Loading...

We've got a brand new version of Simply Wall St! Try it out

TELUS

TSX:T
Snowflake Description

Established dividend payer with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
T
TSX
CA$30B
Market Cap
  1. Home
  2. CA
  3. Telecom
Company description

TELUS Corporation, together with its subsidiaries, provides a range of telecommunications products and services in Canada. The last earnings update was 35 days ago. More info.


Add to Portfolio Compare Print
T Share Price and Events
7 Day Returns
-1.7%
TSX:T
0.3%
North America Telecom
0.4%
CA Market
1 Year Returns
7%
TSX:T
14.8%
North America Telecom
10.6%
CA Market
T Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
TELUS (T) -1.7% -0.1% 3.4% 7% 17.4% 18.7%
North America Telecom 0.3% -0.4% 0.7% 14.8% 1.9% 13.5%
CA Market 0.4% 0% 0.7% 10.6% 5.4% 15.2%
1 Year Return vs Industry and Market
  • T underperformed the Telecom industry which returned 14.8% over the past year.
  • T underperformed the Market in Canada which returned 10.6% over the past year.
Price Volatility
T
Industry
5yr Volatility vs Market

Value

 Is TELUS undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of TELUS to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for TELUS.

TSX:T Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.8%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:T
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.36
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.363 (1 + (1- 26.5%) (57.29%))
0.676
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (0.8 * 5.44%)
5.79%

Discounted Cash Flow Calculation for TSX:T using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for TELUS is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:T DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 5.79%)
2020 1,799.50 Analyst x12 1,700.98
2021 2,166.80 Analyst x5 1,936.03
2022 2,434.76 Est @ 12.37% 2,056.35
2023 2,656.05 Est @ 9.09% 2,120.43
2024 2,836.50 Est @ 6.79% 2,140.52
2025 2,983.65 Est @ 5.19% 2,128.29
2026 3,104.89 Est @ 4.06% 2,093.52
2027 3,206.63 Est @ 3.28% 2,043.74
2028 3,294.02 Est @ 2.73% 1,984.50
2029 3,371.10 Est @ 2.34% 1,919.74
Present value of next 10 years cash flows CA$20,124.00
TSX:T DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$3,371.10 × (1 + 1.44%) ÷ (5.79% – 1.44%)
CA$78,576.31
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$78,576.31 ÷ (1 + 5.79%)10
CA$44,746.94
TSX:T Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$20,124.00 + CA$44,746.94
CA$64,870.94
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$64,870.94 / 604.00
CA$107.4
TSX:T Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$107.40
Current discount Discount to share price of CA$50.02
= -1 x (CA$50.02 - CA$107.40) / CA$107.40
53.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price TELUS is available for.
Intrinsic value
>50%
Share price is CA$50.02 vs Future cash flow value of CA$107.4
Current Discount Checks
For TELUS to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • TELUS's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • TELUS's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for TELUS's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are TELUS's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:T PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in CAD CA$2.89
TSX:T Share Price ** TSX (2019-12-12) in CAD CA$50.02
North America Telecom Industry PE Ratio Median Figure of 19 Publicly-Listed Telecom Companies 17.06x
Canada Market PE Ratio Median Figure of 511 Publicly-Listed Companies 15.08x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of TELUS.

TSX:T PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:T Share Price ÷ EPS (both in CAD)

= 50.02 ÷ 2.89

17.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TELUS is overvalued based on earnings compared to the North America Telecom industry average.
  • TELUS is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does TELUS's expected growth come at a high price?
Raw Data
TSX:T PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.32x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
4.4%per year
North America Telecom Industry PEG Ratio Median Figure of 10 Publicly-Listed Telecom Companies 2.47x
Canada Market PEG Ratio Median Figure of 235 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

TSX:T PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.32x ÷ 4.4%

3.96x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TELUS is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on TELUS's assets?
Raw Data
TSX:T PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in CAD CA$17.86
TSX:T Share Price * TSX (2019-12-12) in CAD CA$50.02
North America Telecom Industry PB Ratio Median Figure of 35 Publicly-Listed Telecom Companies 1.48x
Canada Market PB Ratio Median Figure of 2,317 Publicly-Listed Companies 1.27x
TSX:T PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:T Share Price ÷ Book Value per Share (both in CAD)

