TECK RESOURCES LTD-CLS B (TECK-B.CA) Stock Fundamental Analysis
TSX:TECK-B - Toronto Stock Exchange - CA8787422044 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to TECK-B. TECK-B was compared to 832 industry peers in the Metals & Mining industry. TECK-B has an excellent profitability rating, but there are some minor concerns on its financial health. TECK-B 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-B had positive earnings in the past year.
TECK-B had a positive operating cash flow in the past year.
In multiple years TECK-B reported negative net income over the last 5 years.
Each year in the past 5 years TECK-B had a positive operating cash flow.
1.2 Ratios
TECK-B has a Return On Assets of 1.10%. This is amongst the best in the industry. TECK-B outperforms 86.61% of its industry peers.
Looking at the Return On Equity, with a value of 1.97%, TECK-B belongs to the top of the industry, outperforming 87.15% of the companies in the same industry.
TECK-B has a Return On Invested Capital of 4.65%. This is amongst the best in the industry. TECK-B outperforms 91.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TECK-B is significantly below the industry average of 11.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 1.97% | ||
| ROIC | 4.65% |
ROA(3y)5.56%
ROA(5y)2.61%
ROE(3y)11.47%
ROE(5y)5.45%
ROIC(3y)6.76%
ROIC(5y)5.23%
1.3 Margins
Looking at the Profit Margin, with a value of 3.30%, TECK-B belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
In the last couple of years the Profit Margin of TECK-B has declined.
TECK-B's Operating Margin of 20.82% is amongst the best of the industry. TECK-B outperforms 93.44% of its industry peers.
In the last couple of years the Operating Margin of TECK-B has declined.
With an excellent Gross Margin value of 28.09%, TECK-B belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
In the last couple of years the Gross Margin of TECK-B has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.82% | ||
| PM (TTM) | 3.3% | ||
| GM | 28.09% |
OM growth 3Y42.91%
OM growth 5Y-8.32%
PM growth 3YN/A
PM growth 5Y-8.28%
GM growth 3Y30.67%
GM growth 5Y-1.41%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TECK-B is destroying value.
Compared to 1 year ago, TECK-B has more shares outstanding
The number of shares outstanding for TECK-B has been reduced compared to 5 years ago.
Compared to 1 year ago, TECK-B has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.25 indicates that TECK-B is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.25, TECK-B perfoms like the industry average, outperforming 55.42% of the companies in the same industry.
A Debt/Equity ratio of 0.36 indicates that TECK-B is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.36, TECK-B is doing worse than 76.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.25 |
ROIC/WACC0.5
WACC9.27%
2.3 Liquidity
A Current Ratio of 2.92 indicates that TECK-B has no problem at all paying its short term obligations.
TECK-B has a Current ratio of 2.92. This is in the better half of the industry: TECK-B outperforms 61.85% of its industry peers.
A Quick Ratio of 2.35 indicates that TECK-B has no problem at all paying its short term obligations.
With a Quick ratio value of 2.35, TECK-B perfoms like the industry average, outperforming 58.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.92 | ||
| Quick Ratio | 2.35 |
3. Growth
3.1 Past
The earnings per share for TECK-B have decreased strongly by -26.86% in the last year.
The Earnings Per Share has been growing slightly by 4.80% on average over the past years.
TECK-B shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.46%.
Measured over the past years, TECK-B shows a small growth in Revenue. The Revenue has been growing by 3.62% on average per year.
EPS 1Y (TTM)-26.86%
EPS 3Y70.67%
EPS 5Y4.8%
EPS Q2Q%-22.08%
Revenue 1Y (TTM)16.46%
Revenue growth 3Y18.82%
Revenue growth 5Y3.62%
Sales Q2Q%-20.59%
3.2 Future
Based on estimates for the next years, TECK-B will show a decrease in Earnings Per Share. The EPS will decrease by -7.56% on average per year.
Based on estimates for the next years, TECK-B will show a decrease in Revenue. The Revenue will decrease by -4.62% on average per year.
EPS Next Y-51.13%
EPS Next 2Y-32.23%
EPS Next 3Y-17.72%
EPS Next 5Y-7.56%
Revenue Next Year-11.49%
Revenue Next 2Y-13.95%
Revenue Next 3Y-8.05%
Revenue Next 5Y-4.62%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.49 indicates a correct valuation of TECK-B.
Based on the Price/Earnings ratio, TECK-B is valued cheaper than 90.63% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.36. TECK-B is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 24.59, the valuation of TECK-B can be described as rather expensive.
Based on the Price/Forward Earnings ratio, TECK-B is valued cheaply inside the industry as 88.09% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 92.49. TECK-B is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 24.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TECK-B is valued cheaper than 92.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.72 |
4.3 Compensation for Growth
TECK-B has a very decent profitability rating, which may justify a higher PE ratio.
TECK-B's earnings are expected to decrease with -17.72% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.44
EPS Next 2Y-32.23%
EPS Next 3Y-17.72%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, TECK-B is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.68, TECK-B pays a better dividend. On top of this TECK-B pays more dividend than 94.91% of the companies listed in the same industry.
