Analysts rate Telus Stock (T:CA:TSX) with a Buy rating and CAD 32 price target

Based on the Telus Stock Forecast from 11 analysts, the average analyst Telus stock price target is CAD 32.17 over the next 12 months. Telus Corp’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Telus Corp is Neutral, which is based on 8 positive signals and 7 negative signals. At the last closing, Telus Corp’s stock price was CAD 26.92Telus Corp’s stock price has changed by -1.63% over the past week, -2.41% over the past month and -1.75% over the last year.

 

About Telus Corp. (T:CA:TSX):

TELUS Corporation, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. It operates through Technology Solutions and Digitally-Led Customer Experiences segments. The Technology Solutions segment offers a range of telecommunications products and services; network revenue; mobile technologies equipment sale; data revenues, such as internet protocol; television; hosting, managed information technology, and cloud-based services; software, data management, and data analytics-driven smart food-chain technologies; home and business security; healthcare software and technology solutions; and voice and other telecommunications services. The company was formerly known as TELUS Communications Inc. and changed its name to TELUS Corporation in February 2005. TELUS Corporation was incorporated in 1998 and is headquartered in Vancouver, Canada.

 

What we like:

Superior risk adjusted returns

Telus stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The annual returns for Telus stock have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

Telus stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Low debt

The company is less leveraged than its peers, and is among the top quartile, which makes it more flexible. However, do check the stock analysis and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Revenue Growth

Telus stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio

Telus stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Low market capitalization

Telus stock is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Overpriced compared to earnings

Telus stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on cashflow basis

Telus stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Overpriced on free cash flow basis

Telus stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.