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Teck Resources (TSE:TECK.B)
TSX:TECK.B
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Teck Resources
(TSX:TECK.B)
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Rating:61Neutral
Price Target:
C$57.00
▼(-1.30% Downside)
Teck Resources' overall stock score is driven by a mix of financial challenges and positive earnings call insights. The company's declining revenue and profitability pressures weigh heavily, while technical indicators suggest potential short-term volatility. Despite a strong earnings call performance, high valuation metrics raise concerns about the stock's current pricing.
Positive Factors
Negative Factors
Teck Resources (TECK.B) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$27.20B
Dividend Yield0.86%
Average Volume (3M)1.85M
Price to Earnings (P/E)129.5
Beta (1Y)1.65
Revenue Growth-36.04%
EPS Growth-84.78%
CountryCA
Employees7,200
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)0.38
Shares Outstanding481,300,000
10 Day Avg. Volume2,196,590
30 Day Avg. Volume1,846,739
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 Cap1.21
Enterprise Value/Revenue3.31
Enterprise Value/Gross Profit16.27
Enterprise Value/Ebitda12.40
Forecast
1Y Price Target
$62.94Price Target Upside8.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
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 through the sale of its core products: copper, zinc, and metallurgical coal. The company profits by selling these commodities to various industries, including construction, automotive, and steelmaking. Key revenue streams include the sale of mined metals and minerals, which are influenced by global market prices. Additionally, Teck has established significant partnerships and joint ventures that enhance its operational efficiency and market reach. The company also focuses on cost management and operational excellence to maximize profitability. Fluctuations in commodity prices, changes in demand from industrial sectors, and regulatory factors are critical to Teck's financial performance.
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 several positive aspects, including improved profitability, strong zinc segment performance, significant shareholder returns, and a solid financial position. However, there were notable challenges such as the revision of QB's production outlook, ongoing TMF development issues, and a shiploader outage at QB. The call also addressed the fatality at Antamina and an increase in capital expenditure for Highland Valley's extension project.Q2-2025 Updates
Positive Updates
Improved Profitability
Profitability improved compared to the same period last year to $722 million of adjusted EBITDA.
Zinc Segment Performance
Strong performance in the zinc segment with Red Dog sales above guidance and significant improvement in zinc net cash unit costs.
Highland Valley Copper Mine Life Extension
The Board has sanctioned the Highland Valley Copper Mine Life Extension project, which is foundational to doubling copper production by the end of the decade.
Shareholder Returns
Returned $1.1 billion to shareholders year-to-date through dividends and share buybacks, with 70% of the $3.25 billion buyback completed.
Recognition for Sustainability
Named as one of Corporate Knights' 2025 Best 50 Corporate Citizens in Canada for the 19th consecutive year.
Solid Financial Position
Strong balance sheet with $8.9 billion in liquidity, including $4.8 billion in cash.
Negative Updates
QB Production Outlook Revision
Revised QB production outlook to 210,000 tonnes to 230,000 tonnes for the year due to TMF development work and potential external factors.
Ongoing TMF Development Work
TMF development work at QB impacted mill online time, with ongoing initiatives needed to improve sand dredging rates and accelerate sand movement.
Shiploader Outage at QB
Outage of the shiploader at QB's port facility, expected to extend into the first half of 2026, resulting in alternative sales logistics and incremental costs.
Fatality at Antamina
A fatality occurred on April 22 at Antamina, in which Teck holds a noncontrolling interest.
CapEx Increase for Highland Valley
Capital estimate for the Highland Valley Copper Mine Life Extension project increased to CAD 2.1 billion to CAD 2.4 billion due to various factors.
Company Guidance
During Teck's second quarter 2025 earnings call, CEO Jonathan Price provided guidance on several key metrics. The company reported an adjusted EBITDA of $722 million, driven by strong performance in the zinc segment and improved profitability at Trail operations. Teck's Red Dog sales exceeded expectations, and zinc net cash unit costs showed significant improvement. The company revised its annual production outlook for its Quebrada Blanca (QB) operations to 210,000-230,000 tonnes due to ongoing tailings management facility (TMF) development work. Teck sanctioned the Highland Valley Copper Mine Life Extension project, aiming to double copper production by the decade's end, with an expected average annual production of 132,000 tonnes. The company returned $487 million to shareholders during the quarter through share buybacks, bringing the year-to-date total to $1.1 billion. Teck maintained a strong balance sheet with $8.9 billion in liquidity, including $4.8 billion in cash, while also acknowledging the challenges faced with QB's shiploader repairs and TMF development.Teck Resources Financial Statement Overview
Summary
Teck Resources faces challenges with declining revenue and profitability pressures. While the balance sheet remains stable with moderate leverage, cash flow management requires attention due to negative free cash flow. The company needs to focus on improving revenue growth and operational efficiency to enhance financial performance.Income Statement
Teck Resources has shown a decline in revenue over the TTM, with a negative revenue growth rate of -15.67%. The gross profit margin stands at 20.36%, and the net profit margin is relatively low at 2.77%, indicating pressure on profitability. The EBIT and EBITDA margins are 8.52% and 26.70%, respectively, showing some operational efficiency. However, the declining revenue trend is a concern.65
Positive
Balance Sheet
The company maintains a moderate debt-to-equity ratio of 0.39, suggesting a balanced approach to leverage. Return on equity is low at 1.09%, reflecting challenges in generating returns for shareholders. The equity ratio is not provided, but the overall balance sheet indicates stability with room for improvement in profitability.70
Positive
Cash Flow
Operating cash flow is positive, but free cash flow is negative, indicating potential liquidity challenges. The operating cash flow to net income ratio is 0.36, suggesting limited cash generation relative to net income. The free cash flow to net income ratio is negative, highlighting concerns over cash management and investment efficiency.55
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 | 2.66B | 1.92B | 6.15B | 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 | 7.74B | 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
Positive
57.75
Price Trends
48.87
Positive
50.43
Positive
53.43
Positive
Market Momentum
2.24
Negative
69.90
Neutral
63.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TECK.B, the sentiment is Positive. The current price of 57.75 is above the 20-day moving average (MA) of 52.91, above the 50-day MA of 48.87, and above the 200-day MA of 53.43, indicating a bullish trend. The MACD of 2.24 indicates Negative momentum. The RSI at 69.90 is Neutral, neither overbought nor oversold. The STOCH value of 63.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TECK.B.
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 |
|---|---|---|---|---|---|---|---|
73 Outperform | 1.20B | 7.35 | 30.21% | 7.45% | 73.61% | 119.38% | |
70 Neutral | 1.55B | 15.47 | 17.37% | 1.10% | -13.16% | 588.65% | |
69 Neutral | 19.12B | 34.89 | ― | ― | ― | 143.94% | |
65 Neutral | 28.24B | 130.12 | 1.13% | 0.85% | -36.04% | -84.78% | |
61 Neutral | $27.20B | 129.52 | 0.70% | 0.86% | -36.04% | -84.78% | |
52 Neutral | 3.00B | -17.24 | ― | ― | ― | -0.21% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
Performance Comparison
TSE:TECK.B
Teck Resources
57.75
-12.53
-17.83%
IVPAF
Ivanhoe Mines
10.14
-5.09
-33.42%
TSE:AFM
Alphamin Resources
0.94
-0.04
-4.08%
TSE:ALS
Altius Minerals
33.49
7.35
28.12%
TSE:SKE
Skeena Resources
26.08
14.51
125.41%
TSE:TECK.A
Teck Resources
55.90
-14.46
-20.55%
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.