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TELUS INTERNATIONAL CDA INC (TIXT) Stock Fundamental Analysis

NYSE:TIXT - New York Stock Exchange, Inc. - CA87975H1001 - Common Stock - Currency: USD

3.75  -0.14 (-3.6%)

Fundamental Rating

3

Overall TIXT gets a fundamental rating of 3 out of 10. We evaluated TIXT against 82 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 is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

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 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

TIXT's Return On Assets of -2.53% is on the low side compared to the rest of the industry. TIXT is outperformed by 64.63% of its industry peers.
With a Return On Equity value of -5.84%, TIXT is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
TIXT has a Return On Invested Capital (1.51%) which is comparable to the rest of the industry.
TIXT had an Average Return On Invested Capital over the past 3 years of 5.81%. This is significantly below the industry average of 21.64%.
The 3 year average ROIC (5.81%) for TIXT is well above the current ROIC(1.51%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA -2.53%
ROE -5.84%
ROIC 1.51%
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 2.28% is in line compared to the rest of the industry. TIXT outperforms 46.34% of its industry peers.
In the last couple of years the Operating Margin of TIXT has declined.
The Gross Margin of TIXT (80.64%) is better than 96.34% 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 2.28%
PM (TTM) N/A
GM 80.64%
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. 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.
TIXT has more shares outstanding than it did 5 years ago.
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 4.26. This is a neutral value as TIXT would need 4.26 years to pay back of all of its debts.
With a Debt to FCF ratio value of 4.26, TIXT perfoms like the industry average, outperforming 57.32% of the companies in the same industry.
TIXT has a Debt/Equity ratio of 0.70. This is a neutral value indicating TIXT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.70, TIXT is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 4.26
Altman-Z N/A
ROIC/WACC0.17
WACC8.9%
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 0.86. 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's Current ratio of 0.86 is on the low side compared to the rest of the industry. TIXT is outperformed by 81.71% of its industry peers.
TIXT has a Quick Ratio of 0.86. 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 0.86, TIXT is doing worse than 80.49% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.86
Quick Ratio 0.86
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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5

3. Growth

3.1 Past

The earnings per share for TIXT have decreased strongly by -72.09% in the last year.
The earnings per share for TIXT have been decreasing by -26.56% on average. This is quite bad
Looking at the last year, TIXT shows a decrease in Revenue. The Revenue has decreased by -0.30% in the last year.
The Revenue has been growing by 21.12% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-72.09%
EPS 3Y-26.56%
EPS 5YN/A
EPS Q2Q%-72.73%
Revenue 1Y (TTM)-0.3%
Revenue growth 3Y6.6%
Revenue growth 5Y21.12%
Sales Q2Q%1.98%

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 13.06% 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-18.55%
EPS Next 2Y4.79%
EPS Next 3Y13.06%
EPS Next 5YN/A
Revenue Next Year2.3%
Revenue Next 2Y2.95%
Revenue Next 3Y3.81%
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 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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6

4. Valuation

4.1 Price/Earnings Ratio

TIXT is valuated correctly with a Price/Earnings ratio of 15.63.
74.39% of the companies in the same industry are more expensive than TIXT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TIXT to the average of the S&P500 Index (27.30), we can say TIXT is valued slightly cheaper.
The Price/Forward Earnings ratio is 8.54, which indicates a very decent valuation of TIXT.
Based on the Price/Forward Earnings ratio, TIXT is valued cheaper than 92.68% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, TIXT is valued rather cheaply.
Industry RankSector Rank
PE 15.63
Fwd PE 8.54
TIXT Price Earnings VS Forward Price EarningsTIXT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

TIXT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TIXT is cheaper than 90.24% 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 2.97
EV/EBITDA 6.28
TIXT Per share dataTIXT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5

4.3 Compensation for Growth

TIXT's earnings are expected to grow with 13.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.79%
EPS Next 3Y13.06%

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0

5. Dividend

5.1 Amount

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

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TELUS INTERNATIONAL CDA INC

NYSE:TIXT (7/11/2025, 8:04:00 PM)

3.75

-0.14 (-3.6%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)05-09 2025-05-09/bmo
Earnings (Next)08-01 2025-08-01/bmo
Inst Owners45.17%
Inst Owner Change0%
Ins Owners1.59%
Ins Owner ChangeN/A
Market Cap1.04B
Analysts72.31
Price Target3.33 (-11.2%)
Short Float %4.96%
Short Ratio4.85
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)-17.78%
Min EPS beat(2)-47.72%
Max EPS beat(2)12.17%
EPS beat(4)2
Avg EPS beat(4)58.53%
Min EPS beat(4)-47.72%
Max EPS beat(4)289.04%
EPS beat(8)3
Avg EPS beat(8)30.43%
EPS beat(12)7
Avg EPS beat(12)21.57%
EPS beat(16)11
Avg EPS beat(16)18.39%
Revenue beat(2)2
Avg Revenue beat(2)0.84%
Min Revenue beat(2)0.72%
Max Revenue beat(2)0.97%
Revenue beat(4)2
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-6.5%
Max Revenue beat(4)0.97%
Revenue beat(8)2
Avg Revenue beat(8)-1.94%
Revenue beat(12)2
Avg Revenue beat(12)-3.09%
Revenue beat(16)2
Avg Revenue beat(16)-2.74%
PT rev (1m)-35.33%
PT rev (3m)-33.13%
EPS NQ rev (1m)-1.5%
EPS NQ rev (3m)-13.57%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.5%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
Industry RankSector Rank
PE 15.63
Fwd PE 8.54
P/S 0.39
P/FCF 2.97
P/OCF 2.26
P/B 0.53
P/tB N/A
EV/EBITDA 6.28
EPS(TTM)0.24
EY6.4%
EPS(NY)0.44
Fwd EY11.71%
FCF(TTM)1.26
FCFY33.71%
OCF(TTM)1.66
OCFY44.31%
SpS9.65
BVpS7.05
TBVpS-4.88
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.53%
ROE -5.84%
ROCE 1.65%
ROIC 1.51%
ROICexc 1.57%
ROICexgc 22.16%
OM 2.28%
PM (TTM) N/A
GM 80.64%
FCFM 13.1%
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%
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 Turnover0.59
Health
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 4.26
Debt/EBITDA 3.53
Cap/Depr 33.74%
Cap/Sales 4.12%
Interest Coverage 0.7
Cash Conversion 118.86%
Profit Quality N/A
Current Ratio 0.86
Quick Ratio 0.86
Altman-Z N/A
F-Score4
WACC8.9%
ROIC/WACC0.17
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)-72.09%
EPS 3Y-26.56%
EPS 5YN/A
EPS Q2Q%-72.73%
EPS Next Y-18.55%
EPS Next 2Y4.79%
EPS Next 3Y13.06%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.3%
Revenue growth 3Y6.6%
Revenue growth 5Y21.12%
Sales Q2Q%1.98%
Revenue Next Year2.3%
Revenue Next 2Y2.95%
Revenue Next 3Y3.81%
Revenue Next 5Y13.57%
EBIT growth 1Y-72.4%
EBIT growth 3Y-22.45%
EBIT growth 5Y-4.2%
EBIT Next Year378.91%
EBIT Next 3Y77.25%
EBIT Next 5Y72.45%
FCF growth 1Y18.64%
FCF growth 3Y24.79%
FCF growth 5Y35.89%
OCF growth 1Y17.05%
OCF growth 3Y18.46%
OCF growth 5Y29.56%