= 50.02 ÷ 17.86

2.8x

* Primary Listing of TELUS.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TELUS is overvalued based on assets compared to the North America Telecom industry average.
X
Value checks
We assess TELUS's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. TELUS has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is TELUS expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is TELUS expected to grow at an attractive rate?
  • TELUS's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • TELUS's earnings growth is positive but not above the Canada market average.
  • TELUS's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:T Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:T Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 4.4%
TSX:T Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 4.3%
North America Telecom Industry Earnings Growth Rate Market Cap Weighted Average 8.7%
North America Telecom Industry Revenue Growth Rate Market Cap Weighted Average 1.3%
Canada Market Earnings Growth Rate Market Cap Weighted Average 9.8%
Canada Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:T Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:T Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31
2021-12-31 15,888 4,859 1,944 7
2020-12-31 15,543 4,614 1,825 16
2019-12-31 14,684 4,190 1,779 16
2019-12-12
TSX:T Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-09-30 14,476 4,046 1,735
2019-06-30 14,380 3,964 1,745
2019-03-31 14,233 4,010 1,618
2018-12-31 14,095 4,058 1,600
2018-09-30 13,859 4,089 1,596
2018-06-30 13,660 4,156 1,556
2018-03-31 13,486 4,076 1,555
2017-12-31 13,305 3,947 1,559
2017-09-30 13,116 3,700 1,287
2017-06-30 12,949 3,599 1,232
2017-03-31 12,799 3,365 1,259
2016-12-31 12,725 3,219 1,223

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • TELUS's earnings are expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
  • TELUS's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:T Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from TELUS Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:T Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 3.02 3.18 2.86 2.00
2020-12-31 2.98 3.14 2.78 6.00
2019-12-31 2.96 3.04 2.91 6.00
2019-12-12
TSX:T Past Financials Data
Date (Data in CAD Millions) EPS *
2019-09-30 2.89
2019-06-30 2.91
2019-03-31 2.70
2018-12-31 2.68
2018-09-30 2.68
2018-06-30 2.62
2018-03-31 2.62
2017-12-31 2.63
2017-09-30 2.18
2017-06-30 2.08
2017-03-31 2.13
2016-12-31 2.07

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • TELUS is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess TELUS's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the North America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
TELUS has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has TELUS performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare TELUS's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • TELUS's year on year earnings growth rate has been positive over the past 5 years.
  • TELUS's 1-year earnings growth exceeds its 5-year average (8.7% vs 4.1%)
  • TELUS's earnings growth has exceeded the North America Telecom industry average in the past year (8.7% vs -32.3%).
Earnings and Revenue History
TELUS's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from TELUS Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:T Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 14,476.00 1,735.00
2019-06-30 14,380.00 1,745.00
2019-03-31 14,233.00 1,618.00
2018-12-31 14,095.00 1,600.00
2018-09-30 13,859.00 1,596.00
2018-06-30 13,660.00 1,556.00
2018-03-31 13,486.00 1,555.00
2017-12-31 13,305.00 1,559.00
2017-09-30 13,116.00 1,287.00
2017-06-30 12,949.00 1,232.00
2017-03-31 12,799.00 1,259.00
2016-12-31 12,725.00 1,223.00
2016-09-30 12,623.00 1,403.00
2016-06-30 12,539.00 1,420.00
2016-03-31 12,515.00 1,345.00
2015-12-31 12,430.00 1,382.00
2015-09-30 12,359.00 1,433.00
2015-06-30 12,218.00 1,423.00
2015-03-31 12,064.00 1,463.00
2014-12-31 11,927.00 1,425.00
2014-09-30 11,740.00 1,403.00
2014-06-30 11,595.00 1,404.00
2014-03-31 11,467.00 1,309.00
2013-12-31 11,336.00 1,294.00
2013-09-30 11,242.00 1,267.00
2013-06-30 11,142.00 1,234.00
2013-03-31 10,976.00 1,247.00
2012-12-31 10,852.00 1,204.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • TELUS has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • TELUS used its assets more efficiently than the North America Telecom industry average last year based on Return on Assets.
  • TELUS's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess TELUS's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
TELUS has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is TELUS's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up TELUS's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • TELUS's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • TELUS's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of TELUS's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from TELUS Company Filings, last reported 2 months ago.

