Stock analysis · Bull Rankings model

TU analysis

TELUS CorporationTelecom Services. Scored on the same transparent model behind the daily rankings.

TU
TELUS Corporation · Telecom Services
FCF$1.4bC+
Rev+0.6%C
D/E1.90C
P/S1.1xA-
PEG0.77A-
42.4Score
$9.80$15.4B
1Y Target$14.17Analyst consensus · 3 analysts
5Y Target$24.78Compound horizon
10Y Target$44.28Long-dated conviction
FCF$1.4bTTM · 06/26
C+
FCF $1.4b — respectable but not differentiating · TTM computed from 4 most-recent quarters (TTM · 06/26).
Rev+0.6%TTM YoY
C
Revenue +0.6% — flat, mature phase or headwinds present
D/E1.90
C
D/E 1.90 — more levered than most Communication Services peers (≈90th pctile)
P/S1.1x
A-
P/S 1.1x — cheaper than most Communication Services peers (≈25th pctile)
PEG0.77
A-
PEG 0.77 — strong; Lynch's preferred zone

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 42.4
Quality0.49
Growth0.25
Value0.73
Why this score
  • Raising its dividend
  • Diluting shareholders
  • Foreign reporter (CAD)
Entry · Margin of safety
52-week rangeNear 52-week low
41% off the 12-month high
vs DCF fair value59% belowest. fair value ~$24
What the price assumes: free cash flow compounding at ~-10% a year for the next decade — vs the ~18% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability30% · B+gross profit ÷ total assets (Novy-Marx)
ROIC3.9% · Creturn on invested capital — not score-weighted
Why now
Telecom Services · market cap $15.4b. Down 41% from 52-week high of $16.72 — deep drawdown territory. PEG 0.77 — paying under fair value for the growth rate. 3 sell-side analysts rate this a Hold with a mean 1-yr target of $14.17 (implying +45% upside).
Moat
Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong.
Risk
Down 41% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Dividend payout 278% of earnings on a 12.3% yield — distribution coverage is thin; one earnings stumble could force a dividend cut. Net margin 3.8% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.
Horizon
1-3 yr $14.17 (3-analyst consensus) — catalyst-driven; binary events dominate. 5 yr $24.78 — requires the platform / technology to reach commercial scale. 10 yr $44.28 — return distribution heavily skewed.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

TU vs the Top Picks average

PillarTUBook avgDiff
Quality0.490.84-0.34
Growth0.250.92-0.67
Value0.730.75in line

Averaged across the 30 names in today's Top Picks (mean score 82.6). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-13.1 over 36 daily scores
From 55.5 (Jun 22) → 42.4 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
204
Position size
$1,999
4.0% of portfolio
Stop price
$7.35
25% below $9.80
$ at risk if stopped
$499.80
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

TELUS Corporation (TU): score, valuation & FAQ

TELUS Corporation (TU) is a Telecom Services company that scores 42.4 out of 100 on the Bull Rankings quality-growth model — a below-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are P/S (A-) and PEG (A-). On valuation, TU sits about 59% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -10% annual free-cash-flow growth over the next decade.

Is TU a good stock to buy?

Bull Rankings scores TU 42.4 out of 100 on its quality-growth model, which is a below-average reading. That is driven by P/S (A-) and PEG (A-). A score is a quantitative screen of TELUS Corporation's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does TU score 42.4 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). TU earns its highest marks on P/S (A-) and PEG (A-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is TU overvalued or undervalued?

Based on $9.80, TU sits about 59% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -10% annual free-cash-flow growth over the next decade. Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in TU?

Down 41% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Dividend payout 278% of earnings on a 12.3% yield — distribution coverage is thin; one earnings stumble could force a dividend cut. Net margin 3.8% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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