Latest news with #TELUSCorporation
Yahoo
14-05-2025
- Business
- Yahoo
TELUS (TSE:T) Is Paying Out A Larger Dividend Than Last Year
The board of TELUS Corporation (TSE:T) has announced that it will be paying its dividend of CA$0.4163 on the 2nd of July, an increased payment from last year's comparable dividend. This takes the dividend yield to 7.5%, which shareholders will be pleased with. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. Based on the last payment, the company wasn't making enough to cover what it was paying to shareholders. This situation certainly isn't ideal, and could place significant strain on the balance sheet if it continues. Earnings per share is forecast to rise by 106.5% over the next year. However, if the dividend continues along recent trends, it could start putting pressure on the balance sheet with the payout ratio reaching 107% over the next year. View our latest analysis for TELUS The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Since 2015, the dividend has gone from CA$0.76 total annually to CA$1.67. This implies that the company grew its distributions at a yearly rate of about 8.2% over that duration. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios. The company's investors will be pleased to have been receiving dividend income for some time. Let's not jump to conclusions as things might not be as good as they appear on the surface. TELUS' EPS has fallen by approximately 11% per year during the past five years. Such rapid declines definitely have the potential to constrain dividend payments if the trend continues into the future. Over the next year, however, earnings are actually predicted to rise, but we would still be cautious until a track record of earnings growth can be built. Overall, this is probably not a great income stock, even though the dividend is being raised at the moment. In the past the payments have been stable, but we think the company is paying out too much for this to continue for the long term. This company is not in the top tier of income providing stocks. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. As an example, we've identified 2 warning signs for TELUS that you should be aware of before investing. Is TELUS not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Business Wire
09-05-2025
- Business
- Business Wire
TELUS Digital reports first quarter 2025 results, with revenue and profitability in line with expectations; management reiterates 2025 outlook
VANCOUVER, British Columbia--(BUSINESS WIRE)--TELUS Digital Experience (TELUS Digital) (NYSE and TSX: TIXT), a leading global technology company specializing in digital customer experiences, today released its results for the three-month period ended March 31, 2025. TELUS Corporation (TSX: T, NYSE: TU) is the controlling shareholder of TELUS Digital. All figures in this news release, and elsewhere in TELUS Digital disclosures, are in U.S. dollars, unless specified otherwise, and relate only to TELUS Digital results and measures. 'In the first quarter of 2025, TELUS Digital's operating and financial results were in line with expectations and support our reiteration of the full-year outlook,' said Jason Macdonnell, Acting Chief Executive Officer and Chief Operating Officer, TELUS Digital and President, Customer Experience. 'Our relationship with TELUS Corporation as an anchor client as well as our overall service diversification continue to provide a certain level of insulation and stability in the current environment. We will continue to invest in and evolve our market and technology capabilities to the benefit of our clients in our pursuit to be the partner of choice as our clients navigate today's business challenges.' Tobias Dengel, President of TELUS Digital Solutions added, 'In Digital Solutions, similar to other players in our industry, we're closely monitoring client sentiment trends during the recent period of market volatility. At the same time, we are seeing good engagement with clients on their automation and cost efficiency needs. Focusing on the longer term, we believe the demand for transformation of consumer-facing digital experiences should provide a solid basis for our future growth. We are encouraged that our positioning as a differentiated partner in helping our clients innovate their customer journeys resulted in the first quarter's year-over-year growth in Digital Solutions revenues.' Gopi Chande, Chief Financial Officer said, 'Across TELUS Digital's service lines, in the first quarter of 2025 we achieved year-over-year revenue growth, primarily driven by AI & Data Solutions as well as Digital Solutions. We saw growth among the majority of our top five largest clients in the quarter, on both a sequential and year-over-year basis. Our continued targeted efficiency programs and measured approach to the timing of our investments are