TECK RESOURCES LTD-CLS A (TECK-A.CA) Stock Fundamental Analysis
TSX:TECK-A - Toronto Stock Exchange - CA8787423034 - Common Stock - Currency: CAD
Taking everything into account, TECK-A scores 5 out of 10 in our fundamental rating. TECK-A was compared to 811 industry peers in the Metals & Mining industry. While TECK-A belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TECK-A has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
TECK-A had positive earnings in the past year.
TECK-A had a positive operating cash flow in the past year.
TECK-A had positive earnings in 4 of the past 5 years.
In the past 5 years TECK-A always reported a positive cash flow from operatings.
1.2 Ratios
TECK-A's Return On Assets of 0.86% is amongst the best of the industry. TECK-A outperforms 86.07% of its industry peers.
The Return On Equity of TECK-A (1.56%) is better than 87.05% of its industry peers.
TECK-A has a better Return On Invested Capital (4.52%) than 91.25% of its industry peers.
TECK-A had an Average Return On Invested Capital over the past 3 years of 4.35%. This is significantly below the industry average of 24.67%.
The last Return On Invested Capital (4.52%) for TECK-A is above the 3 year average (4.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 1.56% | ||
| ROIC | 4.52% |
ROA(3y)3.83%
ROA(5y)3.09%
ROE(3y)7.83%
ROE(5y)6.33%
ROIC(3y)4.35%
ROIC(5y)4.35%
1.3 Margins
TECK-A has a Profit Margin of 3.01%. This is amongst the best in the industry. TECK-A outperforms 90.38% of its industry peers.
In the last couple of years the Profit Margin of TECK-A has declined.
TECK-A's Operating Margin of 19.83% is amongst the best of the industry. TECK-A outperforms 92.97% of its industry peers.
TECK-A's Operating Margin has declined in the last couple of years.
TECK-A has a Gross Margin of 25.70%. This is amongst the best in the industry. TECK-A outperforms 90.51% of its industry peers.
In the last couple of years the Gross Margin of TECK-A has declined.
| 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-A is destroying value.
The number of shares outstanding for TECK-A has been reduced compared to 1 year ago.
TECK-A has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TECK-A has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.88 indicates that TECK-A is not a great score, but indicates only limited risk for bankruptcy at the moment.
TECK-A has a Altman-Z score (1.88) which is in line with its industry peers.
TECK-A has a debt to FCF ratio of 18.87. This is a negative value and a sign of low solvency as TECK-A would need 18.87 years to pay back of all of its debts.
TECK-A has a Debt to FCF ratio of 18.87. This is amongst the best in the industry. TECK-A outperforms 89.89% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that TECK-A is not too dependend on debt financing.
TECK-A's Debt to Equity ratio of 0.36 is on the low side compared to the rest of the industry. TECK-A is outperformed by 70.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 18.87 | ||
| Altman-Z | 1.88 |
ROIC/WACC0.49
WACC9.22%
2.3 Liquidity
A Current Ratio of 2.88 indicates that TECK-A has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.88, TECK-A is in the better half of the industry, outperforming 63.87% of the companies in the same industry.
TECK-A has a Quick Ratio of 2.28. This indicates that TECK-A is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.28, TECK-A is in the better half of the industry, outperforming 60.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.88 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
TECK-A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.51%.
TECK-A shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.12% yearly.
The Revenue has grown by 39.98% in the past year. This is a very strong growth!
The Revenue has been decreasing by -5.35% on average over the past years.
EPS 1Y (TTM)-41.51%
EPS 3Y-22.94%
EPS 5Y-1.12%
EPS Q2Q%-22.47%
Revenue 1Y (TTM)39.98%
Revenue growth 3Y-10.78%
Revenue growth 5Y-5.35%
Sales Q2Q%-44.62%
3.2 Future
Based on estimates for the next years, TECK-A will show a small growth in Earnings Per Share. The EPS will grow by 3.78% on average per year.
Based on estimates for the next years, TECK-A will show a decrease in Revenue. The Revenue will decrease by -4.95% on average per year.
