Telus Corp
🇨🇦 T.TO · Toronto · CA87971M1032
Telecom
CAD 17.92 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
24.7
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 17.92 ÷ 0.73 = 24.7
TTM period through: 2025-12-31
Forward P/E (estimated): 18.9
Based on analyst estimates
Reference: Provider P/E (Trailing): 24.9
Yield (Fwd)
9.32%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 9.16%
Net Debt/EBITDA (TTM)
4.2x
Latest quarter: 15.4x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 15.4x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
230.3%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 146.3%
Cash Flow Payout (TTM): 33.5%
FCF Coverage (TTM): 1.44x
ROE
4.7%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
8.4x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Telus is a dominant member of the Canadian telecommunications oligopoly, offering essential connectivity services with highly predictable recurring revenue. However, declining earnings (-10% 5-year CAGR), elevated debt levels (4.25x Net Debt/EBITDA), and intensifying wireless price wars pose significant risks to conservative dividend strategies. While the 9.16% yield remains covered by free cash flow, the combination of fundamental deterioration and structural challenges makes this unsuitable for new positions at current valuation levels.
Sector Context
Telus operates within the highly regulated Canadian telecommunications oligopoly, providing essential wireless, internet, and data services to consumers and businesses. Telecoms generally offer predictable, recurring revenues ideal for dividend investing, but require intensive ongoing capital expenditures that can lead to elevated debt loads, making them sensitive to interest rate fluctuations and regulatory interventions.
Temporary Opportunity Identified
Intensifying Canadian wireless price wars, a recent cybersecurity breach at Telus Digital, and management transition uncertainty.
📊 Strategy Analysis
- • Operates as a dominant player in the Canadian telecommunications oligopoly, benefiting from high barriers to entry and predictable, recurring revenue.
- • The exceptional 9.16% dividend yield remains well-supported by actual cash generation, with a comfortable free cash flow payout ratio of 33.46%.
- • Management's decision to pause dividend growth and transition leadership demonstrates a prudent focus on preserving balance sheet flexibility.
⚠ What to Watch
- • Net Debt/EBITDA stands at 4.25x, breaching the conservative 4.0x threshold and creating refinancing risks in a higher-for-longer interest rate environment.
- • Earnings per share have experienced a secular decline with a -10.0% 5-year CAGR, elevating the trailing P/E multiple to an expensive 24.71x.
- • Intensifying domestic wireless price wars and a recent cybersecurity breach at Telus Digital introduce immediate operational and margin pressures.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.