TECK RESOURCES LTD-CLS A (TECK-A.CA) Stock Fundamental Analysis
TSX:TECK-A - Toronto Stock Exchange - CA8787423034 - Common Stock - Currency: CAD
TECK-A gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 801 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
In the past year TECK-A was profitable.
TECK-A had a positive operating cash flow in the past year.
Of the past 5 years TECK-A 4 years were profitable.
Each year in the past 5 years TECK-A had a positive operating cash flow.
1.2 Ratios
TECK-A has a Return On Assets of 0.94%. This is amongst the best in the industry. TECK-A outperforms 86.02% of its industry peers.
Looking at the Return On Equity, with a value of 1.68%, TECK-A belongs to the top of the industry, outperforming 86.89% of the companies in the same industry.
The Return On Invested Capital of TECK-A (3.34%) is better than 90.26% 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 24.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 1.68% | ||
| ROIC | 3.34% |
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
The Profit Margin of TECK-A (3.67%) is better than 90.14% of its industry peers.
In the last couple of years the Profit Margin of TECK-A has declined.
TECK-A has a Operating Margin of 16.69%. This is amongst the best in the industry. TECK-A outperforms 92.01% of its industry peers.
In the last couple of years the Operating Margin of TECK-A has declined.
TECK-A's Gross Margin of 23.02% is amongst the best of the industry. TECK-A outperforms 89.39% of its industry peers.
TECK-A'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
TECK-A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
TECK-A has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.86 indicates that TECK-A is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.86, TECK-A is in line with its industry, outperforming 54.93% of the companies in the same industry.
The Debt to FCF ratio of TECK-A is 23.53, which is on the high side as it means it would take TECK-A, 23.53 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 23.53, TECK-A belongs to the top of the industry, outperforming 89.64% of the companies in the same industry.
A Debt/Equity ratio of 0.36 indicates that TECK-A is not too dependend on debt financing.
TECK-A has a Debt to Equity ratio of 0.36. This is in the lower half of the industry: TECK-A underperforms 70.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 23.53 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.37
WACC9.13%
2.3 Liquidity
A Current Ratio of 3.36 indicates that TECK-A has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.36, TECK-A is doing good in the industry, outperforming 67.42% of the companies in the same industry.
A Quick Ratio of 2.57 indicates that TECK-A has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.57, TECK-A is doing good in the industry, outperforming 63.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.36 | ||
| Quick Ratio | 2.57 |
3. Growth
3.1 Past
The earnings per share for TECK-A have decreased strongly by -41.06% in the last year.
Measured over the past years, TECK-A shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.12% on average per year.
Looking at the last year, TECK-A shows a very negative growth in Revenue. The Revenue has decreased by -22.39% in the last year.
TECK-A shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.35% yearly.
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-A will show a small growth in Earnings Per Share. The EPS will grow by 3.78% on average per year.
The Revenue is expected to decrease by -4.95% on average over the next years.
EPS Next Y-20.45%
EPS Next 2Y0.88%
EPS Next 3Y0.94%
EPS Next 5Y3.78%
Revenue Next Year-22.73%
Revenue Next 2Y-7.22%
Revenue Next 3Y-5.1%
Revenue Next 5Y-4.95%
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 accelerating.
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 20.24.
89.89% of the companies in the same industry are more expensive than TECK-A, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TECK-A to the average of the S&P500 Index (25.91), we can say TECK-A is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.74, the valuation of TECK-A can be described as rather expensive.
Based on the Price/Forward Earnings ratio, TECK-A is valued cheaply inside the industry as 89.76% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.85, TECK-A is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 18.74 |
4.2 Price Multiples
TECK-A's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TECK-A is cheaper than 92.51% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TECK-A is valued cheaply inside the industry as 90.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.27 | ||
| EV/EBITDA | 8.14 |
4.3 Compensation for Growth
The decent profitability rating of TECK-A may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.88%
EPS Next 3Y0.94%
5. Dividend
5.1 Amount
With a yearly dividend of 0.98%, TECK-A is not a good candidate for dividend investing.
TECK-A's Dividend Yield is rather good when compared to the industry average which is at 2.83. TECK-A pays more dividend than 96.25% of the companies in the same industry.
With a Dividend Yield of 0.98, TECK-A pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
On average, the dividend of TECK-A grows each year by 38.28%, which is quite nice.
TECK-A has been paying a dividend for at least 10 years, so it has a reliable track record.
As TECK-A 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 Years6
5.3 Sustainability
118.24% of the earnings are spent on dividend by TECK-A. 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.
DP118.24%
EPS Next 2Y0.88%
EPS Next 3Y0.94%
TSX:TECK-A (5/22/2025, 7:00:00 PM)
49.38
-0.12 (-0.24%)
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 Cap24.59B
Analysts83.81
Price Target103.54 (109.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend1
Dividend Growth(5Y)38.28%
DP118.24%
Div Incr Years0
Div Non Decr Years6
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)-9.95%
PT rev (3m)-9.18%
EPS NQ rev (1m)-5.46%
EPS NQ rev (3m)-4.94%
EPS NY rev (1m)4.9%
EPS NY rev (3m)-12.14%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)-8%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-3.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 18.74 | ||
| P/S | 2.08 | ||
| P/FCF | 58.27 | ||
| P/OCF | 11.01 | ||
| P/B | 0.95 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 8.14 |
EPS(TTM)2.44
EY4.94%
EPS(NY)2.64
Fwd EY5.34%
FCF(TTM)0.85
FCFY1.72%
OCF(TTM)4.48
OCFY9.08%
SpS23.71
BVpS51.85
TBVpS50.57
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 1.68% | ||
| ROCE | 4.63% | ||
| ROIC | 3.34% | ||
| ROICexc | 3.91% | ||
| ROICexgc | 3.98% | ||
| 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)4.35%
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-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 | 1.86 |
F-Score5
WACC9.13%
ROIC/WACC0.37
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-20.45%
EPS Next 2Y0.88%
EPS Next 3Y0.94%
EPS Next 5Y3.78%
Revenue 1Y (TTM)-22.39%
Revenue growth 3Y-10.78%
Revenue growth 5Y-5.35%
Sales Q2Q%-42.58%
Revenue Next Year-22.73%
Revenue Next 2Y-7.22%
Revenue Next 3Y-5.1%
Revenue Next 5Y-4.95%
EBIT growth 1Y-45.89%
EBIT growth 3Y-40.93%
EBIT growth 5Y-20.26%
EBIT Next Year59.12%
EBIT Next 3Y24.06%
EBIT Next 5Y12.96%
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%