Investment Q&A

Although TIXT was up a bit recently, the shares are still down heavily from their high. TIXT’s fundamentals are still attractive in terms of margin, ROEs, decent balance sheet, etc., growth has decelerated materially compared to previous years, (organic growth in recent quarters was even negative when excluding the acquisition). TIXT claims to operate in the AI field but negative growth from double-digit organic growth in the past was a material slowdown, which we are concerned could signal a change in the company’s underlying fundamentals. TIXT is trading at only 9.0x Forward P/E, the lowest since going public. However, we think TIXT is a HOLD for now, we would not either add or sell the position, we would want to wait and see how management executes over the next few quarters.