TSX:T Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 10,855.00 15,711.00 370.00
2019-06-30 10,596.00 15,221.00 219.00
2019-03-31 10,364.00 14,836.00 589.00
2018-12-31 10,341.00 14,111.00 415.00
2018-09-30 10,004.00 14,063.00 433.00
2018-06-30 9,751.00 14,321.00 683.00
2018-03-31 9,580.00 14,155.00 415.00
2017-12-31 9,458.00 13,855.00 510.00
2017-09-30 8,497.00 13,797.00 488.00
2017-06-30 8,410.00 13,684.00 371.00
2017-03-31 8,152.00 13,777.00 794.00
2016-12-31 7,936.00 13,054.00 432.00
2016-09-30 8,293.00 12,554.00 411.00
2016-06-30 8,081.00 12,625.00 431.00
2016-03-31 7,658.00 12,776.00 480.00
2015-12-31 7,672.00 12,138.00 238.00
2015-09-30 7,420.00 11,813.00 156.00
2015-06-30 7,534.00 11,823.00 83.00
2015-03-31 7,678.00 11,539.00 1,589.00
2014-12-31 7,454.00 9,410.00 64.00
2014-09-30 8,143.00 9,435.00 228.00
2014-06-30 8,160.00 9,290.00 57.00
2014-03-31 8,176.00 8,220.00 55.00
2013-12-31 8,015.00 7,893.00 339.00
2013-09-30 7,267.00 7,313.00 33.00
2013-06-30 7,471.00 7,099.00 277.00
2013-03-31 7,995.00 6,592.00 24.00
2012-12-31 7,686.00 6,658.00 108.00
  • TELUS's level of debt (144.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (116% vs 144.3% today).
  • Debt is well covered by operating cash flow (25.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.5x coverage).
X
Financial health checks
We assess TELUS's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. TELUS has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is TELUS's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.66%
Current annual income from TELUS dividends. Estimated to be 4.79% next year.
If you bought CA$2,000 of TELUS shares you are expected to receive CA$93 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • TELUS's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2%).
  • TELUS's dividend is below the markets top 25% of dividend payers in Canada (5.65%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:T Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
North America Telecom Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 4.8%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:T Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 2.59 5.00
2020-12-31 2.41 8.00
2019-12-31 2.26 8.00
2019-12-12
TSX:T Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-11-07 2.330 4.645
2019-08-02 2.250 4.724
2019-05-09 2.250 4.596
2019-02-14 2.180 4.479
2018-11-08 2.180 4.708
2018-08-03 2.100 4.479
2018-05-10 2.100 4.512
2018-02-08 2.020 4.428
2017-11-09 2.020 4.264
2017-08-11 1.970 4.366
2017-05-11 1.970 4.353
2017-02-09 1.920 4.382
2016-11-04 1.920 4.474
2016-08-05 1.840 4.283
2016-05-05 1.840 4.399
2015-11-05 1.760 4.414
2015-05-07 1.680 3.913
2015-02-12 1.600 3.741
2014-11-06 1.600 3.774
2014-08-07 1.520 3.883
2014-05-08 1.520 3.817
2014-02-13 1.440 3.720
2013-11-08 1.440 3.889
2013-08-08 1.360 4.004
2013-05-09 1.360 4.059
2013-02-15 1.280 3.637
2012-11-09 1.280 3.923
2012-08-03 1.220 3.867
2012-02-21 1.220 4.111
2012-02-10 1.160 4.126
2011-11-04 1.160 4.166
2011-08-05 1.100 4.176
2011-05-05 1.100 4.172
2011-02-11 1.050 4.311
2010-11-05 1.050 4.475
2010-08-06 1.000 4.505
2010-05-05 1.000 4.994
2010-02-12 0.950 5.203
2009-11-06 0.950 5.645
2009-08-07 0.950 5.631
2009-05-07 0.950 6.087
2009-02-13 0.950 5.877

