Teck Resources (TECK.A) AI Stock Analysis

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Teck Resources

(TSX:TECK.A)

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Neutral 65 (OpenAI - 4o)

Rating:65Neutral

Price Target:

C$59.00

▲(8.96% Upside)

Teck Resources' overall stock score reflects a mixed financial performance with challenges in revenue growth and cash flow management. The technical indicators show positive momentum but caution due to overbought signals. Valuation concerns arise from a high P/E ratio, though the earnings call provided positive insights into strategic projects and shareholder returns. Operational challenges and increased capital expenditures are notable risks.

Teck Resources (TECK.A) vs. iShares MSCI Canada ETF (EWC)

Market Cap

C$26.69B

Dividend Yield0.92%

Average Volume (3M)3.55K

Price to Earnings (P/E)127.4

Beta (1Y)1.63

Revenue Growth-36.04%

EPS Growth-84.78%

CountryCA

Employees7,200

SectorBasic Materials

Sector Strength58

IndustryIndustrial Materials

Share Statistics

EPS (TTM)0.38

Shares Outstanding7,600,000

10 Day Avg. Volume7,639

30 Day Avg. Volume3,549

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$59.00

Price Target Upside8.96% Upside

Rating ConsensusHold

Number of Analyst Covering1

Teck Resources Business Overview & Revenue Model

Company DescriptionTeck Resources Limited engages in exploring for, acquiring, developing, and producing natural resources in Asia, Europe, and North America. It operates through Steelmaking Coal, Copper, Zinc, Energy, and Corporate segments. The company's principal products include steelmaking coal; copper, gold, blended bitumen, lead, silver, molybdenum, zinc, and zinc concentrates; chemicals, fertilizers, and other metals. It also produces indium and germanium. In addition, the company holds interest in Frontier oil sands projects in the Athabasca region of Alberta; and owns interests in exploration and development projects in Australia, Chile, Ireland, Mexico, Peru, Turkey, and the United States. The company was formerly known as Teck Cominco Limited and changed its name to Teck Resources Limited in April 2009. Teck Resources Limited was founded in 1913 and is headquartered in Vancouver, Canada.

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: |

Next Earnings Date:Oct 22, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong financial performance and strategic advancements, including increased profitability, a significant project milestone with the Highland Valley Copper Mine Life Extension, and substantial returns to shareholders. However, these positives were tempered by operational challenges at QB, notably production guidance revisions and logistical issues, as well as increased capital expenditure and a safety incident at Antamina.

Q2-2025 Updates

Positive Updates

Improved Profitability

Teck's profitability improved with an adjusted EBITDA of $722 million, a 3% increase compared to the same period last year.

Strong Zinc Segment Performance

The zinc segment showed strong performance, with Red Dog sales above guidance and a 137% increase in gross profit before depreciation and amortization compared to the same period last year.

Highland Valley Copper Mine Life Extension

The Board has sanctioned the Highland Valley Copper Mine Life Extension project, which is expected to double copper production by the end of the decade and generate compelling returns.

Significant Cash Returns to Shareholders

Teck returned $1.1 billion to shareholders year-to-date, with $487 million in share buybacks during the quarter, completing approximately 70% of the authorized $3.25 billion buyback.

Corporate Knights Recognition

Teck was named as one of Corporate Knights' Best 50 Corporate Citizens in Canada for the 19th consecutive year.

Negative Updates

QB Production Challenges

QB's annual production guidance was revised down to 210,000-230,000 tonnes due to TMF development work challenges.

Shiploader Outage at QB

The 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.

Fatality at Antamina

A fatality occurred at the Antamina mine, in which Teck holds a noncontrolling interest, impacting production due to a shutdown for investigation.

Increased Capital Expenditure

CapEx guidance increased significantly to $2.3 billion, partly due to the Highland Valley Copper Mine Life Extension and TMF development at QB.

