TU
Telus Corporation
$10.15
▼ 1.3%Updated Today 3:42 PM ET
TU at a glance — five pillars scored 0–100 from real filed financials.
Overall: Weak · 34/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 36.6% over the last 12 months
Market Cap
$16.72B
P/E
24.51x
Forward P/E (est.)
32.27x
ROE
5.9%
Revenue Growth
0.1%
EPS Growth
-24.0%
Profit Margin
4.6%
FCF Yield
31.9%
Debt / Equity
1.99x
ROIC
4.0%
Interest Coverage
1.95x
Current Ratio
0.86x
Dividend Yield
11.4%
Implied Growth (rev. DCF)
-0.3%
Rating Score
34/100
Telus Corporation (TU) is a large-cap company in the Telecommunication industry, part of the Communication Services sector of the S&P 500, with a market value around $16.72B.
In its latest reported year it generated about $14.97B in revenue and $812.49M in net profit.
Our model rates TU Weak (34/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
12.3% average over the last 3 years
±3.1 pts around 16.4% across 10 years
grew in 9 of the last 9 year-over-year periods
positive in 10 of 10 years
4.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what TU's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. TU trades near $10.15, below its 50-day average ($12.03) and 200-day average ($13.36). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 15 it is oversold — selling has been heavy and a bounce is possible.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. TU's is $0.27 (~2.7% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month TU found buyers near $10.08 (support) and sellers near $12.38 (resistance); its 52-week range is $10.08–$16.74. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.5× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
4.4%
Revenue moved from $9.34B in 2016 to $14.97B in 2025, a 5.4% compound annual growth rate. The most recent year was roughly flat (0.1%) year over year. Slower, mature growth is common for established businesses.
Gross Margin
63.1%
Operating Margin
11.5%
Net Margin
5.4%
ROE
5.9%
Telus Corporation keeps about 4.6% of each sales dollar as net profit, with a 63.1% gross margin and 11.5% operating margin. Return on equity is 5.9% and return on invested capital about 4.0%. Thin margins leave less cushion if costs rise.
Total Debt
$20.03B
Net Debt
$18.12B
Net Debt / EBITDA
10.5x
Debt / Equity
1.99x
Leverage: debt-to-equity is 2.0x, and operating profit covers interest about 1.9x, with a current ratio of 0.9x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $20.03B of total debt against $1.91B of cash.
Operating CF
$3.55B
Free Cash Flow
$1.56B
FCF Margin
10.4%
In the latest year Telus Corporation produced about $3.55B of operating cash flow and $1.56B of free cash flow after capital spending. That is a free-cash-flow yield of about 31.9% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
Coverage is weak, the payout was cut recently, or it's being financed rather than earned — treat the current yield as fragile.
Dividend yield
11.4%
Per share (latest FY)
$1.21
Total paid (latest FY)
$1.19B
History on record
2 years
dividend uses 76% of free cash flow
146% of net income paid out
total dividends increased 1 year in a row
no cuts in the last 2 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
24.51x
P/S
1.13x
P/B
1.75x
EV / EBITDA
7.43x
TU trades at 24.5x trailing earnings (about 32.3x on estimated forward earnings), 1.1x sales, and 1.7x book value. Reverse-engineering today's price implies the market expects roughly -0.3% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$13.88
Current price
$10.15
Starting FCF (latest 10-K)
$1.56B
Growth, years 1–5
0.1%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where TU sits versus its Communication Services sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 44 Communication Services companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How TU stacks up against its Communication Services peers — valuation, profitability, and growth versus the sector median.
In the Communication Services sector (95 S&P 500 companies), TU ranks #34 of 95 by our overall rating. It trades at a premium versus the sector on earnings (24.5x P/E vs. 18.1x median) with a lower return on equity (5.9% vs. 14.9%) and slower revenue growth (0.1% vs. 5.3%).
P/E vs sector
24.5x
median 18.1x
ROE vs sector
5.9%
median 14.9%
Growth vs sector
0.1%
median 5.3%
Sector rank
#34
of 95 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Communication Services companies by sub-industry and size. Sector median is across all 95 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $10.15 today · expected CAGR -5% – 5%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $15.42B | $15.88B | $16.36B | $16.85B | $17.35B |
| Net income | $770.92M | $794.05M | $817.87M | $842.41M | $867.68M |
| EPS | $0.47 | $0.48 | $0.50 | $0.51 | $0.53 |
| Share price (low) | $7.02 | $7.23 | $7.45 | $7.67 | $7.90 |
| Share price (high) | $11.70 | $12.05 | $12.41 | $12.79 | $13.17 |
| CAGR (low–high) | -31% / 15% | -16% / 9% | -10% / 7% | -7% / 6% | -5% / 5% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for TU:
- Healthy free-cash-flow yield (~31.9%) funds buybacks and dividends.
- Pays a 11.4% dividend on top of any price gains.
The case against TU:
- Revenue growth is slow (0.1%), limiting the upside engine.
- Thin net margins (4.6%) leave little room for error.
- Elevated leverage (debt/equity 2.0x) adds financial risk.
- Interest coverage is thin (1.9x), so debt costs bite.
- Our model's overall read is Weak (34/100).
Balance-sheet risk — debt/equity of 2.0x magnifies the impact of higher rates or weaker earnings.
Growth risk — sluggish revenue (0.1%) leaves little margin for execution missteps.
Margin risk — thin profitability (4.6%) is vulnerable to cost or pricing pressure.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen weakly: Telus Corporation is a large-cap communication services business growing at a mature pace, with modest profitability, and a heavier debt load to watch. It trades at 24.5x earnings, which our model scores Weak (34/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 24 Wall Street analysts covering TU recommend (July 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more cautious over the last three months (-8 pts of buy ratings).
Latest SEC Filings
TU's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
TU — frequently asked questions
Is TU a good stock to buy?
We don't give buy or sell advice. Our model rates Telus Corporation Weak (34/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is TU's rating on The Stocks School?
Telus Corporation currently scores 34/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does TU's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Telus Corporation's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for TU calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this TU analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell TU. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.