TECK RESOURCES LTD-CLS B (TECK-B.CA) Stock Fundamental Analysis
TSX:TECK-B - Toronto Stock Exchange - CA8787422044 - Common Stock - Currency: CAD
Overall TECK-B gets a fundamental rating of 5 out of 10. We evaluated TECK-B against 811 industry peers in the Metals & Mining industry. While TECK-B belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TECK-B 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-B had positive earnings in the past year.
In the past year TECK-B had a positive cash flow from operations.
TECK-B had positive earnings in 4 of the past 5 years.
TECK-B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.86%, TECK-B belongs to the top of the industry, outperforming 86.19% of the companies in the same industry.
TECK-B's Return On Equity of 1.56% is amongst the best of the industry. TECK-B outperforms 87.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.52%, TECK-B belongs to the top of the industry, outperforming 91.37% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TECK-B is significantly below the industry average of 24.67%.
The last Return On Invested Capital (4.52%) for TECK-B 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
With an excellent Profit Margin value of 3.01%, TECK-B belongs to the best of the industry, outperforming 90.51% of the companies in the same industry.
In the last couple of years the Profit Margin of TECK-B has declined.
Looking at the Operating Margin, with a value of 19.83%, TECK-B belongs to the top of the industry, outperforming 93.09% of the companies in the same industry.
In the last couple of years the Operating Margin of TECK-B has declined.
The Gross Margin of TECK-B (25.70%) is better than 90.63% of its industry peers.
In the last couple of years the Gross Margin of TECK-B 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
TECK-B has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TECK-B has less shares outstanding
Compared to 5 years ago, TECK-B has less shares outstanding
The debt/assets ratio for TECK-B is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.88 indicates that TECK-B is not a great score, but indicates only limited risk for bankruptcy at the moment.
TECK-B has a Altman-Z score (1.88) which is in line with its industry peers.
TECK-B has a debt to FCF ratio of 18.87. This is a negative value and a sign of low solvency as TECK-B would need 18.87 years to pay back of all of its debts.
TECK-B's Debt to FCF ratio of 18.87 is amongst the best of the industry. TECK-B outperforms 90.01% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that TECK-B is not too dependend on debt financing.
TECK-B has a Debt to Equity ratio of 0.36. This is in the lower half of the industry: TECK-B underperforms 70.04% 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-B has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.88, TECK-B is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
A Quick Ratio of 2.28 indicates that TECK-B has no problem at all paying its short term obligations.
The Quick ratio of TECK-B (2.28) is better than 60.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.88 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
TECK-B shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.51%.
TECK-B 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
The Earnings Per Share is expected to grow by 3.78% on average over the next years.
TECK-B is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.95% yearly.
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
Based on the Price/Earnings ratio of 19.58, the valuation of TECK-B can be described as rather expensive.
TECK-B's Price/Earnings ratio is rather cheap when compared to the industry. TECK-B is cheaper than 90.88% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.22. TECK-B is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.49, the valuation of TECK-B can be described as rather expensive.
Based on the Price/Forward Earnings ratio, TECK-B is valued cheaply inside the industry as 90.38% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, TECK-B is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 17.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TECK-B is valued cheaper than 94.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TECK-B is valued cheaply inside the industry as 91.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.44 | ||
| EV/EBITDA | 5.99 |
4.3 Compensation for Growth
The decent profitability rating of TECK-B 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
With a yearly dividend of 1.00%, TECK-B is not a good candidate for dividend investing.
The stock price of TECK-B dropped by -20.20% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.89, TECK-B pays a better dividend. On top of this TECK-B pays more dividend than 96.18% of the companies listed in the same industry.
With a Dividend Yield of 1.00, TECK-B pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
The dividend of TECK-B is nicely growing with an annual growth rate of 38.28%!
TECK-B has paid a dividend for at least 10 years, which is a reliable track record.
As TECK-B 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 Years8
5.3 Sustainability
126.60% of the earnings are spent on dividend by TECK-B. This is not a sustainable payout ratio.
TECK-B's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP126.6%
EPS Next 2Y2.28%
EPS Next 3Y-0.39%
TSX:TECK-B (5/1/2025, 7:00:00 PM)
47.38
+0.53 (+1.13%)
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 Cap23.99B
Analysts83.16
Price Target99.4 (109.79%)
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 Years8
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)-11.88%
PT rev (3m)-14.39%
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 | 19.58 | ||
| Fwd PE | 17.49 | ||
| P/S | 1.78 | ||
| P/FCF | 45.44 | ||
| P/OCF | 8.6 | ||
| P/B | 0.92 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 5.99 |
EPS(TTM)2.42
EY5.11%
EPS(NY)2.71
Fwd EY5.72%
FCF(TTM)1.04
FCFY2.2%
OCF(TTM)5.51
OCFY11.63%
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%