“TELUS Corporation provides telecommunications products and services primarily in Canada. Its telecommunications products and services include wireless, data, Internet protocol, voice, and television. The company operates through two segments, Wireless and Wireline. The Wireless segment is involved in the voice, data, and equipment sales. This segment sells wireless handsets to resellers and customer premises equipment. The Wireline segment offers data services, which include television; Internet, enhanced data and hosting services; and managed and legacy data services, as well as voice local, voice long distance, and other telecommunications services. As of June 11, 2013, the company had approximately 13.2 million subscriber connections, which included 7.7 million wireless subscribers, 3.4 million wireline network access lines, 1.4 million Internet subscribers, and 712,000 TELUS TV subscribers. TELUS Corporation was founded in 1993 and is based in Vancouver, Canada.”
Telus Corp: Earnings and Price Correlated Graph
TELUS Corporation (USA) (NYSE:TU) is one of the few companies in the Telecommunications Services sector that has shown above-average earnings growth in recent years. This has also translated into steady dividend growth that has averaged 21.2% since fiscal 2005.
Telus Corp: Capital Expenditures (capx)
In spite of strong operating performance, like its peers, Telus Corp has made substantial capex investments in recent years. Nevertheless, management has been capable of maintaining profitability.
Telus Corp: Gross Profit Margin (gpm) and Net Profit Margin (npm)
Gross profit margin has fallen in fiscal 2011 and 2012 from 65.4% to 36.2% and 36.4% respectively. Nevertheless, the company has maintained a net profit margin of 11.8% and 12.1% for fiscal years 2011 and 2012.
Telus Corp: Return on Equity (roe) and Return on Invested Capital (roi)
Even though Telus Corp has made substantial invesmtents in their business in recent years, their returns on equity and returns on invested capital have increased. Consequently, it appears that their investment strategies are paying off.
Telus Corp: Common Shares Outstanding (csho)
After initially increasing common shares outstanding in order to fund their capex needs, Telus Corp has dramatically reduced their share count since fiscal 2005. However, since fiscal 2010 share count has been modestly increasing.
Telus Corp: Cash Flow (cfl) and Income Before Extraordinary Items Available For Common (ibcom)
In spite of all the changes with Telus Corp’s capital structure cited above, management has been able to maintain and grow cash flows. This augers well for future dividends and dividend growth.
Telus Corp: Forecasting Graph
Since Telus Corp has produced the best earnings and dividend growth record among the group, I felt it appropriate to provide a look at the consensus estimates for future growth. Although there is only 1 analyst reporting to Capital IQ, a cross-check with Zacks shows that 8 analysts corroborate the forecast future 5-year growth rate of 8%.
Verizon Communications Inc. (NYSE:VZ) – Company Description
“Verizon Communications Inc., through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses, and governmental agencies worldwide. Its Verizon Wireless segment offers access to various wireless voice and data services comprising Internet access through smart phones and basic phones, and notebook computers and tablets; messaging services, which enable customers to send and receive text, picture, and video messages; and consumer-focused and business-focused multimedia applications. This segment also provides location-based services; global data services; HomeFusion Broadband, a high-speed Internet service for homes; other connection-related services, such as data access and value added services to support telemetry-type applications; and machine-to-machine services that support devices used in healthcare, manufacturing, utilities, distribution, and consumer products markets, as well as sells smart phones and basic phones, tablets, and other Internet access devices.
