TECK RESOURCES LTD-CLS B (TECK) Stock Fundamental Analysis
USA - NYSE:TECK - CA8787422044 - Common Stock
38.62 USD
-0.13 (-0.34%)
40.6498 USD
+2.03 (+5.26%)
We assign a fundamental rating of 3 out of 10 to TECK. TECK was compared to 156 industry peers in the Metals & Mining industry. TECK has only an average score on both its financial health and profitability. 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
The Return On Assets of TECK (0.64%) is better than 60.90% of its industry peers.
TECK's Return On Equity of 1.13% is fine compared to the rest of the industry. TECK outperforms 60.90% of its industry peers.
The Return On Invested Capital of TECK (2.70%) is comparable to the rest of the industry.
TECK had an Average Return On Invested Capital over the past 3 years of 4.78%. This is significantly below the industry average of 12.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 1.13% | ||
| ROIC | 2.7% |
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
Looking at the Profit Margin, with a value of 2.77%, TECK is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
TECK's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 13.79%, TECK is doing good in the industry, outperforming 68.59% of the companies in the same industry.
TECK's Operating Margin has declined in the last couple of years.
The Gross Margin of TECK (20.36%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of TECK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.79% | ||
| PM (TTM) | 2.77% | ||
| GM | 20.36% |
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 is destroying value.
The number of shares outstanding for TECK has been reduced compared to 1 year ago.
TECK has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TECK has a worse debt to assets ratio.
2.2 Solvency
TECK has an Altman-Z score of 1.92. This is not the best score and indicates that TECK is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of TECK (1.92) is worse than 67.31% 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 has a Debt to Equity ratio of 0.36. This is in the lower half of the industry: TECK underperforms 67.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.92 |
ROIC/WACC0.29
WACC9.31%
2.3 Liquidity
TECK has a Current Ratio of 3.47. This indicates that TECK is financially healthy and has no problem in meeting its short term obligations.
TECK's Current ratio of 3.47 is fine compared to the rest of the industry. TECK outperforms 68.59% of its industry peers.
TECK has a Quick Ratio of 2.46. This indicates that TECK is financially healthy and has no problem in meeting its short term obligations.
TECK's Quick ratio of 2.46 is fine compared to the rest of the industry. TECK outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.47 | ||
| Quick Ratio | 2.46 |
3. Growth
3.1 Past
The earnings per share for TECK have decreased strongly by -45.28% 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.
The Revenue for TECK has decreased by -36.04% in the past year. This is quite bad
TECK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.35% yearly.
EPS 1Y (TTM)-45.28%
EPS 3Y-22.94%
EPS 5Y-1.12%
EPS Q2Q%-51.9%
Revenue 1Y (TTM)-36.04%
Revenue growth 3Y-10.78%
Revenue growth 5Y-5.35%
Sales Q2Q%-47.77%
3.2 Future
TECK is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.80% yearly.
Based on estimates for the next years, TECK will show a decrease in Revenue. The Revenue will decrease by -4.32% on average per year.
EPS Next Y-21.71%
EPS Next 2Y-0.72%
EPS Next 3Y-3.47%
EPS Next 5Y-6.8%
Revenue Next Year-25.19%
Revenue Next 2Y-8.6%
Revenue Next 3Y-5.33%
Revenue Next 5Y-4.32%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
With a Price/Earnings ratio of 26.27, TECK can be considered very expensive at the moment.
TECK's Price/Earnings ratio is a bit cheaper when compared to the industry. TECK is cheaper than 71.79% of the companies in the same industry.
TECK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 20.92, TECK is valued on the expensive side.
TECK's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.87. TECK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.27 | ||
| Fwd PE | 20.92 |
4.2 Price Multiples
TECK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TECK is cheaper than 70.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.86 |
4.3 Compensation for Growth
TECK's earnings are expected to decrease with -3.47% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.72%
EPS Next 3Y-3.47%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, TECK is not a good candidate for dividend investing.
TECK's Dividend Yield is a higher than the industry average which is at 2.51.