With a Dividend Yield of 0.83, TECK-B pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
The dividend of TECK-B is nicely growing with an annual growth rate of 27.32%!
TECK-B has been paying a dividend for at least 10 years, so it has a reliable track record.
As TECK-B did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)27.32%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
TECK-B pays out 105.10% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of TECK-B has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP105.1%
EPS Next 2Y-32.23%
EPS Next 3Y-17.72%
TECK RESOURCES LTD-CLS B
TSX:TECK-B (2/3/2025, 7:00:00 PM)
58.39
-2 (-3.31%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners78.41%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap29.82B
Analysts82
Price Target114.1 (95.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend1
Dividend Growth(5Y)27.32%
DP105.1%
Div Incr Years0
Div Non Decr Years8
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.97%
Min EPS beat(2)8.95%
Max EPS beat(2)30.98%
EPS beat(4)3
Avg EPS beat(4)6.24%
Min EPS beat(4)-16.01%
Max EPS beat(4)30.98%
EPS beat(8)3
Avg EPS beat(8)-4.74%
EPS beat(12)6
Avg EPS beat(12)-2.02%
EPS beat(16)8
Avg EPS beat(16)1.16%
Revenue beat(2)0
Avg Revenue beat(2)-3.42%
Min Revenue beat(2)-4.91%
Max Revenue beat(2)-1.92%
Revenue beat(4)0
Avg Revenue beat(4)-3.07%
Min Revenue beat(4)-4.91%
Max Revenue beat(4)-1.23%
Revenue beat(8)0
Avg Revenue beat(8)-9.71%
Revenue beat(12)2
Avg Revenue beat(12)-7.29%
Revenue beat(16)3
Avg Revenue beat(16)-5.88%
PT rev (1m)-1.73%
PT rev (3m)1.36%
EPS NQ rev (1m)0.78%
EPS NQ rev (3m)-12.58%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-0.59%
Revenue NQ rev (1m)2.75%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 24.59 | ||
| P/S | 2.01 | ||
| P/FCF | N/A | ||
| P/OCF | 11.35 | ||
| P/B | 1.2 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 6.72 |
EPS(TTM)3.54
EY6.06%
EPS(NY)2.37
Fwd EY4.07%
FCF(TTM)-0.58
FCFYN/A
OCF(TTM)5.15
OCFY8.81%
SpS29.03
BVpS48.68
TBVpS47.87
PEG (NY)N/A
PEG (5Y)3.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 1.97% | ||
| ROCE | 7.67% | ||
| ROIC | 4.65% | ||
| ROICexc | 5.67% | ||
| ROICexgc | 5.74% | ||
| OM | 20.82% | ||
| PM (TTM) | 3.3% | ||
| GM | 28.09% | ||
| FCFM | N/A |
ROA(3y)5.56%
ROA(5y)2.61%
ROE(3y)11.47%
ROE(5y)5.45%
ROIC(3y)6.76%
ROIC(5y)5.23%
ROICexc(3y)6.99%
ROICexc(5y)5.4%
ROICexgc(3y)7.23%
ROICexgc(5y)5.59%
ROCE(3y)11.16%
ROCE(5y)8.64%
ROICexcg growth 3Y54.43%
ROICexcg growth 5Y-11.28%
ROICexc growth 3Y54.85%
ROICexc growth 5Y-11.19%
OM growth 3Y42.91%
OM growth 5Y-8.32%
PM growth 3YN/A
PM growth 5Y-8.28%
GM growth 3Y30.67%
GM growth 5Y-1.41%
F-Score6
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.83 | ||
| Cap/Depr | 167.11% | ||
| Cap/Sales | 19.73% | ||
| Interest Coverage | 3.66 | ||
| Cash Conversion | 54.32% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.92 | ||
| Quick Ratio | 2.35 | ||
| Altman-Z | 2.25 |
F-Score6
WACC9.27%
ROIC/WACC0.5
Cap/Depr(3y)254.02%
Cap/Depr(5y)228.3%
Cap/Sales(3y)29.47%
Cap/Sales(5y)29.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-26.86%
EPS 3Y70.67%
EPS 5Y4.8%
EPS Q2Q%-22.08%
EPS Next Y-51.13%
EPS Next 2Y-32.23%
EPS Next 3Y-17.72%
EPS Next 5Y-7.56%
Revenue 1Y (TTM)16.46%
Revenue growth 3Y18.82%
Revenue growth 5Y3.62%
Sales Q2Q%-20.59%
Revenue Next Year-11.49%
Revenue Next 2Y-13.95%
Revenue Next 3Y-8.05%
Revenue Next 5Y-4.62%
EBIT growth 1Y-17.53%
EBIT growth 3Y69.81%
EBIT growth 5Y-5%
EBIT Next Year15.44%
EBIT Next 3Y4.5%
EBIT Next 5Y2.67%
FCF growth 1Y-106.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-71.28%
OCF growth 3Y38.13%
OCF growth 5Y-1.48%