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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Dundee Precious Metals, Inc.

China Gold International Resources Corp. Ltd.

Teck Resources Limited

Canaf Investments, Inc.

Saturn Oil & Gas, Inc.

SouthGobi Resources Ltd.

Corsa Coal Corp.

Seabridge Gold, Inc.

Colonial Coal International Corp.

Morien Resources Corp.

Am Resources Corp.

Why is Teck Resources Limited ?

High Management Efficiency with a high ROCE of 12.05%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 48.56

With a growth in Net Profit of 4.27%, the company declared Outstanding results in Jun 26

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CAD 4,333 MM
NET SALES(HY) At CAD 7,548 MM has Grown at 75.01%
ROCE(HY) Highest at 9.61%

High Institutional Holdings at 89.54%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 6.27% over the previous quarter.

Market Beating Performance

The stock has generated a return of 108.36% in the last 1 year, much higher than market (S&P/TSX 60) returns of 28.13%

Real-Time Research Report

Verdict Report

How much should you buy?

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, Medium Return

Absolute

Risk Adjusted

Volatility

Teck Resources Limited

103.4%

0.77

46.83%

S&P/TSX 60

28.13%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.36%

EBIT Growth (5y)

30.71%

EBIT to Interest (avg)

44.92

Debt to EBITDA (avg)

0.92

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

0.37

Tax Ratio

37.74%

Dividend Payout Ratio

17.62%

Pledged Shares

Institutional Holding

83.27%

ROCE (avg)

13.45%

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

1.58

EV to EBIT

15.18

EV to EBITDA

9.04

EV to Capital Employed

1.51

EV to Sales

3.63

PEG Ratio

0.16

Dividend Yield

ROCE (Latest)

9.95%

ROE (Latest)

4.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

No Trend

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

25What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 4,333 MM

NET SALES(HY)

At CAD 7,548 MM has Grown at 75.01%

ROCE(HY)

Highest at 9.61%

PRE-TAX PROFIT(Q)

At CAD 1,279 MM has Grown at 139.51%

RAW MATERIAL COST(Y)

Fallen by -133.51% (YoY

CASH AND EQV(HY)

Highest at CAD 11,479 MM

OPERATING PROFIT MARGIN(Q)

Highest at 53.73 %

NET PROFIT(Q)

At CAD 749.51 MM has Grown at 90.56%

EPS(Q)

Highest at CAD 1.74

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Teck Resources Limited

Pre-Tax Profit

At CAD 1,279 MM has Grown at 139.51%

over average net sales of the previous four periods of CAD 534 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Sales

At CAD 7,548 MM has Grown at 75.01%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Cash Flow

Highest at CAD 4,333 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Operating Profit Margin

Highest at 53.73 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

At CAD 749.51 MM has Grown at 90.56%

over average net sales of the previous four periods of CAD 393.31 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 1.74

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Cash and Eqv

Highest at CAD 11,479 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -133.51% (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