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 799 industry peers in the Metals & Mining industry. TECK-A has an excellent profitability rating, but there are some minor concerns on its financial health. TECK-A has a valuation in line with the averages, but on the other hand it scores bad on growth.
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
TECK-A has a better Return On Assets (0.86%) than 85.98% of its industry peers.
TECK-A's Return On Equity of 1.56% is amongst the best of the industry. TECK-A outperforms 86.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.52%, TECK-A belongs to the top of the industry, outperforming 91.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TECK-A is significantly below the industry average of 24.74%.
The last Return On Invested Capital (4.52%) for TECK-A is above the 3 year average (4.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 1.56% | ||
| ROIC | 4.52% |
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 Profit Margin of 3.01%. This is amongst the best in the industry. TECK-A outperforms 90.11% of its industry peers.
In the last couple of years the Profit Margin of TECK-A has declined.
TECK-A has a Operating Margin of 19.83%. This is amongst the best in the industry. TECK-A outperforms 92.87% of its industry peers.
In the last couple of years the Operating Margin of TECK-A has declined.
TECK-A's Gross Margin of 25.70% is amongst the best of the industry. TECK-A outperforms 90.49% of its industry peers.
In the last couple of years the Gross Margin of TECK-A has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.83% | ||
| PM (TTM) | 3.01% | ||
| GM | 25.7% |
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.
Compared to 1 year ago, TECK-A has less shares outstanding
TECK-A has less shares outstanding than it did 5 years ago.
TECK-A has a worse debt/assets ratio than last year.
2.2 Solvency
TECK-A has an Altman-Z score of 1.87. This is not the best score and indicates that TECK-A is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.87, TECK-A perfoms like the industry average, outperforming 54.94% of the companies in the same industry.
The Debt to FCF ratio of TECK-A is 18.87, which is on the high side as it means it would take TECK-A, 18.87 years of fcf income to pay off all of its debts.
TECK-A has a better Debt to FCF ratio (18.87) than 89.74% of its industry peers.
TECK-A has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TECK-A (0.36) is worse than 70.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 18.87 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.49
WACC9.26%
2.3 Liquidity
A Current Ratio of 2.88 indicates that TECK-A has no problem at all paying its short term obligations.
TECK-A has a better Current ratio (2.88) than 63.20% of its industry peers.
A Quick Ratio of 2.28 indicates that TECK-A has no problem at all paying its short term obligations.
With a Quick ratio value of 2.28, TECK-A perfoms like the industry average, outperforming 59.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.88 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
TECK-A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -49.90%.
The Earnings Per Share has been decreasing by -1.12% on average over the past years.
The Revenue for TECK-A has decreased by -10.03% in the past year. This is quite bad
The Revenue has been decreasing by -5.35% on average over the past years.
EPS 1Y (TTM)-49.9%
EPS 3Y-22.94%
EPS 5Y-1.12%
EPS Q2Q%-67.86%
Revenue 1Y (TTM)-10.03%
Revenue growth 3Y-10.78%
Revenue growth 5Y-5.35%
Sales Q2Q%-32.18%
3.2 Future
The Earnings Per Share is expected to grow by 3.78% 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 -4.95% on average per year.
EPS Next Y-24.17%
EPS Next 2Y2.28%
EPS Next 3Y-0.39%
EPS Next 5Y3.78%
Revenue Next Year-22.78%
Revenue Next 2Y-6.62%
Revenue Next 3Y-5.04%
Revenue Next 5Y-4.95%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.94, TECK-A is valued on the expensive side.
Based on the Price/Earnings ratio, TECK-A is valued cheaper than 90.86% of the companies in the same industry.
TECK-A's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.33.
A Price/Forward Earnings ratio of 23.66 indicates a rather expensive valuation of TECK-A.
Based on the Price/Forward Earnings ratio, TECK-A is valued cheaply inside the industry as 88.86% of the companies are valued more expensively.
TECK-A's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.94 | ||
| Fwd PE | 23.66 |
4.2 Price Multiples
94.37% of the companies in the same industry are more expensive than TECK-A, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TECK-A is valued cheaply inside the industry as 91.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.56 | ||
| EV/EBITDA | 5.88 |
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 2Y2.28%
EPS Next 3Y-0.39%
5. Dividend
5.1 Amount
TECK-A has a Yearly Dividend Yield of 1.10%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of TECK-A has falen by -25.26%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.00, TECK-A pays a better dividend. On top of this TECK-A pays more dividend than 96.12% of the companies listed in the same industry.
With a Dividend Yield of 1.10, TECK-A pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
The dividend of TECK-A is nicely growing with an annual growth rate of 38.28%!