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of TELUS's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess TELUS's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can TELUS afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. TELUS has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of TELUS's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Darren Entwistle
COMPENSATION CA$12,563,216
AGE 55
TENURE AS CEO 19.9 years
CEO Bio

Mr. Darren Entwistle, B.A., M.B.A., LLD, has been the Chief Executive Officer and President of TELUS Corporation since August 2015. Mr. Entwistle serves as the Chief Executive Officer and President at Telus Communications Inc. Mr. Entwistle serves as the Chief Executive Officer and President of Telu of Bear Mountain Master Partnership. He served as Interim Chief Executive Officer and President of Telus Mobility at TELUS Corporation since October 19, 2005. He began his career at Bell Canada in 1988 and joined Mercury Communications Ltd. in 1993 in the UK, holding key positions in corporate finance and strategy. He served as the Merger Director of Cable & Wireless plc and implemented the largest merger in UK history and the world's first four-way merger, involving cable-TV and telecom companies. He served as the Managing Director of Business of Cable & Wireless Communications plc from May 1997 to August 1999, Chief Commercial Officer of Cable & Wireless, UK & Europe from August 1999 to April 2000 and the President of Global Services of Cable & Wireless, UK & Ireland from May 2000 to July 2000. Mr. Entwistle served as Executive Chairman of TELUS Corporation since May 8, 2014 until August 10, 2005 and has been its Director since 2000. He has been Director of Telus Communications Inc. since July 10, 2000. He serves as a Director of Vancouver 2010 Bid Corporation. He served as an Independent Director of The Toronto-Dominion Bank from November 2001 to April 3, 2008. He served as Independent Director of George Weston Limited since 2011 until September 11, 2015. He served as a Director of TD Bank Financial Group. He was the Chairman of the Royal Conservatory of Music's Capital Campaign. Mr. Entwistle serves as a Director/ Member of Board of Governors at McGill University. He serves on a number of boards, including the Canadian Council of Chief Executives. He serves as a Member of Board of Governors at International Institute of Telecommunications. He serves as a Director of TD Mortgage Investment Corp and Gairdner Foundation. He served as a Director of Vancouver Symphony Orchestra and the Leading Edge Endowment Fund. He served as Director of Business Council of Canada (not-for-profit) Canadian Board Diversity Council. He holds a Bachelor of Economics (Honours) degree from Concordia University and an MBA in Finance from McGill University. Mr. Entwistle also holds a Diploma in Network Engineering from the University of Toronto. He is also an Honorary Fellow of the Royal Conservatory, has Honorary Doctorates of Laws from McGill University, Concordia University, the University of Alberta and the University of Victoria, and has an Honorary Degree in Business Administration from the Northern Alberta Institute of Technology.

CEO Compensation
  • Darren's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Darren's remuneration is higher than average for companies of similar size in Canada.
Management Team

Darren Entwistle

TITLE
President
COMPENSATION
CA$13M
AGE
55
TENURE
19.9 yrs

Doug French

TITLE
Executive VP & CFO
COMPENSATION
CA$3M
TENURE
23.9 yrs

Eros Spadotto

TITLE
Executive Vice President of Technology Strategy & Business Transformation
COMPENSATION
CA$3M

Josh Blair

TITLE
Executive VP
COMPENSATION
CA$3M

Ian McMillan

TITLE
Investor Relations

Andrea Wood

TITLE
Chief Legal & Governance Officer

Sandy McIntosh

TITLE
Executive VP of People & Culture and Chief Human Resources Officer

François Côté

TITLE
Executive Vice President
COMPENSATION
CA$2M
AGE
61

Michel Belec

TITLE
Senior Vice President of Legal Services

François Gratton

TITLE
Executive VP & Group President
Board of Directors Tenure

Average tenure and age of the TELUS board of directors in years:

