TECK RESOURCES LTD-CLS B (TECK) Stock Fundamental Analysis
NYSE:TECK - New York Stock Exchange, Inc. - CA8787422044 - Common Stock
Taking everything into account, TECK scores 3 out of 10 in our fundamental rating. TECK was compared to 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.
In multiple years TECK reported negative net income over the last 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 (1.10%) which is in line with its industry peers.
TECK has a Return On Equity (1.97%) which is comparable to the rest of the industry.
TECK has a Return On Invested Capital of 4.65%. This is comparable to the rest of the industry: TECK outperforms 59.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TECK is in line with the industry average of 8.76%.
| 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
The Profit Margin of TECK (3.30%) is better than 68.03% of its industry peers.
TECK's Profit Margin has declined in the last couple of years.
TECK has a Operating Margin of 20.82%. This is in the better half of the industry: TECK outperforms 78.23% of its industry peers.
TECK's Operating Margin has declined in the last couple of years.
The Gross Margin of TECK (28.09%) is better than 68.71% of its industry peers.
In the last couple of years the Gross Margin of TECK has remained more or less at the same level.
| 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
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 increased compared to 1 year ago.
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 2.29 indicates that TECK is not a great score, but indicates only limited risk for bankruptcy at the moment.
TECK has a Altman-Z score of 2.29. This is comparable to the rest of the industry: TECK outperforms 46.94% 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.
TECK's Debt to Equity ratio of 0.36 is on the low side compared to the rest of the industry. TECK is outperformed by 69.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.29 |
ROIC/WACC0.48
WACC9.69%
2.3 Liquidity
A Current Ratio of 2.92 indicates that TECK has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.92, TECK is doing good in the industry, outperforming 61.90% of the companies in the same industry.
A Quick Ratio of 2.35 indicates that TECK has no problem at all paying its short term obligations.
The Quick ratio of TECK (2.35) is better than 68.03% 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 -26.86% in the last year.
Measured over the past 5 years, TECK shows a small growth in Earnings Per Share. The EPS has been growing by 4.80% on average per year.
TECK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.46%.
Measured over the past years, TECK shows a small growth in Revenue. The Revenue has been growing by 3.62% on average per year.
EPS 1Y (TTM)-26.86%
EPS 3Y70.67%
EPS 5Y4.8%
EPS Q2Q%-22.08%
Revenue 1Y (TTM)16.46%
Revenue growth 3Y18.82%
Revenue growth 5Y3.62%
Sales Q2Q%-20.59%
3.2 Future
TECK is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.65% yearly.
TECK is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.83% yearly.
EPS Next Y-51.05%
EPS Next 2Y-30.36%
EPS Next 3Y-17.34%
EPS Next 5Y-9.65%
Revenue Next Year-11.5%
Revenue Next 2Y-13.76%
Revenue Next 3Y-8.03%
Revenue Next 5Y-4.83%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.62, the valuation of TECK can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TECK indicates a somewhat cheap valuation: TECK is cheaper than 68.71% of the companies listed in the same industry.
TECK is valuated rather cheaply when we compare the Price/Earnings ratio to 27.96, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 24.84 indicates a rather expensive valuation of TECK.
TECK's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.11. TECK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 24.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TECK is valued a bit cheaper than 72.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.02 |
4.3 Compensation for Growth
TECK's earnings are expected to decrease with -17.34% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.67
EPS Next 2Y-30.36%
EPS Next 3Y-17.34%
5. Dividend
5.1 Amount
TECK has a yearly dividend return of 0.82%, which is pretty low.
TECK's Dividend Yield is a higher than the industry average which is at 3.22.
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
On average, the dividend of TECK grows each year by 27.32%, which is quite nice.
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)27.32%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
TECK pays out 105.10% 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.
DP105.1%
EPS Next 2Y-30.36%
EPS Next 3Y-17.34%
TECK RESOURCES LTD-CLS B
NYSE:TECK (1/17/2025, 8:04:00 PM)
After market: 43.16 0 (0%)43.16
+0.8 (+1.89%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners78.41%
Inst Owner Change-0.06%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap22.04B
Analysts82
Price Target80.78 (87.16%)
Short Float %1.21%
Short Ratio2.42
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)1.01%
PT rev (3m)-0.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-56.07%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-28.69%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-2.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 24.84 | ||
| P/S | 2.15 | ||
| P/FCF | N/A | ||
| P/OCF | 12.11 | ||
| P/B | 1.28 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 7.02 |
EPS(TTM)2.45
EY5.68%
EPS(NY)1.74
Fwd EY4.03%
FCF(TTM)-0.4
FCFYN/A
OCF(TTM)3.57
OCFY8.26%
SpS20.11
BVpS33.73
TBVpS33.17
PEG (NY)N/A
PEG (5Y)3.67
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 | 2.29 |
F-Score6
WACC9.69%
ROIC/WACC0.48
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)-26.86%
EPS 3Y70.67%
EPS 5Y4.8%
EPS Q2Q%-22.08%
EPS Next Y-51.05%
EPS Next 2Y-30.36%
EPS Next 3Y-17.34%
EPS Next 5Y-9.65%
Revenue 1Y (TTM)16.46%
Revenue growth 3Y18.82%
Revenue growth 5Y3.62%
Sales Q2Q%-20.59%
Revenue Next Year-11.5%
Revenue Next 2Y-13.76%
Revenue Next 3Y-8.03%
Revenue Next 5Y-4.83%
EBIT growth 1Y-17.53%
EBIT growth 3Y69.81%
EBIT growth 5Y-5%
EBIT Next Year15.44%
EBIT Next 3Y4.5%
EBIT Next 5Y2.26%
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%