yielding solid and growing cost reduction results. As part of reiterating our full-year financial outlook, we are committed to delivering on expectations and achieving a gradual improvement in our performance, while we navigate a fluid macroeconomic backdrop and continue to manage our client concentration.' Provided below are financial and operating highlights that include certain non-GAAP measures and ratios. See the Non-GAAP section of this news release for a discussion on such measures and ratios. Q1 2025 vs. Q1 2024 summary Revenue of $670 million, an increase of $13 million or 2% on a reported basis and 3% on a constant currency basis 1, primarily driven by growth in services provided to existing clients, including TELUS and a leading social media client, among others, and new clients added since the same period in the prior year, partially offset by lower revenues from certain technology and eCommerce clients. Total revenue increase in the quarter included an unfavorable foreign currency impact of approximately 1% compared with the same quarter of the prior year, associated with the strengthening U.S. dollar exchange rate against the euro. Net loss of $25 million and diluted EPS of $(0.09), compared with net income of $28 million and diluted EPS of $0.05, respectively, in the same quarter of the prior year, due to an increase in operating expenses outpacing revenue growth and other income recognized in the comparative period arising from changes in business combination-related provisions that did not reoccur in the current period, partially offset by lower income taxes and interest expense. Net loss margin, calculated by dividing net loss by revenue for the period, was 3.7%, compared with net income margin of 4.3% for the same quarter in the prior year. Net loss and diluted EPS include the impact of acquisition and integration charges, amortization of purchased intangible assets and interest accretion on written put options, among other items. Adjusted Net Income 1, which excludes the impact of such items, was $17 million, compared with $65 million in the same quarter of the prior year, primarily due to higher salaries and benefits, goods and services purchased, and share-based compensation expense, which were partially offset by higher revenues earned and lower income tax expense. Adjusted EBITDA 1 was $90 million, compared with $153 million in the same quarter of the prior year, primarily due to the increases in salaries and benefits and goods and services purchased outpacing revenue growth, as well as other income generated in the prior year's comparative period from changes in business combination-related provisions, and higher share-based compensation in the current period. Adjusted EBITDA Margin 1 was 13.4%, compared with 23.3% in the same quarter of the prior year, due to the aforementioned factors. Adjusted Diluted EPS 1 was $0.06, compared with $0.22 in the same quarter of the prior year. Cash provided by operating activities was $69 million and Free Cash Flow 1 was $41 million, compared with $126 million and $107 million, respectively, in the same quarter of the prior year, primarily due to increases in operating expenses outpacing revenue growth, higher capital expenditures and timing of certain large client payments. Net Debt to Adjusted EBITDA Leverage Ratio 1 as per our credit agreement was 3.4x as of March 31, 2025 compared with 3.2x as of December 31, 2024. Team member count was 78,424 as of March 31, 2025, an increase of 5% year-over-year, resulting from the expansion and ramp of our service programs and new wins across our various regions. A discussion of our results of operations is included in our Management's Discussion and Analysis for the three-month period ended March 31, 2025, which is filed on SEDAR+ and as Exhibit 99.2 to our Form 6-K filed on EDGAR. Such materials and additional information are also provided at Outlook For the full-year 2025, management continues to expect: Revenue growth of approximately 2% on an organic basis Adjusted EBITDA of approximately $400 million Adjusted Diluted EPS of approximately $0.32 Q1 2025 investor call TELUS Digital will host a conference call today, May 9, 2025 at 10 a.m. (ET) / 7 a.m. (PT), where management will review the first quarter results, followed by a question and answer session with pre-qualified analysts. A webcast of the conference call will be streamed live on the TELUS Digital Investor Relations website at: and a replay will also be available on the website following the conference call. Non-GAAP This news release includes non-GAAP financial information, with reconciliation to GAAP measures presented at the end of this news release. We report certain non-GAAP measures used in the management analysis of our performance, but these do not have standardized meanings under International Financial Reporting Standards, as