TECK RESOURCES LTD-CLS B (TECK) Stock Fundamental Analysis
NYSE:TECK - New York Stock Exchange, Inc. - CA8787422044 - Common Stock - Currency: USD
Overall TECK gets a fundamental rating of 4 out of 10. We evaluated TECK against 154 industry peers in the Metals & Mining industry. TECK has an average financial health and profitability rating. TECK has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year TECK was profitable.
In the past year TECK had a positive cash flow from operations.
Of the past 5 years TECK 4 years were profitable.
TECK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TECK (0.94%) is better than 60.39% of its industry peers.
TECK has a Return On Equity of 1.68%. This is comparable to the rest of the industry: TECK outperforms 59.74% of its industry peers.
With a decent Return On Invested Capital value of 3.66%, TECK is doing good in the industry, outperforming 60.39% 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 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 1.68% | ||
| ROIC | 3.66% |
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
The Profit Margin of TECK (3.67%) is better than 67.53% of its industry peers.
TECK's Profit Margin has declined in the last couple of years.
The Operating Margin of TECK (16.69%) is better than 72.08% of its industry peers.
In the last couple of years the Operating Margin of TECK has declined.
Looking at the Gross Margin, with a value of 23.02%, TECK is in the better half of the industry, outperforming 62.34% of the companies in the same industry.
TECK's Gross Margin has declined in the last couple of years.
| 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
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.
TECK has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.96 indicates that TECK is not a great score, but indicates only limited risk for bankruptcy at the moment.
TECK has a Altman-Z score (1.96) which is comparable to the rest of the industry.
The Debt to FCF ratio of TECK is 23.53, which is on the high side as it means it would take TECK, 23.53 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TECK (23.53) is better than 60.39% of 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.
With a Debt to Equity ratio value of 0.36, TECK is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 23.53 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.39
WACC9.29%
2.3 Liquidity
TECK has a Current Ratio of 3.36. This indicates that TECK is financially healthy and has no problem in meeting its short term obligations.
TECK's Current ratio of 3.36 is fine compared to the rest of the industry. TECK outperforms 72.73% of its industry peers.
TECK has a Quick Ratio of 2.57. This indicates that TECK is financially healthy and has no problem in meeting its short term obligations.
TECK's Quick ratio of 2.57 is fine compared to the rest of the industry. TECK outperforms 70.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.36 | ||
| Quick Ratio | 2.57 |
3. Growth
3.1 Past
The earnings per share for TECK have decreased strongly by -41.06% 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 -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 will show a small growth in Earnings Per Share. The EPS will grow by 2.78% on average per year.
Based on estimates for the next years, TECK will show a decrease in Revenue. The Revenue will decrease by -5.04% on average per year.
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
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
TECK is valuated rather expensively with a Price/Earnings ratio of 22.68.
TECK's Price/Earnings ratio is a bit cheaper when compared to the industry. TECK is cheaper than 74.68% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, TECK is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.99, the valuation of TECK can be described as rather expensive.
TECK's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of TECK to the average of the S&P500 Index (21.90), we can say TECK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.68 | ||
| Fwd PE | 20.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TECK is valued a bit cheaper than the industry average as 73.38% of the companies are valued more expensively.
TECK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TECK is cheaper than 62.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.76 | ||
| EV/EBITDA | 9.05 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.01%
EPS Next 3Y0.2%
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, TECK is not a good candidate for dividend investing.
TECK's Dividend Yield is a higher than the industry average which is at 2.98.
Compared to an average S&P500 Dividend Yield of 2.42, TECK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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.
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 118.24% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TECK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP118.24%
EPS Next 2Y1.01%
EPS Next 3Y0.2%
40.82
-0.89 (-2.13%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners77.67%
Inst Owner Change1.65%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap20.42B
Analysts83.81
Price Target72.11 (76.65%)
Short Float %2.69%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend0.74
Dividend Growth(5Y)38.28%
DP118.24%
Div Incr Years0
Div Non Decr Years8
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)-0.19%
PT rev (3m)-7.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.69%
EPS NY rev (1m)2.48%
EPS NY rev (3m)-11.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.37%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.68 | ||
| Fwd PE | 20.99 | ||
| P/S | 2.35 | ||
| P/FCF | 65.76 | ||
| P/OCF | 12.43 | ||
| P/B | 1.07 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 9.05 |
EPS(TTM)1.8
EY4.41%
EPS(NY)1.94
Fwd EY4.76%
FCF(TTM)0.62
FCFY1.52%
OCF(TTM)3.28
OCFY8.05%
SpS17.37
BVpS37.98
TBVpS37.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 1.68% | ||
| ROCE | 4.63% | ||
| ROIC | 3.66% | ||
| ROICexc | 4.29% | ||
| ROICexgc | 4.36% | ||
| 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)4.78%
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 Turnover0.26
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 | 1.96 |
F-Score5
WACC9.29%
ROIC/WACC0.39
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%