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 822 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 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.
Of the past 5 years TECK-A 4 years were profitable.
Each year in the past 5 years TECK-A had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 0.86%, TECK-A belongs to the best of the industry, outperforming 86.55% of the companies in the same industry.
TECK-A's Return On Equity of 1.56% is amongst the best of the industry. TECK-A outperforms 87.39% of its industry peers.
With an excellent Return On Invested Capital value of 4.52%, TECK-A belongs to the best of the industry, outperforming 91.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TECK-A is significantly below the industry average of 11.99%.
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 90.91% 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 19.83%, TECK-A belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
TECK-A's Operating Margin has declined in the last couple of years.
TECK-A's Gross Margin of 25.70% is amongst the best of the industry. TECK-A outperforms 90.67% of its industry peers.
TECK-A's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for TECK-A has been reduced compared to 1 year ago.
TECK-A has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TECK-A has a worse debt to assets ratio.
2.2 Solvency
TECK-A has an Altman-Z score of 2.03. 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.
The Altman-Z score of TECK-A (2.03) is comparable to the rest of the 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.
With an excellent Debt to FCF ratio value of 18.87, TECK-A belongs to the best of the industry, outperforming 90.18% 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.
The Debt to Equity ratio of TECK-A (0.36) is worse than 69.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 18.87 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.48
WACC9.5%
2.3 Liquidity
A Current Ratio of 2.88 indicates that TECK-A has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.88, TECK-A is doing good in the industry, outperforming 64.24% of the companies in the same industry.
A Quick Ratio of 2.28 indicates that TECK-A has no problem at all paying its short term obligations.
TECK-A has a Quick ratio of 2.28. This is in the better half of the industry: TECK-A outperforms 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.88 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
The earnings per share for TECK-A have decreased strongly by -49.90% in the last year.
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
Based on estimates for the next years, TECK-A will show a small growth in Earnings Per Share. The EPS will grow by 3.16% on average per year.
Based on estimates for the next years, TECK-A will show a decrease in Revenue. The Revenue will decrease by -3.08% on average per year.
EPS Next Y-8.33%
EPS Next 2Y6.76%
EPS Next 3Y6.36%
EPS Next 5Y3.16%
Revenue Next Year-21.17%
Revenue Next 2Y-7.01%
Revenue Next 3Y-4.82%
Revenue Next 5Y-3.08%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
TECK-A is valuated rather expensively with a Price/Earnings ratio of 22.22.
Compared to the rest of the industry, the Price/Earnings ratio of TECK-A indicates a rather cheap valuation: TECK-A is cheaper than 90.06% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TECK-A to the average of the S&P500 Index (29.35), we can say TECK-A is valued slightly cheaper.
With a Price/Forward Earnings ratio of 24.24, TECK-A is valued on the expensive side.
Based on the Price/Forward Earnings ratio, TECK-A is valued cheaper than 89.09% of the companies in the same industry.
TECK-A's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.22 | ||
| Fwd PE | 24.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TECK-A is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TECK-A indicates a rather cheap valuation: TECK-A is cheaper than 91.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.2 | ||
| EV/EBITDA | 7.16 |
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 2Y6.76%
EPS Next 3Y6.36%
5. Dividend
5.1 Amount
TECK-A has a yearly dividend return of 0.86%, which is pretty low.
Compared to an average industry Dividend Yield of 7.60, TECK-A pays a better dividend. On top of this TECK-A pays more dividend than 95.76% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, TECK-A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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.
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.
TECK-A's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP126.6%
EPS Next 2Y6.76%
EPS Next 3Y6.36%
TSX:TECK-A (3/7/2025, 7:00:00 PM)
57.56
-1.09 (-1.86%)
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 Cap29.14B
Analysts83.33
Price Target113.35 (96.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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)-0.58%
PT rev (3m)0.69%
EPS NQ rev (1m)-13.09%
EPS NQ rev (3m)-40.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.91%
Revenue NQ rev (1m)-7.07%
Revenue NQ rev (3m)-10.03%
Revenue NY rev (1m)-1.7%
Revenue NY rev (3m)-4.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.22 | ||
| Fwd PE | 24.24 | ||
| P/S | 2.16 | ||
| P/FCF | 55.2 | ||
| P/OCF | 10.45 | ||
| P/B | 1.12 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 7.16 |
EPS(TTM)2.59
EY4.5%
EPS(NY)2.37
Fwd EY4.12%
FCF(TTM)1.04
FCFY1.81%
OCF(TTM)5.51
OCFY9.57%
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 | 2.03 |
F-Score6
WACC9.5%
ROIC/WACC0.48
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-8.33%
EPS Next 2Y6.76%
EPS Next 3Y6.36%
EPS Next 5Y3.16%
Revenue 1Y (TTM)-10.03%
Revenue growth 3Y-10.78%
Revenue growth 5Y-5.35%
Sales Q2Q%-32.18%
Revenue Next Year-21.17%
Revenue Next 2Y-7.01%
Revenue Next 3Y-4.82%
Revenue Next 5Y-3.08%
EBIT growth 1Y-34.56%
EBIT growth 3Y-40.93%
EBIT growth 5Y-20.26%
EBIT Next Year64.47%
EBIT Next 3Y25.66%
EBIT Next 5Y17.85%
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%