Teck Resources (TECK.B) AI Stock Analysis

• Market Cap: C$33.59B
• Dividend Yield: 0.78%
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): 23.2
• Beta (1Y): 1.83
• 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: 1,461,853
• 30 Day Avg. Volume: 1,345,333
• 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$80.46
• Price Target Upside: 17.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 3.76
• Revenue Forecast (FY): C$12.75B

• Rating: 68 Neutral
• Price Target: C$75.00 ▲(9.25% 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

Strategic merger and scale

The announced merger with Anglo American materially increases Teck's scale in copper and critical minerals, creating a top-five copper producer. The expected multi-year ~ $1.4bn EBITDA uplift and scale diversification are structural, improving long-term cash generation resilience and strategic optionality.

Balance-sheet flexibility

Moderate leverage and a sizable equity base give Teck enduring financial flexibility to fund capex, sustain operations through commodity cycles, and absorb shocks. This balance-sheet strength supports investment in projects, merger execution, and liquidity access over a multi-year horizon.

Long-life, lower-carbon assets

Reaching 100% renewable power and approving Highland Valley life extension to 2046 improve long-term cost and emissions profiles and secure a multi-decade production base. These structural moves support sustainability credentials and reduce operational exposure to conventional energy price swings.

Negative Factors

Cyclical revenue and margins

Teck's top-line and margins swing with commodity cycles, producing uneven earnings across years. This structural cyclicality makes forward cash flows and return on capital hard to predict, complicates capital allocation decisions, and increases sensitivity to prolonged commodity downturns.

Volatile free cash flow

Repeated swings into negative free cash flow reduce internal funding available for growth, dividends or deleveraging. Even with capacity to generate strong cash in upcycles, persistent volatility limits multi-year planning and can force reliance on external financing during weak commodity periods.

Operational constraints at QB

Ongoing tailings management work at QB has structurally constrained throughput and raised unit costs, reducing near-term copper output and margin contribution. Prolonged operational constraints can delay payoff from copper growth initiatives and limit the company's ability to fully capture merger-related 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 generates revenue primarily through the sale of its core products: copper, zinc, and metallurgical coal. The company sells these materials to customers in various sectors, including construction, manufacturing, and energy. Revenue is largely driven by global commodity prices, which can fluctuate based on market demand, geopolitical factors, and economic conditions. Additionally, Teck has established significant partnerships and joint ventures that enhance its operational efficiencies and expand its market reach. The company is also investing in growth opportunities, including exploration and development of new mining projects, which may contribute to future revenue streams. The diversification of its product offerings and its commitment to sustainable practices further support its financial performance and resilience in changing market conditions.

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: 68.65
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 68.65 is below the 20-day moving average (MA) of 78.98, below the 50-day MA of 74.25, and above the 200-day MA of 59.17, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 33.85 is Neutral, neither overbought nor oversold. The STOCH value of 12.97 is Positive, 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	77 Outperform	C$1.61B	6.34	33.87%	9.17%	34.89%	67.31%
TECK.B	68 Neutral	C$33.59B	23.18	5.49%	0.78%	-29.29%	178.41%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IVN	53 Neutral	C$18.78B	58.54	5.71%	―	―	97.71%
LAC	52 Neutral	C$1.74B	-1.72	-42.69%	―	―	-465.27%
SKE	50 Neutral	C$5.55B	-20.03	-131.76%	―	―	44.04%
AII	48 Neutral	C$6.69B	13.66	-57.75%	―	7.50%	-508.68%