TU Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Telus Corp - Alpha Spread

Telus Corp
NYSE:TU

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Telus Corp
NYSE:TU
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Price: 16.1 USD -0.37%
Market Cap: 23.9B USD
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Telus Corp

Revenue
19.9B CAD
Cost of Revenue
-7.3B CAD
Gross Profit
12.6B CAD
Operating Expenses
-9.4B CAD
Operating Income
3.2B CAD
Other Expenses
-2.4B CAD
Net Income
779m CAD

Margins Comparison
Telus Corp Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
CA
Telus Corp
TSX:T
32.7B CAD
63%
16%
4%
US
Verizon Communications Inc
NYSE:VZ
185.7B USD
60%
22%
8%
US
AT&T Inc
NYSE:T
156.5B USD
60%
20%
10%
DE
Deutsche Telekom AG
XETRA:DTE
133.1B EUR
61%
21%
4%
JP
Nippon Telegraph and Telephone Corp
TSE:9432
12.5T JPY
0%
15%
9%
CN
China Telecom Corp Ltd
SSE:601728
578.3B CNY
29%
8%
6%
SA
Saudi Telecom Company SJSC
SAU:7010
189B SAR
42%
20%
19%
SG
Singapore Telecommunications Ltd
SGX:Z74
52.5B SGD
57%
8%
6%
CH
Swisscom AG
SIX:SCMN
28.7B CHF
80%
20%
15%
CA
BCE Inc
NYSE:BCE
30.5B USD
68%
22%
8%
AU
Telstra Corporation Ltd
ASX:TLS
44.8B AUD
63%
15%
7%
Country CA
Market Cap 32.7B CAD
Gross Margin
63%
Operating Margin
16%
Net Margin
4%
Country US
Market Cap 185.7B USD
Gross Margin
60%
Operating Margin
22%
Net Margin
8%
Country US
Market Cap 156.5B USD
Gross Margin
60%
Operating Margin
20%
Net Margin
10%
Country DE
Market Cap 133.1B EUR
Gross Margin
61%
Operating Margin
21%
Net Margin
4%
Country JP
Market Cap 12.5T JPY
Gross Margin
0%
Operating Margin
15%
Net Margin
9%
Country CN
Market Cap 578.3B CNY
Gross Margin
29%
Operating Margin
8%
Net Margin
6%
Country SA
Market Cap 189B SAR
Gross Margin
42%
Operating Margin
20%
Net Margin
19%
Country SG
Market Cap 52.5B SGD
Gross Margin
57%
Operating Margin
8%
Net Margin
6%
Country CH
Market Cap 28.7B CHF
Gross Margin
80%
Operating Margin
20%
Net Margin
15%
Country CA
Market Cap 30.5B USD
Gross Margin
68%
Operating Margin
22%
Net Margin
8%
Country AU
Market Cap 44.8B AUD
Gross Margin
63%
Operating Margin
15%
Net Margin
7%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Telus Corp Competitors

Country Company Market Cap ROE ROA ROCE ROIC
CA
Telus Corp
TSX:T
32.7B CAD
5%
1%
7%
5%
US
Verizon Communications Inc
NYSE:VZ
185.7B USD
12%
3%
9%
6%
US
AT&T Inc
NYSE:T
156.5B USD
12%
3%
7%
5%
DE
Deutsche Telekom AG
XETRA:DTE
133.1B EUR
8%
2%
9%
6%
JP
Nippon Telegraph and Telephone Corp
TSE:9432
12.5T JPY
12%
4%
10%
6%
CN
China Telecom Corp Ltd
SSE:601728
578.3B CNY
7%
4%
8%
5%
SA
Saudi Telecom Company SJSC
SAU:7010
189B SAR
18%
9%
14%
14%
SG
Singapore Telecommunications Ltd
SGX:Z74
52.5B SGD
3%
2%
3%
3%
CH
Swisscom AG
SIX:SCMN
28.7B CHF
15%
6%
10%
8%
CA
BCE Inc
NYSE:BCE
30.5B USD
10%
3%
9%
6%
AU
Telstra Corporation Ltd
ASX:TLS
44.8B AUD
11%
4%
10%
6%
Country CA
Market Cap 32.7B CAD
ROE
5%
ROA
1%
ROCE
7%
ROIC
5%
Country US
Market Cap 185.7B USD
ROE
12%
ROA
3%
ROCE
9%
ROIC
6%
Country US
Market Cap 156.5B USD
ROE
12%
ROA
3%
ROCE
7%
ROIC
5%
Country DE
Market Cap 133.1B EUR
ROE
8%
ROA
2%
ROCE
9%
ROIC
6%
Country JP
Market Cap 12.5T JPY
ROE
12%
ROA
4%
ROCE
10%
ROIC
6%
Country CN
Market Cap 578.3B CNY
ROE
7%
ROA
4%
ROCE
8%
ROIC
5%
Country SA
Market Cap 189B SAR
ROE
18%
ROA
9%
ROCE
14%
ROIC
14%
Country SG
Market Cap 52.5B SGD
ROE
3%
ROA
2%
ROCE
3%
ROIC
3%
Country CH
Market Cap 28.7B CHF
ROE
15%
ROA
6%
ROCE
10%
ROIC
8%
Country CA
Market Cap 30.5B USD
ROE
10%
ROA
3%
ROCE
9%
ROIC
6%
Country AU
Market Cap 44.8B AUD
ROE
11%
ROA
4%
ROCE
10%
ROIC
6%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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