Telus International Inc. (TIXT-T)

IT services and support style business model. Company not performing well in the markets. Debt also a concern. Would not recommend investing. 

Risky debt position causing financial strain. Needs to see improved profitability and significantly reduced debt. Exit, and see what the future holds.

Sell it. Take the loss and re-deploy capital. Don't catch a falling knife.

Suspects business will be great. Energy prices, and population growth in Western Canada will ensure strength of this business. Would recommend buying this business compared to BCE. Strong management team with legacy assets. 

Rising interest rates have been hard on the company. Would recommend holding and/or buying. Current share price is presenting value for investors. Does not think A.I. will undermine business. Good for long term investors. Oligopoly in Canada with mobile business. 

Stock has been range bound lately - interest rates putting pressure on stock price. Expecting a double bottom going forward. Potential for strength going forward, but will need interest rates to fall. 

Lots of telecom companies are capital intensive, takes a long time to get its money out, never mind the shareholders getting their money out. Very competitive business. Not for a growth portfolio. No dividend.

Spun out from Telus. Call centres and support centres for other businesses. No competitive moat, business economics not phenomenal. Avoid.

It's gotten cheap with overdone selling. The valuation is in line with peers. Likes the Telus stocks.

We removed TIXT from the growth model portfolio on October 10th as the drop in demand from some of its larger clients is concerning. Execution has not been great, and its debt levels are growing fast. ATS is roughly double the size of TIXT ($3.7B vs. $1.9B, respectively), and its forward growth rates are anticipated to be better than TIXT. Fundamentally, ATS is a better name than TIXT, but this is reflected in its higher valuation (18.6X forward earnings vs. TIXT at 7X forward earnings). For a higher quality company and a long-term investment horizon, we would be comfortable with a switch to ATS today. 
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A loser, not executing well. There are many other companies that can do better.

TIXT is a leading digital customer experience (CX) innovator that designs, builds, and delivers next-generation solutions, including AI and content moderation, for global and disruptive brands. 
Its services support the full lifecycle of clients’ digital transformation journeys and enable them to embrace next-generation digital technologies to deliver better business outcomes more quickly. 
It works with clients to shape their digital vision and strategies, design scalable processes and identify opportunities for innovation and growth.
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Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Backed and directed by TELUS. Showing strong growth and profitability. Customer verticals offer strong tailwinds. Unlock Premium - Try 5i Free