EPS Next Y-24.17%
EPS Next 2Y2.28%
EPS Next 3Y-0.39%
EPS Next 5Y3.78%
Revenue Next Year-23.65%
Revenue Next 2Y-7.3%
Revenue Next 3Y-5.52%
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.
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
TECK-A is valuated rather expensively with a Price/Earnings ratio of 19.79.
Based on the Price/Earnings ratio, TECK-A is valued cheaper than 90.75% of the companies in the same industry.
When comparing the Price/Earnings ratio of TECK-A to the average of the S&P500 Index (28.22), we can say TECK-A is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.67, TECK-A is valued on the expensive side.
90.26% of the companies in the same industry are more expensive than TECK-A, based on the Price/Forward Earnings ratio.
TECK-A's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.79 | ||
| Fwd PE | 17.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TECK-A indicates a rather cheap valuation: TECK-A is cheaper than 94.45% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TECK-A indicates a rather cheap valuation: TECK-A is cheaper than 91.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.92 | ||
| EV/EBITDA | 5.99 |
4.3 Compensation for Growth
TECK-A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.28%
EPS Next 3Y-0.39%
5. Dividend
5.1 Amount
TECK-A has a yearly dividend return of 1.00%, which is pretty low.
In the last 3 months the price of TECK-A has falen by -20.28%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.89, TECK-A pays a better dividend. On top of this TECK-A pays more dividend than 96.05% of the companies listed in the same industry.
With a Dividend Yield of 1.00, TECK-A pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
On average, the dividend of TECK-A grows each year by 38.28%, which is quite nice.
TECK-A has paid a dividend for at least 10 years, which is a reliable track record.
TECK-A 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 Years6
5.3 Sustainability
TECK-A pays out 126.60% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TECK-A is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP126.6%
EPS Next 2Y2.28%
EPS Next 3Y-0.39%
TSX:TECK-A (5/2/2025, 7:00:00 PM)
47.88
+0.5 (+1.06%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners78.2%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap24.24B
Analysts83.16
Price Target101.57 (112.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend1
Dividend Growth(5Y)38.28%
DP126.6%
Div Incr Years0
Div Non Decr Years6
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)-10.39%
PT rev (3m)-12.48%
EPS NQ rev (1m)7.68%
EPS NQ rev (3m)-35.29%
EPS NY rev (1m)-16.05%
EPS NY rev (3m)-21.67%
Revenue NQ rev (1m)1.51%
Revenue NQ rev (3m)-8.67%
Revenue NY rev (1m)-3.15%
Revenue NY rev (3m)-7.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.79 | ||
| Fwd PE | 17.67 | ||
| P/S | 1.8 | ||
| P/FCF | 45.92 | ||
| P/OCF | 8.69 | ||
| P/B | 0.93 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 5.99 |
EPS(TTM)2.42
EY5.05%
EPS(NY)2.71
Fwd EY5.66%
FCF(TTM)1.04
FCFY2.18%
OCF(TTM)5.51
OCFY11.51%
SpS26.67
BVpS51.5
TBVpS50.24
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 1.56% | ||
| ROCE | 6.28% | ||
| ROIC | 4.52% | ||
| ROICexc | 5.5% | ||
| ROICexgc | 5.6% | ||
| 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)4.35%
ROIC(5y)4.35%
ROICexc(3y)4.63%
ROICexc(5y)4.57%
ROICexgc(3y)4.78%
ROICexgc(5y)4.73%
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 | 1.88 |
F-Score6
WACC9.22%
ROIC/WACC0.49
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)-41.51%
EPS 3Y-22.94%
EPS 5Y-1.12%
EPS Q2Q%-22.47%
EPS Next Y-24.17%
EPS Next 2Y2.28%
EPS Next 3Y-0.39%
EPS Next 5Y3.78%
Revenue 1Y (TTM)39.98%
Revenue growth 3Y-10.78%
Revenue growth 5Y-5.35%
Sales Q2Q%-44.62%
Revenue Next Year-23.65%
Revenue Next 2Y-7.3%
Revenue Next 3Y-5.52%
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%