TECK RESOURCES LTD-CLS A (TECK-A.CA) Stock Fundamental Analysis
TSX:TECK-A - Toronto Stock Exchange - CA8787423034 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to TECK-A. TECK-A was compared to 832 industry peers in the Metals & Mining industry. TECK-A scores excellent on profitability, but there are some minor concerns on its financial health. TECK-A is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TECK-A was profitable.
TECK-A had a positive operating cash flow in the past year.
In multiple years TECK-A reported negative net income over the last 5 years.
In the past 5 years TECK-A always reported a positive cash flow from operatings.
1.2 Ratios
TECK-A has a better Return On Assets (1.10%) than 86.48% of its industry peers.
TECK-A has a better Return On Equity (1.97%) than 87.01% of its industry peers.
With an excellent Return On Invested Capital value of 4.65%, TECK-A belongs to the best of the industry, outperforming 91.70% of the companies in the same industry.
TECK-A had an Average Return On Invested Capital over the past 3 years of 6.76%. This is significantly below the industry average of 11.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 1.97% | ||
| ROIC | 4.65% |
ROA(3y)5.56%
ROA(5y)2.61%
ROE(3y)11.47%
ROE(5y)5.45%
ROIC(3y)6.76%
ROIC(5y)5.23%
1.3 Margins
With an excellent Profit Margin value of 3.30%, TECK-A belongs to the best of the industry, outperforming 90.50% of the companies in the same industry.
TECK-A's Profit Margin has declined in the last couple of years.
TECK-A's Operating Margin of 20.82% is amongst the best of the industry. TECK-A outperforms 93.31% of its industry peers.
TECK-A's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 28.09%, TECK-A belongs to the top of the industry, outperforming 90.50% of the companies in the same industry.
TECK-A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.82% | ||
| PM (TTM) | 3.3% | ||
| GM | 28.09% |
OM growth 3Y42.91%
OM growth 5Y-8.32%
PM growth 3YN/A
PM growth 5Y-8.28%
GM growth 3Y30.67%
GM growth 5Y-1.41%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TECK-A is destroying value.
TECK-A has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TECK-A has been reduced compared to 5 years ago.
TECK-A has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.26 indicates that TECK-A is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TECK-A (2.26) is comparable to the rest of the industry.
TECK-A has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
TECK-A's Debt to Equity ratio of 0.36 is on the low side compared to the rest of the industry. TECK-A is outperformed by 77.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.26 |
ROIC/WACC0.5
WACC9.27%
2.3 Liquidity
TECK-A has a Current Ratio of 2.92. This indicates that TECK-A is financially healthy and has no problem in meeting its short term obligations.
TECK-A's Current ratio of 2.92 is fine compared to the rest of the industry. TECK-A outperforms 61.71% of its industry peers.
A Quick Ratio of 2.35 indicates that TECK-A has no problem at all paying its short term obligations.
TECK-A has a Quick ratio (2.35) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.92 | ||
| Quick Ratio | 2.35 |
3. Growth
3.1 Past
The earnings per share for TECK-A have decreased strongly by -26.86% in the last year.
TECK-A shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.80% yearly.
TECK-A shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.46%.
Measured over the past years, TECK-A shows a small growth in Revenue. The Revenue has been growing by 3.62% on average per year.
EPS 1Y (TTM)-26.86%
EPS 3Y70.67%
EPS 5Y4.8%
EPS Q2Q%-22.08%
Revenue 1Y (TTM)16.46%
Revenue growth 3Y18.82%
Revenue growth 5Y3.62%
Sales Q2Q%-20.59%
3.2 Future
The Earnings Per Share is expected to decrease by -7.56% on average over the next years.
Based on estimates for the next years, TECK-A will show a decrease in Revenue. The Revenue will decrease by -4.62% on average per year.
EPS Next Y-51.13%
EPS Next 2Y-32.23%
EPS Next 3Y-17.72%
EPS Next 5Y-7.56%
Revenue Next Year-11.49%
Revenue Next 2Y-13.95%
Revenue Next 3Y-8.05%
Revenue Next 5Y-4.62%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.49 indicates a correct valuation of TECK-A.
TECK-A's Price/Earnings ratio is rather cheap when compared to the industry. TECK-A is cheaper than 90.23% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.36, TECK-A is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 24.58, the valuation of TECK-A can be described as rather expensive.
Based on the Price/Forward Earnings ratio, TECK-A is valued cheaper than 87.95% of the companies in the same industry.
TECK-A's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 24.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TECK-A is valued cheaper than 92.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.79 |
4.3 Compensation for Growth
TECK-A has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TECK-A's earnings are expected to decrease with -17.72% in the coming years.
PEG (NY)N/A
PEG (5Y)3.44
EPS Next 2Y-32.23%
EPS Next 3Y-17.72%
5. Dividend
5.1 Amount
TECK-A has a yearly dividend return of 0.83%, which is pretty low.
