TECK RESOURCES LTD-CLS B (TECK)
CA8787422044 - Common Stock
Taking everything into account, TECK scores 3 out of 10 in our fundamental rating. TECK was compared to 154 industry peers in the Metals & Mining industry. TECK has a medium profitability rating, but doesn't score so well on its financial health evaluation. TECK is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TECK had positive earnings in the past year.
TECK had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TECK reported negative net income in multiple years.
In the past 5 years TECK always reported a positive cash flow from operatings.
1.2 Ratios
TECK has a better Return On Assets (2.76%) than 68.18% of its industry peers.
With a decent Return On Equity value of 6.16%, TECK is doing good in the industry, outperforming 68.83% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.30%, TECK is in the better half of the industry, outperforming 61.04% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TECK is in line with the industry average of 8.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 6.16% | ||
| ROIC | 4.3% |
ROA(3y)5.56%
ROA(5y)2.61%
ROE(3y)11.47%
ROE(5y)5.45%
ROIC(3y)7.02%
ROIC(5y)5.39%
1.3 Margins
TECK's Profit Margin of 10.60% is fine compared to the rest of the industry. TECK outperforms 79.87% of its industry peers.
TECK's Profit Margin has declined in the last couple of years.
The Operating Margin of TECK (24.94%) is better than 84.42% of its industry peers.
In the last couple of years the Operating Margin of TECK has declined.
TECK has a Gross Margin of 31.33%. This is in the better half of the industry: TECK outperforms 77.27% of its industry peers.
In the last couple of years the Gross Margin of TECK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.94% | ||
| PM (TTM) | 10.6% | ||
| GM | 31.33% |
OM growth 3Y47.54%
OM growth 5Y-6.55%
PM growth 3YN/A
PM growth 5Y-8.28%
GM growth 3Y30.67%
GM growth 5Y-1.41%
2. Health
2.1 Basic Checks
TECK 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 has more shares outstanding
TECK has less shares outstanding than it did 5 years ago.
TECK has a worse debt/assets ratio than last year.
2.2 Solvency
TECK has an Altman-Z score of 1.62. This is a bad value and indicates that TECK is not financially healthy and even has some risk of bankruptcy.
TECK has a Altman-Z score of 1.62. This is in the lower half of the industry: TECK underperforms 61.04% of its industry peers.
TECK has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.41, TECK is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.62 |
ROIC/WACC0.6
WACC7.21%
2.3 Liquidity
A Current Ratio of 1.49 indicates that TECK should not have too much problems paying its short term obligations.
TECK has a worse Current ratio (1.49) than 76.62% of its industry peers.
A Quick Ratio of 0.86 indicates that TECK may have some problems paying its short term obligations.
TECK has a worse Quick ratio (0.86) than 83.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
TECK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -47.19%.
TECK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.80% yearly.
TECK shows a decrease in Revenue. In the last year, the revenue decreased by -5.32%.
Measured over the past years, TECK shows a small growth in Revenue. The Revenue has been growing by 3.62% on average per year.
EPS 1Y (TTM)-47.19%
EPS 3Y70.67%
EPS 5Y4.8%
EPS growth Q2Q-56.97%
Revenue 1Y (TTM)-5.32%
Revenue growth 3Y18.82%
Revenue growth 5Y3.62%
Revenue growth Q2Q5.36%
3.2 Future
Based on estimates for the next years, TECK will show a very negative growth in Earnings Per Share. The EPS will decrease by -15.53% on average per year.
The Revenue is expected to decrease by -8.22% on average over the next years.
EPS Next Y-11.94%
EPS Next 2Y-18.44%
EPS Next 3Y-13.24%
EPS Next 5Y-15.53%
Revenue Next Year8.56%
Revenue Next 2Y-9.75%
Revenue Next 3Y-8.91%
Revenue Next 5Y-8.22%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.96 indicates a correct valuation of TECK.
Based on the Price/Earnings ratio, TECK is valued a bit cheaper than 77.27% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.67, TECK is valued a bit cheaper.
With a Price/Forward Earnings ratio of 19.31, TECK is valued on the expensive side.
TECK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TECK is cheaper than 62.34% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.02. TECK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.96 | ||
| Fwd PE | 19.31 |
4.2 Price Multiples
70.78% of the companies in the same industry are more expensive than TECK, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.6 |
4.3 Compensation for Growth
TECK has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TECK's earnings are expected to decrease with -13.24% in the coming years.
PEG (NY)N/A
PEG (5Y)3.33
EPS Next 2Y-18.44%
EPS Next 3Y-13.24%
5. Dividend
5.1 Amount
TECK has a yearly dividend return of 0.72%, which is pretty low.
Compared to an average industry Dividend Yield of 2.88, TECK pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.72, TECK pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
On average, the dividend of TECK grows each year by 27.32%, which is quite nice.
TECK has been paying a dividend for at least 10 years, so it has a reliable track record.
TECK has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)27.32%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
16.07% of the earnings are spent on dividend by TECK. This is a low number and sustainable payout ratio.
DP16.07%
EPS Next 2Y-18.44%
EPS Next 3Y-13.24%
TECK RESOURCES LTD-CLS B
NYSE:TECK (5/1/2024, 10:47:06 AM)
48.51
-0.68 (-1.38%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap25.14B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.96 | ||
| Fwd PE | 19.31 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)3.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 6.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.94% | ||
| PM (TTM) | 10.6% | ||
| GM | 31.33% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-47.19%
EPS 3Y70.67%
EPS 5Y
EPS growth Q2Q
EPS Next Y-11.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.32%
Revenue growth 3Y18.82%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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