Q: Is this a pass or does it have potential? It has crushed shareholders over the past few years.
5i Research Answer:
TIXT has been a disaster. Now, sometimes this creates opportunities. It lost money in 2024 but decent earnings are expected this year and next. It has leverage (debt about 2X cash flow) which adds some risk, in addition to its small size and negative momentum. Telus might, one day, buy it back. Down 57% in a year, we are not yet ready to call it a good recovery stock. We need to see some execution improvements and better results. It does report Q1 earnings today.