Teck Resources (TECK.B) AI Stock Analysis

• Market Cap: C$33.29B
• Dividend Yield: 0.78%
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 23.2
• Beta (1Y): 1.81
• Revenue Growth: -29.29%
• EPS Growth: 178.41%
• Country: CA
• Employees: 7,200
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 1.37
• Shares Outstanding: 481,500,000
• 10 Day Avg. Volume: 1,522,371
• 30 Day Avg. Volume: 1,368,748
• PEG Ratio: 0.09
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 3.02
• P/FCF Ratio: -31.90
• 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$80.20
• Price Target Upside: 17.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 3.76
• Revenue Forecast (FY): C$12.78B

• Rating: 68 Neutral
• Price Target: C$74.00 ▲(8.73% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is driven by strong technical momentum and a constructive earnings update (merger-driven upside, improved profitability, and strong liquidity). These positives are moderated by cyclical and recently weaker/volatile cash flow and a relatively demanding valuation with a low dividend yield.

Positive Factors

Balance-sheet strength

Teck’s moderate leverage and sizable equity base provide durable financial flexibility across commodity cycles. A stronger balance sheet supports sustained capital investment, timing of large projects or M&A, and ability to absorb downturns without forcing asset sales or deep financing concessions.

Merger with Anglo American

The merger fundamentally reshapes Teck’s scale and commodity mix, materially increasing copper capacity and producing multi-year EBITDA uplift plus recurring synergies. This structural change enhances market position, diversification, and bargaining power with customers and suppliers over the next decades.

Highland Valley life extension

Extending mine life secures a long-duration production base and predictable output from a core asset, reducing near-term replacement capex needs. A confirmed operating horizon to 2046 supports long-term planning, reserves longevity and stable future cash generation potential.

Negative Factors

Free-cash-flow volatility

Highly variable free cash flow undermines sustained internal funding for capex, dividends or debt reduction. This cyclicality means Teck must rely on discretionary policy or external financing during weak periods, constraining strategic optionality and increasing financing risk over multi-year horizons.

Earnings and margin cyclicality

Teck’s earnings are closely tied to commodity cycles, producing large year-to-year swings in profitability. This structural exposure complicates long-term forecasting, capital allocation, and returns consistency, making underlying operating performance sensitive to commodity price and demand shifts.

QB operational constraints

Operational limits at a major asset reduce achievable volumes and increase unit costs, delaying contribution to cash generation. Tailings and mill utilization issues can persist multi-year, potentially slowing realization of merger benefits and pressuring margins and near-term free cash flow.

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 makes money mainly by producing and selling mined commodities, with revenue largely determined by sales volumes and prevailing market prices. Key revenue streams include: - Steelmaking (metallurgical) coal sales: Teck produces metallurgical coal and sells it to steel producers. Revenue is generated through physical delivery contracts whose pricing is typically linked to benchmark/index prices and/or negotiated terms, so earnings fluctuate with coal price cycles and shipment volumes. - Base metals production and sales: Teck earns revenue from selling base metals and related products produced from its mining operations. Depending on the operation and product, sales can include concentrates and/or refined metal, with realized prices generally tied to global commodity benchmarks (and adjusted for quality, treatment/refining charges where applicable, and logistics). Additional factors affecting earnings: - By-products and co-products: Mining operations can generate additional payable metals/minerals alongside primary products; these contribute incremental revenue when sold. - Logistics and infrastructure interests: Where Teck has interests in transportation or terminal infrastructure associated with moving products to market, these assets support its ability to sell into export markets and can influence costs and reliability of shipments; specific standalone revenue from such interests is null. - Hedging and pricing mechanisms: Teck may use commodity price risk management and contract pricing mechanisms that can affect realized prices and timing of revenue recognition; specific hedging program details are null. Overall, Teck’s profitability is driven by commodity prices, production performance, operating and transportation costs, foreign exchange movements, and the ability to access export and end-use markets. Specific significant partnerships or customer concentration details are null.

