Fact based stock research
TELUS (TSX:T)
CA87971M1032
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
TELUS stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 59 (better than 59% compared with investment alternatives), TELUS (Integrated Telecommunication, Canada) shares have above-average financial characteristics compared with similar stocks. Shares of TELUS are low in value (priced high) with a consolidated Value Rank of 47 (worse than 53% of alternatives), and are riskily financed (Safety Rank of 41, which means above-average debt burdens) but show above-average growth (Growth Rank of 61). ...read more
RECOMMENDATION: A Combined Rank of 59, is a buy recommendation based on TELUS's financial characteristics. As the company TELUS shows low value with an Obermatt Value Rank of 47 (53% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 61% of comparable companies (Obermatt Growth Rank is 61). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 41 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for TELUS, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Canada |
| Industry | Integrated Telecommunication |
| Index | Artificial Intelligence, Recycling, SDG 11, SDG 13, SDG 17, SDG 3, SDG 4, Telecommunications, TSX Composite |
| Size class | XX-Large |
This stock has achievements: Top 10 Stock.
28-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: TELUS
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 33 |
|
65 |
|
52 |
|
47 |
|
| GROWTH | ||||||||
| GROWTH | 58 |
|
40 |
|
63 |
|
61 |
|
| SAFETY | ||||||||
| SAFETY | 23 |
|
22 |
|
27 |
|
41 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
65 |
|
98 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
48 |
|
73 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 59 (better than 59% compared with investment alternatives), TELUS (Integrated Telecommunication, Canada) shares have above-average financial characteristics compared with similar stocks. Shares of TELUS are low in value (priced high) with a consolidated Value Rank of 47 (worse than 53% of alternatives), and are riskily financed (Safety Rank of 41, which means above-average debt burdens) but show above-average growth (Growth Rank of 61). ...read more
RECOMMENDATION: A Combined Rank of 59, is a buy recommendation based on TELUS's financial characteristics. As the company TELUS shows low value with an Obermatt Value Rank of 47 (53% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 61% of comparable companies (Obermatt Growth Rank is 61). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 41 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for TELUS, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 33 |
|
65 |
|
52 |
|
47 |
|
| GROWTH | ||||||||
| GROWTH | 58 |
|
40 |
|
63 |
|
61 |
|
| SAFETY | ||||||||
| SAFETY | 23 |
|
22 |
|
27 |
|
41 |
|
| COMBINED | ||||||||
| COMBINED | 26 |
|
37 |
|
42 |
|
59 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 47 (worse than 53% compared with alternatives), TELUS shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for TELUS. Expected dividend yields are higher than for 96% of comparable companies (a Dividend Yield rank of 96), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 55, which means that the stock price is lower compared with invested capital than for 55% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 29 which means that the stock price compared with what market professionals expect for future profits is higher than for 71% of comparable companies, indicating a low value concerning TELUS's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for TELUS with a rank of 33. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 67% of comparable companies, indicating a low value concerning TELUS's profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 47, is a hold recommendation based on TELUS's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, TELUS may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 21 |
|
44 |
|
38 |
|
29 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 29 |
|
34 |
|
21 |
|
33 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 40 |
|
52 |
|
54 |
|
55 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 69 |
|
85 |
|
88 |
|
96 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 33 |
|
65 |
|
52 |
|
47 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 61 (better than 61% compared with alternatives), TELUS shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for TELUS. Sales Growth has a rank of 56, which means that, currently, professionals expect the company to grow more than 56% of its competitors. Profit Growth with a rank of 73 is also above average. But Capital Growth has only a rank of 28, and Stock Returns with 37 are also below-average. Stock returns for TELUS have recently been below 63% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 61, is a buy recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for TELUS. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 59 |
|
51 |
|
51 |
|
56 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 73 |
|
38 |
|
82 |
|
73 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
14 |
|
43 |
|
28 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 52 |
|
71 |
|
49 |
|
37 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 58 |
|
40 |
|
63 |
|
61 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 41 (better than 41% compared with alternatives), the company TELUS has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of TELUS is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for TELUS. Liquidity is at 49, meaning that the company generates less profit to service its debt than 51% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 44, meaning the company has an above-average debt-to-equity ratio. It has more debt than 56% of its competitors. Finally, Refinancing is at a rank of 33 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 67% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 41 (worse than 59% compared with alternatives), TELUS has a financing structure that is riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of TELUS because it may suffer significantly in case of future difficulties. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 30 |
|
36 |
|
42 |
|
44 |
|
| REFINANCING | ||||||||
| REFINANCING | 40 |
|
17 |
|
19 |
|
33 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 36 |
|
56 |
|
55 |
|
49 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 23 |
|
22 |
|
27 |
|
41 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
77 |
|
81 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
42 |
|
72 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
13 |
|
59 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
84 |
|
89 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
65 |
|
98 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for TELUS from November 28, 2024.
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