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Telus International Inc. is a digital and communications solutions company that establishes strong human relationships in the corporate world to improve growth and engagement.
Telus focuses on what is important by offering solutions and services such as end-to-end service innovation and next-gen tech and IT building.
So far, these solutions have helped several world industries, such as communications and media, fintech and financial services, games, eCommerce, technology, travel and hospitality, and healthcare.
In total, the company has partnered with 600+ companies that believe in the success and strength of customer experience.
As a DX and CX company with a proven industry track record, Telus International has a team of experts whose only interest is restoring corporate culture. It sets up different-sized programs that are useful in supporting a business. More importantly, the company builds an intelligence system to facilitate easy interaction.
Telus International Inc. was established in 2005, and it has made much progress within nearly two decades. The software company has built an onshore presence and invested in businesses like Transactel, CallPoint New Europe, Vex Pro, and many others.
It’s technology partners include Google Cloud, Cisco, Upstreamworks, SalesForce, Uber, TikTok, Tech See, IIIO, and Verint. Recently, the company launched its IPO, TIXT, on Toronto Stock Exchange and New York Stock Exchange and has had many interested in it ever since.
TITX Stock Forecast For 2023
Telus International Stocks (TIXT) has been closely monitored by various analysts. The consensus among them is that TIXT is set to experience significant growth in the coming months. The average target price over the next 12 months is projected to be around $29, with some analysts predicting a high of $50 and a low of $26. This forecast represents a potential increase of 41.88% from its current price of $20.44. Some analysts even believe that the TIXT price could reach $28.78 by November 2023, placing the price within the range of $25 to $29.
In terms of earnings per share (EPS), the average EPS is forecasted to be $1.33 in 2023, with a high point of $1.49 and a low point of $1.25. The return on assets is expected to be 11.18%, which is slightly lower than the predicted average for the US Software-Infrastructure industry (17.09%).
| Source | 2023 Prediction |
|---|---|
| MarketWatch | $30 |
| TMX Money | $28 |
| Google Finance | $29 |
| The Globe and Mail | $31 |
| TipRanks | $30.77 |
TITX Stock 2022 Historical Analysis
Strong Start to the Year
TELUS International began 2022 on a high note, with double-digit sales and profit growth and triple-digit cash flow rise year over year. The company’s Q1 revenue increased by $94 million or 19% year over year to $599 million. Comparing the same quarter of 2021 to that of 2022, there was a $34 million net profit and a $0.13 diluted earnings per share.
Growth in Client Business and AI Services
The company’s revenue for the second quarter increased by $91 million or 17% year over year to $624 million, driven by a gain in both new and current client business, particularly in the areas of content moderation and AI data services. This expansion into AI data services opened up new revenue streams for the company, boosting investor confidence and driving up the stock price.
Resilience Amid Macroeconomic Uncertainty
While navigating a prolonged period of macroeconomic uncertainty, the company continued to carry out its long-term strategic strategy in the third quarter of 2022, delivering solid double-digit revenue growth. Revenue for Telus International was $615 million, an increase of $59 million or 11% from the previous year. Its net income of $59 million and diluted EPS of $0.22 were higher than the corresponding figures from the same quarter in 2021 ($23 million and $0.09, respectively). Despite the challenging economic conditions, Telus International’s strong financial performance and strategic initiatives reassured investors and positively impacted the stock price.
TITX Stock 2021 Historical Analysis
Successful Initial Public Offering (IPO)
TIXT Stocks hit the market on February 3, 2021. The software company listed its initial public offering in Toronto and New York at an IPO price between $23 to $25 per share. It offered 33.33 million common stock from 21.93M treasury and 11.40M Telus Corporation and Baring Private Equity Asia. When it was listed on the NYSE, it traded 30% more, valued at $33.10 per share. This successful IPO demonstrated the strong demand for the stock and its potential for future growth.
Strong Backing from Major Shareholders
At the end of the IPO, TELUS Corporation held 66.6% of the proceeds, while the selling shareholder, Baring Private Equity Asia, held 31.5%. This strong backing from major shareholders boosted investor confidence and contributed to the positive performance of the stock.
Continued Partnerships and Future Growth Plans
This success had the CEO, Jeff Puritt, confirm that it will continue to maintain partnerships with various Canadian telecom companies. He also believes that this IPO will help establish the company and, in the future, become an independent acquirer. These strategic partnerships and growth plans signaled to investors that the company has a clear vision for the future, which positively impacted the stock price.
Closing Price for 2021
The stock, TIXT, closed in 2021 at $33.06, reflecting the positive sentiment among investors and the strong performance of the company throughout the year.