issued by the International Accounting Standards Board (IFRS ® Accounting Standards). These non-GAAP financial measures and non-GAAP ratios may not be comparable to GAAP measures or ratios and may not be comparable to similarly titled non-GAAP financial measures or non-GAAP ratios reported by other companies, including those within our industry and TELUS Corporation, our controlling shareholder. Adjusted EBITDA, Adjusted Net Income (Loss), Free Cash Flow, revenue on a constant currency basis, and Net Debt are non-GAAP financial measures, while Adjusted EBITDA Margin, Adjusted Diluted EPS, revenue growth on a constant currency basis and Net Debt to Adjusted EBITDA Leverage Ratio are non-GAAP ratios. Adjusted EBITDA is commonly used by our industry peers and provides a measure for investors to compare and evaluate our relative operating performance. We use it to assess our ability to service existing and new debt facilities, and to fund accretive growth opportunities and acquisition targets. In addition, certain financial debt covenants associated with our credit facility, including Net Debt to Adjusted EBITDA Leverage Ratio, are based on Adjusted EBITDA, which requires us to monitor this non-GAAP financial measure in connection with our financial covenants. Adjusted EBITDA should not be considered an alternative to net income in measuring our financial performance, and it should not be used as a replacement measure of current and future operating cash flows. However, we believe a financial measure that presents net income adjusted for these items provides a more consistent measure for management to evaluate period-over-period performance and would enable an investor to better evaluate our underlying business trends, our operational performance and overall business strategy. We exclude items from Adjusted Net Income (Loss) and Adjusted EBITDA, such as acquisition, integration and other, foreign exchange gains or losses and, additionally, with respect to Adjusted Net Income (Loss), the interest accretion on written put options, amortization of purchased intangible assets, and the related tax effect of these adjustments. Full reconciliations of Adjusted EBITDA and Adjusted Net Income (Loss) to the comparable GAAP measures are included at the end of this news release. We calculate Free Cash Flow by deducting capital expenditures from our cash provided by operating activities, as we believe capital expenditures are a necessary ongoing cost to maintain our existing productive capital assets and support our organic business operations. We use Free Cash Flow to evaluate the cash flows generated from our ongoing business operations that can be used to meet our financial obligations, service debt facilities, reinvest in our business, and to fund, in part, potential future acquisitions. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by consolidated revenue. We regularly monitor Adjusted EBITDA Margin to evaluate our operating performance compared to established budgets, operational goals and the performance of industry peers. Adjusted Diluted EPS is used by management to assess the profitability of our business operations on a per share basis. We regularly monitor Adjusted Diluted EPS as it provides a more consistent measure for management and investors to evaluate our period-over-period operating performance, to better understand our ability to manage operating costs and to generate profits. Adjusted Diluted EPS is calculated by dividing Adjusted Net Income (Loss) by the weighted average number of diluted equity shares outstanding during the period. Revenue on a constant currency basis is used by management to assess revenue, the most directly comparable GAAP measure, excluding the effect of foreign currency fluctuations. Revenue on a constant currency basis is calculated as current period revenue translated using average foreign exchange rates in the comparable prior period. Revenue growth on a constant currency basis is used by management to assess the growth of revenue, the most directly comparable GAAP measure, excluding the effect of foreign currency fluctuations. Revenue growth on a constant currency basis is calculated as current period revenue growth translated using average foreign exchange rates in the comparable prior period. Net Debt to Adjusted EBITDA Leverage Ratio as per our credit agreement is calculated based on Net Debt and Adjusted EBITDA, both as per our credit agreement. Over the long term, we seek to maintain a Net Debt to Adjusted EBITDA Leverage Ratio in the range of 2-3x. We may deviate from our target Net Debt to Adjusted EBITDA Leverage Ratio as per our credit agreement to pursue acquisitions and other strategic opportunities that may require us to borrow additional funds and, additionally, our ability to maintain this targeted ratio depends on our ability to continue