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Teck Resources class A (TSE:TECK.A)
:TECK.A
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Teck Resources Limited
(TSX:TECK.A)
55Neutral
Teck Resources Limited (TECK.A) vs. S&P 500 (SPY)
Market Cap
C$21.42B
Dividend Yield1.14%
Average Volume (3M)2.69K
Price to Earnings (P/E)69.5
Beta (1Y)1.78
Revenue Growth-10.03%
EPS Growth-86.30%
CountryCA
Employees7,200
SectorBasic Materials
Sector Strength57
IndustryIndustrial Materials
Share Statistics
EPS (TTM)0.64
Shares Outstanding7,599,532
10 Day Avg. Volume2,529
30 Day Avg. Volume2,687
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.35
Price to Cash Flow (P/CF)19.10
P/FCF Ratio11.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Teck Resources Limited Business Overview & Revenue Model
Company DescriptionTeck Resources Limited is a Canadian diversified natural resource company engaged in the exploration, development, and production of various mineral resources. Its primary sectors include steelmaking coal, copper, zinc, and energy. Teck is one of the world's largest producers of steelmaking coal and is also involved in the production of copper and zinc, which are essential for a range of industrial applications. The company operates multiple mining sites in Canada, the United States, Chile, and Peru, and it is committed to sustainable resource development and environmental stewardship.
How the Company Makes MoneyTeck Resources Limited generates revenue through the extraction, production, and sale of resources such as steelmaking coal, copper, and zinc. The company's primary revenue streams come from selling these commodities to customers worldwide, including steel manufacturers, infrastructure developers, and technology companies that require these raw materials for their operations. Teck's earnings are heavily influenced by global commodity prices, demand in key markets, and operational efficiencies at its mining sites. The company also forms strategic partnerships and joint ventures to enhance its production capacity and expand market reach, contributing to its financial performance.
Teck Resources Limited Financial Statement Overview
Summary
Teck Resources Limited is facing financial challenges, particularly in declining revenue and profitability. The income statement reveals decreasing net profit margins and revenue. The balance sheet is stable, with moderate leverage, but the return on equity is low. The cash flow statement shows positive free cash flow growth, although limited relative to net income. Overall, the financial performance indicates a need for improved operational efficiency and profitability.Income Statement
The company's income statement reveals some challenges. Despite a gross profit margin of 17.7% in 2024, the net profit margin has decreased significantly to 4.5%, indicating profitability issues. Revenue has also declined by 39.6% from 2023 to 2024, showing a concerning downward trend. The negative EBIT margin of -0.1% suggests operational difficulties, although the EBITDA margin of 19.7% highlights some operational efficiency without considering depreciation and amortization.55
Neutral
Balance Sheet
The balance sheet presents a stable financial position with a debt-to-equity ratio of 38.2% in 2024, showing moderate leverage. The equity ratio stands at 55.4%, reflecting a solid equity base. However, the return on equity has dropped to 1.6%, which is significantly lower than in previous years, indicating reduced profitability relative to shareholder's equity.70
Positive
Cash Flow
The cash flow statement highlights a mixed performance. The free cash flow growth rate is positive at 109.1%, indicating improved cash availability. However, the operating cash flow to net income ratio of 6.9 implies a relatively high reliance on operating cash flows. The free cash flow to net income ratio of 0.4 suggests limited free cash flow generation relative to net income.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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 Limited Technical Analysis
Negative
43.75
Price Trends
58.09
Negative
60.25
Negative
62.84
Negative
Market Momentum
-1.23
Positive
35.06
Neutral
14.09
Positive
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 43.75 is below the 20-day moving average (MA) of 56.14, below the 50-day MA of 58.09, and below the 200-day MA of 62.84, indicating a bearish trend. The MACD of -1.23 indicates Positive momentum. The RSI at 35.06 is Neutral, neither overbought nor oversold. The STOCH value of 14.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TECK.A.
