TECK RESOURCES LTD-CLS B (TECK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TECK - CA8787422044 - Common Stock
44.88 USD
+0.43 (+0.97%)
46.39 USD
+1.51 (+3.36%)
We assign a fundamental rating of 3 out of 10 to TECK. TECK was compared to 154 industry peers in the Metals & Mining industry. TECK has an average financial health and profitability rating. TECK does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
TECK had positive earnings in the past year.
In the past year TECK had a positive cash flow from operations.
TECK had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TECK had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.82%, TECK is in the better half of the industry, outperforming 65.58% of the companies in the same industry.
TECK's Return On Equity of 5.04% is fine compared to the rest of the industry. TECK outperforms 65.58% of its industry peers.
With a Return On Invested Capital value of 2.89%, TECK perfoms like the industry average, outperforming 55.19% of the companies in the same industry.
TECK had an Average Return On Invested Capital over the past 3 years of 4.78%. This is significantly below the industry average of 13.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 5.04% | ||
| ROIC | 2.89% |
ROA(3y)3.83%
ROA(5y)3.09%
ROE(3y)7.83%
ROE(5y)6.33%
ROIC(3y)4.78%
ROIC(5y)4.78%
1.3 Margins
Looking at the Profit Margin, with a value of 11.98%, TECK is in the better half of the industry, outperforming 76.62% of the companies in the same industry.
In the last couple of years the Profit Margin of TECK has declined.
TECK has a Operating Margin of 14.20%. This is in the better half of the industry: TECK outperforms 68.18% of its industry peers.
In the last couple of years the Operating Margin of TECK has declined.
With a decent Gross Margin value of 21.07%, TECK is doing good in the industry, outperforming 60.39% of the companies in the same industry.
TECK'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 is destroying value.
Compared to 1 year ago, TECK has less shares outstanding
TECK has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TECK is higher compared to a year ago.
2.2 Solvency
TECK has an Altman-Z score of 2.00. This is not the best score and indicates that TECK is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.00, TECK is not doing good in the industry: 67.53% of the companies in the same industry are doing better.
TECK 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 (0.36) is worse than 69.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2 |
ROIC/WACC0.3
WACC9.54%
2.3 Liquidity
TECK has a Current Ratio of 2.78. This indicates that TECK is financially healthy and has no problem in meeting its short term obligations.
TECK has a Current ratio of 2.78. This is comparable to the rest of the industry: TECK outperforms 56.49% of its industry peers.
A Quick Ratio of 2.08 indicates that TECK has no problem at all paying its short term obligations.
The Quick ratio of TECK (2.08) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.08 |
3. Growth
3.1 Past
TECK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.14%.
Measured over the past years, TECK shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.12% on average per year.
TECK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -29.29%.
TECK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.35% yearly.
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
Based on estimates for the next years, TECK will show a decrease in Earnings Per Share. The EPS will decrease by -0.88% on average per year.
The Revenue is expected to decrease by -3.56% on average over the next years.
EPS Next Y-16.12%
EPS Next 2Y-2.61%
EPS Next 3Y-2.96%
EPS Next 5Y-0.88%
Revenue Next Year-22.53%
Revenue Next 2Y-9.4%
Revenue Next 3Y-4.65%
Revenue Next 5Y-3.56%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.59, which means the current valuation is very expensive for TECK.
Compared to the rest of the industry, the Price/Earnings ratio of TECK indicates a somewhat cheap valuation: TECK is cheaper than 68.18% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TECK to the average of the S&P500 Index (26.41), we can say TECK is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 25.53, the valuation of TECK can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TECK is on the same level as its industry peers.
TECK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.59 | ||
| Fwd PE | 25.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TECK is valued a bit cheaper than the industry average as 72.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.57 |
4.3 Compensation for Growth
A cheap valuation may be justified as TECK's earnings are expected to decrease with -2.96% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.61%
EPS Next 3Y-2.96%
5. Dividend
5.1 Amount
TECK has a yearly dividend return of 0.83%, which is pretty low.
Compared to an average industry Dividend Yield of 2.60, TECK pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.83, TECK pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
On average, the dividend of TECK grows each year by 38.28%, which is quite nice.
TECK has been paying a dividend for at least 10 years, so it has a reliable track record.
TECK 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 Years8
5.3 Sustainability
TECK pays out 19.75% of its income as dividend. This is a sustainable payout ratio.
