TECK RESOURCES LTD-CLS B (TECK) Stock Fundamental Analysis
NYSE:TECK - New York Stock Exchange, Inc. - CA8787422044 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to TECK. TECK was compared to 152 industry peers in the Metals & Mining industry. TECK has only an average score on both its financial health and profitability. TECK has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TECK had positive earnings in the past year.
TECK had a positive operating cash flow in the past year.
Of the past 5 years TECK 4 years were profitable.
In the past 5 years TECK always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.86%, TECK perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
With a Return On Equity value of 1.56%, TECK perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
The Return On Invested Capital of TECK (4.96%) is better than 62.50% of its industry peers.
TECK had an Average Return On Invested Capital over the past 3 years of 4.78%. This is below the industry average of 8.61%.
The 3 year average ROIC (4.78%) for TECK is below the current ROIC(4.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 1.56% | ||
| ROIC | 4.96% |
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 has a Profit Margin of 3.01%. This is in the better half of the industry: TECK outperforms 67.76% of its industry peers.
TECK's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.83%, TECK is in the better half of the industry, outperforming 75.66% of the companies in the same industry.
In the last couple of years the Operating Margin of TECK has declined.
TECK has a better Gross Margin (25.70%) than 63.82% of its industry peers.
TECK'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 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.
TECK has a worse debt/assets ratio than last year.
2.2 Solvency
TECK has an Altman-Z score of 1.89. 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.
TECK's Altman-Z score of 1.89 is in line compared to the rest of the industry. TECK outperforms 44.08% of its industry peers.
TECK has a debt to FCF ratio of 18.87. This is a negative value and a sign of low solvency as TECK would need 18.87 years to pay back of all of its debts.
TECK has a Debt to FCF ratio (18.87) which is in line with its industry peers.
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 67.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 18.87 | ||
| Altman-Z | 1.89 |
ROIC/WACC0.52
WACC9.54%
2.3 Liquidity
A Current Ratio of 2.88 indicates that TECK has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.88, TECK is doing good in the industry, outperforming 65.79% of the companies in the same industry.
A Quick Ratio of 2.28 indicates that TECK has no problem at all paying its short term obligations.
TECK's Quick ratio of 2.28 is fine compared to the rest of the industry. TECK outperforms 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.88 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
TECK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -49.90%.
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 -10.03%.
Measured over the past years, TECK shows a decrease in Revenue. The Revenue has been decreasing by -5.35% on average per year.
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
TECK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.78% yearly.
The Revenue is expected to decrease by -4.95% on average over the next years.
EPS Next Y-24.17%
EPS Next 2Y2.28%
EPS Next 3Y-0.39%
EPS Next 5Y3.78%
Revenue Next Year-22.78%
Revenue Next 2Y-6.62%
Revenue Next 3Y-5.04%
Revenue Next 5Y-4.95%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.38, the valuation of TECK can be described as rather expensive.
Based on the Price/Earnings ratio, TECK is valued a bit cheaper than 76.32% of the companies in the same industry.
TECK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.92.
Based on the Price/Forward Earnings ratio of 25.52, the valuation of TECK can be described as expensive.
TECK's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.65, TECK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.38 | ||
| Fwd PE | 25.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TECK indicates a rather cheap valuation: TECK is cheaper than 82.24% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TECK is valued a bit cheaper than 65.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.07 | ||
| EV/EBITDA | 6.09 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.28%
EPS Next 3Y-0.39%
5. Dividend
5.1 Amount
TECK has a Yearly Dividend Yield of 1.10%.
Compared to an average industry Dividend Yield of 2.98, TECK pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.10, TECK pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
The dividend of TECK is nicely growing with an annual growth rate of 38.28%!
TECK has been paying a dividend for at least 10 years, so it has 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 126.60% of its income as dividend. This is not a sustainable payout ratio.
TECK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP126.6%
EPS Next 2Y2.28%
EPS Next 3Y-0.39%
36.24
+1.36 (+3.9%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners78.2%
Inst Owner Change-0.13%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap18.35B
Analysts83.16
Price Target77.87 (114.87%)
Short Float %1.68%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend0.72
Dividend Growth(5Y)38.28%
DP126.6%
Div Incr Years0
Div Non Decr Years8
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)-0.35%
PT rev (3m)-3.61%
EPS NQ rev (1m)7.68%
EPS NQ rev (3m)-35.29%
EPS NY rev (1m)-17.28%
EPS NY rev (3m)-21.67%
Revenue NQ rev (1m)1.51%
Revenue NQ rev (3m)-8.67%
Revenue NY rev (1m)-2.05%
Revenue NY rev (3m)-7.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.38 | ||
| Fwd PE | 25.52 | ||
| P/S | 1.88 | ||
| P/FCF | 48.07 | ||
| P/OCF | 9.1 | ||
| P/B | 0.97 | ||
| P/tB | 1 | ||
| EV/EBITDA | 6.09 |
EPS(TTM)1.87
EY5.16%
EPS(NY)1.42
Fwd EY3.92%
FCF(TTM)0.75
FCFY2.08%
OCF(TTM)3.98
OCFY10.99%
SpS19.28
BVpS37.23
TBVpS36.32
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 1.56% | ||
| ROCE | 6.28% | ||
| ROIC | 4.96% | ||
| ROICexc | 6.03% | ||
| ROICexgc | 6.14% | ||
| 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)4.78%
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-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 | 1.89 |
F-Score6
WACC9.54%
ROIC/WACC0.52
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-24.17%
EPS Next 2Y2.28%
EPS Next 3Y-0.39%
EPS Next 5Y3.78%
Revenue 1Y (TTM)-10.03%
Revenue growth 3Y-10.78%
Revenue growth 5Y-5.35%
Sales Q2Q%-32.18%
Revenue Next Year-22.78%
Revenue Next 2Y-6.62%
Revenue Next 3Y-5.04%
Revenue Next 5Y-4.95%
EBIT growth 1Y-34.56%
EBIT growth 3Y-40.93%
EBIT growth 5Y-20.26%
EBIT Next Year59.12%
EBIT Next 3Y24.06%
EBIT Next 5Y12.96%
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%