforms 42.35% of its industry peers.
  • TIXT's Operating Margin has declined in the last couple of years.
  • TIXT has a Gross Margin of 80.28%. This is amongst the best in the industry. TIXT outperforms 97.65% 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 Yearly Profit, Operating, Gross MarginsTIXT 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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1

2. TIXT 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.
  • Compared to 5 years ago, TIXT has more shares outstanding
  • TIXT has a better debt/assets ratio than last year.
TIXT Yearly Shares OutstandingTIXT Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
TIXT Yearly Total Debt VS Total AssetsTIXT 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.
  • With a Debt to FCF ratio value of 5.42, TIXT perfoms like the industry average, outperforming 54.12% 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.
  • The Debt to Equity ratio of TIXT (0.85) is worse than 63.53% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.85
Debt/FCF 5.42
Altman-Z N/A
ROIC/WACC0.14
WACC8.78%
TIXT Yearly LT Debt VS Equity VS FCFTIXT 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.
  • Looking at the Current ratio, with a value of 0.84, TIXT is doing worse than 83.53% of the companies in the same industry.
  • A Quick Ratio of 0.84 indicates that TIXT may have some problems paying its short term obligations.
  • The Quick ratio of TIXT (0.84) is worse than 83.53% of its industry peers.
Industry RankSector Rank
Current Ratio 0.84
Quick Ratio 0.84
TIXT Yearly Current Assets VS Current LiabilitesTIXT 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. TIXT 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%.
  • TIXT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -26.56% yearly.
  • 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

  • The Earnings Per Share is expected to grow by 9.86% on average over the next years. This is quite good.
  • 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.
  • 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 Yearly Revenue VS EstimatesTIXT 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 Yearly EPS VS EstimatesTIXT 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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5

4. TIXT Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 30.79 indicates a quite expensive valuation of TIXT.
  • Compared to the rest of the industry, the Price/Earnings ratio of TIXT is on the same level as its industry peers.
  • TIXT is valuated rather expensively when we compare the Price/Earnings ratio to 25.35, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 10.83, the valuation of TIXT can be described as reasonable.
  • TIXT's Price/Forward Earnings ratio is rather cheap when compared to the industry. TIXT is cheaper than 85.88% of the companies in the same industry.
  • TIXT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.61, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 30.79
Fwd PE 10.83
TIXT Price Earnings VS Forward Price EarningsTIXT 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 cheaply inside the industry as 95.29% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, TIXT is valued cheaper than 98.82% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.17
EV/EBITDA 4.31
TIXT Per share dataTIXT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5

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 Dividend Analysis

5.1 Amount

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

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TIXT Fundamentals: All Metrics, Ratios and Statistics

TELUS International Cda Inc

NYSE:TIXT (10/30/2025, 8:04:00 PM)

After market: 4.31 0 (0%)

4.31

-0.05 (-1.15%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)10-31
Earnings (Next)02-11
Inst Owners53.33%
Inst Owner Change-68.65%
Ins Owners3.67%
Ins Owner ChangeN/A
Market Cap1.20B
Revenue(TTM)2.72B
Net Income(TTM)-383.00M
Analysts46.67
Price Target2.79 (-35.27%)
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)3.99%
PT rev (3m)1.98%
EPS NQ rev (1m)-4%
EPS NQ rev (3m)-21.46%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-5.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.01%
Valuation
Industry RankSector Rank
PE 30.79
Fwd PE 10.83
P/S 0.44
P/FCF 4.17
P/OCF 3.01
P/B 0.71
P/tB N/A
EV/EBITDA 4.31
EPS(TTM)0.14
EY3.25%
EPS(NY)0.4
Fwd EY9.23%
FCF(TTM)1.03
FCFY23.98%
OCF(TTM)1.43
OCFY33.22%
SpS9.75
BVpS6.08
TBVpS-5.16
PEG (NY)N/A
PEG (5Y)N/A
Graham Number4.38
Profitability
Industry RankSector Rank
ROA -8.63%
ROE -22.61%
ROCE 1.39%
ROIC 1.27%
ROICexc 1.33%
ROICexgc 18.08%
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)5.81%
ROIC(5y)5.86%
ROICexc(3y)6.05%
ROICexc(5y)6.11%
ROICexgc(3y)42.43%
ROICexgc(5y)59.58%
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
WACC8.78%
ROIC/WACC0.14
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 Fundamental Analysis FAQ

What is the fundamental rating for TIXT stock?

ChartMill assigns a fundamental rating of 3 / 10 to TIXT.


What is the valuation status of TELUS International Cda Inc (TIXT) stock?

ChartMill assigns a valuation rating of 5 / 10 to TELUS International Cda Inc (TIXT). This can be considered as Fairly Valued.


How profitable is TELUS International Cda Inc (TIXT) stock?

TELUS International Cda Inc (TIXT) has a profitability rating of 4 / 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) is 30.79 and the Price/Book (PB) ratio is 0.71.