A truck hauls a load at Teck Resources Coal Mountain operation near Sparwood, B.C. in this file photo.The Canadian Press
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Commodity and resource stock Teck Resources Ltd. (TCK.B-T;TCK-N) gets a score of 5 from StockReports+. Its score has risen to 5 from 3 over the past 16 weeks. In the past three years its best score was 8 in October, 2013, StockReports+ says. Its score is in line with the market and the metals and mining group. Its rating places it below peers Lundin Mining and Turquoise Hill Resources. Of the 26 analysts covering the stock, 18 analysts have a "hold" rating, 3 have a "reduce" rating, 4 have a "buy" and 1 has a "strong buy."
Earnings -- Rating: 7 -- The outlook is neutral and there's mixed earnings expectations and performance. However, its rating rose to 7 from 5 over the past week. Its rating is higher than that for the metals and mining group, which averages 5.5. Most recently in July, the company reported quarterly earnings of 14 cents per share, a positive surprise of 25 per cent above the consensus of 11 cents. The 12-month price target mean is $14.
Fundamental -- Rating: 4 -- The outlook is neutral with fundamentals relatively in-line with the market. Its rating of 4 is just below the 4.4 rating for the metals and mining group. The company's gross margin and interest coverage has been high than its industry group for each of the past five years. Of the 1,164 firms in the metals and mining group, Teck is one of the 38 companies paying a dividend. It yield is 3.4 per cent.
Relative Valuation -- Rating: 8 -- The outlook is positive with multiples significantly below the market or the stock's historic norms. Its rating of 8 is higher than the metals and mining industry rating of 5.9. Teck's trailing price-to-earnings ratio of 14.5 represents a 12 per cent discount to its five-year average of 16.4. Based on its forward price-to-earnings ratio, Teck currently trades at a 27 per cent discount to its metals and mining group peers. On average, the company has traded at a 36-per-cent discount over the past five years
Risk -- Rating: 6 -- The outlook is neutral with stock rated a moderate risk with medium volatility. Its rating of 6 is better than the 4 rating for its metals and mining group. In the past 90 days, the stock has been more volatile than the overall market.
Price Momentum -- Rating: 2 -- The outlook is negative due to weak recent price performance or the stock is entering an historically poor seasonal period. Teck's rating of 2 puts it far behind its metals and mining peers at 5.7. On Sept. 17, Teck's B stock closed at $8.71, 62.6 per cent below its 52-week high and 23 per cent above its 52-week low. Currently, its shares are trading 7 per cent below their 50-day moving average of $9.37, and 40.1 per cent below their 200-day moving average of $14.55.
StockReports+ gives each stock an average score that combines the quantitative analysis of six widely-used investment decision-making tools: earnings, fundamentals, relative valuation, risk, price momentum and insider trading. The average score for Teck is 5 out of 10.
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