TELUS Corporation (TU) stock analysis

In our weekly check, TELUS Corporation is graded C (A to F). Of 23 checks on debt, profit, cash flow and trend: 12 pass, warnings: 4, red flags: 7.

About TELUS Corporation

TELUS Corporation is a Communication Services company (Telecommunications Services) based in Canada, listed on NYSE as TU.

What our checks show for TU

Red flags

• Net debt is 4.1x a year of EBITDA (debt/equity 2.37). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 1.6 times: a weak year could make the payments hard.
• The net margin fell by 14.4 points over 5 years, to -4.5%: the company keeps less of each sale as profit.
• Earnings per share fell 21% a year over the last 3 years.
• The company is losing money: the net margin is -4.5%.
• TELUS Corporation pays a dividend while losing money: it is funded from reserves or debt.
• The stock has fallen as much as 72% from a peak. Would you have held through that?

Warning signs

• Analysts expect only about 0.9% a year of growth in revenue.
• Revenue grew only 3.4% a year over the last 3 years.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 6.5%.

Strengths

• The gross margin is 38.9% and has risen by 3.1 points: pricing power is holding.
• Operating cash flow is 5x net profit: the profit arrives as real cash.
• Analysts expect the net margin to improve by 8.9 points from today's -4.5%.
• A large company: market value $13.91 billion.
• Beta 0.68: the stock usually moves less than the market.
• Actively traded: about 7.4 million shares a day.

Next earnings report: 2026-11-06

Similar companies

ECHO · CHTR · TIGO · ASTS · RCI · GSAT

Questions

What grade does TELUS Corporation (TU) have?

In our weekly check, TELUS Corporation is graded C (A to F). Of 23 checks on debt, profit, cash flow and trend: 12 pass, warnings: 4, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of TU stock?

This week's biggest flags for TELUS Corporation: High debt, Weak interest cover, Margins falling. In total 11 of 23 checks show a warning or a red flag.

What does TELUS Corporation do?

TELUS Corporation is a Communication Services company (Telecommunications Services) based in Canada, listed on NYSE as TU.

When does TELUS Corporation report earnings next?

The next earnings report is expected on 2026-11-06. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

Open the full analysis