Teck Resources (TECK.B) AI Stock Analysis

• Market Cap: $27.67B
• Dividend Yield: 1.21%
• Average Volume (3M): 1.63M
• Price to Earnings (P/E): 77.9
• Beta (1Y): 1.69
• Revenue Growth: -22.39%
• EPS Growth: -77.05%
• Country: CA
• Employees: 7,200
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Industrial Materials
• EPS (TTM): 0.60
• Shares Outstanding: 490,400,000
• 10 Day Avg. Volume: 1,951,673
• 30 Day Avg. Volume: 1,632,843
• PEG Ratio: 0.49
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.86
• 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: $64.38
• Price Target Upside: 13.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 65 Neutral
• Price Target: C$56.00 ▼(-1.06%Downside)

Teck Resources has shown strong operational performance and financial resilience, with robust revenue growth and a solid balance sheet. However, liquidity concerns due to negative free cash flows and high valuation metrics limit the overall score. The positive earnings call further supports confidence in ongoing profitability improvements.

Positive Factors

Copper Growth

Higher volumes and relatively high prices in copper are expected to lead to strong financial results.

Earnings

Teck Resources reported significantly better-than-expected performance due to operational improvements and good performance at key assets.

Shareholder Returns

Teck Resources has a strong organic growth pipeline and meaningful shareholder returns, supporting the Buy rating and $55 target.

Negative Factors

Guidance Risks

There is a heightened risk of an eventual cut to QB2 guidance, which could remain a near-term overhang.

Production Delays

Production was negatively impacted by extended maintenance outages, challenging weather, and a nationwide power outage, leading to delays in the required lifts for the development of the Tailings Management Facility.

Production Guidance

Teck has lowered its 2025 production guidance for several key operations, including QB, HVC, Carmen, and Red Dog.

Teck Resources Business Overview & Revenue Model

Company Description

Teck Resources Limited (TECK.B) is a diversified natural resources company headquartered in Vancouver, Canada. It is engaged in mining and mineral development with operations and projects in Canada, the United States, Chile, and Peru. The company primarily produces steelmaking coal, copper, and zinc, and it also has investments in energy assets. Teck Resources is committed to responsible mining practices and sustainable resource development.

How the Company Makes Money

Teck Resources generates revenue through the extraction, production, and sale of natural resources, primarily focusing on steelmaking coal, copper, and zinc. The company's revenue model involves mining these raw materials from its various operations and selling them to industrial customers worldwide. Steelmaking coal, used in the production of steel, remains a significant contributor to its earnings. Copper, essential for electrical applications and infrastructure, and zinc, used for galvanization and other industrial purposes, also form substantial parts of its revenue streams. Teck Resources' earnings are influenced by commodity prices, production volumes, and operational efficiencies. Additionally, the company benefits from strategic partnerships and joint ventures in certain projects, which can enhance its production capacity and market reach.

Teck Resources Financial Statement Overview

Summary

Teck Resources demonstrates mixed financial performance with strong revenue growth and operational efficiency. However, there are concerns about profitability margins and negative free cash flow, indicating potential liquidity issues. The balance sheet is robust with low leverage, providing financial stability.

Income Statement

Teck Resources shows a mixed performance in its income statement. The TTM data indicates a gross profit margin of 22.37%, a net profit margin of 3.67%, and an EBIT margin of 9.48%. These margins suggest moderate profitability. However, the revenue growth rate from 2024 to TTM is a robust 30.23%, highlighting significant revenue expansion after a downturn in 2024. The EBITDA margin at 30.62% is strong, indicating efficient operations despite the challenges faced. While the revenue trajectory is positive, net income fluctuations and declining margins from earlier years present a concern for profitability stability.

Balance Sheet

The balance sheet of Teck Resources is relatively strong. The debt-to-equity ratio stands at 0.38, reflecting a conservative use of leverage. The TTM return on equity is 1.68%, indicating modest returns on shareholders' equity. The equity ratio is 56.28%, suggesting a strong reliance on equity financing and a solid financial foundation. The stability in equity position and manageable debt levels are positives, though ROE could be improved for better shareholder returns.

Cash Flow

Teck Resources' cash flow performance is mixed. The operating cash flow to net income ratio is 4.38, showcasing strong cash generation relative to net income. However, the free cash flow to net income ratio is negative, indicating challenges in maintaining free cash flow after capital expenditures. The free cash flow growth rate from 2024 to TTM is concerning at -643.23%, pointing to significant cash flow difficulties. The robust operating cash flow is a positive, but negative free cash flows highlight potential liquidity issues.

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	3.62B	1.78B	6.15B	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	7.04B	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: Positive
• Last Price: 56.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 56.6 is above the 20-day moving average (MA) of 52.62, above the 50-day MA of 50.67, and below the 200-day MA of 58.62, indicating a neutral trend. The MACD of 0.94 indicates Negative momentum. The RSI at 63.13 is Neutral, neither overbought nor oversold. The STOCH value of 78.78 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AFM	77 Outperform	C$1.04B	7.22	29.84%	14.29%	76.60%	107.92%
ALS	70 Outperform	C$1.25B	12.24	19.46%	1.83%	-16.14%	1038.04%
IVN	69 Neutral	$13.75B	23.55	9.67%	―	―	137.28%
TECK.A	68 Neutral	C$27.67B	78.53	1.40%	1.21%	-22.39%	-77.05%
TECK.B	65 Neutral	$27.67B	77.87	1.32%	1.21%	-22.39%	-77.05%
SKE	52 Neutral	C$2.38B	―	-137.38%	―	―	-19.29%
Sector *	43 Neutral	AU$1.38B	-6.10	-40.62%	4.25%	-4.78%	-43.21%