6
Average Tenure
63.5
Average Age
  • The tenure for the TELUS board of directors is about average.
Board of Directors

Dick Auchinleck

TITLE
Chairman
COMPENSATION
CA$519K
AGE
67
TENURE
4.3 yrs

Darren Entwistle

TITLE
President
COMPENSATION
CA$13M
AGE
55
TENURE
19.9 yrs

Brian Canfield

TITLE
Chairman Emeritus
COMPENSATION
CA$256K
AGE
80
TENURE
5.6 yrs

Rick Hillier

TITLE
Chairman of Atlantic Canada Community Board
AGE
64
TENURE
11.3 yrs

John Manley

TITLE
Independent Director
COMPENSATION
CA$252K
AGE
69
TENURE
7.9 yrs

Mary Haddad

TITLE
Independent Director
COMPENSATION
CA$268K
AGE
63
TENURE
5.6 yrs

Dave Mowat

TITLE
Independent Director
COMPENSATION
CA$265K
AGE
63
TENURE
3.6 yrs

Stockwell Day

TITLE
Independent Director
COMPENSATION
CA$259K
AGE
69
TENURE
8.9 yrs

Ray Chan

TITLE
Independent Director
COMPENSATION
CA$233K
AGE
63
TENURE
6.4 yrs

Lisa de Wilde

TITLE
Independent Director
COMPENSATION
CA$239K
AGE
63
TENURE
4.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
09. Aug 19 Sell Doug French Individual 06. Aug 19 06. Aug 19 -850 CA$47.08 CA$-40,018
09. Aug 19 Buy Doug French Individual 06. Aug 19 06. Aug 19 1,650 CA$47.07 CA$77,670
17. May 19 Sell Doug French Individual 13. May 19 13. May 19 -2,300 CA$48.81 CA$-112,263
17. May 19 Buy Doug French Individual 13. May 19 13. May 19 3,050 CA$48.84 CA$148,962
17. May 19 Sell John Manley Individual 13. May 19 13. May 19 -1,300 CA$48.96 CA$-63,649
10. May 19 Buy Doug French Individual 15. Feb 19 15. Feb 19 551 CA$47.19 CA$26,002
10. May 19 Buy Sandy McIntosh Individual 15. Feb 19 15. Feb 19 522 CA$47.19 CA$24,633
10. May 19 Buy Josh Blair Individual 15. Feb 19 15. Feb 19 1,690 CA$47.19 CA$79,751
X
Management checks
We assess TELUS's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. TELUS has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Kind Of Shareholder Appears On The TELUS Corporation's (TSE:T) Shareholder Register?

Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. … View our latest analysis for TELUS TSX:T Ownership Summary, August 30th 2019 What Does The Institutional Ownership Tell Us About TELUS? … We can see that TELUS does have institutional investors; and they hold 58% of the stock.

Simply Wall St -

Why TELUS Corporation's (TSE:T) High P/E Ratio Isn't Necessarily A Bad Thing

Check out our latest analysis for TELUS How Do I Calculate TELUS's Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for TELUS: P/E of 16.4 = CA$47.69 ÷ CA$2.91 (Based on the trailing twelve months to June 2019.) Is A High Price-to-Earnings Ratio Good? … How Does TELUS's P/E Ratio Compare To Its Peers?

Simply Wall St -

Executive VP & CFO Doug French Just Bought Shares In TELUS Corporation (TSE:T)

View our latest analysis for TELUS TELUS Insider Transactions Over The Last Year In the last twelve months, the biggest single purchase by an insider was when Executive VP of People & Culture and Chief Human Resources Officer Sandy McIntosh bought CA$651k worth of shares at a price of CA$47.60 per share. … Happily, we note that in the last year insiders paid CA$2.2m for 45187 shares. … Insiders own 0.1% of TELUS shares, worth about CA$36m.

