Teck Resources (TCK) Lags In Post-Market Trading

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Teck Resources ( TCK) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Teck Resources as such a stock due to the following factors:

  • TCK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $64.8 million.
  • TCK is down 6.8% today from today's close.

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More details on TCK:

Teck Resources Limited explores, develops, and produces natural resources in the Americas, the Asia Pacific, Europe, and Africa. Its principal products include copper, including copper concentrates and cathode copper; steelmaking coal; and refined zinc and zinc concentrates. The stock currently has a dividend yield of 1.3%. TCK has a PE ratio of 31.0. Currently there are 5 analysts that rate Teck Resources a buy, 3 analysts rate it a sell, and 7 rate it a hold.

The average volume for Teck Resources has been 4.7 million shares per day over the past 30 days. Teck has a market cap of $8.8 billion and is part of the basic materials sector and metals & mining industry. Shares are up 13.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Teck Resources as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including poor profit margins, feeble growth in the company's earnings per share and disappointing return on equity.

Highlights from the ratings report include:
  • Despite the weak revenue results, TCK has outperformed against the industry average of 18.4%. Since the same quarter one year prior, revenues slightly dropped by 2.9%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.49, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.39 is sturdy.
  • TECK RESOURCES LTD reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, TECK RESOURCES LTD reported lower earnings of $0.63 versus $1.66 in the prior year.
  • The gross profit margin for TECK RESOURCES LTD is currently lower than what is desirable, coming in at 33.84%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.35% trails that of the industry average.

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