Compared to an average industry Dividend Yield of 7.68, TECK-A pays a better dividend. On top of this TECK-A pays more dividend than 95.05% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, TECK-A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
The dividend of TECK-A is nicely growing with an annual growth rate of 27.32%!
TECK-A has been paying a dividend for at least 10 years, so it has a reliable track record.
TECK-A has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)27.32%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
TECK-A pays out 105.10% of its income as dividend. This is not a sustainable payout ratio.
TECK-A's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP105.1%
EPS Next 2Y-32.23%
EPS Next 3Y-17.72%
TECK RESOURCES LTD-CLS A
TSX:TECK-A (2/3/2025, 7:00:00 PM)
58.37
-1.78 (-2.96%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners78.41%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap29.81B
Analysts82
Price Target114.01 (95.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend1
Dividend Growth(5Y)27.32%
DP105.1%
Div Incr Years0
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.97%
Min EPS beat(2)8.95%
Max EPS beat(2)30.98%
EPS beat(4)3
Avg EPS beat(4)6.24%
Min EPS beat(4)-16.01%
Max EPS beat(4)30.98%
EPS beat(8)3
Avg EPS beat(8)-4.74%
EPS beat(12)6
Avg EPS beat(12)-2.02%
EPS beat(16)8
Avg EPS beat(16)1.16%
Revenue beat(2)0
Avg Revenue beat(2)-3.42%
Min Revenue beat(2)-4.91%
Max Revenue beat(2)-1.92%
Revenue beat(4)0
Avg Revenue beat(4)-3.07%
Min Revenue beat(4)-4.91%
Max Revenue beat(4)-1.23%
Revenue beat(8)0
Avg Revenue beat(8)-9.71%
Revenue beat(12)2
Avg Revenue beat(12)-7.29%
Revenue beat(16)3
Avg Revenue beat(16)-5.88%
PT rev (1m)-1.76%
PT rev (3m)0.73%
EPS NQ rev (1m)0.78%
EPS NQ rev (3m)-12.58%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-7.22%
Revenue NQ rev (1m)2.75%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-2.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 24.58 | ||
| P/S | 2.01 | ||
| P/FCF | N/A | ||
| P/OCF | 11.34 | ||
| P/B | 1.2 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 6.79 |
EPS(TTM)3.54
EY6.06%
EPS(NY)2.37
Fwd EY4.07%
FCF(TTM)-0.58
FCFYN/A
OCF(TTM)5.15
OCFY8.82%
SpS29.03
BVpS48.68
TBVpS47.87
PEG (NY)N/A
PEG (5Y)3.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 1.97% | ||
| ROCE | 7.67% | ||
| ROIC | 4.65% | ||
| ROICexc | 5.67% | ||
| ROICexgc | 5.74% | ||
| OM | 20.82% | ||
| PM (TTM) | 3.3% | ||
| GM | 28.09% | ||
| FCFM | N/A |
ROA(3y)5.56%
ROA(5y)2.61%
ROE(3y)11.47%
ROE(5y)5.45%
ROIC(3y)6.76%
ROIC(5y)5.23%
ROICexc(3y)6.99%
ROICexc(5y)5.4%
ROICexgc(3y)7.23%
ROICexgc(5y)5.59%
ROCE(3y)11.16%
ROCE(5y)8.64%
ROICexcg growth 3Y54.43%
ROICexcg growth 5Y-11.28%
ROICexc growth 3Y54.85%
ROICexc growth 5Y-11.19%
OM growth 3Y42.91%
OM growth 5Y-8.32%
PM growth 3YN/A
PM growth 5Y-8.28%
GM growth 3Y30.67%
GM growth 5Y-1.41%
F-Score6
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.83 | ||
| Cap/Depr | 167.11% | ||
| Cap/Sales | 19.73% | ||
| Interest Coverage | 3.66 | ||
| Cash Conversion | 54.32% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.92 | ||
| Quick Ratio | 2.35 | ||
| Altman-Z | 2.26 |
F-Score6
WACC9.27%
ROIC/WACC0.5
Cap/Depr(3y)254.02%
Cap/Depr(5y)228.3%
Cap/Sales(3y)29.47%
Cap/Sales(5y)29.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-26.86%
EPS 3Y70.67%
EPS 5Y4.8%
EPS Q2Q%-22.08%
EPS Next Y-51.13%
EPS Next 2Y-32.23%
EPS Next 3Y-17.72%
EPS Next 5Y-7.56%
Revenue 1Y (TTM)16.46%
Revenue growth 3Y18.82%
Revenue growth 5Y3.62%
Sales Q2Q%-20.59%
Revenue Next Year-11.49%
Revenue Next 2Y-13.95%
Revenue Next 3Y-8.05%
Revenue Next 5Y-4.62%
EBIT growth 1Y-17.53%
EBIT growth 3Y69.81%
EBIT growth 5Y-5%
EBIT Next Year15.44%
EBIT Next 3Y4.5%
EBIT Next 5Y2.67%
FCF growth 1Y-106.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-71.28%
OCF growth 3Y38.13%
OCF growth 5Y-1.48%