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Teck Resources Limited (TSE:TECK.A)
TSX:TECK.A
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Teck Resources
(TSX:TECK.A)
Rating:59Neutral
Price Target:
C$51.00
▲(11.92% Upside)
Teck Resources (TECK.A) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$21.33B
Dividend Yield2.22%
Average Volume (3M)1.75K
Price to Earnings (P/E)104.8
Beta (1Y)1.63
Revenue Growth-36.04%
EPS Growth-84.78%
CountryCA
Employees7,200
SectorBasic Materials
Sector Strength53
IndustryIndustrial Materials
Share Statistics
EPS (TTM)0.38
Shares Outstanding7,600,000
10 Day Avg. Volume3,005
30 Day Avg. Volume1,751
Financial Highlights & Ratios
PEG Ratio-0.89
Price to Book (P/B)1.15
Price to Sales (P/S)3.32
P/FCF Ratio194.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$51.00Price Target Upside11.92% Upside
Rating ConsensusHold
Number of Analyst Covering1
Teck Resources Business Overview & Revenue Model
Company DescriptionTeck Resources Limited is a diversified natural resource company engaged in mining and mineral development. The company operates in several sectors, including copper, zinc, and energy, with significant operations in Canada, the United States, Chile, and Peru. Teck's core products include copper concentrates, zinc concentrates, and steelmaking coal. The company is also involved in the production of refined metals and has a growing presence in the renewable energy sector.
How the Company Makes MoneyTeck Resources generates revenue primarily through the extraction and sale of mineral resources, including copper, zinc, and steelmaking coal. These commodities are sold to a global market, with prices influenced by international supply and demand dynamics. The company’s revenue streams are bolstered by long-term contracts with industrial customers, providing a stable income base. Additionally, Teck engages in strategic partnerships and joint ventures to optimize resource extraction and minimize operational risks. The company also invests in exploration and development projects to expand its resource base and secure future revenue growth.
Teck Resources Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: -14.98%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. While there were improvements in profitability and significant growth projects announced, challenges such as production revisions at QB, the shiploader outage, and increased capital expenditures pose concerns.Q2-2025 Updates
Positive Updates
Improved Profitability
Teck's profitability improved compared to the same period last year with $722 million of adjusted EBITDA, a 3% increase from the previous year.
Strong Zinc Segment Performance
The zinc segment showed strong performance with Red Dog sales above guidance and significant improvement in net cash unit costs. Gross profit before depreciation and amortization increased by 137% to $159 million.
Highland Valley Copper Mine Life Extension Project Sanctioned
The Board sanctioned the Highland Valley Copper Mine Life Extension project, which is expected to double copper production by the end of the decade with an IRR far surpassing the cost of capital.
Significant Cash Returns to Shareholders
Teck returned a total of $1.1 billion to shareholders year-to-date through dividends and share buybacks, completing approximately 70% of the authorized $3.25 billion buyback.
Recognition for Sustainability Efforts
Teck was named as one of Corporate Knights 2025 Best 50 Corporate Citizens in Canada for the 19th consecutive year.
Negative Updates
QB Production Outlook Revised
The production outlook for QB was revised down to 210,000-230,000 tonnes for the year due to risks from external factors and TMF development delays.
Shiploader Outage at QB
An outage of the shiploader at QB's port facility is expected to extend into the first half of 2026, impacting logistics and increasing net cash unit costs by approximately USD 0.10 per pound.
Fatality at Antamina
A fatality occurred at Antamina on April 22, leading to a shutdown of approximately one week.
Increased Capital Expenditures
Capital expenditures are expected to increase significantly in the second half of the year, with a total of $2.3 billion projected, including the Highland Valley Copper Mine Life Extension.
