Teck Resources Limited (TECK.B) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

China Gold International Resources Corp. Ltd.

Dundee Precious Metals, Inc.

Canaf Investments, Inc.

Saturn Oil & Gas, Inc.

Teck Resources Limited

Corsa Coal Corp.

SouthGobi Resources Ltd.

Seabridge Gold, Inc.

Colonial Coal International Corp.

Morien Resources Corp.

Am Resources Corp.

Why is Teck Resources Limited ?

Poor long term growth as Operating profit has grown by an annual rate -0.55% of over the last 5 years

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at CAD 228 MM
NET SALES(Q) At CAD 2,023 MM has Fallen at -16.89%
INTEREST(Q) At CAD 196 MM has Grown at 15.29%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -18.26%, its profits have risen by 204% ; the PEG ratio of the company is 0.2

Below par performance in long term as well as near term

Along with generating -18.26% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Teck Resources Limited should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Teck Resources Limited for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Teck Resources Limited

-2.76%

-0.42

43.16%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.00%

EBIT Growth (5y)

12.52%

EBIT to Interest (avg)

48.56

Debt to EBITDA (avg)

1.39

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

0.29

Tax Ratio

85.26%

Dividend Payout Ratio

79.39%

Pledged Shares

Institutional Holding

80.43%

ROCE (avg)

12.05%

ROE (avg)

8.60%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.25

EV to EBIT

25.20

EV to EBITDA

10.33

EV to Capital Employed

1.22

EV to Sales

3.45

PEG Ratio

0.19

Dividend Yield

ROCE (Latest)

4.82%

ROE (Latest)

3.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 30.06%

RAW MATERIAL COST(Y)

Fallen by 1.23% (YoY

CASH AND EQV(HY)

Highest at CAD 10,981 MM

OPERATING PROFIT MARGIN(Q)

Highest at 36.83 %

-22What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 228 MM

NET SALES(Q)

At CAD 2,023 MM has Fallen at -16.89%

INTEREST(Q)

At CAD 196 MM has Grown at 15.29%

PRE-TAX PROFIT(Q)

At CAD 117 MM has Fallen at -37.77%

NET PROFIT(Q)

At CAD 200.35 MM has Fallen at -43.32%

Here's what is working for Teck Resources Limited

Operating Profit Margin

Highest at 36.83 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at CAD 10,981 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 30.06%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 1.23% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Teck Resources Limited

Operating Cash Flow

Lowest at CAD 228 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Net Sales

At CAD 2,023 MM has Fallen at -16.89%

over average net sales of the previous four periods of CAD 2,434 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CAD MM)

Interest

At CAD 196 MM has Grown at 15.29%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Pre-Tax Profit

At CAD 117 MM has Fallen at -37.77%

over average net sales of the previous four periods of CAD 188 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 200.35 MM has Fallen at -43.32%

over average net sales of the previous four periods of CAD 353.47 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)