TELUS INTERNATIONAL CDA INC (TIXT) Stock Fundamental Analysis
USA - NYSE:TIXT - CA87975H1001 - Common Stock
4.31 USD
-0.05 (-1.15%)
4.31 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to TIXT. TIXT was compared to 85 industry peers in the IT Services industry. While TIXT is still in line with the averages on profitability rating, there are concerns on its financial health. TIXT has a decent growth rate and is not valued too expensively.
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.
Of the past 5 years TIXT 4 years were profitable.
Each year in the past 5 years TIXT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -8.63%, TIXT is doing worse than 74.12% of the companies in the same industry.
TIXT's Return On Equity of -22.61% is on the low side compared to the rest of the industry. TIXT is outperformed by 71.76% of its industry peers.
TIXT's Return On Invested Capital of 1.27% is in line compared to the rest of the industry. TIXT outperforms 45.88% of its industry peers.
TIXT had an Average Return On Invested Capital over the past 3 years of 5.81%. This is significantly below the industry average of 27.90%.
The last Return On Invested Capital (1.27%) for TIXT is well below the 3 year average (5.81%), which needs to be investigated, but indicates that TIXT had better years and this may not be a problem.
| Industry Rank | Sector 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%
1.3 Margins
The Operating Margin of TIXT (1.80%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TIXT has declined.
With an excellent Gross Margin value of 80.28%, TIXT belongs to the best of the industry, outperforming 97.65% of the companies in the same industry.
TIXT's Gross Margin has been stable in the last couple of years.
| 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
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.
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.
TIXT's Debt to FCF ratio of 5.42 is in line compared to the rest of the industry. TIXT outperforms 55.29% of its industry peers.
A Debt/Equity ratio of 0.85 indicates that TIXT is somewhat dependend on debt financing.
TIXT's Debt to Equity ratio of 0.85 is on the low side compared to the rest of the industry. TIXT is outperformed by 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | N/A |
ROIC/WACC0.14
WACC9.12%
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.
The Current ratio of TIXT (0.84) is worse than 83.53% 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.
With a Quick ratio value of 0.84, TIXT is not doing good in the industry: 83.53% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The earnings per share for TIXT have decreased strongly by -83.53% in the last year.
TIXT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -26.56% yearly.
The Revenue has been growing slightly by 2.03% in the past 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
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.
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-22.77%
EPS Next 2Y0.2%
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
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.
4. Valuation
4.1 Price/Earnings Ratio
TIXT is valuated quite expensively with a Price/Earnings ratio of 30.79.
TIXT's Price/Earnings is on the same level as the industry average.
TIXT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.10.
Based on the Price/Forward Earnings ratio of 10.73, the valuation of TIXT can be described as reasonable.
84.71% of the companies in the same industry are more expensive than TIXT, based on the Price/Forward Earnings ratio.
TIXT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.79 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIXT is valued cheaper than 95.29% of the companies in the same industry.
TIXT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TIXT is cheaper than 98.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.17 | ||
| EV/EBITDA | 4.31 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.2%
EPS Next 3Y9.86%
5. Dividend
5.1 Amount
TIXT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.31
-0.05 (-1.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners53.33%
Inst Owner Change0%
Ins Owners3.67%
Ins Owner ChangeN/A
Market Cap1.20B
Revenue(TTM)2.72B
Net Income(TTM)-383000000
Analysts46.67
Price Target2.68 (-37.82%)
Short Float %4.69%
Short Ratio2.1
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)-0.22%
PT rev (3m)-0.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.79 | ||
| Fwd PE | 10.73 | ||
| 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 EY9.32%
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 Rank | Sector 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 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
WACC9.12%
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-22.77%
EPS Next 2Y0.2%
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 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 FAQ
What is the fundamental rating for TIXT stock?
ChartMill assigns a fundamental rating of 3 / 10 to TIXT.
What is the valuation status for TIXT stock?
ChartMill assigns a valuation rating of 5 / 10 to TELUS INTERNATIONAL CDA INC (TIXT). This can be considered as Fairly Valued.
What is the profitability of TIXT stock?
TELUS INTERNATIONAL CDA INC (TIXT) has a profitability rating of 4 / 10.
What is the financial health of TELUS INTERNATIONAL CDA INC (TIXT) stock?
The financial health rating of TELUS INTERNATIONAL CDA INC (TIXT) is 1 / 10.