# Telus (T.TO)

Canonical: https://gigainvestors.com/s/T.TO

Analysis as of: 2026-10-16T07:35:24.132Z. Financial observations: FY1998–FY2026.

Listing currency: CAD. Reporting currency: CAD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CAD 11.85 per share; close as of 2026-10-15.

Estimated value: low CAD 12.53 per share, central CAD 14.18 per share, high CAD 16.36 per share. Buy at or below the central value CAD 14.18 per share. Valuation as of 2026-10-16T07:35:24.132Z; scenarios are not confidence intervals.

Expected annual return: 11.5% at the stated quote. About 11.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CA 10-year bond 3.8% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 1

- Operating margin variation: 0.20×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.21×

- FY2018: 0.20×

- FY2019: 0.20×

- FY2020: 0.16×

- FY2021: 0.18×

- FY2022: 0.16×

- FY2023: 0.12×

- FY2024: 0.14×

- FY2025: 0.12×

- LTM to Jun 2026: 0.15×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 7.8%

- ROIC, second-lowest year: 5.8%

- Typical minus recent gross margin: 1.2 pp

- Typical gross margin (annual median): 36.4%

- Recent gross margin (lower of latest and 3-year median): 35.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 20.2%

- ROIC including acquisitions, ten-year median: 3.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 9.7%

- FY2017: 10.8%

- FY2018: 11.0%

- FY2019: 10.1%

- FY2020: 7.5%

- FY2021: 8.2%

- FY2022: 6.9%

- FY2023: 5.8%

- FY2024: 6.3%

- FY2025: 4.5%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.19×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CAD 7.4B

- Net income, five-year total: CAD 6.2B

- Return on incremental invested capital: -1.8%

- Working capital / revenue, annual change: 0.8 pp

- Working capital / revenue, change between three-year averages: 5.3 pp

- Working capital / revenue, final three-year average: 19.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -0.07×

- FY2022: 1.00×

- FY2023: 2.02×

- FY2024: 1.57×

- FY2025: 2.37×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 10.8% vs 5.8%

- Per-share earnings: 1.16 to 0.66 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.6%

- Ordinary dilution, 5-year annual growth: 3.4%

- Market cap gain: CAD 2.5B

- Cumulative retained earnings: CAD -2.4B

- Diluted shares, 10-year annual growth: 2.6%

- Diluted shares, 5-year annual growth: 3.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -6.8%

- Per-share value change: CAD -0.50

- Per-share value, starting three-year median: CAD 1.16

- Per-share value, ending three-year median: CAD 0.66

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 0.4%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: CAD 17B

- Cumulative net income, 10 years: CAD 13B

- ROIC, first three-year median: 10.8%

- ROIC, last three-year median: 5.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: CAD 1.03

- FY2017: CAD 1.23

- FY2018: CAD 1.33

- FY2019: CAD 1.39

- FY2020: CAD 0.93

- FY2021: CAD 1.20

- FY2022: CAD 1.13

- FY2023: CAD 0.57

- FY2024: CAD 0.66

- FY2025: CAD 0.72

### accounting: pass

- Sloan accruals: -6.3%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.37×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.95×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.2%

- FY2017: -8.4%

- FY2018: -7.4%

- FY2019: -5.7%

- FY2020: -7.8%

- FY2021: -5.7%

- FY2022: -5.9%

- FY2023: -6.5%

- FY2024: -6.6%

- FY2025: -6.3%

## Holders

## Price story

Down 64% since Mar 2022 · "TELUS Q2 Earnings Fall Y/Y on Digital Weakness, Outlook Cut" (finance.yahoo.com, Aug 2026) · sales -0.7%

Story as of 2026-10-16T10:00:04.732Z; price observation 2026-10-15.

