TSX:TECK.B

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.

Risks

  • Teck Resources has significant price volatility in the past 3 months.

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

-1.7%

TSX:TECK.B

3.4%

CA Metals and Mining

-0.9%

CA Market


1 Year Return

-27.5%

TSX:TECK.B

21.7%

CA Metals and Mining

-6.1%

CA Market

TECK.B underperformed the Metals and Mining industry which returned 21.7% over the past year.

TECK.B underperformed the Market in Canada which returned -6.1% over the past year.


Share holder returns

TECK.BIndustryMarket
7 Day-1.7%3.4%-0.9%
30 Day-24.0%3.0%-3.4%
90 Day-18.9%27.9%-3.1%
1 Year-26.8%-27.5%22.7%21.7%-2.8%-6.1%
3 Year7.7%4.0%-6.6%-8.3%13.2%3.1%
5 Year-4.4%-12.6%-7.0%-10.3%10.8%-4.7%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Teck Resources's share price is below the future cash flow value, and at a moderate discount (> 20%).

Teck Resources's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Teck Resources is good value based on earnings compared to the CA Metals and Mining industry average.

Teck Resources is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Teck Resources is poor value based on expected growth next year.


Price Based on Value of Assets

Teck Resources is good value based on assets compared to the CA Metals and Mining industry average.


Next Steps

Future Growth

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

2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Teck Resources's revenue is expected to grow by 1.4% yearly, however this is not considered high growth (20% yearly).

Teck Resources's earnings are expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).

Teck Resources's revenue growth is positive but not above the Canada market average.

Teck Resources's earnings growth is positive but not above the Canada market average.

Teck Resources's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Teck Resources is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Teck Resources has delivered over 20% year on year earnings growth in the past 5 years.

Teck Resources's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Teck Resources's 1-year earnings growth is negative, it can't be compared to the CA Metals and Mining industry average.


Return on Equity

Teck Resources has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Teck Resources used its assets less efficiently than the CA Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Teck Resources has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Teck Resources's financial position?


Financial Position Analysis

Teck Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Teck Resources's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Teck Resources's level of debt (21.2%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (41.3% vs 21.2% today).

Debt is well covered by operating cash flow (75.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 45.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

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

1.24%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Teck Resources's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.03%).

Teck Resources's dividend is below the markets top 25% of dividend payers in Canada (5.93%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (22.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (16.3x coverage).


Next Steps

Management

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

7.2yrs

Average management tenure


CEO

Don Lindsay (60yo)

14.3yrs

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

Don's remuneration is higher than average for companies of similar size in Canada.

Don's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.2yrs

Average Tenure

60yo

Average Age

The average tenure for the Teck Resources management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.8yrs

Average Tenure

62yo

Average Age

The tenure for the Teck Resources board of directors is about average.


Insider Trading

More shares have been bought than sold by Teck Resources individual insiders in the past 3 months.


Recent Insider Transactions

BuyCA$21,96012 Aug 19
Kenneth William Ewen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceCA$21.96
BuyCA$89,80012 Aug 19
Andrew Stonkus
EntityIndividual
Role
Head of Marketing
Senior Vice President of Marketing & Logistics
Shares4,000
Max PriceCA$22.45
BuyCA$48,82002 Aug 19
Kenneth William Ewen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceCA$24.41
BuyCA$143,75014 Jun 19
Dale Andres
EntityIndividual
Shares5,000
Max PriceCA$28.75
SellCA$82,49429 Apr 19
Norman Keevil
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares2,600
Max PriceCA$31.73
BuyCA$149,82705 Mar 19
Sheila Murray
EntityIndividual
Shares5,060
Max PriceCA$29.61
BuyCA$2,080,40004 Mar 19
Andrew Golding
EntityIndividual
Role
Head of Corporate Development
Senior Vice President of Corporate Development
Shares70,000
Max PriceCA$29.72
BuyCA$122,50002 Nov 18
Dale Andres
EntityIndividual
Shares5,000
Max PriceCA$24.50
BuyCA$79,71002 Nov 18
Kenneth William Ewen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceCA$26.57
BuyCA$62,80002 Nov 18
Robin Sheremeta
EntityIndividual
Shares2,500
Max PriceCA$25.12
BuyCA$30,47902 Nov 18
Andrew Stonkus
EntityIndividual
Role
Head of Marketing
Senior Vice President of Marketing & Logistics
Shares1,200
Max PriceCA$25.41

Ownership Breakdown


Management Team

  • Ron Millos (62yo)

    Senior VP of Finance & CFO

    • Tenure: 13.8yrs
    • Compensation: CA$2.96m
  • Kal Ruberg

    VP of Teck Digital Systems & Chief Information Officer

    • Tenure: 13.6yrs
  • Don Lindsay (60yo)

    President

    • Tenure: 14.3yrs
    • Compensation: CA$10.71m
  • Peter Rozee

    Senior Vice President of Commercial & Legal Affairs

    • Tenure: 9.3yrs
    • Compensation: CA$3.17m
  • Marcia Smith (57yo)

    Senior Vice President of Sustainability & External Affairs

    • Tenure: 7.6yrs
    • Compensation: CA$2.57m
  • Andrew Stonkus

    Senior Vice President of Marketing & Logistics

    • Tenure: 4.4yrs
  • Dean Winsor

    Senior VP & Chief Human Resources Officer

    • Tenure: 6.8yrs
  • Andrew Golding

    Senior Vice President of Corporate Development

    • Tenure: 5.9yrs
    • Compensation: CA$2.64m
  • H. Phillips

    Senior Vice President of Investor Relations & Strategic Analysis

    • Tenure: 2.4yrs
  • Andrew Milner

    Senior Vice President of Innovation & Technology

    • Tenure: 0.8yrs

Board Members

  • Ed Dowling (64yo)

    Director

    • Tenure: 6.9yrs
    • Compensation: CA$274.76k
  • Norman Keevil (81yo)

    Chairman Emeritus

    • Tenure: 0.8yrs
    • Compensation: CA$825.44k
  • Mike Ashar (64yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: CA$258.45k
  • Don Lindsay (60yo)

    President

    • Tenure: 14.3yrs
    • Compensation: CA$10.71m
  • Tracey McVicar (50yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: CA$260.13k
  • Norman Keevil (55yo)

    Vice Chairman

    • Tenure: 0.8yrs
    • Compensation: CA$260.40k
  • Takeshi Kubota (65yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: CA$246.77k
  • Laura Dottori-Attanasio (51yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: CA$247.60k
  • Ken Ewen (72yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: CA$223.92k
  • Dominic Barton (56yo)

    Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: CA$935.30k

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: 1906
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$12.050b
  • Shares outstanding: 558.37m
  • 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 Analysis2019/08/24 23:49
End of Day Share Price2019/08/23 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.