TECK RESOURCES LTD-CLS A (TECK-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TECK-A - CA8787423034 - Common Stock
73 CAD
+2.42 (+3.43%)
We assign a fundamental rating of 4 out of 10 to TECK-A. TECK-A was compared to 817 industry peers in the Metals & Mining industry. While TECK-A has a great profitability rating, 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
- TECK-A had positive earnings in the past year.
- TECK-A had a positive operating cash flow in the past year.
- 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 87.27% of the companies in the same industry.
- The Return On Equity of TECK-A (5.04%) is better than 88.49% of its industry peers.
- The Return On Invested Capital of TECK-A (2.63%) is better than 89.96% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TECK-A is significantly below the industry average of 11.97%.
| 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's Profit Margin of 11.98% is amongst the best of the industry. TECK-A outperforms 92.53% of its industry peers.
- In the last couple of years the Profit Margin of TECK-A has declined.
- Looking at the Operating Margin, with a value of 14.20%, TECK-A belongs to the top of the industry, outperforming 90.70% of the companies in the same industry.
- In the last couple of years the Operating Margin of TECK-A has declined.
- TECK-A's Gross Margin of 21.07% is amongst the best of the industry. TECK-A outperforms 88.74% of its industry peers.
- TECK-A's Gross Margin has declined in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TECK-A is destroying value.
- TECK-A has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, TECK-A has less shares outstanding
- The debt/assets ratio for TECK-A is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.11 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 (2.11) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.36 indicates that TECK-A is not too dependend on debt financing.
- TECK-A has a worse Debt to Equity ratio (0.36) than 69.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.11 |
ROIC/WACC0.27
WACC9.77%
2.3 Liquidity
- A Current Ratio of 2.78 indicates that TECK-A has no problem at all paying its short term obligations.
- TECK-A's Current ratio of 2.78 is fine compared to the rest of the industry. TECK-A outperforms 60.34% of its industry peers.
- TECK-A has a Quick Ratio of 2.08. This indicates that TECK-A is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 2.08, TECK-A is in line with its industry, outperforming 54.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.08 |
3. Growth
3.1 Past
- TECK-A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.14%.
- TECK-A shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.12% yearly.
- TECK-A shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -29.29%.
- The Revenue has been decreasing by -5.35% on average over the past years.
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
- The Earnings Per Share is expected to decrease by -1.28% on average over the next years.
- The Revenue is expected to decrease by -3.95% on average over the next years.
EPS Next Y-7.75%
EPS Next 2Y8.83%
EPS Next 3Y7.2%
EPS Next 5Y-1.28%
Revenue Next Year-21.72%
Revenue Next 2Y-7.99%
Revenue Next 3Y-4.73%
Revenue Next 5Y-3.95%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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 33.33, the valuation of TECK-A can be described as expensive.
- Based on the Price/Earnings ratio, TECK-A is valued cheaper than 90.45% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, TECK-A is valued a bit more expensive.
- Based on the Price/Forward Earnings ratio of 23.80, the valuation of TECK-A can be described as rather expensive.
- TECK-A's Price/Forward Earnings ratio is rather cheap when compared to the industry. TECK-A is cheaper than 89.84% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. TECK-A is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.33 | ||
| Fwd PE | 23.8 |
4.2 Price Multiples
- 94.74% of the companies in the same industry are more expensive than TECK-A, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.72 |
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 0.58, TECK-A pays a better dividend. On top of this TECK-A pays more dividend than 96.33% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, TECK-A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
- On average, the dividend of TECK-A grows each year by 38.28%, which is quite nice.
- TECK-A has been paying a dividend for at least 10 years, so it has a reliable track record.
- As TECK-A did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)38.28%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
- 19.75% of the earnings are spent on dividend by TECK-A. This is a low number and 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.