to grow our business, general economic conditions, industry trends and other factors. We have not provided a quantitative reconciliation of our full-year 2025 outlook for Adjusted EBITDA and Adjusted Diluted EPS to our full-year 2025 outlook for net income and diluted EPS because we are unable, without making unreasonable efforts, to calculate certain reconciling items with confidence, which could materially affect the computation of these financial ratios and measures. Cautionary note regarding forward-looking statements This news release contains forward-looking statements concerning our business, operations and financial performance and condition, as well as our plans, objectives and expectations for our business operations and financial performance and condition. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as 'aim', 'anticipate', 'assume', 'believe', 'contemplate', 'continue', 'could', 'due', 'estimate', 'expect', 'goal', 'intend', 'may', 'objective', 'plan', 'predict', 'potential', 'positioned', 'seek', 'should', 'target', 'will', 'would' and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. These forward-looking statements are based on our current expectations, estimates, forecasts and projections about our business and the industry in which we operate, and management's beliefs and assumptions, and are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. We assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, uncertainties or otherwise, except as required by law. Specifically, we made several assumptions underlying our financial outlook for the full-year 2025 results, including key assumptions in relation to: our ability to execute our growth strategy, including by expanding services offered to existing clients and attracting new clients; our ability to maintain the competitiveness of our service offerings and meet changing customer needs, including by continuing to invest in, develop and deploy new technologies and digital transformation capabilities; our ability to maintain our corporate culture and attract and retain talent; our ability to integrate, and realize the benefits of, acquisitions that align with our strategy and enhance our core capabilities and solutions; the relative growth rate and size of our target industry verticals; our projected operating and capital expenditure requirements; our ability to manage costs and adjust our cost structure as needed; and the impact of global conditions on our and our clients' businesses, including macroeconomic uncertainty, inflation, interest rates fluctuations and geopolitical conditions. Our financial outlook provides management's best judgement of how trends will impact the business and may not be appropriate for other purposes. Risk factors that may cause actual results to differ materially from current expectations include, among other things: We face intense competition from companies that offer services similar to ours. Our business and financial results have been and could be adversely affected by a number of global conditions and the effects of these same conditions on our clients' businesses and demand for our services. Because the majority of our costs is fixed in the short-term, we may experience a delay in our ability to immediately adjust our cost structure in response to prolonged lower client demand. A limited number of clients account for a significant portion of our revenue and loss of or reduction in business from, or consolidation of, these or any other major clients could have a material adverse effect on our business, financial condition, financial performance and prospects. Our ability to grow and maintain our profitability could be materially affected if changes in technology, including without limitation generative artificial intelligence (GenAI), and client expectations outpace our service offerings and the development of our internal tools and processes or if we are not able to meet the expectations of our clients. Our growth prospects are dependent upon attracting and retaining enough qualified team members to support our operations, and competition for talent is intense. If we cannot maintain our unique culture as we grow, our services, financial performance and business may be harmed. Our business could be adversely affected if we lose members of our senior management. We could be unable to successfully identify, complete, integrate and realize the benefits of acquisitions or manage the associated risks. The unauthorized disclosure of sensitive or confidential client and customer data, through cyberattacks or otherwise, could expose us to protracted and costly litigation, damage to reputation and cause us to lose clients / revenue. Our business may not develop in ways that we currently anticipate due to negative public reaction to offshore outsourcing, content moderation and proposed