Simply Wall St -

Has TELUS Corporation (TSE:T) Been Employing Capital Shrewdly?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for TELUS: 0.099 = CA$3.0b ÷ (CA$36b - CA$5.6b) (Based on the trailing twelve months to June 2019.) Therefore, TELUS has an ROCE of 9.9%. … What Are Current Liabilities, And How Do They Affect TELUS's ROCE? … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Three Things You Should Check Before Buying TELUS Corporation (TSE:T) For Its Dividend

Dividend paying stocks like TELUS Corporation (TSE:T) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. … Click the interactive chart for our full dividend analysis TSX:T Historical Dividend Yield, July 25th 2019 Payout ratios Dividends are typically paid from company earnings. … First, the company has a payout ratio that was within an average range for most dividend stocks, but it paid out virtually all of its generated cash flow.

Simply Wall St -

If You Had Bought TELUS (TSE:T) Stock Five Years Ago, You Could Pocket A 26% Gain Today

To wit, the TELUS share price has climbed 26% in five years, easily topping the market return of 0.9% (ignoring dividends). … There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During five years of share price growth, TELUS achieved compound earnings per share (EPS) growth of 5.5% per year.

Simply Wall St -

TELUS (TSE:T) Takes On Some Risk With Its Use Of Debt

TSX:T Historical Debt, July 4th 2019 How Strong Is TELUS's Balance Sheet? … According to the last reported balance sheet, TELUS had liabilities of CA$5.40b due within 12 months, and liabilities of CA$19.0b due beyond 12 months. … Either way, since TELUS does have more debt than cash, it's worth keeping an eye on its balance sheet.

Simply Wall St -

Why TELUS Corporation (TSE:T) Could Be Your Next Investment

Established dividend payer and good value T's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. … Take a look at our free research report of analyst consensus for T’s outlook. … Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

Simply Wall St -

Could The TELUS Corporation (TSE:T) Ownership Structure Tell Us Something Useful?

Insider Ownership Of TELUS While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. … 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.

Simply Wall St -

I Built A List Of Growing Companies And TELUS (TSE:T) Made The Cut

See our latest analysis for TELUS TELUS's Earnings Per Share Are Growing. … Like standing at the lookout, surveying the horizon at sunrise, insider buying, for some investors, sparks joy. … The good news, alongside the insider buying, for TELUS bulls is that insiders (collectively) have a meaningful investment in the stock.

Simply Wall St -

Company Info

Description

TELUS Corporation, together with its subsidiaries, provides a range of telecommunications products and services in Canada. It operates through Wireless and Wireline segments. The company’s telecommunications products and services comprise wireless and wireline voice and data services; data services, including Internet protocol; television services; hosting, managed information technology, and cloud-based services; healthcare solutions; customer care and business services; and home and business security solutions. It has 13.4 million subscriber connections, including 9.2 million wireless subscribers, 1.9 million high-speed Internet subscribers, 1.2 million wireline residential network access lines, and 1.1 million TELUS TV subscribers. The company was formerly known as TELUS Communications Inc. and changed its name to TELUS Corporation in February 2005. TELUS Corporation was founded in 1993 and is based in Vancouver, Canada.

Details
Name: TELUS Corporation
T
Exchange: TSX
Founded: 1993
CA$30,212,080,000
604,000,000
Website: http://www.telus.com
Address: TELUS Corporation
510 West Georgia Street,
7th Floor,
Vancouver,
British Columbia, V6B 0M3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX T Common Shares The Toronto Stock Exchange CA CAD 25. Jan 1999
NYSE TU Common Shares New York Stock Exchange US USD 25. Jan 1999
DB BCZ Common Shares Deutsche Boerse AG DE EUR 25. Jan 1999
BMV TU N Common Shares Bolsa Mexicana de Valores MX MXN 25. Jan 1999
Number of employees
Current staff
Staff numbers
58,000
TELUS employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/12 23:47
End of day share price update: 2019/12/12 00:00
Last estimates confirmation: 2019/12/10
Last earnings filing: 2019/11/07
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.