TECK RESOURCES LTD-CLS B (TECK) Stock Fundamental Analysis
NYSE:TECK - New York Stock Exchange, Inc. - CA8787422044 - Common Stock - Currency: USD
Taking everything into account, TECK scores 4 out of 10 in our fundamental rating. TECK was compared to 154 industry peers in the Metals & Mining industry. Both the profitability and the financial health of TECK get a neutral evaluation. Nothing too spectacular is happening here. TECK does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year TECK was profitable.
TECK had a positive operating cash flow in the past year.
Of the past 5 years TECK 4 years were profitable.
Each year in the past 5 years TECK had a positive operating cash flow.
1.2 Ratios
TECK has a Return On Assets (0.94%) which is comparable to the rest of the industry.
TECK has a Return On Equity (1.68%) which is in line with its industry peers.
TECK has a Return On Invested Capital of 3.66%. This is in the better half of the industry: TECK outperforms 60.39% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TECK is below the industry average of 8.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 1.68% | ||
| ROIC | 3.66% |
ROA(3y)3.83%
ROA(5y)3.09%
ROE(3y)7.83%
ROE(5y)6.33%
ROIC(3y)4.78%
ROIC(5y)4.78%
1.3 Margins
TECK's Profit Margin of 3.67% is fine compared to the rest of the industry. TECK outperforms 68.18% of its industry peers.
TECK's Profit Margin has declined in the last couple of years.
TECK's Operating Margin of 16.69% is fine compared to the rest of the industry. TECK outperforms 72.08% of its industry peers.
TECK's Operating Margin has declined in the last couple of years.
TECK has a better Gross Margin (23.02%) than 61.69% of its industry peers.
TECK'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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TECK is destroying value.
TECK has less shares outstanding than it did 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 1.86 indicates that TECK is not a great score, but indicates only limited risk for bankruptcy at the moment.
TECK's Altman-Z score of 1.86 is in line compared to the rest of the industry. TECK outperforms 40.91% of its industry peers.
TECK has a debt to FCF ratio of 23.53. This is a negative value and a sign of low solvency as TECK would need 23.53 years to pay back of all of its debts.
TECK has a Debt to FCF ratio of 23.53. This is comparable to the rest of the industry: TECK outperforms 59.09% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that TECK is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.36, TECK is doing worse than 66.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 23.53 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.39
WACC9.43%
2.3 Liquidity
A Current Ratio of 3.36 indicates that TECK has no problem at all paying its short term obligations.
The Current ratio of TECK (3.36) is better than 71.43% of its industry peers.
A Quick Ratio of 2.57 indicates that TECK has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.57, TECK is in the better half of the industry, outperforming 68.18% 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 have decreased strongly by -41.06% in the last year.
Measured over the past years, TECK shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.12% on average per year.
TECK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.39%.
Measured over the past years, TECK shows a decrease in Revenue. The Revenue has been decreasing by -5.35% on average per year.
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
The Earnings Per Share is expected to grow by 3.78% on average over the next years.
TECK is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.95% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.15, the valuation of TECK can be described as rather expensive.
TECK's Price/Earnings ratio is a bit cheaper when compared to the industry. TECK is cheaper than 75.32% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.03. TECK is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 18.69, the valuation of TECK can be described as rather expensive.
TECK's Price/Forward Earnings is on the same level as the industry average.
TECK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.15 | ||
| Fwd PE | 18.69 |
4.2 Price Multiples
TECK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TECK is cheaper than 72.08% of the companies in the same industry.
TECK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TECK is cheaper than 61.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.13 | ||
| EV/EBITDA | 8.15 |
4.3 Compensation for Growth
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 is not a good candidate for dividend investing.
TECK's Dividend Yield is a higher than the industry average which is at 3.00.
Compared to an average S&P500 Dividend Yield of 2.36, TECK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
The dividend of TECK is nicely growing with an annual growth rate of 38.28%!
TECK has been paying a dividend for at least 10 years, so it has 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)38.28%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
118.24% of the earnings are spent on dividend by TECK. This is not a sustainable payout ratio.
TECK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP118.24%
EPS Next 2Y0.88%
EPS Next 3Y0.94%
35.47
-0.17 (-0.48%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners78.2%
Inst Owner Change1.6%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap17.66B
Analysts83.81
Price Target72.25 (103.69%)
Short Float %1.91%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend0.72
Dividend Growth(5Y)38.28%
DP118.24%
Div Incr Years0
Div Non Decr Years8
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)-7.22%
PT rev (3m)-9.02%
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 | 20.15 | ||
| Fwd PE | 18.69 | ||
| P/S | 2.08 | ||
| P/FCF | 58.13 | ||
| P/OCF | 10.98 | ||
| P/B | 0.95 | ||
| P/tB | 0.97 | ||
| EV/EBITDA | 8.15 |
EPS(TTM)1.76
EY4.96%
EPS(NY)1.9
Fwd EY5.35%
FCF(TTM)0.61
FCFY1.72%
OCF(TTM)3.23
OCFY9.1%
SpS17.07
BVpS37.34
TBVpS36.42
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 1.68% | ||
| ROCE | 4.63% | ||
| ROIC | 3.66% | ||
| ROICexc | 4.29% | ||
| ROICexgc | 4.36% | ||
| 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)4.78%
ROIC(5y)4.78%
ROICexc(3y)5.07%
ROICexc(5y)5.01%
ROICexgc(3y)5.24%
ROICexgc(5y)5.18%
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
WACC9.43%
ROIC/WACC0.39
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%