legislation or otherwise. Our policies, procedures and programs to safeguard the health, safety and security of our team members, particularly our content moderation team members, may not be adequate. Our business would be adversely affected if individuals providing data annotation services through AI Data Solutions were classified as employees (not as independent contractors). The dual-class structure contained in our articles has the effect of concentrating voting control and the ability to influence corporate matters with TELUS. TELUS will, for the foreseeable future, control the TELUS Digital board of directors. The market price of our subordinate voting shares may be affected by low trading volume and the market pricing for our subordinate voting shares may decline as a result of future sales, or the perception of the likelihood of future sales, by us or our shareholders in the public market. These risk factors, as well as other risk factors that may impact our business, financial condition and results of operation, are also described in our 'Risk Factors' section of our Annual Report available on SEDAR+ and in 'Item 3D—Risk Factors' of our Annual Report on Form 20-F filed on February 13, 2025, and available on EDGAR. TELUS International (Cda) Inc. Condensed Interim Consolidated Statements of Financial Position (unaudited) As at (millions) December 31, 2024 ASSETS Current assets Cash and cash equivalents $ 137 $ 174 Accounts receivable 459 454 Due from affiliated companies 31 16 Income and other taxes receivable 9 8 Prepaid and other assets 56 42 Current portion of derivative assets 12 13 704 707 Non-current assets Property, plant and equipment, net 465 456 Intangible assets, net 1,351 1,379 Goodwill 1,953 1,926 Derivative assets — 15 Deferred income taxes 12 12 Other long-term assets 26 26 3,807 3,814 Total assets $ 4,511 $ 4,521 LIABILITIES AND OWNERS' EQUITY Current liabilities Accounts payable and accrued liabilities $ 317 $ 321 Due to affiliated companies 260 231 Income and other taxes payable 71 68 Current portion of provisions 44 7 Current maturities of long-term debt 125 116 Current portion of derivative liabilities 1 2 818 745 Non-current liabilities Provisions 98 139 Long-term debt 1,365 1,409 Derivative liabilities 2 — Deferred income taxes 248 256 Other long-term liabilities 28 27 1,741 1,831 Total liabilities 2,559 2,576 Owners' equity 1,952 1,945 Total liabilities and owners' equity $ 4,511 $ 4,521 Expand TELUS International (Cda) Inc. Condensed Interim Consolidated Statements of Cash Flows (unaudited) Three months Periods ended March 31 (millions) 2025 2024 OPERATING ACTIVITIES Net (loss) income $ (25 ) $ 28 Adjustments: Depreciation and amortization 81 79 Interest expense 30 35 Income tax expense — 9 Share-based compensation 7 1 Changes in business combination-related provisions — (29 ) Change in market value of derivatives and other (10 ) (6 ) Net change in non-cash operating working capital (7 ) 11 Income taxes paid, net (7 ) (2 ) Cash provided by operating activities 69 126 INVESTING ACTIVITIES Cash payments for capital assets (27 ) (22 ) Cash payments for acquisitions — (3 ) Cash used in investing activities (27 ) (25 ) FINANCING ACTIVITIES Shares issued 1 1 Withholding taxes paid related to net share settlement of equity awards (2 ) (2 ) Long-term debt issued 150 45 Repayment of long-term debt (211 ) (94 ) Interest paid on credit facilities (19 ) (24 ) Cash used in financing activities (81 ) (74 ) Effect of exchange rate changes on cash and cash equivalents 2 — CASH POSITION (Decrease) increase in cash and cash equivalents (37 ) 27 Cash and cash equivalents, beginning of period 174 127 Cash and cash equivalents, end of period $ 137 $ 154 Expand Non-GAAP reconciliations (unaudited) Three Months Ended M arch 31 (millions, except percentages) 2025 2024 Revenue, as reported $ 670 $ 657 Foreign exchange impact on current period revenue using prior comparative period's rates 7 (2 ) Revenue on a constant currency basis $ 677 $ 655 Revenue growth 2 % (4 )% Revenue growth on a constant currency basis 3 % (5 )% Expand Three Months Ended M arch 31 (millions, except per share amounts) 2025 2024 Net (loss) income $ (25 ) $ 28 Add back (deduct): Acquisition, integration and other 6 7 Amortization of purchased intangible assets 43 42 Interest accretion on written put options 2 3 Foreign exchange gain (2 ) (5 ) Tax effect of the adjustments above (7 ) (10 ) Adjusted Net Income $ 17 $ 65 Adjusted Basic Earnings Per Share $ 0.06 $ 0.24 Adjusted Diluted Earnings Per Share $ 0.06 $ 0.22 Expand Three Months Ended M arch 31 (millions, except percentages) 2025 2024 Net (loss) income $ (25 ) $ 28 Add back (deduct): Acquisition, integration and other 6 7 Depreciation and amortization 81 79 Interest expense 30 35 Foreign exchange gain (2 ) (5 ) Income tax expense — 9 Adjusted EBITDA $ 90 $ 153 