Company Guidance
During Teck's second quarter 2025 earnings call, the company highlighted several key metrics and strategic initiatives. Adjusted EBITDA improved year-over-year to $722 million, driven by strong performance in the zinc segment and cost reductions across operations. The company revised its annual production outlook for QB to 210,000-230,000 tonnes due to potential external risks and TMF development delays. Teck sanctioned the Highland Valley Copper Mine Life Extension project, aiming to double copper production by the decade's end, with an average annual output of 132,000 tonnes. Year-to-date, Teck returned $1.1 billion to shareholders through dividends and share buybacks, completing 70% of its authorized $3.25 billion buyback. The company maintains a strong balance sheet with $8.9 billion in liquidity, including $4.8 billion in cash. Additionally, Teck's high potential incident frequency rate remained low at 0.09, reflecting its commitment to safety and sustainability.Teck Resources Financial Statement Overview
Summary
Teck Resources Limited shows strong revenue growth and a stable financial structure with conservative leverage. However, the company's profitability ratios suggest room for improvement, and there are significant challenges in cash flow management, notably the negative free cash flow growth rate.Income Statement
Teck Resources Limited shows a mixed performance in its income statement. The TTM Gross Profit Margin is 22.37% and Net Profit Margin is 3.67%, indicating moderate profitability. The Revenue Growth Rate for the TTM period is 30.23%, reflecting strong revenue growth. However, EBIT Margin is 9.48% and EBITDA Margin is 30.26%, suggesting room for improvement in operational efficiency. The company experienced a significant decline in revenue from 2022 to 2023, which presents some risk.72
Positive
Balance Sheet
The balance sheet reflects a solid equity base with a Debt-to-Equity Ratio of 0.39, indicating conservative leverage. The Return on Equity (ROE) for the TTM is 1.68%, showing limited returns to shareholders. The Equity Ratio is 56.27%, highlighting a stable financial structure. However, the decrease in total assets and stockholders' equity in recent years points to potential challenges in asset growth and equity generation.65
Positive
Cash Flow
The cash flow analysis reveals challenges, with a negative Free Cash Flow Growth Rate of -643.23% for the TTM, indicating significant pressure on cash reserves. The Operating Cash Flow to Net Income Ratio is 4.39, demonstrating strong cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio is -1.94, reflecting a negative free cash flow, which could impact future investments.58
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.96B | 9.06B | 15.01B | 17.32B | 13.48B | 8.95B |
| Gross Profit | 2.03B | 1.61B | 5.14B | 8.57B | 5.08B | 1.33B |
| EBITDA | 2.69B | 1.92B | 5.88B | 8.44B | 6.37B | 648.00M |
| Net Income | 276.00M | 406.00M | 2.41B | 3.32B | 2.87B | -944.00M |
Balance Sheet | ||||||
| Total Assets | 42.97B | 47.04B | 56.19B | 52.36B | 47.37B | 41.28B |
| Cash, Cash Equivalents and Short-Term Investments | 4.77B | 7.59B | 744.00M | 1.88B | 1.43B | 450.00M |
| Total Debt | 9.42B | 9.96B | 11.09B | 10.02B | 9.33B | 7.88B |
| Total Liabilities | 17.62B | 19.94B | 27.90B | 25.85B | 23.59B | 20.57B |
| Stockholders Equity | 24.38B | 26.08B | 26.99B | 25.47B | 23.00B | 20.04B |
Cash Flow | ||||||
| Free Cash Flow | -932.00M | 155.00M | -1.70B | 2.52B | 25.00M | -2.06B |
| Operating Cash Flow | 995.00M | 2.79B | 4.08B | 7.98B | 4.74B | 1.56B |
| Investing Cash Flow | 7.77B | 6.17B | -4.76B | -5.68B | -4.82B | -3.67B |
| Financing Cash Flow | -4.98B | -2.56B | -469.00M | -1.99B | 1.06B | 1.53B |
Teck Resources Technical Analysis
Negative
45.57
Price Trends
51.98
Negative
51.59
Negative
56.86
Negative
Market Momentum
-1.99
Positive
35.76
Neutral
9.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TECK.A, the sentiment is Negative. The current price of 45.57 is below the 20-day moving average (MA) of 50.20, below the 50-day MA of 51.98, and below the 200-day MA of 56.86, indicating a bearish trend. The MACD of -1.99 indicates Positive momentum. The RSI at 35.76 is Neutral, neither overbought nor oversold. The STOCH value of 9.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TECK.A.
Teck Resources Peers Comparison
Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | C$21.33B | 104.77 | 0.82% | 2.22% | -36.04% | -84.78% | |
44 Neutral | C$856.23M | -6.69 | -14.87% | 2.80% | 16.34% | -27.23% | |
| ― | $10.46B | 26.68 | 7.89% | ― | ― | ― | |
81 Outperform | C$1.36B | 13.31 | 19.46% | 1.23% | -16.14% | 1038.04% | |
80 Outperform | C$1.19B | 8.28 | 29.84% | 9.78% | 76.60% | 107.92% | |
52 Neutral | C$2.27B | ― | -137.38% | ― | ― | -19.29% | |
46 Neutral | C$1.41B | ― | -2.81% | ― | ― | 8.92% |
* Basic Materials Sector Average
Performance Comparison
TSE:TECK.A
Teck Resources
45.57
-15.68
-25.60%
IVPAF
Ivanhoe Mines
8.02
-3.19
-28.46%
TSE:AFM
Alphamin Resources
0.92
0.00
0.00%
TSE:ALS
Altius Minerals
29.34
8.11
38.20%
TSE:FOM
Foran Mining
2.61
-0.86
-24.78%
TSE:SKE
Skeena Resources
20.98
12.72
154.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.