Price needs cash profits to shrink 1.5% a year for ten years

- 2025-04-16: Telus stakes claim in Canada's AI race with plans for Nvidia-powered data centres ([ca.finance.yahoo.com](https://ca.finance.yahoo.com/news/telus-stakes-claim-canadas-ai-100008466.html))

- 2025-05-10: TELUS (TSX:T) Reports Strong Q1 Earnings and Raises Quarterly Dividend by 7% ([finance.yahoo.com](https://finance.yahoo.com/news/telus-tsx-t-reports-strong-172047100.html))

- 2026-05-21: TELUS Bets Big On AI Infrastructure As Earnings And Dividend Questions Linger ([finance.yahoo.com](https://finance.yahoo.com/sectors/technology/articles/telus-bets-big-ai-infrastructure-060910880.html))

### Sales · FY2025–2026

sales -0.7%; source https://www.sec.gov/Archives/edgar/data/868675/000110465926013854/tu-20251231x40f.htm; observed 2026-02-12.

- FY2017: CAD 13B 

- FY2018: CAD 14B 

- FY2019: CAD 15B 

- FY2020: CAD 15B 

- FY2021: CAD 17B 

- FY2022: CAD 18B 

- FY2023: CAD 20B 

- FY2024: CAD 20B 

- FY2025: CAD 20B 

- FY2026: CAD 20B 

### Gross margin · FY2025

gross margin 62.1%; source https://www.sec.gov/Archives/edgar/data/868675/000110465926013854/tu-20251231x40f.htm; observed 2026-02-12.

- FY2016: 36.4% 

- FY2017: 37.3% 

- FY2018: 36.4% 

- FY2019: 38.5% 

- FY2020: 36.6% 

- FY2021: 35.8% 

- FY2022: 35.6% 

- FY2023: 35.1% 

- FY2024: 35.1% 

- FY2025: 62.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in telecom services; annual sales are CAD 20.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/868675/000110465926013854/tu-20251231x40f.htm (filed 2026-02-12); FY2025: revenue 20346000000; grossProfit 12640000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); T.TO: TELUS Corporation, together with its subsidiaries, operates as a telecommunications company in Canada and internationally. It operates through TELUS Technology Solutions, TELUS Health, and TELUS Digital Experience segments. The company offer technology solutions comprising mobile and fixed voice and data telecommunications services and products; and agriculture and consumer goods services, such as software, data management and data analytics-driven smart-food chain, and consumer goods technologies, as well as sells mobile technologies equipment. It also provides data services consisting of internet protocol; television; hosting; managed information technology and cloud-based services; and home and business security and automation. In addition, the company offers integrated health and well-being products, solutions, and services, such as healthcare services; and software and technology solutions, including employee and family assistance programs and benefits administration. Further, it provides digitally enabled customer experience solutions, including digital customer experience management and the digital transformation of IT and customer experience systems; digital trust, safety, and security; AI data services; and generative AI solutions in customer experience. 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 based in Vancouver, Canada.

### Why customers stay

Margins ranged from 35.1% to 62.1% during 2023–25; it earns 7.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: grossProfit / revenue = 35.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2024: grossProfit / revenue = 35.1%.