DP19.75%
EPS Next 2Y-2.61%
EPS Next 3Y-2.96%
44.88
+0.43 (+0.97%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners79.29%
Inst Owner Change-2.57%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap21.91B
Revenue(TTM)10.48B
Net Income(TTM)1.26B
Analysts73.75
Price Target64.05 (42.71%)
Short Float %1.76%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend0.72
Dividend Growth(5Y)38.28%
DP19.75%
Div Incr Years0
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28.29%
Min EPS beat(2)27.01%
Max EPS beat(2)29.58%
EPS beat(4)4
Avg EPS beat(4)37.08%
Min EPS beat(4)14%
Max EPS beat(4)77.71%
EPS beat(8)7
Avg EPS beat(8)21.66%
EPS beat(12)7
Avg EPS beat(12)9.2%
EPS beat(16)10
Avg EPS beat(16)7.75%
Revenue beat(2)1
Avg Revenue beat(2)-1.42%
Min Revenue beat(2)-11.5%
Max Revenue beat(2)8.67%
Revenue beat(4)3
Avg Revenue beat(4)1.53%
Min Revenue beat(4)-11.5%
Max Revenue beat(4)8.67%
Revenue beat(8)3
Avg Revenue beat(8)-0.77%
Revenue beat(12)3
Avg Revenue beat(12)-5.96%
Revenue beat(16)5
Avg Revenue beat(16)-5.08%
PT rev (1m)0.86%
PT rev (3m)1.48%
EPS NQ rev (1m)14.66%
EPS NQ rev (3m)16.75%
EPS NY rev (1m)8.32%
EPS NY rev (3m)7.15%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-5.29%
Revenue NY rev (1m)4.25%
Revenue NY rev (3m)2.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.59 | ||
| Fwd PE | 25.53 | ||
| P/S | 2.92 | ||
| P/FCF | N/A | ||
| P/OCF | 20.3 | ||
| P/B | 1.23 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 10.57 |
EPS(TTM)1.57
EY3.5%
EPS(NY)1.76
Fwd EY3.92%
FCF(TTM)-0.13
FCFYN/A
OCF(TTM)2.21
OCFY4.93%
SpS15.37
BVpS36.54
TBVpS35.65
PEG (NY)N/A
PEG (5Y)N/A
Graham Number35.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 5.04% | ||
| ROCE | 3.65% | ||
| ROIC | 2.89% | ||
| ROICexc | 3.27% | ||
| ROICexgc | 3.32% | ||
| OM | 14.2% | ||
| PM (TTM) | 11.98% | ||
| GM | 21.07% | ||
| FCFM | N/A |
ROA(3y)3.83%
ROA(5y)3.09%
ROE(3y)7.83%
ROE(5y)6.33%
ROIC(3y)4.78%
ROIC(5y)4.78%
ROICexc(3y)5.07%
ROICexc(5y)5.01%
ROICexgc(3y)5.24%
ROICexgc(5y)5.18%
ROCE(3y)6.05%
ROCE(5y)6.05%
ROICexgc growth 3Y-37.55%
ROICexgc 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 Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.71 | ||
| Cap/Depr | 85.54% | ||
| Cap/Sales | 15.23% | ||
| Interest Coverage | 2.05 | ||
| Cash Conversion | 44.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.08 | ||
| Altman-Z | 2 |
F-Score5
WACC9.54%
ROIC/WACC0.3
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)-38.14%
EPS 3Y-22.94%
EPS 5Y-1.12%
EPS Q2Q%26.67%
EPS Next Y-16.12%
EPS Next 2Y-2.61%
EPS Next 3Y-2.96%
EPS Next 5Y-0.88%
Revenue 1Y (TTM)-29.29%
Revenue growth 3Y-10.78%
Revenue growth 5Y-5.35%
Sales Q2Q%18.44%
Revenue Next Year-22.53%
Revenue Next 2Y-9.4%
Revenue Next 3Y-4.65%
Revenue Next 5Y-3.56%
EBIT growth 1Y-51.77%
EBIT growth 3Y-40.93%
EBIT growth 5Y-20.26%
EBIT Next Year44.95%
EBIT Next 3Y22.1%
EBIT Next 5Y11.82%
FCF growth 1Y91.35%
FCF growth 3Y-8.62%
FCF growth 5Y-5.38%
OCF growth 1Y-61.21%
OCF growth 3Y-16.18%
OCF growth 5Y-4.35%
TECK RESOURCES LTD-CLS B / TECK FAQ
What is the ChartMill fundamental rating of TECK RESOURCES LTD-CLS B (TECK) stock?
ChartMill assigns a fundamental rating of 3 / 10 to TECK.
What is the valuation status for TECK stock?
ChartMill assigns a valuation rating of 2 / 10 to TECK RESOURCES LTD-CLS B (TECK). This can be considered as Overvalued.
Can you provide the profitability details for TECK RESOURCES LTD-CLS B?
TECK RESOURCES LTD-CLS B (TECK) has a profitability rating of 5 / 10.
What is the valuation of TECK RESOURCES LTD-CLS B based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TECK RESOURCES LTD-CLS B (TECK) is 28.59 and the Price/Book (PB) ratio is 1.23.
What is the expected EPS growth for TECK RESOURCES LTD-CLS B (TECK) stock?
The Earnings per Share (EPS) of TECK RESOURCES LTD-CLS B (TECK) is expected to decline by -16.12% in the next year.