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Teck Resources
(TSX:TECK.B)
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Rating:65Neutral
Price Target:
C$107.00
▲(8.10% Upside)
Action:Reiterated
Date:07/24/26
The score is driven mainly by a solid financial rebound supported by a healthy balance sheet, but tempered by weaker and volatile cash-flow conversion. Technical indicators point to neutral-to-soft near-term momentum despite longer-term trend support. Valuation is only fair for a cyclical and the dividend is minimal, while the earnings call added a meaningful positive boost due to strong quarterly execution and reaffirmed guidance, partially offset by TMF, commodity/energy, and merger/regulatory risks.
Positive Factors
Strong profitability and revenue rebound
Healthy TTM margins and a meaningful revenue rebound indicate strong operating leverage and improved demand across the portfolio. This profitability provides greater capacity to fund mine development, absorb cost pressure, and support competitiveness over the next several quarters.
Negative Factors
Volatile cash-flow conversion
Although cash flow recently improved, weak conversion from reported earnings and large historical swings show that profitability does not consistently become discretionary cash. Working-capital needs and reinvestment can therefore constrain funding flexibility through weaker commodity cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and revenue rebound
Healthy TTM margins and a meaningful revenue rebound indicate strong operating leverage and improved demand across the portfolio. This profitability provides greater capacity to fund mine development, absorb cost pressure, and support competitiveness over the next several quarters.
Read all positive factors
Teck Resources (TECK.B) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$46.90B
Dividend Yield0.5%
Average Volume (3M)1.03M
Price to Earnings (P/E)19.4
Beta (1Y)2.00
Revenue Growth40.51%
EPS Growth1088.57%
CountryCA
Employees7,429
SectorBasic Materials
Sector Strength58
IndustryCopper
Share Statistics
EPS (TTM)5.10
Shares Outstanding483,000,000
10 Day Avg. Volume1,159,701
30 Day Avg. Volume1,033,724
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)1.29
Price to Sales (P/S)3.02
P/FCF Ratio-31.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$87.49Price Target Upside-11.61% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)5.94
Revenue Forecast (FY)C$15.06B
Teck Resources Business Overview & Revenue Model
Company Description
Teck Resources Limited, a Vancouver-headquartered Canadian corporation established in 1913 (and known as Teck Cominco Limited until its 2009 rebranding), stands as a significant entity in the natural resources industry. The company's global operat...
How the Company Makes Money
Teck Resources makes money primarily by producing and selling mined commodities—mainly copper, zinc, and steelmaking coal—into global markets. Revenue is generated through: (1) Copper sales: Teck earns revenue by mining copper-bearing ore, process...
Teck Resources Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call presented a strong quarter with materially improved earnings, cash generation, margins, and production growth—driven by higher commodity prices, operational stability (notably at QB), and disciplined cost control. The company also strengthened its balance sheet and advanced major projects (Highland Valley) and TMF milestones, while progressing merger and integration planning. Key risks discussed include continued TMF work (and potential incremental capital), energy and byproduct price volatility, planned second-half shutdowns and grade variability, and the remaining regulatory timing for the merger. On balance, the positive operational and financial results substantially outweigh the challenges and uncertainties highlighted.Positive Updates
Significant Earnings and Cash Generation
Adjusted EBITDA tripled year-over-year to $2.2 billion in Q2 2026; cash flow from operations of $1.7 billion during the quarter; adjusted EBITDA margin reached a record 61% (up from 36% in Q2 2025).
Negative Updates
Ongoing TMF Work and Potential Additional Capital
Further tailings management facility (TMF) work still required at QB; management is evaluating accelerating Rock Bench 6 which would cost approximately $100 million in 2026 if approved (commence late August/early September, complete by year-end).
Read all updates
Q2-2026 Updates
Positive
Negative
Significant Earnings and Cash Generation
Adjusted EBITDA tripled year-over-year to $2.2 billion in Q2 2026; cash flow from operations of $1.7 billion during the quarter; adjusted EBITDA margin reached a record 61% (up from 36% in Q2 2025).