TECK-A has paid a dividend for at least 10 years, which is 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
TECK-A pays out 126.60% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TECK-A is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP126.6%
EPS Next 2Y2.28%
EPS Next 3Y-0.39%
TSX:TECK-A (4/21/2025, 7:00:00 PM)
46.47
+0.22 (+0.48%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners78.2%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap23.53B
Analysts83.16
Price Target114.98 (147.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend1
Dividend Growth(5Y)38.28%
DP126.6%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.49%
Min EPS beat(2)14%
Max EPS beat(2)30.98%
EPS beat(4)3
Avg EPS beat(4)9.48%
Min EPS beat(4)-16.01%
Max EPS beat(4)30.98%
EPS beat(8)4
Avg EPS beat(8)-0.63%
EPS beat(12)6
Avg EPS beat(12)-1.19%
EPS beat(16)8
Avg EPS beat(16)0.44%
Revenue beat(2)1
Avg Revenue beat(2)0.88%
Min Revenue beat(2)-1.92%
Max Revenue beat(2)3.68%
Revenue beat(4)1
Avg Revenue beat(4)-1.84%
Min Revenue beat(4)-4.91%
Max Revenue beat(4)3.68%
Revenue beat(8)1
Avg Revenue beat(8)-3.45%
Revenue beat(12)3
Avg Revenue beat(12)-5.45%
Revenue beat(16)4
Avg Revenue beat(16)-5.57%
PT rev (1m)1.44%
PT rev (3m)-0.92%
EPS NQ rev (1m)7.68%
EPS NQ rev (3m)-35.29%
EPS NY rev (1m)-17.28%
EPS NY rev (3m)-21.67%
Revenue NQ rev (1m)1.51%
Revenue NQ rev (3m)-8.67%
Revenue NY rev (1m)-2.05%
Revenue NY rev (3m)-7.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.94 | ||
| Fwd PE | 23.66 | ||
| P/S | 1.74 | ||
| P/FCF | 44.56 | ||
| P/OCF | 8.43 | ||
| P/B | 0.9 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 5.88 |
EPS(TTM)2.59
EY5.57%
EPS(NY)1.96
Fwd EY4.23%
FCF(TTM)1.04
FCFY2.24%
OCF(TTM)5.51
OCFY11.86%
SpS26.67
BVpS51.5
TBVpS50.24
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 1.56% | ||
| ROCE | 6.28% | ||
| ROIC | 4.52% | ||
| ROICexc | 5.5% | ||
| ROICexgc | 5.6% | ||
| OM | 19.83% | ||
| PM (TTM) | 3.01% | ||
| GM | 25.7% | ||
| FCFM | 3.91% |
ROA(3y)3.83%
ROA(5y)3.09%
ROE(3y)7.83%
ROE(5y)6.33%
ROIC(3y)4.35%
ROIC(5y)4.35%
ROICexc(3y)4.63%
ROICexc(5y)4.57%
ROICexgc(3y)4.78%
ROICexgc(5y)4.73%
ROCE(3y)6.05%
ROCE(5y)6.05%
ROICexcg growth 3Y-37.55%
ROICexcg growth 5Y-20.34%
ROICexc growth 3Y-37.19%
ROICexc growth 5Y-20.05%
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%
F-Score6
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 18.87 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 131.05% | ||
| Cap/Sales | 16.75% | ||
| Interest Coverage | 3.1 | ||
| Cash Conversion | 63.35% | ||
| Profit Quality | 130.05% | ||
| Current Ratio | 2.88 | ||
| Quick Ratio | 2.28 | ||
| Altman-Z | 1.87 |
F-Score6
WACC9.26%
ROIC/WACC0.49
Cap/Depr(3y)212.51%
Cap/Depr(5y)220.07%
Cap/Sales(3y)40.91%
Cap/Sales(5y)37.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-49.9%
EPS 3Y-22.94%
EPS 5Y-1.12%
EPS Q2Q%-67.86%
EPS Next Y-24.17%
EPS Next 2Y2.28%
EPS Next 3Y-0.39%
EPS Next 5Y3.78%
Revenue 1Y (TTM)-10.03%
Revenue growth 3Y-10.78%
Revenue growth 5Y-5.35%
Sales Q2Q%-32.18%
Revenue Next Year-22.78%
Revenue Next 2Y-6.62%
Revenue Next 3Y-5.04%
Revenue Next 5Y-4.95%
EBIT growth 1Y-34.56%
EBIT growth 3Y-40.93%
EBIT growth 5Y-20.26%
EBIT Next Year59.12%
EBIT Next 3Y24.06%
EBIT Next 5Y12.96%
FCF growth 1Y194.45%
FCF growth 3Y-8.62%
FCF growth 5Y-5.38%
OCF growth 1Y-32.27%
OCF growth 3Y-16.18%
OCF growth 5Y-4.35%