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Teck Resources (TSE:TECK.B)
TSX:TECK.B
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Teck Resources
(TSX:TECK.B)
57Neutral
Positive Factors
Financial Performance
Teck has a strong balance sheet after having completed the sale of EVR to Glencore for US$7.3bn.
Shareholder Returns
Teck is delivering large capital returns, having returned more than C$1.3bn to shareholders via dividends and buybacks so far this year.
Negative Factors
Operational Challenges
Teck reported inline results but lowered copper production guidance for 2024 and 2025 as the QB2 ramp continues to progress slower than had been expected.
Production Guidance
Teck has been consistently missing and lowering production guidance at QB2 for over two years, which has been a clear overhang on Teck's shares.
Teck Resources (TECK.B) vs. S&P 500 (SPY)
Market Cap
$23.47B
Dividend Yield1.07%
Average Volume (3M)1.66M
Price to Earnings (P/E)74.2
Beta (1Y)1.79
Revenue Growth-10.03%
EPS Growth-86.30%
CountryCA
Employees7,200
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)0.45
Shares Outstanding494,887,270
10 Day Avg. Volume2,391,368
30 Day Avg. Volume1,663,136
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 Target
C$68.15Price Target Upside45.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
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 primarily through the extraction, production, and sale of base metals and coal. The company's key revenue streams include the sale of copper concentrates, metallurgical coal, and refined zinc products. Copper is a major driver of revenue, benefiting from its wide application in electrical equipment and construction. Metallurgical coal is sold to steel manufacturers worldwide, while zinc is supplied to galvanizing and alloy production industries. Teck Resources also has investments in energy assets, contributing to its financial performance. The company leverages long-term contracts and spot market sales to optimize its earnings, with partnerships in joint ventures and collaborations with other mining entities playing a significant role in its operational success.
Teck Resources Financial Statement Overview
Summary
Teck Resources faces challenges with declining revenue and profitability, as observed in the income statement metrics. The balance sheet remains stable, providing a solid foundation with manageable leverage. Cash flow metrics indicate strong cash generation capacity, though free cash flow has decreased. Overall, while the company maintains a strong balance sheet, profitability and revenue trends require attention.Income Statement
The income statement shows a decline in total revenue from $15.01 billion in 2023 to $9.07 billion in 2024, indicating a severe revenue contraction. Gross profit margin decreased from 34.24% in 2023 to 17.73% in 2024, and the net profit margin dropped significantly from 16.05% to 4.48%. EBIT margin is negative, reflecting operational challenges. Despite a positive EBITDA margin of 19.67%, the declining trend and negative EBIT margin highlight profitability issues.55
Neutral
Balance Sheet
The balance sheet remains relatively strong with a debt-to-equity ratio of 0.38, indicating moderate leverage. However, the return on equity (ROE) has dropped to 1.56%, reflecting reduced profitability. The equity ratio stands at 55.45%, suggesting a solid equity base relative to assets. Overall, the balance sheet reveals stability, but declining profitability is a concern.70
Positive
Cash Flow
Operating cash flow to net income ratio is favorable at 6.87, indicating strong cash generation relative to net income. However, free cash flow has decreased, with a significant drop in free cash flow growth rate, which is concerning. The free cash flow to net income ratio is 0.38, reflecting adequate cash conversion despite declining free cash flow.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 | 4.12B | 6.99B | 4.85B | 438.00M | EBITDA |
| 1.78B | 6.15B | 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 Technical Analysis
Negative
46.70
Price Trends
56.72
Negative
59.26
Negative
62.27
Negative
Market Momentum
-3.81
Positive
39.74
Neutral
40.39
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 46.7 is below the 20-day moving average (MA) of 53.17, below the 50-day MA of 56.72, and below the 200-day MA of 62.27, indicating a bearish trend. The MACD of -3.81 indicates Positive momentum. The RSI at 39.74 is Neutral, neither overbought nor oversold. The STOCH value of 40.39 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
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Performance Comparison
TSE:TECK.B
Teck Resources
46.82
-17.98
-27.74%
HBM
Hudbay Minerals
6.91
-0.73
-9.55%
LUNMF
Lundin Mining
7.72
-3.11
-28.72%
IVPAF
Ivanhoe Mines
8.69
-5.08
-36.89%
CSCCF
Capstone Copper
4.36
-2.31
-34.63%
FQVLF
First Quantum Minerals
11.85
1.09
10.13%
Teck Resources Earnings Call Summary
Earnings Call Date: Oct 23, 2025 | % Change Since: -22.90% | Next Earnings Date: Feb 19, 2026
Earnings Call Sentiment Positive
Teck Resources Limited had a strong year with significant advancements in its transformation strategy, robust financial performance, and record copper production. Despite some challenges in zinc production and potential tariff impacts, the company's overall outlook remains positive, with strategic growth in copper and strong shareholder returns.Highlights
Transformation and Strategic Shift
Teck Resources Limited transitioned to a pure-play energy transition metals company by completing the sale of its steelmaking coal business for $8.6 billion. This enabled a significant cash return to shareholders and strengthened the balance sheet.