Read all positive updates
Company Guidance
Management reiterated no change to previously disclosed 2026 guidance and reiterated numeric targets: copper production 455,000–530,000 t (vs 454,000 t in 2025); zinc in‑concentrate 410,000–460,000 t and refined zinc 190,000–230,000 t; Highland Valley project capex $900–1,200 million in 2026 and $2.1–2.4 billion over the life of the project (Q2 project spend $254 million); copper business capitalized stripping $450–550 million; QB delivered 55.8 kt Cu in Q2 (vs 52.7 kt Y/Y) with no TMF‑related downtime in three quarters, Rock Bench 5 completed, secondary sand cyclone targeted by year‑end and a potential Rock Bench 6 acceleration (~$100 million capex) under consideration; company financial context included Q2 adjusted EBITDA $2.2 billion (company adjusted EBITDA margin 61%; copper 70%, zinc 38%), net cash up $756 million in the quarter to $1.2 billion, and liquidity of $10.3 billion (including $6.1 billion cash).Teck Resources Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
72
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.99B | 10.76B | 9.06B | 15.01B | 17.32B | 13.48B |
| Gross Profit | 4.89B | 2.35B | 1.61B | 5.14B | 8.57B | 5.08B |
| EBITDA | 6.12B | 3.67B | 1.92B | 5.97B | 8.44B | 6.37B |
| Net Income | 2.50B | 1.40B | 406.00M | 2.41B | 3.32B | 2.87B |
Balance Sheet | ||||||
| Total Assets | 48.05B | 45.44B | 47.04B | 56.19B | 52.36B | 47.37B |
| Cash, Cash Equivalents and Short-Term Investments | 6.05B | 5.01B | 7.59B | 744.00M | 1.88B | 1.43B |
| Total Debt | 9.79B | 9.61B | 9.96B | 11.09B | 10.02B | 9.33B |
| Total Liabilities | 19.46B | 19.43B | 19.94B | 27.90B | 25.85B | 23.59B |
| Stockholders Equity | 27.59B | 25.10B | 26.08B | 26.99B | 25.47B | 23.00B |
Cash Flow | ||||||
| Free Cash Flow | 1.52B | -1.02B | 155.00M | -1.70B | 2.52B | 25.00M |
| Operating Cash Flow | 4.20B | 1.04B | 2.79B | 4.08B | 7.98B | 4.74B |
| Investing Cash Flow | -2.52B | -2.00B | 6.17B | -4.76B | -5.68B | -4.82B |
| Financing Cash Flow | -621.00M | -1.32B | -2.56B | -469.00M | -1.99B | 1.06B |
Teck Resources Technical Analysis
Positive
98.98
Price Trends
87.88
Positive
86.98
Positive
78.38
Positive
Market Momentum
2.01
Positive
58.10
Neutral
31.54
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 98.98 is above the 20-day moving average (MA) of 93.55, above the 50-day MA of 87.88, and above the 200-day MA of 78.38, indicating a bullish trend. The MACD of 2.01 indicates Positive momentum. The RSI at 58.10 is Neutral, neither overbought nor oversold. The STOCH value of 31.54 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | C$1.93B | 7.53 | 47.01% | 11.33% | 45.38% | 86.16% | |
65 Neutral | C$46.90B | 19.40 | 9.62% | 0.50% | 40.51% | 1088.57% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | C$16.80B | 99.35 | 2.32% | ― | 168.44% | -66.54% | |
56 Neutral | C$5.74B | -21.92 | -166.74% | ― | ― | -36.42% | |
45 Neutral | C$1.50B | -7.63 | -9.05% | ― | ― | -107.51% |
* Basic Materials Sector Average
TSE:TECK.B
Teck Resources
99.25
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84.86%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.