Attractive stocks have exceptional fundamentals. In the case of Teck Resources Limited (TSE:TECK.B), there’s is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Teck Resources here.
Undervalued with excellent balance sheet
TECK.B’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. TECK.B seems to have put its debt to good use, generating operating cash levels of 0.76x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. TECK.B’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if TECK.B’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the materials industry, TECK.B is also trading below its peers, relative to earnings generated. This further reaffirms that TECK.B is potentially undervalued.
For Teck Resources, there are three fundamental aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for TECK.B’s future growth? Take a look at our free research report of analyst consensus for TECK.B’s outlook.
- Historical Performance: What has TECK.B’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TECK.B? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.