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Teck Resources Ltd (NYSE:TCK)
Piotroski F-Score
3 (As of Today)

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Teck Resources Ltd has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

TCK' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 9
Current: 3

2
9

During the past 13 years, the highest Piotroski F-Score of Teck Resources Ltd was 9. The lowest was 2. And the median was 5.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Net Income was -1617.66922961 + -334.718879895 + 71.0721306517 + 11.6333178222 = $-1,870 Mil.
Cash Flow from Operations was 422.131765415 + 500.984467294 + 282.020263118 + 262.912982783 = $1,468 Mil.
Revenue was 1583.74792703 + 1556.91679428 + 1283.83487071 + 1349.46486738 = $5,774 Mil.
Gross Profit was 255.540479421 + 204.915044119 + 117.193406926 + 164.417558554 = $742 Mil.
Average Total Assets from the begining of this year (Jun15)
to the end of this year (Jun16) was
(30123.7363526 + 26122.418212 + 25295.7048057 + 25567.0648722 + 26299.829378) / 5 = $26681.7507241 Mil.
Total Assets at the begining of this year (Jun15) was $30,124 Mil.
Long-Term Debt was $6,933 Mil.
Total Current Assets was $3,108 Mil.
Total Current Liabilities was $1,179 Mil.
Net Income was 76.2873490146 + 111.86264308 + 53.8912664448 + 50.9502628387 = $293 Mil.

Revenue was 2043.41113432 + 1956.29552549 + 1604.05769536 + 1616.65992721 = $7,220 Mil.
Gross Profit was 375.987648715 + 360.735345127 + 275.796481217 + 251.51637687 = $1,264 Mil.
Average Total Assets from the begining of last year (Jun14)
to the end of last year (Jun15) was
(33483.8411819 + 33100.5358278 + 31945.022546 + 29771.7546362 + 30123.7363526) / 5 = $31684.9781089 Mil.
Total Assets at the begining of last year (Jun14) was $33,484 Mil.
Long-Term Debt was $6,998 Mil.
Total Current Assets was $3,545 Mil.
Total Current Liabilities was $1,590 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Teck Resources Ltd's current net income (TTM) was -1,870. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Teck Resources Ltd's current cash flow from operations (TTM) was 1,468. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Jun15)
=-1869.68266103/30123.7363526
=-0.06206676

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jun14)
=292.991521378/33483.8411819
=0.00875024

Teck Resources Ltd's return on assets of this year was -0.06206676. Teck Resources Ltd's return on assets of last year was 0.00875024. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Teck Resources Ltd's current net income (TTM) was -1,870. Teck Resources Ltd's current cash flow from operations (TTM) was 1,468. ==> 1,468 > -1,870 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun16)=Long-Term Debt/Average Total Assets from Jun15 to Jun16
=6933.45742206/26681.7507241
=0.25985766

Gearing (Last Year: Jun15)=Long-Term Debt/Average Total Assets from Jun14 to Jun15
=6997.97816417/31684.9781089
=0.22086107

Teck Resources Ltd's gearing of this year was 0.25985766. Teck Resources Ltd's gearing of last year was 0.22086107. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Jun16)=Total Current Assets/Total Current Liabilities
=3107.64696758/1178.84287265
=2.63618421

Current Ratio (Last Year: Jun15)=Total Current Assets/Total Current Liabilities
=3545.49130611/1589.9716943
=2.22990844

Teck Resources Ltd's current ratio of this year was 2.63618421. Teck Resources Ltd's current ratio of last year was 2.22990844. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Teck Resources Ltd's number of shares in issue this year was 576.3. Teck Resources Ltd's number of shares in issue last year was 576.2. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=742.06648902/5773.9644594
=0.12851941

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1264.03585193/7220.42428238
=0.17506393

Teck Resources Ltd's gross margin of this year was 0.12851941. Teck Resources Ltd's gross margin of last year was 0.17506393. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Jun15)
=5773.9644594/30123.7363526
=0.19167491

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jun14)
=7220.42428238/33483.8411819
=0.21563907

Teck Resources Ltd's asset turnover of this year was 0.19167491. Teck Resources Ltd's asset turnover of last year was 0.21563907. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+0+1+0+1+0+0+0
=3

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Teck Resources Ltd has an F-score of 3. It is a bad or low score, which usually implies poor business operation.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Teck Resources Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1111111110
Question 2 1111111111
Question 3 1001010000
Question 4 1111111111
Question 5 1101100010
Question 6 1001111001
Question 7 0000001111
Question 8 1001010000
Question 9 1000110000
F-score 8437675454

Teck Resources Ltd Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
Question 1 1111110000
Question 2 1111111111
Question 3 0000000000
Question 4 1111111111
Question 5 0101000000
Question 6 0000000101
Question 7 1111110100
Question 8 0000000000
Question 9 0000000000
F-score 4545442423
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