Compared to an average S&P500 Dividend Yield of 2.38, TECK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
The dividend of TECK is nicely growing with an annual growth rate of 38.28%!
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)38.28%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
TECK pays out 184.42% of its income as dividend. This is not a sustainable payout ratio.
TECK's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP184.42%
EPS Next 2Y-0.72%
EPS Next 3Y-3.47%
38.62
-0.13 (-0.34%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners79.3%
Inst Owner Change-1.43%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap18.88B
Analysts78
Price Target61.62 (59.55%)
Short Float %3.01%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend0.73
Dividend Growth(5Y)38.28%
DP184.42%
Div Incr Years0
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)52.36%
Min EPS beat(2)27.01%
Max EPS beat(2)77.71%
EPS beat(4)4
Avg EPS beat(4)37.43%
Min EPS beat(4)14%
Max EPS beat(4)77.71%
EPS beat(8)6
Avg EPS beat(8)13.87%
EPS beat(12)7
Avg EPS beat(12)7.24%
EPS beat(16)10
Avg EPS beat(16)7.43%
Revenue beat(2)1
Avg Revenue beat(2)-3.11%
Min Revenue beat(2)-11.5%
Max Revenue beat(2)5.29%
Revenue beat(4)2
Avg Revenue beat(4)-1.11%
Min Revenue beat(4)-11.5%
Max Revenue beat(4)5.29%
Revenue beat(8)2
Avg Revenue beat(8)-2.47%
Revenue beat(12)3
Avg Revenue beat(12)-6.3%
Revenue beat(16)5
Avg Revenue beat(16)-5.25%
PT rev (1m)-2.28%
PT rev (3m)-14.55%
EPS NQ rev (1m)4.86%
EPS NQ rev (3m)3.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.59%
Revenue NQ rev (1m)1.48%
Revenue NQ rev (3m)5.95%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-3.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.27 | ||
| Fwd PE | 20.92 | ||
| P/S | 2.62 | ||
| P/FCF | N/A | ||
| P/OCF | 26.24 | ||
| P/B | 1.07 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 11.86 |
EPS(TTM)1.47
EY3.81%
EPS(NY)1.85
Fwd EY4.78%
FCF(TTM)-0.32
FCFYN/A
OCF(TTM)1.47
OCFY3.81%
SpS14.73
BVpS36.06
TBVpS35.17
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 1.13% | ||
| ROCE | 3.42% | ||
| ROIC | 2.7% | ||
| ROICexc | 3.06% | ||
| ROICexgc | 3.12% | ||
| OM | 13.79% | ||
| PM (TTM) | 2.77% | ||
| GM | 20.36% | ||
| FCFM | N/A |
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 Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.43 | ||
| Cap/Depr | 99.02% | ||
| Cap/Sales | 12.13% | ||
| Interest Coverage | 1.79 | ||
| Cash Conversion | 38.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.47 | ||
| Quick Ratio | 2.46 | ||
| Altman-Z | 1.92 |
F-Score5
WACC9.31%
ROIC/WACC0.29
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)-45.28%
EPS 3Y-22.94%
EPS 5Y-1.12%
EPS Q2Q%-51.9%
EPS Next Y-21.71%
EPS Next 2Y-0.72%
EPS Next 3Y-3.47%
EPS Next 5Y-6.8%
Revenue 1Y (TTM)-36.04%
Revenue growth 3Y-10.78%
Revenue growth 5Y-5.35%
Sales Q2Q%-47.77%
Revenue Next Year-25.19%
Revenue Next 2Y-8.6%
Revenue Next 3Y-5.33%
Revenue Next 5Y-4.32%
EBIT growth 1Y-58.08%
EBIT growth 3Y-40.93%
EBIT growth 5Y-20.26%
EBIT Next Year45.02%
EBIT Next 3Y21.83%
EBIT Next 5Y9.35%
FCF growth 1Y-446.15%
FCF growth 3Y-8.62%
FCF growth 5Y-5.38%
OCF growth 1Y-79.94%
OCF growth 3Y-16.18%
OCF growth 5Y-4.35%