Telus International Stock’s IPO
- Telus International went public on February 3, 2021.
- The company listed its initial public offering (IPO) on both the Toronto Stock Exchange and the New York Stock Exchange.
IPO Pricing and Stock Offering
- The IPO was priced between $23 to $25 per share.
- The company offered 33.33 million common stocks, which included:
- 21.93 million from the treasury
- 11.40 million from Telus Corporation and Baring Private Equity Asia
Market Response
- The IPO was met with considerable enthusiasm from investors.
- On the day of listing, the stock traded 30% higher at $33.10 per share on the NYSE.
Post-IPO Ownership
- Following the IPO, Telus Corporation held 66.6% of the proceeds.
- Baring Private Equity Asia, the selling shareholder, held 31.5%.
CEO’s Future Plans
- CEO Jeff Puritt confirmed that the company would continue to maintain partnerships with various Canadian telecom companies.
- He expressed optimism that the IPO would help establish Telus International as an independent acquirer in the future.
Telus International Inc. Compared to Competitors
| Symbol | Name | Market Cap (Mil) | Revenue (Mil) | Profit Margin | ROE | P/S | P/B | P/E |
| TIXT | Telus International Cda Inc | 879.34M | 215.60M | 6.40% | 9.00% | 0.26 | 0.92 | 11.23 |
| BCE | BCE Inc. | 38.16 (Bil) | 18,257M | 10.50% | 13.70% | 2.08 | 2.8 | 19.76 |
| CCA | Cogeco Communications Inc. | 2.95B | 741.79M | 13.85% | 13.59% | 1.00 | 1.00 | 7.29 |
| CGO | Cogeco Inc. | 804.96M | 77.83M | 2.54% | 16.39% | 0.26 | 0.88 | 10.31 |
| TGO | Terago Inc | 35.16M | 26.21M | -41.90% | -34.28 | 1.31 | 1.29 | 4.39 |
| USS | Marathon Oil Corporation | 14.70B | 6.72B | 30.45% | 0% | 2.31 | 1.39 | 5.45 |
| ADYA | Adya Inc | 0.71M | 2.88M | -26.09% | 0% | 0.19 | -0.22 | -0.73 |
| CGX | Cineplex Inc | 587.49M | 1.38B | 0.88% | 0% | 0.62 | 2.77 | 50.89 |
| WILD | Wildbrain LTD | 394.63M | 520M | -0.00% | 6.96% | 0.74 | 3.97 | -45.48 |
| Y | Yellow Pages Limited | 238.83M | 263.2M | 27.05% | 69.31% | 1.06 | 3.09 | 3.32 |
| BRAG | Brag Gaming Group Inc | 151.26M | 88.23M | -3.70% | -4.60% | 1.19 | 1.48 | -32.36 |
Conclusion
Telus International Inc. has done nothing to be but an industry leader in DX and CX solutions. This software company has changed the world, and its success can be told from its numerous partnerships with some of the world’s tech giants. In the future, the company plans to foster great customer service and improve corporate culture in the best possible way.
This company’s stock, TIXT, also plans to follow suit. It was only launched in 2021, but in a short time, the stock has proven that it has potential – an obvious good trade. In the next two years, the stock price is predicted to have increased more than 50% to its current price, which is definitely a good thing.
FAQ
What was Telus Stock’s price range in the past 12 months?
Telus Stock’s 52-week price range is between C$22.28 and C$29.234.
What is Telus Stock’s market cap?
Telus Stock’s market capitalization is approximately C$33.03 billion.
When is Telus Stock’s upcoming earnings report date?
Telus Stock’s next earnings report is expected on November 9, 2023.
How were Telus Stock’s earnings last quarter?
For the fourth quarter, Telus Stock’s net income was $265 million, a decrease of 60% over the same period last year, with Basic earnings per share (EPS) also reported.
Is Telus Stock overvalued?
Opinions on Telus Stock’s valuation vary. Some sources suggest that Telus is estimated to be 35% undervalued, while others have previously indicated that the stock may be overvalued.
Does Telus Stock pay dividends?
Telus Stock paid a dividend of 0.3636 for June 8, 2023.
What is Telus Stock’s EPS estimate?
The estimated EPS for Telus Stock is C$0.26.
How many shares outstanding does Telus Stock have?
Telus Stock had 1.447 billion shares outstanding as of April 30, 2023.
Which hedge fund is a major shareholder of Telus Stock?
Royal Bank Of Canada stands as the largest individual shareholder of Telus, holding 155.42 million shares. This ownership represents 10.74% of the company, with the shares currently valued at $2.67 billion.
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