TECK RESOURCES LTD-CLS B (TECK) Stock Fundamental Analysis
NYSE:TECK - New York Stock Exchange, Inc. - CA8787422044 - Common Stock - Currency: USD
Overall TECK gets a fundamental rating of 4 out of 10. We evaluated TECK against 154 industry peers in the Metals & Mining industry. TECK has an average financial health and profitability rating. TECK 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 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
Looking at the Return On Assets, with a value of 0.94%, TECK is in the better half of the industry, outperforming 60.39% of the companies in the same industry.
Looking at the Return On Equity, with a value of 1.68%, TECK is in the better half of the industry, outperforming 60.39% of the companies in the same industry.
TECK's Return On Invested Capital of 3.66% is fine compared to the rest of the industry. TECK outperforms 60.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TECK is significantly below the industry average of 11.67%.
| 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
Looking at the Profit Margin, with a value of 3.67%, TECK is in the better half of the industry, outperforming 67.53% of the companies in the same industry.
In the last couple of years the Profit Margin of TECK has declined.
TECK has a better Operating Margin (16.69%) than 72.08% of its industry peers.
TECK's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 23.02%, TECK is doing good in the industry, outperforming 62.34% of the companies in the same industry.
In the last couple of years the Gross Margin of TECK has declined.
| 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.
Compared to 5 years ago, TECK has less shares outstanding
Compared to 1 year ago, TECK has a worse debt to assets ratio.
2.2 Solvency
TECK has an Altman-Z score of 1.89. 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.
TECK has a worse Altman-Z score (1.89) than 62.34% of its industry peers.
The Debt to FCF ratio of TECK is 23.53, which is on the high side as it means it would take TECK, 23.53 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 23.53, TECK is doing good in the industry, outperforming 60.39% of the companies in the same industry.
A Debt/Equity ratio of 0.36 indicates that TECK is not too dependend on debt financing.
TECK has a Debt to Equity ratio of 0.36. This is in the lower half of the industry: TECK underperforms 67.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 23.53 | ||
| Altman-Z | 1.89 |
ROIC/WACC0.39
WACC9.48%
2.3 Liquidity
TECK has a Current Ratio of 3.36. This indicates that TECK is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.36, TECK is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
A Quick Ratio of 2.57 indicates that TECK has no problem at all paying its short term obligations.
TECK has a better Quick ratio (2.57) than 69.48% of its industry peers.
| 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.
The Earnings Per Share has been decreasing by -1.12% on average over the past years.
TECK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.39%.
TECK 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 will show a small growth in Earnings Per Share. The EPS will grow by 2.78% on average per year.
Based on estimates for the next years, TECK will show a decrease in Revenue. The Revenue will decrease by -5.04% on average per year.
EPS Next Y-15.22%
EPS Next 2Y1.7%
EPS Next 3Y-0.03%
EPS Next 5Y2.78%
Revenue Next Year-22.31%
Revenue Next 2Y-7.22%
Revenue Next 3Y-5.27%
Revenue Next 5Y-5.04%
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 21.38, the valuation of TECK can be described as rather expensive.
Based on the Price/Earnings ratio, TECK is valued a bit cheaper than 75.97% of the companies in the same industry.
TECK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.29.
With a Price/Forward Earnings ratio of 19.49, TECK is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as TECK.
TECK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.38 | ||
| Fwd PE | 19.49 |
4.2 Price Multiples
TECK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TECK is cheaper than 77.27% of the companies in the same industry.
65.58% of the companies in the same industry are more expensive than TECK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.92 | ||
| EV/EBITDA | 8.39 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.7%
EPS Next 3Y-0.03%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, TECK is not a good candidate for dividend investing.
TECK's Dividend Yield is a higher than the industry average which is at 2.90.
Compared to an average S&P500 Dividend Yield of 2.34, TECK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
On average, the dividend of TECK grows each year by 38.28%, which is quite nice.
TECK has paid a dividend for at least 10 years, which is a reliable track record.
TECK has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 2Y1.7%
EPS Next 3Y-0.03%
38.05
+0.97 (+2.62%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners77.67%
Inst Owner Change-0.07%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap19.04B
Analysts83.81
Price Target72.11 (89.51%)
Short Float %2.85%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend0.73
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)0%
PT rev (3m)-7.39%
EPS NQ rev (1m)3.2%
EPS NQ rev (3m)-21.1%
EPS NY rev (1m)6.58%
EPS NY rev (3m)-6.14%
Revenue NQ rev (1m)-3.07%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.38 | ||
| Fwd PE | 19.49 | ||
| P/S | 2.21 | ||
| P/FCF | 61.92 | ||
| P/OCF | 11.7 | ||
| P/B | 1.01 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 8.39 |
EPS(TTM)1.78
EY4.68%
EPS(NY)1.95
Fwd EY5.13%
FCF(TTM)0.61
FCFY1.62%
OCF(TTM)3.25
OCFY8.55%
SpS17.19
BVpS37.6
TBVpS36.68
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 | 1.89 |
F-Score5
WACC9.48%
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-15.22%
EPS Next 2Y1.7%
EPS Next 3Y-0.03%
EPS Next 5Y2.78%
Revenue 1Y (TTM)-22.39%
Revenue growth 3Y-10.78%
Revenue growth 5Y-5.35%
Sales Q2Q%-42.58%
Revenue Next Year-22.31%
Revenue Next 2Y-7.22%
Revenue Next 3Y-5.27%
Revenue Next 5Y-5.04%
EBIT growth 1Y-45.89%
EBIT growth 3Y-40.93%
EBIT growth 5Y-20.26%
EBIT Next Year56.04%
EBIT Next 3Y24.03%
EBIT Next 5Y12.3%
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%