- Source: https://www.sec.gov/Archives/edgar/data/868675/000110465926013854/tu-20251231x40f.htm (filed 2026-02-12); FY2025: grossProfit / revenue = 62.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); 10-year return on capital observations [[2016,0.0970001076839048],[2017,0.10813272197682605],[2018,0.10963184657697801],[2019,0.10131270821491183],[2020,0.07507797215149122],[2021,0.08160591894359755],[2022,0.06923698133608984],[2023,0.057607767611026],[2024,0.06302614806157629],[2025,0.04497262319561971]]; median 0.07834194554754438. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 36% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/868675/000110465926013854/tu-20251231x40f.htm (filed 2026-02-12); Gross margin observations: [[2021,0.3581185413944649],[2022,0.35633063634375683],[2023,0.3514621344663834]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CAD 40 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2016: growth capex 228114987.43167686; upkeep 2668885012.568323; owner earnings 165114987.43167686. Growth capex / owner earnings = 1.3815522805043294.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2017: growth capex 379218959.2666693; upkeep 2701781040.7333307; owner earnings 427218959.2666693. Growth capex / owner earnings = 0.8876454357681292.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2018: growth capex 730365286.2172558; upkeep 2144634713.7827442; owner earnings 1184365286.2172558. Growth capex / owner earnings = 0.6166723178369821.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2019: growth capex 424841743.6072817; upkeep 3469158256.3927183; owner earnings 79841743.60728168. Growth capex / owner earnings = 5.321047918203724.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2020: growth capex 676113563.4770775; upkeep 2145886436.5229225; owner earnings 1127113563.4770775. Growth capex / owner earnings = 0.5998628579992489.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2022: growth capex 195000000; upkeep 3452000000; owner earnings 1615000000. Growth capex / owner earnings = 0.12074303405572756.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: growth capex 0; upkeep 3211000000; owner earnings 1699000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2024: growth capex 0; upkeep 3387000000; owner earnings 1563000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/868675/000110465926013854/tu-20251231x40f.htm (filed 2026-02-12); FY2025: growth capex 0; upkeep 2515000000; owner earnings 2639000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Dividend observations: [[2016,1070000000],[2017,1082000000],[2018,1141000000],[2019,1149000000],[2020,930000000],[2021,1045000000],[2022,1188000000],[2023,1315000000],[2024,1562000000],[2025,1628000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/868675/000110465926013854/tu-20251231x40f.htm (filed 2026-02-12); FY2025: cash repurchases 40000000 CAD.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); T.TO SharesStats.PercentInsiders = 0.055999999999999994 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 1.5% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Ten-year compound average after fade. Initial solved rate -0.03341031793408539. Price 11.85; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -1.087299006450834 → FY2025 1.7171575401272519. Closing-price date 2026-10-15.

