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 797 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Of the past 5 years TECK-A 4 years were profitable.
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 0.94%, TECK-A belongs to the top of the industry, outperforming 85.95% of the companies in the same industry.
Looking at the Return On Equity, with a value of 1.68%, TECK-A belongs to the top of the industry, outperforming 86.70% of the companies in the same industry.
TECK-A has a Return On Invested Capital of 3.34%. This is amongst the best in the industry. TECK-A outperforms 90.84% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TECK-A is significantly below the industry average of 12.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 1.68% | ||
| ROIC | 3.34% |
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
The Profit Margin of TECK-A (3.67%) is better than 90.21% of its industry peers.
In the last couple of years the Profit Margin of TECK-A has declined.
TECK-A's Operating Margin of 16.69% is amongst the best of the industry. TECK-A outperforms 91.72% of its industry peers.
TECK-A's Operating Margin has declined in the last couple of years.
TECK-A's Gross Margin of 23.02% is amongst the best of the industry. TECK-A outperforms 89.08% of its industry peers.
In the last couple of years the Gross Margin of TECK-A has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.69% | ||
| PM (TTM) | 3.67% | ||
| GM | 23.02% |
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.
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.
TECK-A has a worse debt/assets ratio than last year.
2.2 Solvency
TECK-A has an Altman-Z score of 1.92. 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.
TECK-A has a Altman-Z score of 1.92. This is comparable to the rest of the industry: TECK-A outperforms 54.20% of its industry peers.
The Debt to FCF ratio of TECK-A is 23.53, which is on the high side as it means it would take TECK-A, 23.53 years of fcf income to pay off all of its debts.
TECK-A's Debt to FCF ratio of 23.53 is amongst the best of the industry. TECK-A outperforms 89.21% 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.
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 70.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 23.53 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.37
WACC9.01%
2.3 Liquidity
TECK-A has a Current Ratio of 3.36. This indicates that TECK-A is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.36, TECK-A is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
A Quick Ratio of 2.57 indicates that TECK-A has no problem at all paying its short term obligations.
TECK-A has a better Quick ratio (2.57) than 62.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.36 | ||
| Quick Ratio | 2.57 |
3. Growth
3.1 Past
TECK-A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.06%.
The Earnings Per Share has been decreasing by -1.12% on average over the past years.
TECK-A shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.39%.
The Revenue has been decreasing by -5.35% on average over the past years.
EPS 1Y (TTM)-41.06%
EPS 3Y-22.94%
EPS 5Y-1.12%
EPS Q2Q%-20%
Revenue 1Y (TTM)-22.39%
Revenue growth 3Y-10.78%
Revenue growth 5Y-5.35%
Sales Q2Q%-42.58%
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 2.78% on average per year.
The Revenue is expected to decrease by -5.04% on average over the next years.
EPS Next Y-18.48%
EPS Next 2Y1.01%
EPS Next 3Y0.2%
EPS Next 5Y2.78%
Revenue Next Year-22.35%
Revenue Next 2Y-7.16%
Revenue Next 3Y-5.2%
Revenue Next 5Y-5.04%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TECK-A is valuated rather expensively with a Price/Earnings ratio of 21.52.
Based on the Price/Earnings ratio, TECK-A is valued cheaply inside the industry as 90.34% of the companies are valued more expensively.
TECK-A is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.87, the valuation of TECK-A can be described as rather expensive.
Based on the Price/Forward Earnings ratio, TECK-A is valued cheaper than 88.46% of the companies in the same industry.
TECK-A is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.52 | ||
| Fwd PE | 19.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TECK-A is valued cheaper than 92.97% of the companies in the same industry.
90.72% of the companies in the same industry are more expensive than TECK-A, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.24 | ||
| EV/EBITDA | 8.69 |
4.3 Compensation for Growth
The decent profitability rating of TECK-A may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.01%
EPS Next 3Y0.2%
5. Dividend
5.1 Amount
TECK-A has a yearly dividend return of 0.89%, which is pretty low.
Compared to an average industry Dividend Yield of 13.23, TECK-A pays a better dividend. On top of this TECK-A pays more dividend than 95.98% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, TECK-A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
On average, the dividend of TECK-A grows each year by 38.28%, which is quite nice.
