TECK RESOURCES LTD-CLS B (TECK) Stock Fundamental Analysis
USA - NYSE:TECK - CA8787422044 - Common Stock
41.89 USD
+0.23 (+0.55%)
41.89 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to TECK. TECK was compared to 156 industry peers in the Metals & Mining industry. Both the profitability and the financial health of TECK get a neutral evaluation. Nothing too spectacular is happening here. TECK has a expensive valuation and it also scores bad on growth.
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
TECK has a Return On Assets of 0.64%. This is in the better half of the industry: TECK outperforms 60.90% of its industry peers.
With a decent Return On Equity value of 1.13%, TECK is doing good in the industry, outperforming 60.90% of the companies in the same industry.
With a Return On Invested Capital value of 2.70%, TECK perfoms like the industry average, outperforming 57.05% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TECK is significantly below the industry average of 13.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 1.13% | ||
| ROIC | 2.7% |
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
TECK's Profit Margin of 2.77% is fine compared to the rest of the industry. TECK outperforms 65.38% of its industry peers.
TECK's Profit Margin has declined in the last couple of years.
The Operating Margin of TECK (13.79%) is better than 68.59% of its industry peers.
TECK's Operating Margin has declined in the last couple of years.
TECK has a Gross Margin of 20.36%. This is in the better half of the industry: TECK outperforms 60.26% of its industry peers.
In the last couple of years the Gross Margin of TECK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.79% | ||
| PM (TTM) | 2.77% | ||
| GM | 20.36% |
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 is destroying value.
The number of shares outstanding for TECK has been reduced compared to 1 year ago.
The number of shares outstanding for TECK has been reduced compared to 5 years ago.
The debt/assets ratio for TECK is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.99 indicates that TECK is not a great score, but indicates only limited risk for bankruptcy at the moment.
TECK has a worse Altman-Z score (1.99) than 64.10% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that TECK is not too dependend on debt financing.
TECK has a Debt to Equity ratio of 0.36. This is in the lower half of the industry: TECK underperforms 68.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.99 |
ROIC/WACC0.27
WACC9.91%
2.3 Liquidity
TECK has a Current Ratio of 3.47. This indicates that TECK is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.47, TECK is doing good in the industry, outperforming 68.59% of the companies in the same industry.
TECK has a Quick Ratio of 2.46. This indicates that TECK is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.46, TECK is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.47 | ||
| Quick Ratio | 2.46 |
3. Growth
3.1 Past
The earnings per share for TECK have decreased strongly by -45.28% in the last year.
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 -36.04%.
The Revenue has been decreasing by -5.35% on average over the past years.
EPS 1Y (TTM)-45.28%
EPS 3Y-22.94%
EPS 5Y-1.12%
EPS Q2Q%-51.9%
Revenue 1Y (TTM)-36.04%
Revenue growth 3Y-10.78%
Revenue growth 5Y-5.35%
Sales Q2Q%-47.77%
3.2 Future
TECK is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.80% yearly.
Based on estimates for the next years, TECK will show a decrease in Revenue. The Revenue will decrease by -4.32% on average per year.
EPS Next Y-21.71%
EPS Next 2Y-0.72%
EPS Next 3Y-3.47%
EPS Next 5Y-6.8%
Revenue Next Year-25.19%
Revenue Next 2Y-8.6%
Revenue Next 3Y-5.33%
Revenue Next 5Y-4.32%
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.
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
Based on the Price/Earnings ratio of 28.50, the valuation of TECK can be described as expensive.
Based on the Price/Earnings ratio, TECK is valued a bit cheaper than 70.51% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. TECK is around the same levels.
The Price/Forward Earnings ratio is 22.72, which indicates a rather expensive current valuation of TECK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TECK is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.73. TECK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 22.72 |
4.2 Price Multiples
65.38% of the companies in the same industry are more expensive than TECK, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.73 |
4.3 Compensation for Growth
TECK's earnings are expected to decrease with -3.47% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.72%
EPS Next 3Y-3.47%
5. Dividend
5.1 Amount
TECK has a yearly dividend return of 0.87%, which is pretty low.
