TSX:TECK.A

Stock Analysis Report

Executive Summary

Teck Resources Limited researches, explores for, develops, and produces natural resources in the Asia Pacific, the Americas, and Europe.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Teck Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.2%

TECK.A

0.1%

CA Metals and Mining

-0.2%

CA Market


1 Year Return

-29.0%

TECK.A

12.3%

CA Metals and Mining

1.1%

CA Market

Return vs Industry: TECK.A underperformed the Canadian Metals and Mining industry which returned 12.3% over the past year.

Return vs Market: TECK.A underperformed the Canadian Market which returned 1.1% over the past year.


Shareholder returns

TECK.AIndustryMarket
7 Day-2.2%0.1%-0.2%
30 Day-8.1%-3.5%-2.9%
90 Day-23.7%-4.6%-1.6%
1 Year-28.3%-29.0%13.2%12.3%4.6%1.1%
3 Year-16.9%-20.0%-11.5%-13.1%13.1%3.1%
5 Year21.0%11.6%7.5%3.4%24.7%6.7%

Price Volatility Vs. Market

How volatile is Teck Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Teck Resources undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: TECK.A (CA$22.05) is trading below our estimate of fair value (CA$104.7)

Significantly Undervalued: TECK.A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TECK.A is good value based on its PE Ratio (4.8x) compared to the Metals and Mining industry average (13.6x).

PE vs Market: TECK.A is good value based on its PE Ratio (4.8x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: TECK.A is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: TECK.A is good value based on its PB Ratio (0.5x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Teck Resources forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

2.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TECK.A's forecast earnings growth (2.1% per year) is above the savings rate (1.9%).

Earnings vs Market: TECK.A's earnings (2.1% per year) are forecast to grow slower than the Canadian market (13.1% per year).

High Growth Earnings: TECK.A's earnings are forecast to grow, but not significantly.

Revenue vs Market: TECK.A's revenue (2.3% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: TECK.A's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: TECK.A's Return on Equity is forecast to be low in 3 years time (6.9%).


Next Steps

Past Performance

How has Teck Resources performed over the past 5 years?

47.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TECK.A's earnings have grown significantly by 47.3% per year over the past 5 years.

Accelerating Growth: TECK.A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TECK.A had negative earnings growth (-5.2%) over the past year, making it difficult to compare to the Metals and Mining industry average (-13.7%).


Return on Equity

High ROE: TECK.A's Return on Equity (11%) is considered low.


Return on Assets

ROA vs Industry: TECK.A has a higher Return on Assets than the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: TECK.A's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Teck Resources's financial position?


Financial Position Analysis

Short Term Liabilities: TECK.A's short term assets (CA$5.7B) exceeds its short term liabilities (CA$2.3B)

Long Term Liabilities: TECK.A's short term assets (5.7B) do not cover its long term liabilities (14.9B)


Debt to Equity History and Analysis

Debt Level: TECK.A's debt to equity ratio (21.2%) is considered satisfactory

Reducing Debt: TECK.A's debt to equity ratio has reduced from 41.3% to 21.2% over the past 5 years.

Debt Coverage: TECK.A's debt is well covered by operating cash flow (75.8%).

Interest Coverage: TECK.A's interest payments on its debt are well covered by EBIT (45.2x coverage).


Balance Sheet

Inventory Level: TECK.A has a high level of physical assets or inventory.

Debt Coverage by Assets: TECK.A's debt is covered by short term assets (assets are 1.127180x debt).


Next Steps

Dividend

What is Teck Resources's current dividend yield, its reliability and sustainability?

1.39%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%2.0%markettop25%6.0%industryaverage1.2%forecastin3Years1.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TECK.A's dividend (1.39%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.04%).

High Dividend: TECK.A's dividend (1.39%) is low compared to the top 25% of dividend payers in the Canadian market (6.03%).

Stable Dividend: TECK.A's dividend payments have been volatile in the past 10 years.

Growing Dividend: TECK.A's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (4.4%), TECK.A's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TECK.A's dividends in 3 years are forecast to be well covered by earnings (17.7% payout ratio).


Next Steps

Management

What is the CEO of Teck Resources's salary, the management and board of directors tenure and is there insider trading?

