T:TSXTELUS Corporation Analysis
Data as of 2026-05-21 - not real-time
CA$17.07
Latest Price
7/10Risk
Risk Level: Medium
Executive Summary
TELUS (T.TO) trades at a price well above its trailing PE of 28.45 while the sector average sits near 17.1, indicating a significant valuation premium that is not justified by its modest revenue growth of roughly -0.6% and flat profit margins. The technical read‑outs are mixed: the 20‑day SMA (17.05) sits just below the current price (17.07) and the 50‑day SMA (17.39) is above, the RSI of 47.9 signals a neutral stance, and the MACD histogram is barely positive, hinting at a waning bullish momentum that could reverse under the prevailing bearish trend. Meanwhile, the dividend yield of 9.8% looks attractive, but a payout ratio of nearly 280% and a free‑cash‑flow coverage of only about 0.32 of price suggest the dividend may not be sustainable over the longer horizon.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- bearish technical indicators (MACD histogram barely positive, RSI near 48)
- high valuation gap (trailing PE 28.45 vs industry 17.1)
- unsustainable dividend payout ratio
Medium Term
1–3 yearsNeutral
Model confidence: 5/10
Key Factors
- persistent overvaluation despite modest forward PE improvement
- weak revenue growth and operating margins
- high dividend yield but low cash coverage
Long Term
> 3 yearsCautious
Model confidence: 7/10
Key Factors
- overvalued price relative to fundamentals
- negative revenue growth and limited earnings upside
- risk of dividend cut given high payout ratio and limited free cash flow
Key Metrics & Analysis
Financial Health
Revenue Growth-0.60%
Profit Margin4.57%
P/E Ratio28.4
ROE3.74%
ROA3.30%
Debt/Equity190.14
P/B Ratio1.7
Op. Cash FlowCA$4.8B
Free Cash FlowCA$2.4B
Industry P/E17.1
Technical Analysis
TrendBearish
RSI47.9
SupportCA$16.57
ResistanceCA$17.70
MA 20CA$17.05
MA 50CA$17.39
MA 200CA$19.42
MACDBullish
VolumeIncreasing
Fear & Greed Index90.79
Valuation
Fair ValueCA$0.32
Target PriceCA$20.28
Upside/Downside18.80%
GradeOvervalued
TypeValue
Dividend Yield9.80%
Risk Assessment
Beta0.08
Volatility26.36%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.