To continue the theme of looking at resource companies, I looked at Teck Cominco (TSX-TCK.B) to see how this company has done over the last 5 and 10 years. What I have found here again is that an investment in this company would have done quite well. Today, I will look at what sort of profit you would have made on a 5 or 10 year investment to the last annual statement of December 2007. Tomorrow I will look at from the stand point of a current investment.
The 5 and 10 years to the last annual statement has seen the Revenue grow by 23% and 24% per year respectively, the Closing Price grow by 46% and 14% per year, respectively, the Cash Flow grow by 41% and 18% per year, respectively and the book value by 21% and 10% per year, respectively. The Earnings per Share (EPS) for the last 5 and 8 years have grown by 118% and 43% per year respectively. I cannot give a growth for 10 years as there was a few years, 10 years ago when the EPS was negative.
Teck Cominco is also a dividend paying stock and, although the yield is in a low range of 1.6% average for both 5 and 10 years, the rate that the dividends have grown is quite health at 58% and 26% per year for the last 5 and 10 years. The Return on Equity (ROE) has also been very good, with the ROE for December 2007 being at 21%. The Current Asset/Current Liability Ratio and the Asset/Liability Ratio are both high at 2.23 and 2.32 respectively. I only real negative I see is that the Accrual Ratio for December 2007 is very high at 28.6%.
It would seem that this company has done well over the last 5 and 10 years. Teck is a diversified resource company involved in mining and mineral development with major business units focused on copper, metallurgical coal, zinc, gold and energy. This company has interests in several oil sands developments. The company explores for resources in the Americas, the Asia Pacific Region, Europe and Africa. Its web site is www.teck.com. See my spreadsheet at www.spbrunner.com/stocks/tck.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Post a Comment