Telus Corporation Ordinary Shares (TU)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look first for a durable business at a sensible price. TELUS has a recognizable Canadian telecom franchise and adjacent health and digital operations, but the numbers before me are not those of a comfortable Graham-style bargain. In fiscal Q2 2026 it reported revenue of $4.9 billion and a net loss of $1.8 billion, a -37.4% margin. The supplied growth figures are negative—revenue growth -0.58% and profit growth -57.63%—so the trajectory is deteriorating, not compounding. The balance sheet demands caution. Debt-to-equity is 2.24, and FairStock's Altman Z-score of 0.24 is very low, while its Piotroski F-score is only 3/9. Returns are weak: FairStock calculates ROE at -6.39% and ROCE at 3.41%. The one genuine positive is cash generation: trailing free cash flow is $2.0 billion, a 10.5% FCF yield against the $19.3 billion market cap at the 2026-10-26 close. The 6.19% dividend yield is attractive only if that cash flow is durable. At $8.69, FairStock's P/B is 1.44, P/E is negative at -20.69, and EV/EBITDA is 10.32. That is not statistically expensive on assets or cash flow, but negative earnings and heavy leverage make a precise valuation unreliable. A moat may exist in telecom, but it is not currently converting into satisfactory returns. FairStock's Lynch category is none because only zero years of filed results are available and it requires three. I would call this a leveraged turnaround candidate, not a clear margin-of-safety bargain.

In plain English: TELUS is a large Canadian telecom company that also sells health and digital services. It looks financially strained right now: in fiscal Q2 2026 it brought in $4.9 billion of revenue but lost $1.8 billion, and it carries a lot of debt. At $8.69 a share, the price does not look clearly cheap against those losses, although the business does generate a meaningful amount of cash.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer