3 Capital-Intensive Stocks to Consider

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Alberto Abaterusso
Apr 15, 2021
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When screening the market for value opportunities amid capital-intensive businesses, investors may want to look at stocks whose price-to-tangible-book-value ratios are more compelling than their peers.

The price-to-tangible-book-value ratio is preferred to the price-book ratio for these publicly traded companies, as the evaluation of their businesses mainly derives from tangible assets.

Teck Resources Ltd

The first stock that meets the criteria is Teck Resources Ltd (

TECK, Financial), a Vancouver, Canada-based global industrial metals and mining company.

Teck Resources Ltd has a price-to-tangible-book-value ratio of 0.77, which is appealing more than the industry median of 2.5 and ranks higher than 90.13% of the 1,956 competitors that operate in the metals and mining industry.

The share price was $21.69 per share as of April 14. The tangible book value per share was approximately $27.39 as of the December 2020 quarter.

The stock price has grown by 176.3% over the past year, determining a market capitalization of $11.55 billion and a 52-week range of $6.79 to $23.93.

GuruFocus assigned a score of 4 out of 10 for the financial strength rating and 6 out of 10 for the profitability rating of the company.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $25.18 per share.

Brilliance China Automotive Holdings Ltd

The second stock that investors may want to consider is Brilliance China Automotive Holdings Ltd (

BCAUY, Financial), a Hong Kong-based manufacturer and seller of BMW vehicles and automotive components in China and internationally.

Brilliance China Automotive Holdings' price-to-tangible-book-value ratio of 0.85 appeals more than the industry median of 1.76, ranking higher than 74% of 1,078 companies that operate in the vehicles and parts industry.

As of April 14, the stock price was $8.96 per share, while the tangible book value per share was $10.55 as of the June 2020 quarter.

The stock price increased by 9% over the past year for a market capitalization of $4.25 billion and a 52-week range of $7.33 to $11.88.

GuruFocus assigned a score of 5 out of 10 for the financial strength rating and 4 out of 10 for the profitability rating of the company.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $11.39 per share.

Turquoise Hill Resources

The third stock that investors may want to consider is Turquoise Hill Resources Ltd (

TRQ, Financial), a Canadian mineral exploration and development company with main operating activities located in Mongolia.

Turquoise Hill Resources Ltd's price-to-tangible-book-value ratio of 0.40 is more appealing than the industry median of 2.50 and ranks higher than 97% of 1,956 companies that operate in the metals and mining industry.

The stock price was trading at $19.24 per share as of April 14, while the tangible book value per share was $47.59 for the December 2020 quarter.

The stock price has increased by 293% over the past year, which has determined a market capitalization of $3.86 billion and a 52-week range of $3.90 to $19.55.

GuruFocus assigned a score of 5 out of 10 for the financial strength rating and 4 out of 10 for the profitability rating of the company.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $21.63 per share.

Disclosure: I have no position in any security mentioned.

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I am a contributor at GuruFocus. I primarily write about how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master\\\'s Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands. You can follow me on Twitter at https://twitter.com/AAbaterusso