Teck Resources (TECK.A) AI Stock Analysis

• Market Cap: C$26.11B
• Dividend Yield: 0.95%
• Average Volume (3M): 1.28K
• Price to Earnings (P/E): 73.6
• Beta (1Y): 1.62
• Revenue Growth: -22.39%
• EPS Growth: -77.05%
• Country: CA
• Employees: 7,200
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Industrial Materials
• EPS (TTM): 0.60
• Shares Outstanding: 7,600,000
• 10 Day Avg. Volume: 1,154
• 30 Day Avg. Volume: 1,278
• PEG Ratio: 2.37
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -50.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$72.00
• Price Target Upside: 37.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: C$57.00 ▲(8.57%Upside)

Teck Resources Limited's overall stock score is driven by strong financial growth and a positive long-term outlook conveyed in recent earnings. However, the stock faces challenges in valuation due to a high P/E ratio and low dividend yield, along with operational inefficiencies and cash flow pressures. Technical analysis provides mixed signals, but the company's strategic initiatives in the copper growth projects offer potential upside.

Teck Resources Business Overview & Revenue Model

Company Description

Teck 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 Money

Teck Resources Limited generates revenue through the extraction, production, and sale of minerals and metals, primarily copper, zinc, and steelmaking coal. The company's revenue streams are largely derived from its mining operations, which involve extracting raw materials from its mines located in Canada, the United States, Chile, and Peru. The extracted products are processed and sold to various industrial sectors, including construction, transportation, and manufacturing, which use these metals for infrastructure development and other applications. Additionally, Teck engages in energy production, contributing to its revenue through the extraction and sale of oil sands. Significant partnerships and joint ventures with other mining and energy companies also play a role in optimizing production capabilities and expanding market reach, enhancing its overall earnings potential.

Teck Resources Financial Statement Overview

Summary

Teck Resources Limited demonstrates strong revenue growth and a stable financial structure, but faces challenges in profitability and cash flow management. The company's conservative leverage is a key strength, while the decline in free cash flow and limited asset growth represent potential risks. The balance sheet remains solid, but profitability ratios suggest there is room for improvement in operational efficiency.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.81B	9.06B	15.01B	17.32B	13.48B	8.95B
Gross Profit	2.64B	1.61B	5.14B	8.57B	5.08B	1.33B
EBITDA	3.60B	1.78B	5.88B	8.44B	6.37B	648.00M
Net Income	433.00M	406.00M	2.41B	3.32B	2.87B	-944.00M
Balance Sheet
Total Assets	45.89B	47.04B	56.19B	52.36B	47.37B	41.28B
Cash, Cash Equivalents and Short-Term Investments	6.21B	7.59B	744.00M	1.88B	1.43B	450.00M
Total Debt	9.93B	9.96B	11.09B	10.02B	9.33B	7.88B
Total Liabilities	18.93B	19.94B	27.90B	25.85B	23.59B	20.57B
Stockholders Equity	25.82B	26.08B	26.99B	25.47B	23.00B	20.04B
Cash Flow
Free Cash Flow	-842.00M	155.00M	-1.70B	2.52B	25.00M	-2.06B
Operating Cash Flow	1.90B	2.79B	4.08B	7.98B	4.74B	1.56B
Investing Cash Flow	7.07B	6.17B	-4.76B	-5.68B	-4.82B	-3.67B
Financing Cash Flow	-4.43B	-2.56B	-469.00M	-1.99B	1.06B	1.53B

Teck Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 52.5 is below the 20-day moving average (MA) of 53.95, above the 50-day MA of 52.17, and below the 200-day MA of 58.35, indicating a bearish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 44.67 is Neutral, neither overbought nor oversold. The STOCH value of 6.83 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TECK.A	65 Neutral	C$26.11B	73.59	1.40%	0.95%	-22.39%	-77.05%
Sector *	59 Neutral	HK$16.33B	4.56	-5.52%	4.96%	-3.57%	-61.41%
IVPAF	―	$10.54B	24.37	9.67%	―	―	―
AFM	82 Outperform	C$1.21B	8.41	29.84%	12.70%	76.60%	107.92%
ALS	77 Outperform	C$1.28B	12.56	19.46%	1.30%	-16.14%	1038.04%
SKE	52 Neutral	C$2.56B	―	-137.38%	―	―	-19.29%
FOM	46 Neutral	C$1.17B	―	-2.81%	―	―	8.92%