TECK-A has paid a dividend for at least 10 years, which is 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 118.24% 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.
DP118.24%
EPS Next 2Y1.01%
EPS Next 3Y0.2%
TSX:TECK-A (7/11/2025, 7:00:00 PM)
52.5
-0.5 (-0.94%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners77.67%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap26.27B
Analysts83.81
Price Target99.38 (89.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend1
Dividend Growth(5Y)38.28%
DP118.24%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)45.86%
Min EPS beat(2)14%
Max EPS beat(2)77.71%
EPS beat(4)4
Avg EPS beat(4)32.91%
Min EPS beat(4)8.95%
Max EPS beat(4)77.71%
EPS beat(8)5
Avg EPS beat(8)9.73%
EPS beat(12)7
Avg EPS beat(12)5.35%
EPS beat(16)9
Avg EPS beat(16)5.47%
Revenue beat(2)2
Avg Revenue beat(2)4.49%
Min Revenue beat(2)3.68%
Max Revenue beat(2)5.29%
Revenue beat(4)2
Avg Revenue beat(4)0.53%
Min Revenue beat(4)-4.91%
Max Revenue beat(4)5.29%
Revenue beat(8)2
Avg Revenue beat(8)-1.3%
Revenue beat(12)4
Avg Revenue beat(12)-4.91%
Revenue beat(16)5
Avg Revenue beat(16)-4.91%
PT rev (1m)-4.02%
PT rev (3m)-13.57%
EPS NQ rev (1m)-2.95%
EPS NQ rev (3m)-24.97%
EPS NY rev (1m)2.48%
EPS NY rev (3m)-9.75%
Revenue NQ rev (1m)-1.76%
Revenue NQ rev (3m)-3.11%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.52 | ||
| Fwd PE | 19.87 | ||
| P/S | 2.22 | ||
| P/FCF | 62.24 | ||
| P/OCF | 11.76 | ||
| P/B | 1.02 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 8.69 |
EPS(TTM)2.44
EY4.65%
EPS(NY)2.64
Fwd EY5.03%
FCF(TTM)0.84
FCFY1.61%
OCF(TTM)4.46
OCFY8.5%
SpS23.6
BVpS51.61
TBVpS50.34
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 1.68% | ||
| ROCE | 4.63% | ||
| ROIC | 3.34% | ||
| ROICexc | 3.91% | ||
| ROICexgc | 3.98% | ||
| OM | 16.69% | ||
| PM (TTM) | 3.67% | ||
| GM | 23.02% | ||
| FCFM | 3.57% |
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-Score5
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 23.53 | ||
| Debt/EBITDA | 2.69 | ||
| Cap/Depr | 120.09% | ||
| Cap/Sales | 15.34% | ||
| Interest Coverage | 2.43 | ||
| Cash Conversion | 64.2% | ||
| Profit Quality | 97.46% | ||
| Current Ratio | 3.36 | ||
| Quick Ratio | 2.57 | ||
| Altman-Z | 1.92 |
F-Score5
WACC9.01%
ROIC/WACC0.37
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)-41.06%
EPS 3Y-22.94%
EPS 5Y-1.12%
EPS Q2Q%-20%
EPS Next Y-18.48%
EPS Next 2Y1.01%
EPS Next 3Y0.2%
EPS Next 5Y2.78%
Revenue 1Y (TTM)-22.39%
Revenue growth 3Y-10.78%
Revenue growth 5Y-5.35%
Sales Q2Q%-42.58%
Revenue Next Year-22.35%
Revenue Next 2Y-7.16%
Revenue Next 3Y-5.2%
Revenue Next 5Y-5.04%
EBIT growth 1Y-45.89%
EBIT growth 3Y-40.93%
EBIT growth 5Y-20.26%
EBIT Next Year56.04%
EBIT Next 3Y24.03%
EBIT Next 5Y12.3%
FCF growth 1Y-78.01%
FCF growth 3Y-8.62%
FCF growth 5Y-5.38%
OCF growth 1Y-66.9%
OCF growth 3Y-16.18%
OCF growth 5Y-4.35%