Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Teck Resources Limited (TECK)

Company Dividend Discount ModelIndustry: Industrial MaterialsSector: Basic Materials

Valuation Snapshot

Stable Growth$22.82 - $35.01$28.50
Multi-Stage$43.26 - $47.62$45.40
Blended Fair Value$36.95
Current Price$61.09
Upside-39.51%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS35.87%-0.08%1.030.531.060.210.210.220.340.690.120.75
YoY Growth--93.96%-50.19%401.89%0.00%-4.50%-35.47%-50.00%493.10%-84.49%-27.80%
Dividend Yield--1.96%0.85%2.15%0.42%0.88%2.08%1.09%2.09%0.40%7.54%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,256.00
(-) Cash Dividends Paid (M)248.00
(=) Cash Retained (M)1,008.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)251.20157.0094.20
Cash Retained (M)1,008.001,008.001,008.00
(-) Cash Required (M)-251.20-157.00-94.20
(=) Excess Retained (M)756.80851.00913.80
(/) Shares Outstanding (M)501.08501.08501.08
(=) Excess Retained per Share1.511.701.82
LTM Dividend per Share0.490.490.49
(+) Excess Retained per Share1.511.701.82
(=) Adjusted Dividend2.012.192.32
WACC / Discount Rate7.19%7.19%7.19%
Growth Rate-1.47%-0.47%0.53%
Fair Value$22.82$28.50$35.01
Upside / Downside-62.65%-53.34%-42.70%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,256.001,250.091,244.201,238.341,232.511,226.711,263.51
Payout Ratio19.75%33.80%47.85%61.90%75.95%90.00%92.50%
Projected Dividends (M)248.00422.48595.31766.51936.081,104.041,168.75

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.19%7.19%7.19%
Growth Rate-1.47%-0.47%0.53%
Year 1 PV (M)390.19394.15398.11
Year 2 PV (M)507.79518.15528.61
Year 3 PV (M)603.84622.42641.37
Year 4 PV (M)681.07709.14738.07
Year 5 PV (M)741.87780.29820.29
PV of Terminal Value (M)18,753.3419,724.5220,735.52
Equity Value (M)21,678.1022,748.6623,861.97
Shares Outstanding (M)501.08501.08501.08
Fair Value$43.26$45.40$47.62
Upside / Downside-29.18%-25.68%-22.05%

High-Yield Dividend Screener

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