Teck Resources Limited
Teck Resources Limited Fundamental Analysis
Teck Resources Limited (TCKRF) shows moderate financial fundamentals with a PE ratio of 28.19, profit margin of 13.02%, and ROE of 5.59%. The company generates $11.0B in annual revenue with strong year-over-year growth of 39.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TCKRF's fundamental strength across five key dimensions:
Efficiency Score
WeakTCKRF struggles to generate sufficient returns from assets.
Valuation Score
ModerateTCKRF shows balanced valuation metrics.
Growth Score
ModerateTCKRF shows steady but slowing expansion.
Financial Health Score
ExcellentTCKRF maintains a strong and stable balance sheet.
Profitability Score
WeakTCKRF struggles to sustain strong margins.
Key Financial Metrics
Is TCKRF Expensive or Cheap?
P/E Ratio
TCKRF trades at 28.19 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TCKRF's PEG of 1.57 indicates fair valuation.
Price to Book
The market values Teck Resources Limited at 1.57 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.59 times EBITDA. This is generally considered low.
How Well Does TCKRF Make Money?
Net Profit Margin
For every $100 in sales, Teck Resources Limited keeps $13.02 as profit after all expenses.
Operating Margin
Core operations generate 18.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.59 in profit for every $100 of shareholder equity.
ROA
Teck Resources Limited generates $3.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Teck Resources Limited produces operating cash flow of $1.27B, showing steady but balanced cash generation.
Free Cash Flow
Teck Resources Limited generates weak or negative free cash flow of $-785.50M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.58 in free cash annually.
FCF Yield
TCKRF converts -1.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How TCKRF Stacks Against Its Sector Peers
| Metric | TCKRF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.19 | 27.01 | Neutral |
| ROE | 5.59% | 949.00% | Weak |
| Net Margin | 13.02% | -16159.00% (disorted) | Strong |
| Debt/Equity | 0.41 | 0.48 | Neutral |
| Current Ratio | 2.54 | 4.42 | Strong Liquidity |
| ROA | 3.08% | -6411.00% (disorted) | Weak |
TCKRF outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Teck Resources Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-17.60%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
172.80%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-13.13%
Industry Style: Cyclical, Commodity, Value
Declining