TECK RESOURCES LTD-CLS A (TECK-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TECK-A - CA8787423034 - Common Stock
75.49 CAD
+2.49 (+3.41%)
Overall TECK-A gets a fundamental rating of 4 out of 10. We evaluated TECK-A against 820 industry peers in the Metals & Mining industry. While TECK-A belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TECK-A is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year TECK-A was profitable.
- In the past year TECK-A had a positive cash flow from operations.
- TECK-A had positive earnings in 4 of the past 5 years.
- TECK-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.82%, TECK-A belongs to the top of the industry, outperforming 87.07% of the companies in the same industry.
- TECK-A has a Return On Equity of 5.04%. This is amongst the best in the industry. TECK-A outperforms 88.41% of its industry peers.
- With an excellent Return On Invested Capital value of 2.63%, TECK-A belongs to the best of the industry, outperforming 89.88% of the companies in the same industry.
- TECK-A had an Average Return On Invested Capital over the past 3 years of 4.35%. This is significantly below the industry average of 12.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 5.04% | ||
| ROIC | 2.63% |
ROA(3y)3.83%
ROA(5y)3.09%
ROE(3y)7.83%
ROE(5y)6.33%
ROIC(3y)4.35%
ROIC(5y)4.35%
1.3 Margins
- TECK-A has a better Profit Margin (11.98%) than 92.44% of its industry peers.
- TECK-A's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 14.20%, TECK-A belongs to the top of the industry, outperforming 90.61% of the companies in the same industry.
- TECK-A's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 21.07%, TECK-A belongs to the top of the industry, outperforming 88.66% of the companies in the same industry.
- In the last couple of years the Gross Margin of TECK-A has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.2% | ||
| PM (TTM) | 11.98% | ||
| GM | 21.07% |
OM growth 3Y-33.79%
OM growth 5Y-15.75%
PM growth 3Y-41.58%
PM growth 5YN/A
GM growth 3Y-24.29%
GM growth 5Y-8.73%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TECK-A is destroying value.
- Compared to 1 year ago, TECK-A has less shares outstanding
- TECK-A has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for TECK-A is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.19 indicates that TECK-A is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.19, TECK-A perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.36 indicates that TECK-A is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.36, TECK-A is not doing good in the industry: 69.63% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.19 |
ROIC/WACC0.26
WACC9.93%
2.3 Liquidity
- TECK-A has a Current Ratio of 2.78. This indicates that TECK-A is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of TECK-A (2.78) is better than 60.24% of its industry peers.
- A Quick Ratio of 2.08 indicates that TECK-A has no problem at all paying its short term obligations.
- TECK-A has a Quick ratio (2.08) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.08 |
3. Growth
3.1 Past
- The earnings per share for TECK-A have decreased strongly by -38.14% in the last year.
- Measured over the past years, TECK-A shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.12% on average per year.
- Looking at the last year, TECK-A shows a very negative growth in Revenue. The Revenue has decreased by -29.29% in the last year.
- TECK-A shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.35% yearly.
EPS 1Y (TTM)-38.14%
EPS 3Y-22.94%
EPS 5Y-1.12%
EPS Q2Q%26.67%
Revenue 1Y (TTM)-29.29%
Revenue growth 3Y-10.78%
Revenue growth 5Y-5.35%
Sales Q2Q%18.44%
3.2 Future
- Based on estimates for the next years, TECK-A will show a decrease in Earnings Per Share. The EPS will decrease by -1.28% on average per year.
- Based on estimates for the next years, TECK-A will show a decrease in Revenue. The Revenue will decrease by -3.95% on average per year.
EPS Next Y-7.75%
EPS Next 2Y8.83%
EPS Next 3Y7.2%
EPS Next 5Y-1.28%
Revenue Next Year-21.45%
Revenue Next 2Y-7.04%
Revenue Next 3Y-2.99%
Revenue Next 5Y-3.95%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 34.47, the valuation of TECK-A can be described as expensive.
- 89.76% of the companies in the same industry are more expensive than TECK-A, based on the Price/Earnings ratio.
- TECK-A is valuated rather expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 24.61, the valuation of TECK-A can be described as rather expensive.
- 89.39% of the companies in the same industry are more expensive than TECK-A, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. TECK-A is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.47 | ||
| Fwd PE | 24.61 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TECK-A is valued cheaply inside the industry as 94.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.43 |
4.3 Compensation for Growth
- TECK-A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.83%
EPS Next 3Y7.2%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.71%, TECK-A is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.56, TECK-A pays a better dividend. On top of this TECK-A pays more dividend than 96.59% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, TECK-A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
- The dividend of TECK-A is nicely growing with an annual growth rate of 38.28%!
- 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)38.28%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
- TECK-A pays out 19.75% of its income as dividend. This is a sustainable payout ratio.
DP19.75%
EPS Next 2Y8.83%
EPS Next 3Y7.2%
TECK RESOURCES LTD-CLS A / TECK-A.CA FAQ
What is the ChartMill fundamental rating of TECK RESOURCES LTD-CLS A (TECK-A.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to TECK-A.CA.
Can you provide the valuation status for TECK RESOURCES LTD-CLS A?
ChartMill assigns a valuation rating of 3 / 10 to TECK RESOURCES LTD-CLS A (TECK-A.CA). This can be considered as Overvalued.
Can you provide the profitability details for TECK RESOURCES LTD-CLS A?
TECK RESOURCES LTD-CLS A (TECK-A.CA) has a profitability rating of 7 / 10.
What is the financial health of TECK RESOURCES LTD-CLS A (TECK-A.CA) stock?
The financial health rating of TECK RESOURCES LTD-CLS A (TECK-A.CA) is 5 / 10.
What is the expected EPS growth for TECK RESOURCES LTD-CLS A (TECK-A.CA) stock?
The Earnings per Share (EPS) of TECK RESOURCES LTD-CLS A (TECK-A.CA) is expected to decline by -7.75% in the next year.