Teck Resources Limited Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $3.53B | 32.02 | 3.30% | 0.23% | 19.70% | 9.24% | |
64 Neutral | $8.24B | 25.63 | 0.24% | 3.88% | -2.71% | -188.94% | |
63 Neutral | $13.35B | ― | 0.02% | ― | -24.38% | 99.06% | |
60 Neutral | $4.36B | 37.88 | 2.90% | ― | 20.74% | ― | |
55 Neutral | C$21.42B | 69.47 | 1.27% | 1.14% | -10.03% | -86.30% | |
51 Neutral | C$13.89B | 47.69 | 5.25% | ― | ― | -33.54% | |
47 Neutral | $2.35B | -2.91 | -21.55% | 3.59% | 4.17% | -28.20% |
* Basic Materials Sector Average
Performance Comparison
TSE:TECK.A
Teck Resources Limited
43.23
-19.51
-31.10%
TSE:HBM
Hudbay Minerals
9.03
-1.08
-10.68%
TSE:CS
Capstone Copper
5.64
-3.37
-37.40%
TSE:FM
First Quantum Minerals
15.59
0.21
1.37%
TSE:IVN
Ivanhoe Mines
11.15
-6.11
-35.40%
TSE:LUN
Lundin Mining
9.69
-5.83
-37.57%
Teck Resources Limited Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -27.54% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
Teck Resources Limited had a strong financial and operational performance in 2024, highlighted by record copper production, significant cash returns to shareholders, and a substantial reduction in debt. Despite these achievements, the company faced challenges in the environmental permitting process for Highland Valley and underperformance at Trail operations. Overall, the significant positive achievements outweigh the challenges.Highlights
Record Copper Production
Teck Resources Limited set a record for annual copper production, with a 50% increase from the prior year to 446,000 tons.
Significant Cash Returns to Shareholders
The company returned $1.8 billion in cash to shareholders in 2024, including $514 million in dividends and $1.25 billion in share buybacks.
Strong Financial Performance
Adjusted EBITDA more than doubled to $2.9 billion in 2024, with a 160% increase to $835 million in the fourth quarter.
Debt Reduction
Teck Resources Limited reduced its debt by $2.5 billion in 2024 and was in a net cash position of $2.1 billion as of December 31, 2024.
Zinc Segment Growth
Gross profit before depreciation and amortization from the zinc segment more than doubled from the same quarter last year to $320 million, driven by higher zinc prices and strong Red Dog sales volumes.
Lowlights
Challenges in Permitting for Highland Valley
The environmental assessment process for the Highland Valley mine life extension faced challenges due to a dispute with an indigenous government organization, delaying the approval process.
Trail Operations Underperformance
Trail operations were impacted by a localized fire in September 2024, and are expected to operate at lower production rates in 2025 due to market conditions, leading to potential cash flow issues.
Company Guidance
During the fourth quarter of 2024, Teck Resources Limited achieved significant milestones in its financial and operational performance. The company reported an adjusted EBITDA of $835 million, marking a 160% increase compared to the same period in the previous year, contributing to a full-year adjusted EBITDA of $2.9 billion, more than double the prior year. This growth was driven by record copper production, which surged by 50% year-over-year to 446,000 tons, alongside a strong performance in zinc production at Red Dog, which improved net cash unit costs by 16 US cents per pound. Teck Resources Limited also returned $1.8 billion in cash to shareholders in 2024, initiated by $8.6 billion in proceeds from the sale of its steelmaking coal business. The company's balance sheet was further strengthened by reducing debt by $2.5 billion, resulting in a net cash position of $2.1 billion as of December 31, 2024, and maintaining $11.3 billion in liquidity. Looking forward to 2025, Teck Resources Limited projects an increase in copper production to a range of 490 to 565 thousand tons, with a significant reduction in copper net cash unit costs to $1.65 to $1.95 US dollars per pound, supported by continued ramp-up at its QB project in Chile and improved grades at Highland Valley.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.