TU:NYSETelus Corporation Analysis
Data as of 2026-06-12 - not real-time
$11.89
Latest Price
8/10Risk
Risk Level: High
Executive Summary
TELUS (TU) is navigating a challenging landscape marked by a **bearish technical outlook**—the 20‑day SMA (12.34) trails the 50‑day SMA (12.40) and the 200‑day SMA (13.75), the MACD is negative, and the RSI sits at 33, indicating modest under‑pressure. The stock sits just above its support level (11.74) but well below its resistance (12.72), with a 30‑day volatility of ~19% and a low beta, while the price‑to‑earnings ratio (27.6) far exceeds the industry average (17.1), suggesting the share is **overvalued**.
Financially, the company posted a 0.6% revenue dip year‑over‑year, ultra‑low profitability (4.6% profit margin), and an alarming debt‑to‑equity ratio of 190, coupled with a **payout ratio of 278%** that renders its 10.1% dividend yield **unsustainable**. Despite a 19% rise in free cash flow and 262,000 new customers in Q1 2026, the overarching challenges of high debt, weak margins, and overvaluation dominate the outlook.
Financially, the company posted a 0.6% revenue dip year‑over‑year, ultra‑low profitability (4.6% profit margin), and an alarming debt‑to‑equity ratio of 190, coupled with a **payout ratio of 278%** that renders its 10.1% dividend yield **unsustainable**. Despite a 19% rise in free cash flow and 262,000 new customers in Q1 2026, the overarching challenges of high debt, weak margins, and overvaluation dominate the outlook.
Market Outlook
Short Term
< 1 yearCautious
Model confidence: 8/10
Key Factors
- Bearish technical indicators (SMA, MACD, RSI)
- High debt‑to‑equity and low profitability
- Unsustainable dividend payout ratio
Medium Term
1–3 yearsNeutral
Model confidence: 6/10
Key Factors
- Q1 2026 free cash flow up 19% and 262k customer additions
- Growth initiatives in health, digital and AI segments
- Continued pressure from high debt and overvaluation
Long Term
> 3 yearsNeutral
Model confidence: 5/10
Key Factors
- Stable telecom sector with long‑term demand
- Potential restructuring of debt and asset monetization
- Persistent low ROE/ROA and high debt limiting upside
Key Metrics & Analysis
Financial Health
Revenue Growth-0.60%
Profit Margin4.57%
P/E Ratio27.7
ROE3.74%
ROA3.30%
Debt/Equity190.14
P/B Ratio1.6
Op. Cash Flow$4.8B
Free Cash Flow$2.4B
Industry P/E17.1
Technical Analysis
TrendBearish
RSI33.4
Support$11.74
Resistance$12.72
MA 20$12.34
MA 50$12.40
MA 200$13.75
MACDBearish
VolumeIncreasing
Fear & Greed Index87.38
Valuation
Fair Value$0.71
Target Price$17.33
Upside/Downside45.78%
GradeOvervalued
TypeValue
Dividend Yield10.09%
Risk Assessment
Beta0.23
Volatility18.67%
Sector RiskHigh
Reg. RiskMedium
Geo RiskMedium
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.