Strong Financial Performance
In 2024, Teck Resources Limited returned $1.8 billion in cash to shareholders, reduced debt by $2.5 billion, and maintained $11.3 billion in liquidity. Adjusted EBITDA doubled to $2.9 billion, and corporate costs were reduced by 21%.
Record Copper Production
Annual copper production increased by 50% to 446,000 tons, with continued growth expected. QB ramped up to design throughput rates, contributing to record copper production in three consecutive quarters.
Zinc Segment Performance
Red Dog increased zinc in concentrate production while reducing costs. Zinc sales volumes increased by 24% in Q4, driven by strong sales from Red Dog.
Cash Returns and Share Buybacks
Teck Resources Limited returned a total of $1.8 billion to shareholders in 2024, including $549 million in Q4. The company authorized $3.25 billion in share buybacks, with $1.8 billion remaining for future buybacks.
Sustainability and Recognition
Teck Resources Limited released its 2024 climate change and nature report and was named one of Canada's top 100 employers and one of the world's top companies for women.
Positive Outlook for Copper Growth
Copper production is expected to grow to 490,000 to 565,000 tons in 2025, with a reduction in net cash unit cost and improved EBITDA margins.
Lowlights
Challenges in Zinc Production
Zinc in concentrate production is expected to decrease in 2025 due to the advancing mine life at Red Dog. Net cash unit costs in the zinc segment are expected to increase due to lower production and higher labor costs.
Operational Challenges at Trail
Trail operations faced challenges with refined zinc production due to a fire in the electrolytic plant. Production rates are expected to be lower in 2025, impacting cash flow negatively.
Potential Tariff Impacts
Teck Resources Limited is closely monitoring potential tariffs between the US and Canada, which could impact trade flows, particularly for Trail's refined products.
Company Guidance
In the fourth quarter of 2024, Teck Resources Limited reported substantial progress and financial performance, marked by significant metrics. The company completed the sale of its steelmaking coal business, repositioning as a pure-play energy transition metals company with a focus on copper and zinc. This transaction generated $8.6 billion, leading to a historic return of $1.8 billion in cash to shareholders, including $514 million in dividends and $1.25 billion in share buybacks. Teck reduced its debt by $2.5 billion and maintained $11.3 billion in liquidity, including $7.1 billion in cash. The company achieved a record 446,000 tons in annual copper production, contributing to a doubled adjusted EBITDA of $2.9 billion for the year. Cost management led to a 21% reduction in corporate costs, saving $88 million. Teck also set a new quarterly copper production record and reported a 160% increase in adjusted EBITDA for Q4 to $835 million. The company's outlook for 2025 includes further growth in copper production to 490-565 thousand tons, a reduction in copper net cash unit costs to $1.65-$1.95 per pound, and continued shareholder returns, demonstrating their strong financial positioning and strategic execution.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.