Teck Resources (NYSE: TCK) shares currently have a dividend yield of 4.10%. Teck Resources Limited engages in exploring for, acquiring, developing, and producing natural resources in the Americas, Asia Pacific, Europe, and Africa. The company has a P/E ratio of 14.83. The average volume for Teck Resources has been 3,204,700 shares per day over the past 30 days. Teck Resources has a market cap of $12.4 billion and is part of the metals & mining industry. Shares are down 44.2% year to date as of the close of trading on Monday. TheStreet Ratings rates Teck Resources as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 23.6% when compared to the same quarter one year prior, going from $258.00 million to $319.00 million.
- The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 3.26, which clearly demonstrates the ability to cover short-term cash needs.
- 42.70% is the gross profit margin for TECK RESOURCES LTD which we consider to be strong. Regardless of TCK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TCK's net profit margin of 13.69% compares favorably to the industry average.
- TCK's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 33.26%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, TECK RESOURCES LTD has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- You can view the full Teck Resources Ratings Report.
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