## Monthly share-price history (CAD per share)

- 2016-10: CAD 21.72 per share

- 2016-11: CAD 20.98 per share

- 2016-12: CAD 21.38 per share

- 2017-01: CAD 21.72 per share

- 2017-02: CAD 21.61 per share

- 2017-03: CAD 21.59 per share

- 2017-04: CAD 22.71 per share

- 2017-05: CAD 22.97 per share

- 2017-06: CAD 22.39 per share

- 2017-07: CAD 22.52 per share

- 2017-08: CAD 22.61 per share

- 2017-09: CAD 22.44 per share

- 2017-10: CAD 23.36 per share

- 2017-11: CAD 23.84 per share

- 2017-12: CAD 23.81 per share

- 2018-01: CAD 23.16 per share

- 2018-02: CAD 23.16 per share

- 2018-03: CAD 22.62 per share

- 2018-04: CAD 22.98 per share

- 2018-05: CAD 22.80 per share

- 2018-06: CAD 23.35 per share

- 2018-07: CAD 23.78 per share

- 2018-08: CAD 24.20 per share

- 2018-09: CAD 23.81 per share

- 2018-10: CAD 22.54 per share

- 2018-11: CAD 23.85 per share

- 2018-12: CAD 22.63 per share

- 2019-01: CAD 23.01 per share

- 2019-02: CAD 23.90 per share

- 2019-03: CAD 24.73 per share

- 2019-04: CAD 24.67 per share

- 2019-05: CAD 24.96 per share

- 2019-06: CAD 24.21 per share

- 2019-07: CAD 23.72 per share

- 2019-08: CAD 24.12 per share

- 2019-09: CAD 23.58 per share

- 2019-10: CAD 23.43 per share

- 2019-11: CAD 25.08 per share

- 2019-12: CAD 25.14 per share

- 2020-01: CAD 26.53 per share

- 2020-02: CAD 24.22 per share

- 2020-03: CAD 22.25 per share

- 2020-04: CAD 22.75 per share

- 2020-05: CAD 23.86 per share

- 2020-06: CAD 22.77 per share

- 2020-07: CAD 23.23 per share

- 2020-08: CAD 24.02 per share

- 2020-09: CAD 23.43 per share

- 2020-10: CAD 22.78 per share

- 2020-11: CAD 25.05 per share

- 2020-12: CAD 25.21 per share

- 2021-01: CAD 26.39 per share

- 2021-02: CAD 25.50 per share

- 2021-03: CAD 25.03 per share

- 2021-04: CAD 25.50 per share

- 2021-05: CAD 27.10 per share

- 2021-06: CAD 27.80 per share

- 2021-07: CAD 27.71 per share

- 2021-08: CAD 29.07 per share

- 2021-09: CAD 27.84 per share

- 2021-10: CAD 28.39 per share

- 2021-11: CAD 29.20 per share

- 2021-12: CAD 29.79 per share

- 2022-01: CAD 29.91 per share

- 2022-02: CAD 32.01 per share

- 2022-03: CAD 32.66 per share

- 2022-04: CAD 32.14 per share

- 2022-05: CAD 31.65 per share

- 2022-06: CAD 28.67 per share

- 2022-07: CAD 29.48 per share

- 2022-08: CAD 29.58 per share

- 2022-09: CAD 27.43 per share

- 2022-10: CAD 28.45 per share

- 2022-11: CAD 28.64 per share

- 2022-12: CAD 26.13 per share

- 2023-01: CAD 28.67 per share

- 2023-02: CAD 27.13 per share

- 2023-03: CAD 26.83 per share

- 2023-04: CAD 28.72 per share

- 2023-05: CAD 25.72 per share

- 2023-06: CAD 25.78 per share

- 2023-07: CAD 23.48 per share

- 2023-08: CAD 23.73 per share

- 2023-09: CAD 22.18 per share

- 2023-10: CAD 22.36 per share

- 2023-11: CAD 24.28 per share

- 2023-12: CAD 23.58 per share

- 2024-01: CAD 24.08 per share

- 2024-02: CAD 23.67 per share

- 2024-03: CAD 21.67 per share

- 2024-04: CAD 22.11 per share

- 2024-05: CAD 22.41 per share

- 2024-06: CAD 20.71 per share

- 2024-07: CAD 22.29 per share

- 2024-08: CAD 21.77 per share

- 2024-09: CAD 22.69 per share

- 2024-10: CAD 22.01 per share

- 2024-11: CAD 21.80 per share

- 2024-12: CAD 19.49 per share

- 2025-01: CAD 21.08 per share

- 2025-02: CAD 22.39 per share

- 2025-03: CAD 20.64 per share

- 2025-04: CAD 21.22 per share

- 2025-05: CAD 22.48 per share

- 2025-06: CAD 21.87 per share

- 2025-07: CAD 22.32 per share

- 2025-08: CAD 22.64 per share

- 2025-09: CAD 21.92 per share

- 2025-10: CAD 20.51 per share

- 2025-11: CAD 18.34 per share

- 2025-12: CAD 18.09 per share

- 2026-01: CAD 19.00 per share

- 2026-02: CAD 18.70 per share

- 2026-03: CAD 17.88 per share

- 2026-04: CAD 17.01 per share

- 2026-05: CAD 17.31 per share

- 2026-06: CAD 15.00 per share

- 2026-07: CAD 13.38 per share

- 2026-08: CAD 13.41 per share

- 2026-09: CAD 11.95 per share

- 2026-10: CAD 11.35 per share

## Annual estimated value (CAD per share)

- FY2016: low CAD 1.68 per share, central CAD 1.89 per share, high CAD 2.17 per share

- FY2017: low CAD 1.78 per share, central CAD 2.00 per share, high CAD 2.29 per share

- FY2018: low CAD 1.78 per share, central CAD 2.01 per share, high CAD 2.31 per share

- FY2019: low CAD 1.85 per share, central CAD 2.07 per share, high CAD 2.38 per share

- FY2020: low CAD 4.67 per share, central CAD 5.37 per share, high CAD 6.17 per share

- FY2021: low CAD 4.84 per share, central CAD 5.79 per share, high CAD 6.70 per share

- FY2022: low CAD 11.27 per share, central CAD 13.50 per share, high CAD 15.65 per share

- FY2023: low CAD 11.62 per share, central CAD 13.64 per share, high CAD 15.81 per share

- FY2024: low CAD 12.12 per share, central CAD 14.31 per share, high CAD 16.60 per share

- FY2025: low CAD 13.73 per share, central CAD 15.42 per share, high CAD 17.68 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:10.068Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 40-F filing](https://www.sec.gov/Archives/edgar/data/868675/000110465926013854/tu-20251231x40f.htm); period 2025-12-31, filed 2026-02-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.