Net (loss) income margin (3.7 )% 4.3 % Adjusted EBITDA Margin 13.4 % 23.3 % Expand Three Months Ended M arch 31 (millions) 2025 2024 Cash provided by operating activities $ 69 $ 126 Less: capital expenditures (28 ) (19 ) Free Cash Flow $ 41 $ 107 Expand As at (millions, except for ratio) March 31, 2025 December 31, 2024 Outstanding credit facility $ 1,245 $ 1,284 Contingent facility utilization 7 7 Net derivative liabilities — 2 Cash balance 1 (137 ) (150 ) Net Debt as per credit agreement $ 1,115 $ 1,143 Adjusted EBITDA (trailing 12 months) 2 $ 418 $ 481 Adjustments required as per credit agreement $ (90 ) $ (124 ) Net Debt to Adjusted EBITDA Leverage Ratio as per credit agreement 3.4 3.2 Expand 1 Maximum cash balance permitted as a reduction to net debt, as per the credit agreement, is $150 million. About TELUS Digital TELUS Digital (NYSE & TSX: TIXT) crafts unique and enduring experiences for customers and employees, and creates future-focused digital transformations that deliver value for our clients. We are the brand behind the brands. Our global team members are both passionate ambassadors of our clients' products and services, and technology experts resolute in our pursuit to elevate their end customer journeys, solve business challenges, mitigate risks, and drive continuous innovation. Our portfolio of end-to-end, integrated capabilities include customer experience management, digital solutions, such as cloud solutions, AI-fueled automation, front-end digital design and consulting services, AI & data solutions, including computer vision, and trust, safety and security services. Fuel iX TM is TELUS Digital's proprietary platform and suite of products for clients to manage, monitor, and maintain generative AI across the enterprise, offering both standardized AI capabilities and custom application development tools for creating tailored enterprise solutions. Powered by purpose, TELUS Digital leverages technology, human ingenuity and compassion to serve customers and create inclusive, thriving communities in the regions where we operate around the world. Guided by our Humanity-in-the-Loop principles, we take a responsible approach to the transformational technologies we develop and deploy by proactively considering and addressing the broader impacts of our work. Learn more at: 1 Revenue growth on a constant currency basis, Adjusted EBITDA Margin, Adjusted Diluted EPS and Net Debt to Adjusted EBITDA Leverage Ratio are non-GAAP ratios, while Adjusted Net Income, Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures. See the Non-GAAP section of this news release.
Yahoo
04-04-2025
- Business
- Yahoo
What Does TELUS Corporation's (TSE:T) Share Price Indicate?
Let's talk about the popular TELUS Corporation (TSE:T). The company's shares received a lot of attention from a substantial price movement on the TSX over the last few months, increasing to CA$23.20 at one point, and dropping to the lows of CA$19.31. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether TELUS' current trading price of CA$20.50 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at TELUS's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. According to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average, the stock currently looks expensive. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 31.26x is currently well-above the industry average of 11.69x, meaning that it is trading at a more expensive price relative to its peers. Furthermore, TELUS's share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach levels around its industry peers, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it's there, it may be hard to fall back down into an attractive buying range. See our latest analysis for TELUS Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to more than double over the next couple of years, the future seems bright for TELUS. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? T's optimistic future growth appears to have been factored into the current share price, with shares trading above industry price multiples. At this current price, shareholders may be asking a different question – should I sell? If you believe T should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping tabs on T for some time, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the optimistic prospect is encouraging for T, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. So while earnings quality is important, it's equally important to consider the risks facing TELUS at this point in time. Case in point: We've spotted 3 warning signs for TELUS you should be mindful of and 2 of them make us uncomfortable. If you are no longer interested in TELUS, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
31-03-2025
- Business
- Yahoo
Is TELUS Corporation (TU) the Most Oversold Large Cap Stock to Invest in Now?