Company Guidance

In Teck's second-quarter 2025 earnings call, the company reported a $722 million adjusted EBITDA, reflecting improved profitability compared to the same period last year. Key highlights included strong performance in the zinc segment, notably at Red Dog, and consistent production across established operations. Teck revised its QB production outlook to 210,000-230,000 tonnes due to potential external risks and TMF development delays. The Highland Valley Copper Mine Life Extension project was sanctioned, aiming to double copper production by 2046 with an expected 132,000 tonnes annual production. The company returned $487 million to shareholders through share buybacks, totaling $1.1 billion year-to-date, and maintained a robust balance sheet with $8.9 billion in liquidity, including $4.8 billion in cash. Safety metrics showed a high potential incident frequency rate of 0.09. The call also discussed TMF development initiatives at QB, ongoing shiploader repairs, and future growth through optimization and debottlenecking opportunities.

Teck Resources Financial Statement Overview

Summary

Teck Resources shows a mixed financial performance with declining revenues and profitability pressures. The balance sheet remains stable with moderate leverage, but the low return on equity suggests limited shareholder returns. Cash flow management is a concern, with negative free cash flow indicating liquidity challenges. Overall, the company needs to address revenue growth and cash flow issues to enhance financial stability and shareholder value.

Income Statement

Positive

Teck Resources has experienced a decline in revenue with a negative growth rate of -15.67% TTM, indicating challenges in maintaining sales momentum. The gross profit margin stands at 20.36% TTM, which is moderate but shows a decrease from previous years. The net profit margin is low at 2.77% TTM, reflecting pressure on profitability. However, the EBIT and EBITDA margins of 8.52% and 26.70% TTM, respectively, suggest some operational efficiency. Overall, the income statement reflects a mixed performance with declining revenues but stable operational margins.

Balance Sheet

Positive

The company's debt-to-equity ratio is 0.39 TTM, indicating a balanced approach to leveraging debt. The return on equity is low at 1.09% TTM, suggesting limited returns for shareholders. The equity ratio is not explicitly calculated, but the balance sheet shows a strong equity base relative to total assets. Overall, the balance sheet is stable with moderate leverage, but the low ROE indicates room for improvement in generating shareholder value.

Cash Flow

Neutral

Teck Resources faces challenges in cash flow management, with a negative free cash flow and a free cash flow to net income ratio of -0.94 TTM, indicating cash outflows relative to earnings. The operating cash flow to net income ratio is 0.36 TTM, showing limited cash generation from operations. Despite a 10.69% growth in free cash flow, the negative absolute value highlights ongoing cash flow issues. The cash flow statement reflects potential liquidity concerns and the need for improved cash management.

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

Technical Analysis Sentiment

Positive

Last Price54.15

Price Trends

50DMA

49.14

Positive

100DMA

50.47

Positive

200DMA

53.96

Positive

Market Momentum

MACD

2.29

Negative

RSI

59.24

Neutral

STOCH

40.19

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TECK.A, the sentiment is Positive. The current price of 54.15 is above the 20-day moving average (MA) of 51.05, above the 50-day MA of 49.14, and above the 200-day MA of 53.96, indicating a bullish trend. The MACD of 2.29 indicates Negative momentum. The RSI at 59.24 is Neutral, neither overbought nor oversold. The STOCH value of 40.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TECK.A.

Teck Resources Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AFM	79 Outperform	1.23B	7.58	30.21%	7.29%	73.61%	119.38%
ALS	70 Neutral	1.48B	14.67	17.37%	1.16%	-13.16%	588.65%
IVN	69 Neutral	17.95B	32.77	0.00%	―	0.00%	143.94%
TECK.A	65 Neutral	C$26.69B	127.35	0.82%	0.92%	-36.04%	-84.78%
SKE	52 Neutral	2.86B	-16.43	0.00%	―	0.00%	-0.21%
FOM	46 Neutral	1.81B	-147.58	0.00%	―	0.00%	7.35%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

* Basic Materials Sector Average

Performance Comparison

TSE:TECK.A

Teck Resources

54.15

-11.27

-17.23%

IVPAF

Ivanhoe Mines

9.64

-4.28

-30.75%

TSE:AFM

Alphamin Resources

0.96

0.04

4.35%

TSE:ALS

Altius Minerals

31.89

5.92

22.80%

TSE:FOM

Foran Mining

3.35

-0.71

-17.49%

TSE:SKE

Skeena Resources

24.86

13.25

114.13%

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.Date of analysis: Sep 10, 2025