TECK RESOURCES LTD-CLS B (TECK) Stock Fundamental Analysis
NYSE:TECK - New York Stock Exchange, Inc. - CA8787422044 - Common Stock - Currency: USD
TECK gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 150 industry peers in the Metals & Mining industry. TECK has only an average score on both its financial health and profitability. TECK is valued expensive and it does not seem to be growing.
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.
The reported net income has been mixed in the past 5 years: TECK reported negative net income in multiple years.
TECK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
TECK's Return On Assets of 1.10% is in line compared to the rest of the industry. TECK outperforms 58.04% of its industry peers.
TECK has a Return On Equity (1.97%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 4.65%, TECK is in line with its industry, outperforming 59.44% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TECK is below the industry average of 8.84%.
| 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
TECK has a better Profit Margin (3.30%) than 67.83% 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 20.82%, TECK is in the better half of the industry, outperforming 78.32% of the companies in the same industry.
TECK's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 28.09%, TECK is in the better half of the industry, outperforming 67.83% of the companies in the same industry.
TECK's Gross Margin has been stable in the last couple of years.
| 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 is destroying value.
There is no outstanding debt for TECK. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 2.28 indicates that TECK is not a great score, but indicates only limited risk for bankruptcy at the moment.
TECK's Altman-Z score of 2.28 is in line compared to the rest of the industry. TECK outperforms 46.15% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that TECK is not too dependend on debt financing.
TECK has a worse Debt to Equity ratio (0.36) than 68.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.28 |
ROIC/WACC0.51
WACC9.03%
2.3 Liquidity
A Current Ratio of 2.92 indicates that TECK has no problem at all paying its short term obligations.
TECK's Current ratio of 2.92 is fine compared to the rest of the industry. TECK outperforms 63.64% of its industry peers.
TECK has a Quick Ratio of 2.35. This indicates that TECK is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TECK (2.35) is better than 68.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.92 | ||
| Quick Ratio | 2.35 |
3. Growth
3.1 Past
The earnings per share for TECK have decreased strongly by -49.54% in the last year.
The Earnings Per Share has been decreasing by -0.98% on average over the past years.
EPS 1Y (TTM)-49.54%
EPS 3Y-22.75%
EPS 5Y-0.98%
EPS Q2Q%-66.51%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-31.13%
3.2 Future
The Earnings Per Share is expected to grow by 3.01% on average over the next years.
Based on estimates for the next years, TECK will show a decrease in Revenue. The Revenue will decrease by -3.00% on average per year.
EPS Next Y-8.99%
EPS Next 2Y6.37%
EPS Next 3Y6.11%
EPS Next 5Y3.01%
Revenue Next Year-19.52%
Revenue Next 2Y-7.34%
Revenue Next 3Y-3.26%
Revenue Next 5Y-3%
3.3 Evolution
The EPS 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 22.35, which indicates a rather expensive current valuation of TECK.
Compared to the rest of the industry, the Price/Earnings ratio of TECK indicates a somewhat cheap valuation: TECK is cheaper than 68.53% of the companies listed in the same industry.
TECK is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.62, TECK is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TECK is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, TECK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.35 | ||
| Fwd PE | 24.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TECK indicates a somewhat cheap valuation: TECK is cheaper than 76.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.9 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.37%
EPS Next 3Y6.11%
5. Dividend
5.1 Amount
TECK has a yearly dividend return of 0.82%, which is pretty low.
Compared to an average industry Dividend Yield of 3.16, TECK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, TECK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
The dividend of TECK is nicely growing with an annual growth rate of 27.32%!
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)27.32%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
105.10% of the earnings are spent on dividend by TECK. 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.
DP105.1%
EPS Next 2Y6.37%
EPS Next 3Y6.11%
41.13
-2.23 (-5.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners78.41%
Inst Owner Change-0.55%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap20.83B
Analysts83.16
Price Target78.06 (89.79%)
Short Float %1.62%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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)-1.7%
PT rev (3m)-2.58%
EPS NQ rev (1m)1.39%
EPS NQ rev (3m)5.38%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-1.25%
Revenue NQ rev (1m)2.75%
Revenue NQ rev (3m)2.31%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.35 | ||
| Fwd PE | 24.62 | ||
| P/S | 2 | ||
| P/FCF | N/A | ||
| P/OCF | 11.26 | ||
| P/B | 1.19 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 6.9 |
EPS(TTM)1.84
EY4.47%
EPS(NY)1.67
Fwd EY4.06%
FCF(TTM)-0.41
FCFYN/A
OCF(TTM)3.65
OCFY8.88%
SpS20.61
BVpS34.55
TBVpS33.98
PEG (NY)N/A
PEG (5Y)N/A
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 | 2.28 |
F-Score6
WACC9.03%
ROIC/WACC0.51
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)-49.54%
EPS 3Y-22.75%
EPS 5Y-0.98%
EPS Q2Q%-66.51%
EPS Next Y-8.99%
EPS Next 2Y6.37%
EPS Next 3Y6.11%
EPS Next 5Y3.01%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-31.13%
Revenue Next Year-19.52%
Revenue Next 2Y-7.34%
Revenue Next 3Y-3.26%
Revenue Next 5Y-3%
EBIT growth 1Y-17.53%
EBIT growth 3Y69.81%
EBIT growth 5Y-5%
EBIT Next Year15.76%
EBIT Next 3Y3.67%
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%