7.8yrs

Average management tenure


CEO

Don Lindsay (60yo)

14.5yrs

Tenure

CA$10,709,800

Compensation

Mr. Donald R. Lindsay, also known as Don, is Chief Executive Officer at Teck Resources Limited since April 2005 and President since January 2005. Mr. Lindsay joined Teck Resources Limited in January 2005 a ...


CEO Compensation Analysis

Compensation vs. Market: Don's total compensation ($USD8.15M) is about average for companies of similar size in the Canadian market ($USD3.99M).

Compensation vs Earnings: Don's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.8yrs

Average Tenure

60yo

Average Age

Experienced Management: TECK.A's management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

64yo

Average Age

Experienced Board: TECK.A's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Ron Millos (62yo)

    Senior VP of Finance & CFO

    • Tenure: 14yrs
    • Compensation: CA$2.96m
  • Kal Ruberg

    VP of Teck Digital Systems & Chief Information Officer

    • Tenure: 13.8yrs
  • Don Lindsay (60yo)

    President

    • Tenure: 14.5yrs
    • Compensation: CA$10.71m
  • Peter Rozee

    Senior VP of Commercial & Legal Affairs

    • Tenure: 9.5yrs
    • Compensation: CA$3.17m
  • Marcia Smith (57yo)

    Senior VP of Sustainability & External Affairs

    • Tenure: 7.8yrs
    • Compensation: CA$2.57m
  • Andrew Stonkus

    Senior VP of Marketing & Logistics

    • Tenure: 4.6yrs
  • Andrew Golding

    Senior Vice President of Corporate Development

    • Tenure: 6.1yrs
    • Compensation: CA$2.64m
  • H. Phillips

    Senior VP of Investor Relations & Strategic Analysis

    • Tenure: 2.6yrs
  • Andrew Milner

    Senior VP of Innovation & Technology

    • Tenure: 0.9yrs
  • Chris Stannell

    Public Relations Manager

    • Tenure: 0yrs

Board Members

  • Tim Snider (69yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: CA$255.56k
  • Ed Dowling (64yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: CA$274.76k
  • Norman Keevil (81yo)

    Chairman Emeritus

    • Tenure: 1yrs
    • Compensation: CA$825.44k
  • Mike Ashar (64yo)

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: CA$258.45k
  • Don Lindsay (60yo)

    President

    • Tenure: 14.5yrs
    • Compensation: CA$10.71m
  • Tracey McVicar (50yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: CA$260.13k
  • Norman Keevil (55yo)

    Vice Chairman

    • Tenure: 1yrs
    • Compensation: CA$260.40k
  • Sheila Murray

    Acting Chairman of the Board

    • Tenure: 0.08yrs
    • Compensation: CA$195.19k
  • Laura Dottori-Attanasio (51yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: CA$247.60k
  • Ken Ewen (72yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: CA$223.92k

Company Information

Teck Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Teck Resources Limited
  • Ticker: TECK.A
  • Exchange: TSX
  • Founded: 1906
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$12.060b
  • Shares outstanding: 557.65m
  • Website: https://www.teck.com

Number of Employees


Location

  • Teck Resources Limited
  • Bentall 5
  • Suite 3300
  • Vancouver
  • British Columbia
  • V6C 0B3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TECK.BTSX (The Toronto Stock Exchange)YesClass B Subordinated Voting SharesCACADDec 1972
TECK.ATSX (The Toronto Stock Exchange)Class A Common SharesCACADDec 1972
TECKNYSE (New York Stock Exchange)YesClass B Subordinated Voting SharesUSUSDDec 1972
TEKBDB (Deutsche Boerse AG)YesClass B Subordinated Voting SharesDEEURDec 1972
TECK NBMV (Bolsa Mexicana de Valores)YesClass B Subordinated Voting SharesMXMXNDec 1972
TCKR.FOTCPK (Pink Sheets LLC)Class A Common SharesUSUSDDec 1972
TPTDB (Deutsche Boerse AG)Class A Common SharesDEEURDec 1972

Biography

Teck Resources Limited researches, explores for, develops, and produces natural resources in the Asia Pacific, the Americas, and Europe. It operates through five segments: Steelmaking, Coal, Copper, Zinc,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 23:41
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.