Compared to an average industry Dividend Yield of 2.71, TECK pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.87, TECK pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
The dividend of TECK is nicely growing with an annual growth rate of 38.28%!
TECK has paid a dividend for at least 10 years, which is a reliable track record.
As TECK 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 Years8
5.3 Sustainability
TECK pays out 184.42% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of TECK has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP184.42%
EPS Next 2Y-0.72%
EPS Next 3Y-3.47%
41.89
+0.23 (+0.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners79.3%
Inst Owner Change-1.43%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap20.48B
Analysts78
Price Target61.62 (47.1%)
Short Float %3.09%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend0.73
Dividend Growth(5Y)38.28%
DP184.42%
Div Incr Years0
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)52.36%
Min EPS beat(2)27.01%
Max EPS beat(2)77.71%
EPS beat(4)4
Avg EPS beat(4)37.43%
Min EPS beat(4)14%
Max EPS beat(4)77.71%
EPS beat(8)6
Avg EPS beat(8)13.87%
EPS beat(12)7
Avg EPS beat(12)7.24%
EPS beat(16)10
Avg EPS beat(16)7.43%
Revenue beat(2)1
Avg Revenue beat(2)-3.11%
Min Revenue beat(2)-11.5%
Max Revenue beat(2)5.29%
Revenue beat(4)2
Avg Revenue beat(4)-1.11%
Min Revenue beat(4)-11.5%
Max Revenue beat(4)5.29%
Revenue beat(8)2
Avg Revenue beat(8)-2.47%
Revenue beat(12)3
Avg Revenue beat(12)-6.3%
Revenue beat(16)5
Avg Revenue beat(16)-5.25%
PT rev (1m)-2.28%
PT rev (3m)-14.55%
EPS NQ rev (1m)2.56%
EPS NQ rev (3m)-21%
EPS NY rev (1m)-7.66%
EPS NY rev (3m)-1.59%
Revenue NQ rev (1m)1.48%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)-2.26%
Revenue NY rev (3m)-3.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 22.72 | ||
| P/S | 2.85 | ||
| P/FCF | N/A | ||
| P/OCF | 28.5 | ||
| P/B | 1.16 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 12.73 |
EPS(TTM)1.47
EY3.51%
EPS(NY)1.84
Fwd EY4.4%
FCF(TTM)-0.31
FCFYN/A
OCF(TTM)1.47
OCFY3.51%
SpS14.71
BVpS36.01
TBVpS35.12
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 1.13% | ||
| ROCE | 3.42% | ||
| ROIC | 2.7% | ||
| ROICexc | 3.06% | ||
| ROICexgc | 3.12% | ||
| OM | 13.79% | ||
| PM (TTM) | 2.77% | ||
| GM | 20.36% | ||
| 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%
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 Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.43 | ||
| Cap/Depr | 99.02% | ||
| Cap/Sales | 12.13% | ||
| Interest Coverage | 1.79 | ||
| Cash Conversion | 38.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.47 | ||
| Quick Ratio | 2.46 | ||
| Altman-Z | 1.99 |
F-Score5
WACC9.91%
ROIC/WACC0.27
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)-45.28%
EPS 3Y-22.94%
EPS 5Y-1.12%
EPS Q2Q%-51.9%
EPS Next Y-21.71%
EPS Next 2Y-0.72%
EPS Next 3Y-3.47%
EPS Next 5Y-6.8%
Revenue 1Y (TTM)-36.04%
Revenue growth 3Y-10.78%
Revenue growth 5Y-5.35%
Sales Q2Q%-47.77%
Revenue Next Year-25.19%
Revenue Next 2Y-8.6%
Revenue Next 3Y-5.33%
Revenue Next 5Y-4.32%
EBIT growth 1Y-58.08%
EBIT growth 3Y-40.93%
EBIT growth 5Y-20.26%
EBIT Next Year45.02%
EBIT Next 3Y21.83%
EBIT Next 5Y9.35%
FCF growth 1Y-446.15%
FCF growth 3Y-8.62%
FCF growth 5Y-5.38%
OCF growth 1Y-79.94%
OCF growth 3Y-16.18%
OCF growth 5Y-4.35%