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 Operating Profit of 82.09%, the company declared Outstanding results in Mar 26

OPERATING CASH FLOW(Y) Highest at CAD 2,629 MM
ROCE(HY) Highest at 7.1%
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost

With ROE of 4.92%, it has a attractive valuation with a 1.69 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 70.66%, its profits have risen by 186.5% ; the PEG ratio of the company is 0.2

High Institutional Holdings at 83.27%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating Performance

The stock has generated a return of 70.66% in the last 1 year, much higher than market (S&P/TSX 60) returns of 29.60%

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

70.66%

0.67

45.86%

S&P/TSX 60

29.6%

2.31

12.81%

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)

48.56

Debt to EBITDA (avg)

1.39

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

0.32

Tax Ratio

85.26%

Dividend Payout Ratio

17.62%

Pledged Shares

Institutional Holding

83.27%

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

1.69

EV to EBIT

16.15

EV to EBITDA

9.62

EV to Capital Employed

1.61

EV to Sales

3.86

PEG Ratio

0.18

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

23What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 2,629 MM

ROCE(HY)

Highest at 7.1%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -107.53% (YoY

NET SALES(Q)

Highest at CAD 3,943 MM

OPERATING PROFIT(Q)

Highest at CAD 2,097 MM

OPERATING PROFIT MARGIN(Q)

Highest at 53.18 %

PRE-TAX PROFIT(Q)

Highest at CAD 1,330 MM

NET PROFIT(Q)

Highest at CAD 794.39 MM

EPS(Q)

Highest at CAD 1.67

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 1,330 MM has Grown at 375%

over average net sales of the previous four periods of CAD 280 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 794.39 MM has Grown at 200.95%

over average net sales of the previous four periods of CAD 263.96 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Net Sales

At CAD 3,943 MM has Grown at 46.63%

over average net sales of the previous four periods of CAD 2,689 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CAD MM)

Operating Cash Flow

Highest at CAD 2,629 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

Highest at CAD 3,943 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 2,097 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 53.18 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CAD 1,330 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 794.39 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 1.67

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Raw Material Cost

Fallen by -107.53% (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