Teck Resources Financial Statement Overview

Summary

Balance sheet strength (moderate leverage and sizable equity base) is a positive, but earnings and margins are highly cyclical and cash generation is uneven. Recent operating cash flow and free cash flow weakness/volatility (including negative FCF again in 2025) meaningfully reduce the score despite improved 2025 profitability.

Income Statement

Revenue has been volatile—strong growth in 2021–2022, followed by declines in 2023–2024, and a modest rebound in 2025. Profitability shows a similar cycle: very strong margins in 2021–2022, a sharp step-down in 2023, near-breakeven operating performance in 2024, and improved earnings again in 2025. Strength: the business has demonstrated an ability to generate substantial profits in upcycles. Weakness: earnings and margins are highly cyclical with meaningful year-to-year swings.

Balance Sheet

Leverage looks manageable for the period shown, with debt consistently well below equity (debt-to-equity around ~0.38–0.41 in 2021–2024), providing balance-sheet flexibility. Equity remains substantial despite earnings volatility, and total assets are large relative to debt. Strength: moderate leverage and a sizable equity base. Weakness: returns on equity have been inconsistent—strong in 2021–2022, weaker in 2023, and low in 2024—highlighting sensitivity to commodity/price cycles.

Cash Flow

Cash generation has been inconsistent. Operating cash flow was strong in 2021–2023 (and especially 2022) but fell notably in 2024 and again in 2025. Free cash flow is particularly volatile, swinging from strongly positive in 2022 to negative in 2020 and 2023, modestly positive in 2024, and negative again in 2025—suggesting a combination of cyclicality and/or heavy investment periods. Strength: the company can produce significant cash in favorable conditions. Weakness: uneven free cash flow and weaker recent operating cash flow reduce near-term financial flexibility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.76B	9.06B	15.01B	17.32B	13.48B
Gross Profit	2.35B	1.61B	5.14B	8.57B	5.08B
EBITDA	3.67B	1.92B	5.97B	8.44B	6.37B
Net Income	1.40B	406.00M	2.41B	3.32B	2.87B
Balance Sheet
Total Assets	45.44B	47.04B	56.19B	52.36B	47.37B
Cash, Cash Equivalents and Short-Term Investments	5.01B	7.59B	744.00M	1.88B	1.43B
Total Debt	9.61B	9.96B	11.09B	10.02B	9.33B
Total Liabilities	19.43B	19.94B	27.90B	25.85B	23.59B
Stockholders Equity	25.10B	26.08B	26.99B	25.47B	23.00B
Cash Flow
Free Cash Flow	-1.02B	155.00M	-1.70B	2.52B	25.00M
Operating Cash Flow	1.04B	2.79B	4.08B	7.98B	4.74B
Investing Cash Flow	-2.00B	6.17B	-4.76B	-5.68B	-4.82B
Financing Cash Flow	-1.32B	-2.56B	-469.00M	-1.99B	1.06B

Teck Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 68.06
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TECK.B, the sentiment is Negative. The current price of 68.06 is below the 20-day moving average (MA) of 76.70, below the 50-day MA of 74.67, and above the 200-day MA of 59.56, indicating a neutral trend. The MACD of -1.70 indicates Positive momentum. The RSI at 36.23 is Neutral, neither overbought nor oversold. The STOCH value of 33.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TECK.B.

Teck Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AFM	73 Outperform	C$1.47B	7.36	49.14%	9.17%	34.89%	67.31%
TECK.B	68 Neutral	C$33.29B	23.18	5.59%	0.78%	-29.29%	178.41%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IVN	53 Neutral	$17.74B	58.54	5.71%	―	―	97.71%
LAC	52 Neutral	$1.70B	-1.72	-41.06%	―	―	-465.27%
SKE	50 Neutral	C$5.18B	-20.03	-131.76%	―	―	44.04%
AII	48 Neutral	C$7.09B	13.66	-108.87%	―	7.50%	-508.68%