We recently published a list of . In this article, we are going to take a look at where TELUS Corporation (NYSE:TU) stands against other most oversold large cap stocks to invest in now. Wall Street is being impacted by the uncertainty surrounding the tariff news. The broader has dropped a lot since Trump took office on January 20, and investors are mostly worried about tariffs because they think they could hurt economic growth and cause inflation. Investors think trade policies can reduce consumer confidence and restrict businesses' ability to invest capital, while Trump believes tariffs can boost national revenue, promote broad-based growth, and be used as a negotiation weapon with other nations. According to Franklin Templeton, the Magnificent Seven's supremacy in AI has allowed US stocks to generate significant returns over the last few years, with the broader market frequently hitting all-time highs. The outlook for the market as a whole is favorable, notwithstanding high valuations. Sales growth has been accelerating, innovation and investment are still happening at a rapid pace, and this year's earnings are predicted to increase by double digits. Additionally, the administration of the US economy is more business-friendly. However, there are concerns, primarily associated with US trade policy and the anticipated effects of tariffs on important industries, such as technology. Franklin Templeton thinks that despite these risks, investor confidence in US stocks should continue to be high. The new administration's policy reforms are anticipated to finally produce long-term benefits for the larger US economy, notwithstanding the possibility of increased dangers. Franklin Templeton also stated that although the Mag 7 stocks are positioned for long-term success, market leadership is anticipated to expand as and when innovation accelerates. According to the investment firm, active management is crucial. The transition from AI platforms to infrastructure is still in progress. Consequently, it is anticipated that the success of investments will depend on the ability to select the appropriate companies at the right time—those that have the technology, strategy, and flexibility to continue and sustain long-term growth. Thanks to innovation and investment, US stocks—mostly large-cap stocks—have been doing well. Notably, the Dow index has increased by more than 4.5% in the last six months. The investment business sees expanding chances beyond such market leaders, even though the Mag 7 stocks still sustain the market momentum. The competitive landscape is still dynamic and has been generating new development sectors as a result of the ongoing AI-driven cycle. For our methodology, we screened for stocks with a market capitalization exceeding $10 billion and a relative strength index (RSI) below 40. We then ranked these stocks based on the lowest RSI as of March 23, 2025. An RSI below 40 suggests that the stock is oversold. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). An executive in a business suit discussing the possibilities of smart technology. Relative Strength Index: 27.92 TELUS Corporation (NYSE:TU) is a Canadian company that provides wireless and wireline telecommunication services, including voice, data services, mobile, IP, television, video and security, internet, and cloud-based solutions. The corporation serves North America, Europe, Asia, and Central America, with its headquarters located in British Columbia, Canada. TELUS Corporation (NYSE:TU) has surged by over 4% since the start of 2025. With an EPS of $0.54 in the recently released fourth-quarter data, the expected $0.49 gain was exceeded. Additionally, revenue exceeded the projected amount of $32.07 billion to $32.23 billion. New client services for telecom in 2024 were credited with improving performance efficiency. The company's combined mobile and home product offerings brought in over 1,200,000 additional clients. The company's stock has a favorable outlook in the market due to its financial success and apparent growth in its client base. TELUS Corporation (NYSE:TU) has a high dividend yield of 7.28%. Overall, TU ranks 6th on our list of most oversold large cap stocks to invest in now. While we acknowledge the potential of TU, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
14-03-2025
- Business
- Yahoo
With 4.0% one-year returns, institutional owners may ignore TELUS Corporation's (TSE:T) 3.1% stock price decline
Given the large stake in the stock by institutions, TELUS' stock price might be vulnerable to their trading decisions 44% of the business is held by the top 25 shareholders Insiders have been buying lately A look at the shareholders of TELUS Corporation (TSE:T) can tell us which group is most powerful. With 55% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Institutional investors endured the highest losses after the company's market cap fell by CA$1.0b last week. Still, the 4.0% one-year gains may have helped mitigate their overall losses. We would assume however, that they would be on the lookout for weakness in the future. Let's take a closer look to see what the different types of shareholders can tell us about TELUS. See our latest analysis for TELUS Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. As you can see, institutional investors have a fair amount of stake in TELUS. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of TELUS, (below). Of course, keep in mind that there are other factors to consider, too. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in TELUS. BMO Asset Management Corp. is currently the largest shareholder, with 5.4% of shares outstanding. RBC Dominion Securities Inc., Asset Management Arm is the second largest shareholder owning 4.8% of common stock, and RBC Global Asset Management Inc. holds about 3.4% of the company stock. A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our information suggests that TELUS Corporation insiders own under 1% of the company. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own CA$39m worth of shares (at current prices). Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling. With a 45% ownership, the general public, mostly comprising of individual investors, have some degree of sway over TELUS. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 3 warning signs for TELUS (2 shouldn't be ignored) that you should be aware of. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
