Teck Resources (TECK.A) AI Stock Analysis

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TSE:TECK.A Dividends

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Teck Resources

(TSX:TECK.A)

61Neutral

Teck Resources Limited presents a mixed investment picture. Strong revenue growth and a solid financial base are key strengths, offset by challenges in cash flow management and profitability. The technical indicators suggest limited upward momentum, while the high P/E ratio raises valuation concerns. The latest earnings call provides optimism with significant financial and production improvements, but operational risks remain a point of caution.

Teck Resources (TECK.A) vs. S&P 500 (SPY)

Market Cap

C$24.29B

Dividend Yield1%

Average Volume (3M)2.07K

Price to Earnings (P/E)70.1

Beta (1Y)1.74

Revenue Growth-22.39%

EPS Growth-77.05%

CountryCA

Employees7,200

SectorBasic Materials

Sector Strength63

IndustryIndustrial Materials

Share Statistics

EPS (TTM)0.60

Shares Outstanding7,599,532

10 Day Avg. Volume784

30 Day Avg. Volume2,072

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$72.00

Price Target Upside47.12% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Teck Resources Business Overview & Revenue Model

Company DescriptionTeck Resources Limited (TECK.A) is a diversified natural resources company headquartered in Canada. The company is engaged in mining and mineral development, primarily focused on the production of copper, zinc, and steelmaking coal. Teck Resources operates through various segments, including copper, zinc, steelmaking coal, and energy, serving markets globally with a strong emphasis on sustainable and responsible resource development.

How the Company Makes MoneyTeck 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

Positive

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

Positive

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

Neutral

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
9.06B	15.01B	17.32B	13.48B	8.95B
	Gross Profit
1.61B	5.14B	8.57B	5.08B	1.33B
	EBIT
-9.00M	4.37B	6.99B	4.85B	438.00M
	EBITDA
1.78B	5.88B	8.44B	6.37B	648.00M
	Net Income Common Stockholders
406.00M	2.41B	3.32B	2.87B	-944.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.59B	744.00M	1.88B	1.43B	450.00M
	Total Assets
47.04B	56.19B	52.36B	47.37B	41.28B
	Total Debt
9.96B	11.09B	10.02B	9.33B	7.88B
	Net Debt
2.38B	10.35B	8.13B	7.90B	7.43B
	Total Liabilities
19.94B	27.90B	25.85B	23.59B	20.57B
	Stockholders Equity
26.08B	26.99B	25.47B	23.00B	20.04B
Cash Flow		Free Cash Flow
155.00M	-1.70B	2.52B	25.00M	-2.06B
	Operating Cash Flow
2.79B	4.08B	7.98B	4.74B	1.56B
	Investing Cash Flow
6.17B	-4.76B	-5.68B	-4.82B	-3.67B
	Financing Cash Flow
-2.56B	-469.00M	-1.99B	1.06B	1.53B

Teck Resources Technical Analysis

Technical Analysis Sentiment

Negative

Last Price48.94

Price Trends

50DMA

52.87

Negative

100DMA

56.58

Negative

200DMA

60.96

Negative

Market Momentum

MACD

-1.04

Negative

RSI

43.21

Neutral

STOCH

37.65

Neutral

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 48.94 is above the 20-day moving average (MA) of 48.04, below the 50-day MA of 52.87, and below the 200-day MA of 60.96, indicating a bearish trend. The MACD of -1.04 indicates Negative momentum. The RSI at 43.21 is Neutral, neither overbought nor oversold. The STOCH value of 37.65 is Neutral, 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 (49)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AFM	73 Outperform	C$1.17B	8.50	30.99%	9.78%	86.03%	117.03%
IVN	69 Neutral	$18.61B	31.19	9.67%	―	―	137.28%
ALS	66 Neutral	C$1.23B	11.95	19.20%	1.35%	-27.13%	987.10%
TECK.A	61 Neutral	C$24.29B	70.09	1.40%	1.00%	-22.39%	-77.05%
SKE	52 Neutral	C$2.06B	―	-141.24%	―	―	-19.29%
Sector *	49 Neutral	$1.96B	-1.23	-21.20%	3.72%	0.95%	-28.96%
FOM	46 Neutral	C$1.45B	―	-3.01%	―	―	8.92%

* Basic Materials Sector Average

Performance Comparison

TSE:TECK.A

Teck Resources

47.21

-19.47

-29.20%

TSE:IVN

Ivanhoe Mines

12.98

-6.90

-34.71%

TSE:AFM

Alphamin Resources

0.93

-0.18

-16.22%

TSE:FOM

Foran Mining

3.45

-0.68

-16.46%

TSE:SKE

Skeena Resources

17.59

11.07

169.79%

TSE:ALS

Altius Minerals

26.43

4.94

22.99%

Teck Resources Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q1-2025)

% Change Since: -1.33%|

Next Earnings Date:Jul 24, 2025

Earnings Call Sentiment Positive

The earnings call highlighted significant financial growth and production increases, especially in the copper and zinc segments. However, operational challenges at QB and external factors like power outages and geopolitical tensions present notable risks. The company maintains a strong financial position and continues to return capital to shareholders, supporting a positive long-term outlook.

Q1-2025 Updates

Positive Updates

Record EBITDA Growth

Adjusted EBITDA more than doubled to $927 million in Q1 2025, primarily driven by higher commodity prices and increased sales volumes.

Copper Production Increase

Copper production increased by 7% to 106,000 tons due to improved grades and throughput at Highland Valley and Carmen de Andacollo.

Strong Financial Position

Teck Resources ended the quarter with a net cash position of $764 million and liquidity of $10 billion.

Successful Completion of QB Project Testing

The QB project successfully met the completion testing requirements under the $2.5 billion US project finance facility, confirming its robustness.

Ongoing Capital Returns

Cash returns to shareholders reached $568 million year to date through share buybacks and dividends.

Improved Zinc Profitability

Gross profit before depreciation and amortization from the zinc segment increased by 79% due to higher zinc prices and strong sales volumes.

Negative Updates

Production Delays at QB

QB's production was impacted by extended shutdowns for maintenance and external factors like a nationwide power outage in Chile.

Tailings Management Challenges

Development of the tailings management facility at QB was delayed due to challenging weather and slower-than-expected drainage times.

Fatality at Antamina

A fatality occurred at Antamina, which Teck Resources holds a non-operating interest in.

Company Guidance

In the first quarter of 2025, Teck Resources Limited reported significant financial and operational improvements. The company's adjusted EBITDA more than doubled compared to the previous year, reaching $927 million, driven by higher commodity prices and increased copper sales volumes. Teck maintained a strong balance sheet with $764 million in net cash and $10 billion in liquidity. Copper production is projected to grow to between 490,000 and 565,000 tons for the full year, with expectations for net cash unit costs to decrease to between $1.65 and $1.95 per pound. The company's active share buyback program and dividend payments have returned $568 million to shareholders year to date. Safety performance was highlighted with a low high potential incident frequency rate of 0.05, although a recent fatality at a non-operated interest site was noted. The company continues to focus on copper growth projects, aiming for potential sanction decisions on several projects by late 2025, underpinned by a robust capital allocation framework that balances investment in growth with returns to shareholders.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.