TSX:TECK.B

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


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

Stable Share Price: TECK.B's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.4%

TECK.B

-0.3%

CA Metals and Mining

0.2%

CA Market


1 Year Return

-44.6%

TECK.B

54.5%

CA Metals and Mining

-6.3%

CA Market

Return vs Industry: TECK.B underperformed the Canadian Metals and Mining industry which returned 54.5% over the past year.

Return vs Market: TECK.B underperformed the Canadian Market which returned -6.3% over the past year.


Shareholder returns

TECK.BIndustryMarket
7 Day-8.4%-0.3%0.2%
30 Day-3.6%15.6%4.5%
90 Day12.6%22.2%9.5%
1 Year-43.9%-44.6%55.7%54.5%-3.0%-6.3%
3 Year-49.9%-52.0%64.1%60.8%8.5%-2.0%
5 Year42.9%34.4%159.3%151.7%29.5%9.7%

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

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

Below Fair Value: TECK.B (CA$13.57) is trading below our estimate of fair value (CA$62.73)

Significantly Below Fair Value: TECK.B is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TECK.B is unprofitable, so we can't compare its PE Ratio to the CA Metals and Mining industry average.

PE vs Market: TECK.B is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TECK.B's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TECK.B is good value based on its PB Ratio (0.3x) compared to the CA Metals and Mining industry average (2.8x).


Next Steps

Future Growth

How is Teck Resources forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

43.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TECK.B is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: TECK.B is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TECK.B's is expected to become profitable in the next 3 years.

Revenue vs Market: TECK.B's revenue (11% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: TECK.B's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TECK.B's Return on Equity is forecast to be low in 3 years time (4.8%).


Next Steps

Past Performance

How has Teck Resources performed over the past 5 years?

22.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TECK.B is currently unprofitable.

Growing Profit Margin: TECK.B is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TECK.B is unprofitable, but has reduced losses over the past 5 years at a rate of 22% per year.

Accelerating Growth: Unable to compare TECK.B's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TECK.B is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (18.3%).


Return on Equity

High ROE: TECK.B has a negative Return on Equity (-9.16%), as it is currently unprofitable.


Next Steps

Financial Health

How is Teck Resources's financial position?


Financial Position Analysis

Short Term Liabilities: TECK.B's short term assets (CA$3.4B) exceed its short term liabilities (CA$2.2B).

Long Term Liabilities: TECK.B's short term assets (CA$3.4B) do not cover its long term liabilities (CA$15.4B).


Debt to Equity History and Analysis

Debt Level: TECK.B's debt to equity ratio (29.7%) is considered satisfactory.

Reducing Debt: TECK.B's debt to equity ratio has reduced from 47.8% to 29.7% over the past 5 years.

Debt Coverage: TECK.B's debt is well covered by operating cash flow (37.8%).

Interest Coverage: Insufficient data to determine if TECK.B's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

1.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TECK.B's dividend (1.47%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.82%).

High Dividend: TECK.B's dividend (1.47%) is low compared to the top 25% of dividend payers in the Canadian market (6.01%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: TECK.B is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: TECK.B's dividends in 3 years are forecast to be well covered by earnings (18.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average management tenure


CEO

Don Lindsay (61 yo)

15.33yrs

Tenure

CA$9,167,200

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 ($USD6.84M) is above average for companies of similar size in the Canadian market ($USD3.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Donald Lindsay
President15.33yrsCA$9.17m0.076%
CA$ 5.5m
Ronald Millos
Senior VP of Finance & CFO14.83yrsCA$2.90m0.0014%
CA$ 104.7k
Peter Rozee
Senior Vice President of Commercial & Legal Affairs10.33yrsCA$3.01m0.0059%
CA$ 427.3k
Andrew Golding
Senior Vice President of Corporate Development6.92yrsCA$2.64m0.013%
CA$ 951.4k
Marcia Smith
Senior Vice President of Sustainability & External Affairs8.58yrsCA$2.64m0.00028%
CA$ 20.2k
H. Phillips
Senior Vice President of Investor Relations & Strategic Analysis3.42yrsno datano data
Chris Stannell
Public Relations Managerno datano datano data
Réal Foley
Senior Vice President of Marketing & Logistics0.58yrno data0.0025%
CA$ 181.2k
Dean Winsor
Senior VP & Chief Human Resources Officer7.75yrsno datano data
Dale Andres
Senior Vice President of Base Metals7.17yrsCA$2.29m0.019%
CA$ 1.4m
Alexander Christopher
Senior Vice President of Exploration8.08yrsno datano data
Robin Sheremeta
Senior Vice President of Coal4.25yrsno data0.0075%
CA$ 543.5k

7.8yrs

Average Tenure

59yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Donald Lindsay
President15.33yrsCA$9.17m0.076%
CA$ 5.5m
Timothy Snider
Independent Director5.33yrsCA$282.56k0.0025%
CA$ 179.0k
Edward Dowling
Independent Director7.92yrsCA$293.33k0.0018%
CA$ 130.6k
Norman Keevil
Chairman Emeritus1.83yrsCA$825.44kno data
Mayank Ashar
Independent Director12.75yrsCA$278.47k0.013%
CA$ 951.4k
Una Power
Independent Director3.33yrsCA$246.95k0.0021%
CA$ 153.7k
Tracey McVicar
Independent Director5.75yrsCA$278.01kno data
Norman Keevil
Vice Chairman1.83yrsCA$338.16k0.0019%
CA$ 135.7k
Sheila Murray
Independent Chairman0.92yrCA$303.86k0.0015%
CA$ 106.8k
Kenneth William Ewen
Independent Director5.33yrsCA$285.00k0.0043%
CA$ 309.7k
Quan Chong
Independent Director4.33yrsCA$225.85kno data
Eiichi Fukuda
Independent Director4.33yrsCA$242.28k0.00038%
CA$ 27.4k

4.8yrs

Average Tenure

65yo

Average Age

Experienced Board: TECK.B's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Teck Resources Limited
  • Ticker: TECK.B
  • Exchange: TSX
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$7.218b
  • Shares outstanding: 531.02m
  • 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, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 23:54
End of Day Share Price2020/07/31 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.